When scouting in LV mode, you will see a new data point called Fair Value. Fair Value is calculated based on historically used FBM price before the sales rank drop (indicating a sale). Fair Value will give you an idea of a realistic price to sell this media item on Merchant Fulfilled. If you sell it as FBA, you can add your own “Prime Bump” based on how frequently this item has been sold.
- Scouting: If the item’s current offer price is much higher than the Fair Value, the price may be at the peak or inflated. You need to tap the Chart icon to review the history price for this item. The price will probably go down in the future. If the item’s current offer price is much lower than the Fair Value, the price may go up when demand rises, and you may be able to sell this item at a higher price.
- Listing: If the current market price is much lower than the Fair Value, you may lose some potential profit to match the current price as the price can go up. You may consider pricing higher. If the current market price is much higher than the Fair Value, you need to review the history price to see if there is an ongoing price hike due to surged demand (ex., Textbook Season) or an inflated price because of repricer going wild. If the higher price is due to the price hike, the price can go down in the future, so you need to price competitively to capture the peak. If the higher price is inflated, you must list the price within a reasonable range to attract the buyer.