Hey everyone,
I wanted to open up a discussion about two very different types of sellers we see on Amazon: Price Tankers and Steady Buy Box Sellers. Whether you're a reseller, private label seller, or wholesale FBA business, you've probably encountered both types—and maybe even been forced into playing their game.
Price tankers are those sellers who continually lower their prices, often cutting into margins just to win the Buy Box. This can be due to:
While this approach might help clear inventory, it often leads to a market collapse, where profit disappears for everyone. Once the race to the bottom starts, it can be hard to recover pricing for that ASIN.
On the flip side, we have steady sellers who hold pricing and share the Buy Box at a consistent level. These sellers typically:
The steady approach allows for healthier margins and a sustainable marketplace. Many experienced sellers prefer to wait out tankers rather than panic and cut prices.
Have you been affected by price tankers? Do you follow a specific strategy to deal with them? Let’s discuss!
I wanted to open up a discussion about two very different types of sellers we see on Amazon: Price Tankers and Steady Buy Box Sellers. Whether you're a reseller, private label seller, or wholesale FBA business, you've probably encountered both types—and maybe even been forced into playing their game.
Price Tankers: The Race to the Bottom
Price tankers are those sellers who continually lower their prices, often cutting into margins just to win the Buy Box. This can be due to:
- New/inexperienced sellers trying to move inventory fast.
- Overstocked sellers looking to liquidate.
- Automated repricers aggressively undercutting (sometimes set too loosely).
- Brands or distributors dumping excess stock.
While this approach might help clear inventory, it often leads to a market collapse, where profit disappears for everyone. Once the race to the bottom starts, it can be hard to recover pricing for that ASIN.
Steady Buy Box Sellers: The Long Game
On the flip side, we have steady sellers who hold pricing and share the Buy Box at a consistent level. These sellers typically:
- Set minimum price thresholds with smart repricing tools.
- Work with exclusive brand agreements or MAP policies.
- Rotate Buy Box time with other sellers instead of starting a price war.
- Know that holding pricing stability = higher long-term profitability.
The steady approach allows for healthier margins and a sustainable marketplace. Many experienced sellers prefer to wait out tankers rather than panic and cut prices.
Which Strategy Wins?
- For short-term volume? Price tankers can move inventory quickly, but at lower profits.
- For long-term sustainability? Holding pricing and sharing the Buy Box leads to more predictable profits and a healthier marketplace.
Have you been affected by price tankers? Do you follow a specific strategy to deal with them? Let’s discuss!
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