Fair Value

When scouting in LV mode, you will notice a new data point called “Fair Value.” Fair Value is calculated based on the FBM price just before the sales rank drop (indicating a sale), and this can give you an idea of a realistic price to sell for Merchant Fulfilled. If you sell it as FBA, you can add your own “Prime Bump” based on how frequently the item has been sold.

• During scouting, if the item’s current offer price is much higher than its Fair Value, it may be at its peak or inflated by the repricer. In this case, you should tap the Chart icon to review the item’s price history to determine if the price will likely go down. If the item’s current offer price is much lower than its Fair Value, it can increase when demand increases, allowing you to capture the wave to sell it at a higher price.

• When listing, if the current market price is much lower than the Fair Value, you may have to lower your price to match the current market price, resulting in lost potential profit as the price can increase in the future. However, suppose the current market price is much higher than the Fair Value. In that case, you need to review the item’s price history to determine if the higher price is due to a surge in demand (such as during textbook season) or an inflated price due to a repricer. If the higher price is due to a surge in demand, you should price competitively to capture the peak, as the price will decrease when the demand wanes. However, if the higher price is inflated, you should list the item within a reasonable range to make a sale.