Prime Day effect on eBay sellers: costs, competition and what to do before, during and after

By the Dropizon team Published 7 min read Amazon Sourcing
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In short

Prime Day lowers many Amazon prices for a few days, often only for Prime members, then they return to normal. For eBay sellers who price from Amazon, that means temporary cost drops, stock-outs on deal items, longer delivery estimates and competitors cutting prices. Plan which listings to follow down, read them more often, and reprice back up afterwards.

Key takeaways

  • Prime Day deals are temporary, and many are shown only to Prime members.
  • Deal items often sell out, so stock can disappear mid-event and the price can jump back.
  • Delivery estimates can stretch during the event, which affects your handling time.
  • Decide in advance which listings follow deal prices down and which hold their normal price.
  • After the event, check every lowered listing has returned to a price that covers the normal cost.

What is the Prime Day effect on eBay sellers?

The Prime Day effect on eBay sellers who price from Amazon is a short burst of disruption: many Amazon prices drop for the event, deal items sell out, delivery estimates stretch, and competitors who price from the same products cut their eBay prices. When the event ends, prices return to normal, and any listing still priced from a deal starts selling below cost. Prime Day is Amazon's members' sale event, and many of its deals are shown only to Prime members.

None of this is a reason to panic. It is a reason to plan. A seller who knows which listings to follow down, reads them more often during the event and reprices them back up afterwards can come through Prime Day with margins intact.

How do Amazon prices behave during Prime Day?

Amazon does not publish data on how its prices move during events, but the patterns you can observe on your own products are consistent enough to plan around.

What you may seeWhat it means for you
Deep, short price drops on selected productsA temporary cost drop; the normal price returns when the deal ends.
Deals visible only when signed in with PrimeThe deal price is not your cost if you buy without Prime.
Limited-time deals with a progress barThe deal can end early when its allocation sells out.
Deal items going out of stockThe buy box may move to a dearer seller, or disappear.
Later delivery datesYour handling time may no longer fit the estimate.
Products with no deal at allLittle change to your cost, but competitors may still cut their eBay prices.

Not every product is discounted. Many are not touched at all, and some popular items rise as stock tightens. Your plan should start from which of your products are actually in the event. A seller with a catalogue of niche spare parts may barely notice Prime Day; a seller of popular branded electronics may see half the catalogue move in a day.

What should you do before Prime Day?

Most of the work happens in the week before the event.

  1. Find your event products. Look at last year's price history for dips around the event, and watch for deal badges appearing on your products in the days before.
  2. Decide your stance per listing. For each event product, choose: follow the deal price down, hold the normal price, or pause the listing for the event.
  3. Check your profit floor. A minimum profit floor stops a deal-driven reprice from taking any listing below the margin you need.
  4. Check handling times. If delivery estimates usually stretch during events, a short handling time may need lengthening for the event.
  5. Check your account type. If you track with a Prime account but buy without one, deal prices will mislead your tracker.
  6. Plan your check intervals. Event products need far more frequent readings during the event than normal.

Following down or holding

Following the deal down makes sense when the product sells in volume on eBay, the deal looks likely to last the whole event and your floor still leaves a margin. Holding makes sense when the deal is short, stock is thin or the margin is small. Pausing makes sense when the product's offers become unreliable during events and late deliveries are likely.

What should you do during Prime Day?

  • Read event products often. Deals end and stock runs out without warning. A reading from this morning may be wrong by lunchtime.
  • Watch the offer, not just the price. When the deal sells out, the buy box may switch to a third-party seller with a delivery charge and a later date.
  • Zero listings with no reliable offer. A product whose only remaining offers are slow, used or out of stock should not be on sale.
  • Re-read after every sale. The next buyer should get a price based on the current cost, not the cost an hour ago.
  • Hold odd readings. Events produce unusual pages, such as countdown timers and claim buttons. A swing limit catches readings that look wrong.

