In mid-2019, Amazon launched the invite-only beta version of Sold by Amazon (SBA) Program to help sellers automate their listings and grow their business. At the end of 2019, Amazon made it available to all eligible sellers. Sellers who choose to use this new pricing program give Amazon permission to adjust their prices competitively on the platform.

How does the Sold by Amazon program works?

Sellers who opt to participate in this program need to set their preferred minimum profit threshold, also known as the Minimum Gross Proceed (MGP). This is basically the amount you need in order to make a profit on your goods.

Once the MGP is set, Amazon uses its dynamic pricing engine to recalculate prices in real-time. It alters the product prices to maximize the net margin while ensuring it never goes lower than the desired MGP. Amazon’s calculations are based on similar items found on its own marketplace as well as on outside eCommerce platforms, like Target and Walmart.

This means that no matter the price Amazon sells the product at, the seller will receive a minimum amount for each product sold. Even if they sell it for less than that price. In scenarios when the product sells at a higher price than the MGP, then you receive the full profit of the higher sales price.

Further, Amazon will control the amount of inventory similar to how they handle all FBA (Fulfillment by Amazon) inventory. They will be the seller on record and handle the sales tax for all items sold.

Who can join the Sold by Amazon program?

Susbscribing in the SBA p