Fair Pricing & Reference Pricing

Fair Pricing & Reference Pricing

What is fair pricing?

Fair pricing means your product price should:
  • Reflect its true market value.
  • Be consistent with prices you offer on other channels (unless part of a legitimate promotion).
  • Avoid artificially inflating the base price to exaggerate discounts.

Warning
Unfair pricing practices — such as price gouging during emergencies or creating fake discounts — are prohibited and may result in removal of listings.

Reference pricing (rules and requirements)

Reference prices include “RRP” (recommended retail price), “was” prices, or “compare at” figures. They are only permitted if:
  • The product has been sold at that price recently and for a reasonable period.
  • The reference price reflects a genuine manufacturer’s or supplier’s recommended price.
  • Documentation (e.g., invoices, supplier catalogues) can support the claim.

Alert
Using inflated or fabricated reference prices is considered misleading and may lead to account penalties.

Examples of acceptable vs. unacceptable reference pricing

Acceptable
  • “Was $50, now $35” — if the product was genuinely sold at $50 in the past 60 days.
  • “RRP $99.99” — if the manufacturer sets the RRP and it can be verified.

Unacceptable
  • “Was $100, now $40” — if the product has never been sold at $100.
  • “Compare at $200” — without evidence of the market offering that price.

Info
Reference prices should always be updated regularly. Outdated “was” prices may be flagged by compliance teams.

Best practices for setting prices

  • Research competitors to set competitive but realistic prices.
  • Update listings promptly if supplier costs or market conditions change.
  • Use promotional tools like coupons or deals rather than inflating reference prices.
  • Keep invoices and supplier records available in case Kapsule requests verification.

Idea
Instead of exaggerating discounts, highlight other value points — such as quality, warranty, or unique features — to attract customers.

Compliance monitoring

Kapsule actively monitors pricing activity across listings. Vendors found breaching fair pricing or reference pricing rules may face:
  • Listing removal.
  • Restriction from participating in deals or campaigns.
  • Account suspension for repeated or severe violations.

FAQs

1. Can I set a higher price on Kapsule than my own website?

Yes, but only if justified (e.g., higher fulfilment costs). Prices must remain fair and competitive.
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2. What is the maximum discount I can show?

There is no fixed limit, but the reference price must be accurate, genuine, and verifiable.
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3. Can I use “compare at” prices from competitor marketplaces?

No. Reference prices must relate to the same product’s actual selling price or official RRP, not competitor listings.
​
4. What happens if my reference price is challenged?

You may be asked to provide supporting documentation. If you cannot, the reference price will be removed.
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5. Are clearance or limited-time offers allowed?

Yes, but discounts must be based on genuine previous prices and clearly marked as limited-time promotions.

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