Amazon undercutting me + other sellers

Hi all,

I’m well aware that this has probably previously been extensively discussed but would just appreciate some guidance for how best to move forward.

I’m selling a product with FBA for £22.99, I buy it wholesale from a distributor for ~£14 and net end up making ~£2.50. There are several other sellers on the listing all ranging from £22-28.

Amazon is also one of the sellers, and they have been selling around the £24 mark to date. Today, they have dropped the price down to £15! I’ve lost the buy box and have gone from ~£200/day revenue on this product to £0 overnight.

On the one hand I get the “their sandbox, their toys” argument, but on the other I feel that there should be laws in place to prevent a company from both acting as a selling platform and being a seller on that platform, or at least to have walls between the two preventing them from using seller data to find products that sell well and then pricing them to smoke out the competition then raising the price again.

What would be best going forward? Abandon this product and move on, get into a price war with Amazon (seems like a losing proposition) or wait it out and hope it’s temporary/they run out of stock?