RFQ (Request for Quote) - Amazon Glossary

Request for Quote (RFQ) is a specialized Amazon Business feature allowing registered corporate buyers to solicit custom pricing on high-volume orders. It enables B2B customers to bypass standard retail pricing and negotiate directly with sellers for exclusive, single-transaction bulk discounts.

Effectively managing RFQs allows sellers to secure massive institutional orders that rapidly accelerate inventory turnover and improve cash flow. By negotiating directly with buyers on high-volume transactions, sellers reduce their per-unit customer acquisition costs and efficiently liquidate excess stock without permanently lowering their public-facing retail price.

How Do You Calculate Margin on a Negotiated Quote?

When evaluating an incoming quote request, sellers must calculate their profitability based on the newly proposed unit price rather than their standard retail baseline. The calculation for your net margin on an RFQ deal is:

$$\text{RFQ Net Margin} = \left( \frac{\text{Negotiated Unit Price} - \text{COGS} - \text{FBA Fees} - \text{Referral Fee}}{\text{Negotiated Unit Price}} \right) \times 100$$

What Is a Real-World Scenario for Managing Quotes?

In Practice: A corporate buyer needs 2,500 units of a heavy-duty stapler in the Office Products category. Instead of paying the standard retail price of $15, they submit an RFQ. The seller reviews their margins and replies through B2B Central with a custom offer of $11.50 per unit. The buyer accepts the offer, instantly generating $28,750 in revenue and clearing out three months of stagnant inventory in a single, highly profitable transaction.

Common Mistake: A seller ignores the "Manage Quotes" dashboard in Seller Central because they assume their standard automated business pricing is sufficient. They miss an RFQ from a government agency requesting 5,000 units. Because quotes are time-sensitive, the request expires after 48 hours. The buyer immediately awards the massive contract to a competitor who actively monitored their dashboard and responded within an hour.

How Does Fulfillment Model Alter the Quote Process?

The fulfillment model fundamentally dictates a seller's capability to successfully win and fulfill massive corporate orders.

For Fulfillment by Amazon (FBA) sellers, responding to massive quotes requires ensuring the physical inventory is already available within Amazon's warehouse network. If a buyer requests 5,000 units but your FBA inventory ledger only shows 1,500 units available, you cannot fulfill the request immediately. Amazon’s strict capacity limits often prevent FBA sellers from holding enough stock to satisfy enterprise-level bulk orders spontaneously, meaning FBA sellers may have to decline lucrative RFQs simply due to warehouse space constraints.

For Fulfillment by Merchant (FBM), the RFQ system offers extreme logistical flexibility. The seller can negotiate the quote based on inventory sitting in their own private warehouse, or negotiate extended delivery lead times directly with the buyer to manufacture the goods. Furthermore, for massive FBM orders, sellers must carefully calculate Less-Than-Truckload (LTL) freight costs before committing to a heavily discounted unit price, as shipping 10 pallets independently alters the profit margin significantly compared to shipping a single standard parcel.

How Does the Request for Quote Process Function Technically?

The process begins when a verified buyer within the Amazon Business network clicks the "Request a quantity discount" button on a product detail page. This action opens a prompt where the buyer specifies their desired unit count, their target price, and any specific shipping requirements they might have for their commercial facility.

Once submitted, the request routes directly to the seller's Seller Central dashboard under the "Manage Quotes" tab. Sellers receive an email notification alerting them to the pending request. The seller reviews the requested quantity and target price, then inputs their counter-offer. They can accept the buyer's requested price, offer a slightly higher counter-proposal, or deny the request entirely. Once the seller submits their custom pricing, the buyer receives a notification and has a limited window to accept the offer and complete the checkout process.

Why Should Sellers Prioritize Quotes Over Standard Bulk Pricing?

Sellers can set up public tiered pricing rules that automatically offer discounts based on cart size. However, relying entirely on static rules leaves money on the table. Standard volume discounts are visible to the public (or all B2B buyers), which can inadvertently trigger competitor repricing software, leading to a race to the bottom that erodes profit margins across the entire niche.

The RFQ feature is entirely private. It allows sellers to offer deep, aggressive discounts to secure a specific, lucrative contract without permanently altering their public retail price. This private negotiation ensures you can win enterprise-level corporate procurement bids without devaluing your brand equity in the eyes of standard retail consumers or triggering algorithmic price-matching penalties from Amazon's retail side.

What Are the Strict Deadlines for Responding to Quotes?

Corporate procurement moves rapidly. When a buyer submits a quote request, they typically send identical requests to multiple sellers offering similar products. Amazon enforces a strict 48-hour expiration window on all incoming RFQs. If a seller does not respond within this timeframe, the request is automatically closed.

Professional sellers treat RFQs as high-priority customer service tickets. Responding within the first hour drastically increases the probability of winning the contract. Buyers often prioritize speed, reliability, and clear communication over securing the absolute lowest price point.

How Can Sellers Maximize Win Rates on Custom Quotes? (SoldScope Expert Tip)

Always counter-offer, even if you cannot meet the buyer's exact requested price. Many sellers simply ignore quote requests if the buyer asks for a discount that eliminates profit margins. This is a critical error. Corporate buyers frequently lowball their initial request to test the market, knowing they will ultimately accept a higher price. If a buyer asks for an aggressive 40% discount on a massive order, do not decline it outright. Respond rapidly with a firm, profitable 15% discount. Often, the buyer will accept the 15% discount immediately because they simply needed to prove to their procurement department that they attempted to negotiate a better rate. Ignoring the request guarantees a zero percent win rate.

How SoldScope Helps

SoldScope equips sellers with the exact market data needed to price bulk orders competitively and confidently. Before committing to a heavily discounted B2B quote, sellers must understand the true market value of the product. The Chrome Extension serves as the fast validation layer of the ecosystem, providing real-time data overlays as you browse Amazon. This allows sellers to instantly check competitor list prices and FBA fees via the FBA Profit Calculator before authorizing a steep discount. Additionally, the Product Research tool operates as a high-performance analytical engine designed to identify Private Label opportunities. By filtering for metrics like Variation Count and Estimated Sales, sellers can identify specific product niches that generate high daily unit velocities, indicating strong potential for consistent corporate RFQ volume.