What is a price floor?
A price floor is the absolute lowest price your listing can go to, no matter what. Think of it as a hard safety line that the repricer won't cross. Even if beating the competition would require dropping below this number, the repricer stops right at your price floor instead.
Price floors are crucial for protecting your margins. Without them, a price war between multiple sellers could push your prices down to a point where you're losing money on every sale.
Floor source
When you create or edit a strategy, the Price Floor step lets you choose one of two approaches:
Calculate from cost
The repricer calculates your minimum price automatically based on your cost data and a target metric. You pick one of two metrics:
- ROI (Return on Investment). Ensures you always earn at least a specific ROI percentage on your cost. The formula is: Min Price = Cost x (1 + ROI%). For example, $10.00 cost + 30% ROI = $13.00 min price.
- Profit Margin. Ensures you always earn at least a specific profit margin percentage. The formula is: Min Price = Cost / (1 - Margin%). For example, $10.00 cost + 30% margin = $14.29 min price.
This approach is great because the floor adjusts automatically whenever you update your cost. It scales across your entire catalog without you having to set individual minimums.
Set manually
Use the "Min Price" value you set on each individual listing. This gives you listing-level control, which is useful if certain products need tighter floors than others. You can set Min Price in the listings grid, the listing detail page, or via the Import module.
What happens when the floor is hit?
If the competitor's price would require you to go below your floor, the repricer sets your price to the floor value instead. It won't go any lower. This means you might lose the Buy Box on that listing temporarily, but your margin stays protected.
When the competitor raises their price and there's room to compete above your floor again, the repricer resumes competing normally.
Tips for setting effective floors
- Account for all costs. Make sure your "cost" field on each listing includes product cost, shipping to the warehouse, prep fees, and any other per-unit costs. The more accurate your cost data, the better your floor protects your real margin.
- Include marketplace fees in your math. Remember that marketplaces take referral fees (usually 8-15% depending on the channel and category) and fulfillment fees on top of your cost. A floor of "cost + 10% ROI" might not actually be profitable after fees. Check the Profitability Report to see your true margins.
- Use manual minimums for special cases. If you have a handful of products that need a manually-set floor (seasonal items, bundles, or items with MAP pricing), set those via the listing's Min Price field and choose "Set manually" for that strategy.
- Review floors regularly. Costs change. Supplier prices go up, shipping rates shift. Check your floor settings at least monthly to make sure they still make sense.
Related settings
Price floors work hand in hand with safety nets to protect your business. While floors set the absolute minimum price, safety nets add extra guardrails around things like maximum price drops and price change frequency. Together, they ensure the repricer always stays within boundaries you're comfortable with.