Pithies

What is the price floor on Amazon (and why it matters)

Updated November 14, 2026

On Amazon, the price floor usually means the lowest price among the competitors a buyer would really compare you to: new, in-stock offers for the same or a very close product. It is the price buyers expect to pay, so your gap to it says a lot about whether you will win the sale. Sellers also use “price floor” for something else: the lowest price you will let yourself go, the minimum price you set in a repricer. This page covers both, and how they fit together.

What counts toward the price floor

A price floor is only useful if it is built from offers a buyer would really choose instead of yours. Count these, and leave the rest out:

OfferCount it?Why
Same product, sold new, in stockYesThis is the price a buyer sees next to yours
A very close model or the same pack size from another brandYesBuyers compare them side by side in search
Renewed, used or “open box” offersNoThey sit lower for a reason and would drag the floor down
Out-of-stock listingsNoA price nobody can buy at doesn’t set expectations
A different size or pack countNo, unless you compare per unitA 2-pack and a 6-pack aren’t the same purchase
A one-day sale or lightning dealNote it, don’t chase itIt will usually be back to normal within a day or two

Shipping counts too. A $19.99 offer with $4 shipping is a $23.99 price to the buyer, so compare landed prices.

Why the price floor matters

Your gap to the floor is one of the clearest signs of whether a listing will keep selling.

The floor also moves. Watching which way it moves each week tells you more than any single reading: one low price is noise, three weeks of drops is a trend.

How to find your price floor

For each product you sell, it takes about five minutes by hand:

  1. List three to five competitor listings a buyer would really choose instead of yours (see the table above).
  2. Open each one and note the lowest new, in-stock price, including shipping.
  3. Take the lowest of those. That is your price floor for this week.
  4. Work out your gap: (your price − floor) ÷ floor. At $27 against a $25 floor, you are 8% above.
  5. Write it down with the date, so next week you can see which way it moved.

By hand this works for a few products. Past ten or so it gets skipped in busy weeks, which is when the floor tends to move. A tool can do the collecting for you: Keepa’s charts show price history per listing, repricers read competitor offers in real time, and a weekly summary tool such as Pithies works out the floor and your gap for every product and emails it to you. See how to track your competitors’ prices on Amazon for a full comparison.

Your own minimum price (the other “price floor”)

Repricers, including Amazon’s free Automate Pricing tool, ask you for a minimum price: the lowest your price may go, whatever competitors do (Amazon). Many sellers call this their price floor too. Work it out from your costs, not from the competition:

Minimum price =
cost per unit + FBA fee + inbound shipping + smallest profit you’ll accept
1 − referral fee rate

The referral fee sits underneath because it is a percentage of the selling price; it is 15% in many categories (Repricer.com). For example, with a $8 unit cost, a $4.50 FBA fee, $0.50 inbound shipping and $2 minimum profit, the minimum price is $15 ÷ 0.85 = $17.65.

The two floors work together. If the competitor floor is above your minimum, you have room to match. If it is below your minimum, matching loses money, and holding your price is usually the better call.

What to do with your gap to the floor

The gap is a prompt to look, not a rule to follow. These ranges are a reasonable starting point:

Your gap to the floorWhat it usually meansWhat to consider
Below the floorYou are the cheapest like-for-like offerCheck you aren’t leaving money on the table; a small raise may cost no sales
0% to 5% aboveClose enough that most buyers won’t noticeHold, as long as you keep the Buy Box
5% to 10% aboveBuyers start to noticeWatch sales and the Buy Box; have a reason (reviews, Prime, bundle)
More than 10% aboveYou will often lose the saleMatch if the floor is above your minimum price; otherwise hold and accept fewer sales

Before you cut, check the floor has lasted a few days and comes from a real like-for-like offer. Many drops are back to normal within 24 hours.

Common questions

Is the price floor the same as the Buy Box price?
No. The Buy Box price is what the featured offer sells at right now, and it is often above the floor because Amazon also weighs delivery speed and seller performance.
Does Amazon show me the price floor?
Not as one number. Seller Central shows the featured offer price and flags offers that can't win it, but you have to work out the lowest like-for-like price yourself or use a tool.
How often does the floor change?
For busy products, several times a week. Checking it once a week, with an alert for big drops in between, is enough for most sellers.

See your price floor every Friday

Pithies works out the price floor and your gap to it for every product you track, and emails you one short summary every Friday, plus an alert when a competitor cuts its price. Start with a 14-day free trial of up to 10 products, no card needed.

Related: how to track your competitors’ prices · price-drop alerts