What Is the Stop Loss Feature?

The Stop Loss feature allows you to set a price threshold relevant to the buy box price. This means that your items will not be priced below a certain percentage (or at all) below the buy box price.

When or Why is Stop-Loss Beneficial?

Many merchants, especially in certain categories where replenishment is more challenging, like to keep their profit margins higher and avoid instigating price wars (in which prices decline rapidly as competitors undercut each others’ prices to capture buy box). Other sellers, especially when competing with Amazon, would like to set a lower bound when trying to achieve the buy box so that their listed price is not drastically lower than the buy box price.

For example, if Stop Loss is enabled and configured with a value of 0%, our algorithm will be restricted to ensure you will never be the first seller to reduce the price below the current buy box price. If Stop Loss is enabled and configured with a value of 10%, the lowest price our algorithm can set for your item(s) would be restricted to 10% below the current buy box price.

How do I Activate the Stop Loss feature?

The default Stop loss configuration for each created account is 5% for both FBA and FBM listings, meaning for both FBA and FBM items, our algorithms will not send prices that are more than 5% below the current buy box price. Since Stop Loss can have a very strong impact on your business performance, it is recommended that you consult with your success manager to determine the optimal settings to achieve your desired results. Stop Loss can be applied to:

• Account-level (all products)

• Fulfillment Channel (i.e. All FBA Products, or All FBM Products, different values for both)

• Product Level (specific ASIN with a stop loss configuration)

Whenever you are ready to enable Stop Loss, please reach out to our support via email ([e-mail]) and request to activate this feature. Make sure to provide all relevant details including your storefront name and the desired configuration level (i.e account level or product level -ASIN, SKU) as well as the desired stop loss percentage value.