SRP (Suggested Retail Price)

The SRP is a benchmark price provided by the manufacturer or brand owner to maintain pricing consistency, brand positioning, and market expectations across all retail channels.
This price is not enforced on Amazon, but it often serves as a reference for:

• Price comparisons
• Discount displays
• Promotion planning
• Category benchmarking

SRP may also appear as List Price on Amazon, depending on the marketplace and compliance rules.

Purpose of SRP:

• Establishes a baseline price for the market.
• Helps maintain perceived product value.
• Supports promotional messaging (e.g., “XX% off SRP”).
• Guides retailers on margin expectations.

How Amazon Uses SRP:

• May compare the actual selling price to SRP to show strike-through pricing, when allowed.
• Used in pricing models to evaluate:
  • Competitiveness
  • Customer value perception
  • Promo eligibility

Note: SRP visibility is subject to Amazon’s List Price Validation policy, which requires that the reference price be realistic and based on verified external market data.

Benefits for Vendors and Sellers:

• Provides a consistent price anchor across all retailers.
• Helps position the product within the desired price tier.
• Useful for promotions and discount strategies.

Benefits for Amazon:

• Improves customer trust through transparent pricing.
• Supports merchandising and event planning (e.g., Prime Day discounts).

Challenges:

• If SRP is inflated or unrealistic, Amazon may remove the strike-through price.
• Not legally binding: retailers can choose their own prices.
• Variations across marketplaces may create customer confusion.

Example:
A manufacturer sets the SRP for a blender at $99.99.
Amazon sells it for $79.99, resulting in a 20% discount displayed to customers (if List Price rules are met).

Why It Matters:
SRP creates a reference price that influences purchase decisions and helps brands maintain consistent pricing architecture across all retail partners.

In short:
SRP (Suggested Retail Price) is the manufacturer’s recommended selling price for a product, used as a benchmark for pricing consistency, promotions, and customer value perception.