The Reduced Profit Range (RPR)

In This Article

Overview

The following explains how the repricer is set to always keep users profitable in regard to Amazon referral fees. 

Reduced Profit Range

If an Amazon fee structure is in two steps, then it creates a pricing range that is less profitable to sell in. Take the example below; if you sell at $10 or less, you are charged 8% fees and if you sell at $10.01 or more, you will be charged 15% fees (minimum fee of $0.30).

  • * If an item is sold at $10, you are charged 8% fees, i.e. you are making $9.20.
  • * If selling at $10.01, you are charged 15% fees, i.e. you would make $8.51. Therefore, it would make more sense to sell at $10 (the lower boundary of the range) than at $10.01.
  • * If an item were to be sold at anywhere between $10.01 and $10.83, you would actually make less profit than if you sold at $10. We call this the "reduced profit range"

Seller Snap's AI and Win Buy Box repricing methods will automatically avoid setting prices in the "reduced profit range." This means that in cases where the repricer would have suggested $10.50, it would use $10 instead.

If SKUs have a price that falls within the Reduced Profit Range, users will see a warning symbol next to the listing:

NOTE: The following Fee Structure might be outdated as can change fees at their discretion:

Fee Structure Reduced Profit Range Category
8% up to $10
15% above $10
$10.01 - $10.83 

Baby & Beauty
Health & Personal Care
8% up to $15
15% above $15
$15.01 - $16.24 Grocery & Gourmet Food
15% up to $75
18% above $75
$75.01 - $77.75 Shoes, Handbags & Sunglasses
$0.80 below/equal to $5
$1.00 above $5
$5.01 - $5.23 Small & Light Listings
source: https://sellercentral.amazon.com/gp/help/external/200336920

Users may use a search filter to find these listings. by using the customizable filters to see if you have any min prices in the RPR ranges. If so, it is recommended to change your min price to just below the RPR.

Small & Light

Seller Snap's RPR also takes into account if a listing is set to Small & Light. 

If a listing is found to currently have a price within the Small & Light threshold, it will avoid the RPR that is unique to that Small & Light threshold. 

If a Small & Light listing were found to have a price beyond the threshold, a different set of fees that Amazon has provided will be used and the RPR for that fee structure will be used.

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