Price gouging, or supply-and-demand? However you look at it, eBay and Amazon take very different approaches to seller pricing, as some Amazon sellers recently learned.
Amazon sent the following letter to a European seller in the Toy category this month:
"You are receiving this email because you are listing one or more ASINs in the Toys category. We have noticed in the past that certain popular Toy ASINs have been sold above the recommended retail price during the holiday season, creating a poor shopping experience for customers.
"At Amazon, we give the utmost importance to ensuring a great shopping experience for customers. Hence, we reserve the buybox award for eligible ASINs that are listed at competitive prices and the buybox will not be awarded to offers with a price above the recommended retail price.
"You can review your prices for your listings using the new "Pricing dashboard" on Seller Central. Please help us to offer the best shopping experience to customers by ensuring that your listings are competitively priced."
Traditionally eBay thrives on supply-and-demand pricing where buyers may end up paying much more than the manufacturer suggested retail price (MSRP) - that's the auction format in a nutshell - and it works well for collectibles and unique items (longtail inventory, as many call it).
But now that eBay has moved to offer fixed-price commodities, it too wants to encourage sellers to price low, as we covered in this
AuctionBytes blog post from last year.
eBay too is sure to be factoring in price in its Best Match algorithm, which determines an item's exposure in search results. Let us know what you think of Amazon and eBay trying to influence sellers' pricing, and how it impacts you.