RSP

In Amazon’s pricing ecosystem, RSP represents the real-time retail price visible to shoppers on a product’s detail page (PDP).
It is the effective transaction price, incorporating all active deals, coupons, or price updates determined by Amazon’s pricing algorithms.

RSP can differ across:

• Time: Due to automated repricing, Lightning Deals, or event promotions (e.g., Prime Day).
• Regions: Based on local currency, tax, and marketplace competition.
• Customer segments: For example, Business Price (BP) for Amazon Business customers or Prime-exclusive discounts.How It Works:
• Base price is set by Amazon or the third-party seller.
• Dynamic repricing adjusts it according to demand, competition, and profitability.
• Promotions or coupons further reduce it for specific events or periods.
• The RSP displayed to the customer reflects the final amount payable.
• Example Display on Amazon PDP:

• List Price (RRP): $49.99
  Price (RSP): $39.99
  You Save: $10.00 (20%)

• Benefits for Amazon:
  • Customer appeal: Promotes transparency through visible discounts.
  • Dynamic optimisation: Enables automated price adjustments to remain competitive.
  • Revenue control: Balances volume growth with profitability through pricing algorithms.
• Benefits for Vendors and Sellers:
  • Performance visibility: RSP determines key KPIs like ASP (Average Selling Price) and PPM (Pure Profit Margin).
  • Competitive edge: Enables real-time adaptation to market pricing trends.
  • Sales forecasting: Historical RSP data helps predict revenue and profit impact.
• Challenges:
  • Price volatility: Frequent repricing can create perception inconsistencies.
  • Margin pressure: Aggressive dynamic pricing may lower profitability.
  • Compliance complexity: Some regions regulate minimum advertised price (MAP) policies.
• Why It Matters:
  RSP is one of Amazon’s most critical commercial indicators, as it defines the customer-facing price, drives conversion, and directly influences profitability and vendor negotiations.
  Example:
  A vendor lists a hair dryer with an RRP of $79.99.
  Amazon dynamically prices it at $64.99 RSP during Prime Week to remain competitive - resulting in higher traffic and improved conversion.
  In short:
  RSP (Retail Selling Price) is the actual price paid by the customer on Amazon, reflecting all discounts and dynamic adjustments - the key benchmark for sales performance, conversion, and profitability.