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Default pricing strategies

In addition to using custom pricing strategies, you can use one of the four default strategies available in Monsoon Marketplace.

Description

When you set up your inventory group pricing, you can select from four default pricing strategies located on the Settings tab under Custom Strategies. The default strategies, displayed in green text in the price strategy box, are Lowest Price, Average of Lowest 3, Average of Lowest 5, and Fixed Price. These strategies are locked (can't be edited) and cover a range of selling approaches, from aggressive to conservative.

Note Consistent with other settings that can be set at both the item level and group level, a price strategy set at the item level (on the My Inventory or Inventory Receiving tab) overrides a price set at the group level (on the Settings tab under Inventory Pricing).

Glossary

Amazon target price

Before making any pricing calculations, Monsoon Marketplace first identifies an Amazon competitive offer listing (or average of competitive offer listings) according to the settings in your default pricing strategy or custom pricing strategy. Your system then uses this offer as your target price.

Amazon competitive offer listing (item price + shipping) = the target price used to price an item

If your pricing strategy is set up to price at the average of competitive offers, the average of competitive offers is used as your target price.

Competitive offer listing

Monsoon Marketplace uses Amazon's Subscriptions API notifications to provide fast, competitive repricing anytime one of the 20 lowest offers for an item you sell changes price.

A competitive offer listing is one that matches the criteria you've set up in your pricing strategy and is not sold by one of your ignored competitors. The competitive offer that's used to price your item is selected from the 20 lowest offers in an Amazon notification.

When an item's in New condition, it prices against the 20 lowest price offers in New condition.
When an item's in the Used condition group (Used - Like New, Used - Very Good, Used - Good, and Used - Acceptable), it prices against the 20 lowest price offers in Used condition.
When an item's Collectible check box is selected, it prices against the 20 lowest price offers in Collectible condition (Collectible - Like New, Collectible - Very Good, Collectible - Good, and Collectible - Acceptable).
When an item's in Refurbished condition, it prices against the 20 lowest price offers in Refurbished condition.

Read more about offer listings in the Amazon Help article The Offer Listing Page.

Condition

Monsoon supports the following Amazon condition groups: New, Used (Like New, Very Good, Good, and Acceptable), Collectible (Like New, Very Good, Good, and Acceptable), and Refurbished.

Notification (Amazon Subscriptions API notification)

A notification is a list of the 20 lowest price offer listings in the same condition group as an item that you sell. Notifications are sent for four different condition groups: New, Used (Like New, Very Good, Good, Acceptable), Collectible (Like New, Very Good, Good, Acceptable), and Refurbished.

Amazon sends a notification to Monsoon anytime one of the 20 lowest price offers for an item you sell changes price. It also sends a notification anytime there's a change to the list of sellers with the 20 lowest price offers.
Notifications are sent for listed (active) items only. If you're listing an item for the first time or you're relisting an item that was previously unlisted, your system looks for notification pricing from another Monsoon service. If pricing information isn't available, the item prices as described under Pricing when there are no competitive listings.

Lowest Price

When the Lowest Price strategy is applied, you price against the lowest price in a filtered list of offers in the same condition group as your item: New, Used, Collectible, or Refurbished. The lowest price is known as the target price.

Lowest Price is considered an aggressive pricing strategy characterized by fast inventory turn and highly competitive pricing.

Average of Lowest 3

When the Average of Lowest 3 strategy is applied, you price against the average of the three lowest competitive offer listings in a filtered list of offers in the same condition group as your item: New, Used, Collectible, or Refurbished.

Average of Lowest 3 is considered a moderate pricing strategy characterized by inventory turns slower than Lowest Price with higher total listing prices.

Average of Lowest 5

When the Average of Lowest 5 strategy is applied, you price against the average of the five lowest competitive offer listings in a filtered list of offers in the same condition group as your item: New, Used, Collectible, or Refurbished.

Average of Lowest 5 is considered a conservative pricing strategy characterized by inventory turns slower than Lowest Price and Average of Lowest 3 with the highest total listing prices.

Fixed Price

When the Fixed Price strategy is applied, your inventory does not dynamically reprice or interact with any market data such as Amazon Low Price.

Fixed Price should be selected as the pricing strategy for items that you don't want to dynamically reprice.