A hypothetical example

Example: suppose a smart plug normally costs £24.99 and drops to £14.99 for Prime Day as a limited-time deal. You choose to follow it down with your usual 20% markup and a hypothetical 12% fee allowance, so your eBay price moves from £34.08 to £20.44. On the second morning the deal allocation sells out, and the buy box returns to £24.99. If your next reading is six hours away and you sell three units at £20.44 in that time, each sale is below your new cost before fees even come out. Reading event products every hour or so, and re-reading after each sale, would have caught the change after the first sale at most.

Competitors on eBay during the event

Other sellers who price from the same Amazon products see the same deals. Some will follow every deal down at once, and your listing may look expensive next to theirs for a few days. That is not always a reason to match them. A competitor selling at a deal-based price after the deal ends is losing money on each sale, and that situation rarely lasts. Decide on your floor before the event and let it do its job, rather than reacting to every lower price you see.

What should you do after Prime Day?

The end of the event is the riskiest moment, because many prices return to normal at once.

  • Re-read every event product as soon as the event ends, not on the normal schedule.
  • Check every listing you lowered has gone back up to a price that covers the normal cost.
  • Restore paused listings carefully, repricing from a fresh reading first.
  • Return handling times to normal once delivery estimates recover.
  • Review what happened. Note which products were in the event, how deep the dips were and how long they lasted. That is your plan for next year.

The same plan works for other events

Prime Day is not the only event that moves prices. Amazon runs other members' sales, and Black Friday, Cyber Monday and the weeks before Christmas bring their own deals and stock-outs. The before, during and after routine applies to all of them. Only the length differs: a two-day event needs a short burst of attention, while the run-up to Christmas needs weeks of closer reading and longer handling times as carriers get busier.

What does eBay expect from you during a sale event?

A busy week on Amazon does not change eBay's rules. eBay allows dropshipping from a wholesale supplier, but listing an item and then buying it from another retailer or marketplace that ships directly to your buyer is not allowed under eBay's drop shipping policy. You remain responsible for delivery within the time frame stated in your listing and for your buyer's satisfaction.

That responsibility is what makes delivery dates so important during events. eBay's seller performance standards count late deliveries, and Top Rated sellers need no more than 5 late deliveries or 3% of transactions. An event that stretches delivery estimates can push you over without warning if your handling times do not allow for it.

How can software help during Prime Day?

An event is where manual checking struggles most, because so many products change at once. A repricer that reads on a schedule and re-reads after each sale does the heavy lifting.

Dropizon re-reads and reprices a listing first after every eBay sale, before any other work, and applies your minimum profit floor and swing limit to every push, holding odd readings for review. The eBay repricer page explains the guards, and the guide to reading Amazon price history shows how to spot last year's event dips.

A Prime Day checklist

  • List the products you sell that are likely to be in the event, using last year's history.
  • Choose follow, hold or pause for each one before the event starts.
  • Set or check a minimum profit floor on every listing.
  • Track with the same account type you buy with.
  • Increase check frequency on event products during the event.
  • Lengthen handling times if delivery estimates stretch.
  • Re-read everything as soon as the event ends and reprice back up.
  • Write down what happened, product by product, for next year's plan.

Frequently asked questions

When is Prime Day?

Amazon announces the dates each year, and it has also run other members' sale events at different times of year. Check Amazon's own announcements rather than assuming the same dates as last year.

Do Prime Day deals apply to non-members?

Many Prime Day deals are for Prime members only. If you read prices signed in to a Prime account but buy without one, the deal prices you track may not be yours.

Do eBay buyers expect lower prices during Prime Day?

Some shoppers compare across sites during big sale events, and eBay runs its own promotions at times. Watch your own listings' views and sales during the event rather than assuming either way.

Should I raise prices on items that sell out on Amazon during Prime Day?

If your cost has genuinely risen because the cheap offer is gone, your price should follow your formula. If you have no reliable offer at all, set the quantity to zero rather than guessing.