Amazon launched SBA (Sold by Amazon) in the United States, a system that allows third-party sellers who sell products on the marketplace to determine the best price through algorithms.
The SBA algorithm compares the prices of sellers participating in the SBA program with competitors such as Wal-Mart and eBay and sets the prices to be the lowest. Participation in the SBA program allows product prices to be set freely by Amazon, not by the seller. Instead of being able to set the price directly by the seller, it guarantees the lowest return without loss.
For example, if a seller agrees to a minimum profit of 20,000 won, Amazon sets the price of the product at 15,000 won, and even if it sells, it pays the seller 20,000 won, and Amazon compensates for the deductible loss of 5,000 won.
Amazon explained that the SBA pricing algorithm will not only save time and effort, but will also increase sales. The lowest-margin feature will provide a sense of stability in that sellers do not lose money.
SBA is provided as a fulfillment-by-amazon (FBA) add-on, a service for marketplace sellers that Amazon responds to from product storage, order processing, delivery, and return response. Marketplace sellers with an FBA subscription can use SBA at no additional cost.
SBA has already started service in the US, but it is still in its infancy, so most functions are said to be limited. Related information can be found here .