Amazon’s Fake Discount Crackdown (Strikethrough): What Sellers Must Know Before It Hits

Introduction

Strikethrough pricing has for many years been one of the best conversion triggers on Amazon. By offering more expensive “Was” prices and an apparent discount, sellers create a sense of urgency, convey their products' value, and encourage hesitant customers to make purchases. There are countless brands that have based their pricing policy precisely on this psychological approach, using continuous deals and coupons.

However, all that is changing now. The new Amazon updates on reference pricing represent much more than just small changes to the existing system; they actually transform the very idea behind discounts and their visual confirmation. This means that any sellers depending on continuous deals might be negatively affected by it.

This article breaks down what Amazon has changed, why it matters, and how sellers should rethink their strategy in light of the Amazon fake discount crackdown.

What Has Changed in Amazon’s Pricing Policy

on has introduced two key updates that directly affect strikethrough pricing, and both target how “discounts” are defined and validated.

The first change, effective April 23, focuses on list price validation. Sellers can no longer assign inflated or arbitrary MSRPs. Amazon now requires proof that the list price is legitimate. This means the product must have either been sold at that price as the featured offer on Amazon or it must be actively listed at that price by a credible external retailer. In simple terms, the era of made-up reference prices is ending.

The second change, set to begin on May 18th, has more effect. Amazon is changing the way it determines the typical price. Previously, the calculation did not take into account any sale or promotion. This meant that you could discount your item without reducing its value.

Now, if the price of your Featured Offer stays lower than the median without promotions for more than 50% of the last 90 days, Amazon takes into consideration all the prices, including those in promotions. The consequence is simple but harsh. Your discounted price becomes your usual price.

This is the core of the Amazon strikethrough pricing update, and it directly challenges the sustainability of aggressive discounting strategies.

Why Amazon Is Making This Move

But this strategy might appear to be self-defeating for sellers. On the other hand, the commitment of Amazon to gaining customers’ trust makes this strategy totally reasonable.

The clients today doubt various discounts and want to see real discounts only. For instance, when everything on the website is said to be discounted by 20 percent, such discounts lose their value.

Moreover, there are regulatory requirements in several markets concerning misleading reference prices. Thus, Amazon follows the latest market trends and minimizes the risk of getting into trouble with the authorities.

In the end, this new rule is all about credibility. The discount must be credible because it is really there and is not artificial.

The Hidden Trap in Amazon’s Ecosystem

Here is where things get complicated for sellers. Amazon’s own tools and growth levers actively encourage discounting.

Coupons improve click-through rates and conversion. Lightning Deals boost visibility and drive sales velocity. Subscribe and Save often requires aggressive pricing to compete. Even advertising performance tends to improve when a visible discount is attached.

Over time, many brands have adopted an always-on promotion model. The discount is not a temporary incentive, it becomes part of the pricing structure itself.

Today, Amazon is essentially stating that if this is what you do, then your default price gets readjusted. What was once a practice that incentivized discounts is now being punished.

And this contradiction forms the core of Amazon’s pricing policy alterations, putting sellers in a position where they need to reevaluate their growth versus sustainability.

How the New Typical Price Calculation Works

It becomes clear how Amazon’s new policy will affect products if we consider a real example.

Suppose that there is a product with a listed price of $40. A vendor offers a discount of 20% during 60 of the latest 90 days, which results in an actual selling price of $32 for almost all of the transactions.

In the previous pricing model, the Typical Price calculation excluded such sale prices. Hence, the typical price remained close to $40. This enabled the use of a strikethrough price and created the impression of a discount.

With the new approach adopted by Amazon after May 18, the sale prices would be taken into account if they are dominant among the prices in the last 90-day period. Thus, the typical price will be lowered to around $32. Again, applying the 20% discount will result in a price of $32; however, there will be no discount shown.

The Overlooked Detail: Silent Price Drops

One of the key things about this change, which is frequently overlooked, is how Amazon handles any discounting done that is not labeled as promotional.

Should you drop your price without calling it a discount, then such a sale will be seen by Amazon as a non-promotional sale. This is going to affect your price even more because Amazon sees such changes as contributing more to your average price.

The implications of such an adjustment are significant. Sellers who are using any dynamic price optimization software must be careful in this case.

What Still Doesn’t Count

Not all discounts will be affected by this new calculation formula. Amazon is leaving out several types of discounts, at least temporarily.

The Subscribe & Save Discount, customized promotions, Buy X Get Y, and large events, like Prime Day, will not be used in the average price calculation formula. That does leave a little bit of leeway.

But that’s not a viable alternative all on its own. These have their own reasons and goals behind them and won’t be able to take the place of regular pricing techniques.

But knowing this is vital to adapting to the new Amazon strategy.

Who Benefits From This Change

Not all sellers will lose under this new system. In fact, some brands are positioned to gain.

Brands with strong pricing discipline across channels will come out ahead. If your direct-to-consumer site and retail partners consistently sell at your list price, Amazon can validate that price with confidence. Your strikethrough remains credible, and your promotions retain their impact.

These brands often operate with minimum advertised price policies and controlled distribution. Their discounts are occasional, intentional, and aligned across channels.

For them, the new rules reinforce what they are already doing right.

Who Is Most at Risk

On the other side are brands that rely heavily on constant discounting to drive demand.

If your product rarely sells at its full price, Amazon will eventually treat the discounted price as the true market value. At that point, your promotions lose their effectiveness, and your margins remain compressed.

This is particularly risky for private label sellers who use coupons as a substitute for brand equity or differentiation. When the discount disappears visually, so does a major part of their conversion strategy.

The Amazon fake discount crackdown exposes this vulnerability in a very direct way.

The 90-Day Hangover Effect

Even if a seller decides to change course immediately, the impact of past pricing behavior does not disappear overnight.

Amazon’s 90-day lookback window means that your historical pricing continues to influence your typical price. If you have been heavily discounting, it can take up to three months of consistent, higher pricing before your baseline resets.

This creates a lag effect that many sellers may underestimate. Planning promotions without accounting for this window can lead to unexpected drops in perceived value.

For brands heading into seasonal campaigns, this timing adds another layer of complexity to their Amazon pricing strategy.

Rethinking Your Approach to Discounts

What this comes down to is not the idea that discounting shouldn't happen at all, but rather that discounting must happen in a smarter manner.

Promotions can’t become constant; there must be distinct stages in the process where products are sold at their full price and promotions actually increase demand in a significant way.

It’s also vital that sellers focus on factors beyond prices that help drive conversions. Listing quality, reviews, branding, and product differentiation come into play more than ever before when you don’t have discounts to rely on for driving conversions.

Ultimately, the new way of doing things forces sellers to make healthier businesses out of their endeavors.

Conclusion

In addition to the above changes, the recent updates made by Amazon regarding its pricing strategy are also quite revealing. It looks like Amazon has finally decided to move toward transparency. The implementation of strict rules for list price verification combined with the introduction of a novel way of calculating the average price indicates a clear trend toward more authenticity.

From the sellers' perspective, the new strategy poses a serious challenge, especially since it involves many changes that require further rethinking. The Amazon fake discount ban has the potential to significantly diminish the effectiveness of certain established methods for boosting conversions.

Those brands that succeed in adopting the new approach can take advantage of their competitive advantages, which include the ability to leverage pricing as a strategic asset and maintain consistent pricing policies.