Price floor
Pricing Models
Price floor is the lowest price at which a seller will list a device or accept a transaction, set to ensure minimum margin after platform fees, processing costs, and return risk.
Price floor functions as a hard constraint in automated repricing systems, preventing competitive matching from driving prices below the break-even point. In recommerce, price floors must be calculated per SKU and per channel because costs vary by device condition, category, and platform. A floor set too high prevents Buy Box wins; a floor set too low destroys margin. Periodic review of floor assumptions is necessary as platform fees, processing costs, and return rates change.