Is it really impossible to change prices on Amazon Vendor Central? We debunk the myth!

Managing prices on Amazon Vendor Central is a topic full of challenges and misunderstandings. Many sellers believe that changing prices is impossible or requires superhuman effort. Is this true? Not quite! With the right strategy and an understanding of the platform's processes, changing prices is not only possible but can become one of your key tools for increasing profitability.

Let’s start with the basics: what do you need to know about prices on Vendor Central?

The secret to managing prices: Cost price and list price with tax

Cost price – Your operating base

Cost price is one of the most important elements of your offer on Amazon Vendor Central. It is the price at which you sell your products directly to Amazon. To set it correctly, you must consider all the costs you incur – from production, through transportation, to logistics. Why is this so important? Because every penny that you don’t include can eat into your profit.

How to calculate it?

Material costs – Consider how much each component of your product costs, from raw materials to packaging.

Transport and logistics – Take into account the variable shipping costs, including any potential increases in fuel prices.

Fees arising from contracts – What percentage of sales revenue do you need to pay to Amazon under the contracts?

Your margin – This is your earnings, so don’t leave it to chance – include it consciously.

Cost price is not visible to customers, but it has a direct impact on your negotiating position with Amazon.

List price with TAX – the price visible to the customer

List price with TAX is the retail price visible on the product page. It includes:

Cost price as a base.

Amazon's pricing strategy, which analyses competition and demand.

VAT.

Here’s the first catch: Amazon has full control over setting the list price. Even if you change the cost price, the customer may not necessarily see the difference. Sounds unfair? Maybe so, but if you understand the mechanisms of this system, you can exploit it to your advantage.

How to change the cost price? Don’t be caught off guard!

Step 1: Preparing the Excel file

Amazon does not allow manual price changes. You must act through the bulk data update system. Download the template from Vendor Central and fill it out, including:

The new cost price.

The effective date of the change.

Optionally, the reason for the change (e.g., “Increase in transport costs by 10%”).

Step 2: Regularity is key

Amazon rarely accepts price changes the first time. What should you do? Do not give up! Upload the file every week – the more consistent you are, the greater the chance of acceptance.

Step 3: Monitor the results

After the change has been approved, check whether the new prices have appeared in the system. This helps to avoid misunderstandings and ensures control over the process.

What to do when Amazon says “no”?

Reduce the hike If your proposal for a 15% increase has been rejected, try with 5%. Amazon prefers gradual changes.

Add better justification Show Amazon that the increase is necessary. Rising raw material costs, logistics issues – all of this matters.

Keep trying Regularly uploading files increases your chances. Sales statistics change week by week, and with them your opportunities.

Cuts – quickly, but with pitfalls

Reducing prices is easier, but carries the risk of the Auto Price Protection (APP) mechanism. Here’s how this mechanism works:

APP allows Amazon to recover "lost profit" if the product has been purchased by Amazon at a higher price and then sold at a lower one.

If you disagree with the charges, you can file a dispute on the Vendor Central platform.

To prevent this:

Monitor every change.

File a dispute if charges are incorrectly applied.

Cost price vs. list price with tax: What are the differences?

FeatureCost priceList price with taxWho sets it?SellerAmazonWhat does it cover?Production costs and agreements with Amazon, transport, marginCost price, pricing strategy, VATIs it visible to the customer?NoYesAbility to change?Directly through Vendor CentralBy Amazon. A new price can be proposed, but there’s no guarantee that the Vendor will take it into account.

Example scenario: Changing prices based on rising transport costs

Imagine that transport costs have risen by 10%, and you want to update your prices on Vendor Central. What do you do?

You download the Excel template and enter the new prices, taking into account the increase in costs.

In the justification fields, you enter: “Transport”, “15%”, etc.

You submit the file and regularly monitor whether the change has been accepted.

If the change is rejected, decrease the increase to 5% and try again.

Summary: Understanding prices is crucial

Managing prices on Amazon Vendor Central is a demanding process, but feasible. The key is understanding the difference between cost price and list price with tax, effective communication with Amazon, and determination. With the right strategies, you can not only implement changes but also increase your profitability.

Why is it worth acting now?

Every week of delay is a potential loss. Your competitors are already adjusting their prices, and what about you? Use our tips and start acting. Changing prices on Amazon Vendor Central is not a lottery – it’s a thoughtful process that can increase your profits and market position.

Don’t let a lack of knowledge stifle your business growth. Act now before others overtake you!