The latest changes to Amazon's flash sale pricing policy!!

The latest changes to Amazon's flash sale pricing policy!!


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Recently, a European seller found that the flash sale price of a product sold in the UK suddenly dropped from $11.99 to $9.99. After checking with Amazon, it was learned that the change was because the system captured the order price from Guernsey (the British Royal Domain) at $9.99.
Guernsey residents can enjoy tax exemption on their purchases, so the order price is $9.99, which Amazon has identified as the lowest price for the product in the past 30 days.

1. Cause of the incident

  1. Guernsey Tax Policy
     As a British Crown dependency, Guernsey is exempt from 20% value-added tax (VAT) when shopping on Amazon. Therefore, the actual transaction price of the order is 80% of the product price.

  2. Amazon Price Scraping Vulnerability

    When calculating the 30-day lowest price (T30D), the system does not differentiate between regional pricing strategies and includes the actual payment price in duty-free areas in the calculation range.

2. Appeal Logic

  1. Download the Amazon VAT Transactions Report and filter for Guernsey orders (postcode range GY1-GY9).

  2. Screening other orders shows that the transaction price of orders other than Guernsey is higher than US$9.99.

  3. To quote the law: Under section 30(6) of the UK Value Added Tax Act 1994, sales to the Channel Islands are treated as exports and are not subject to domestic price tracking.


3. Latest News

Amazon has established a dual price verification mechanism to determine the flash sale price.
The traditional calculation method is: 30-day lowest price ( Net Price ) = Flash Sale Price - Coupon Amount. For example, if the Flash Sale Price is $50 and the coupon discount is $20, the Net Price is $30.
The flash sale price will be the lower of the 30-day lowest price and the Net Price. This means that the coupon usage during the flash sale will affect the calculation of the next flash sale price.

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