Login to the Seller Central and access Automate Pricing, under the Pricing tab. You then create your rules. Give your rule a name, and then choose whether you want to compete against the lowest price or the Buy Box price. Next, choose if you want to match the reference price, or go above or below it. Then select the margin of price change – by a specific amount like $0.10, or a percentage, say 2%. You can also set filters for the type of offers you want to compete against –

All offers for the Same ASIN and conditions,Or you can filter by fulfilment methodOnly offers with the same fulfilment methodOnly offers from other third-party sellers

You will get a Summary of the conditions you have set for the rule, displayed at the bottom of the page. Go through this to ensure you have set the rule as you want it. Click Save and Select SKUs. This will take you to the next page, where you can select the SKUs for which you want to apply this pricing rule. For each SKU, set the minimum and maximum price to stay within, when adjusting the prices. You can add more rules, delete or edit the rules, pause a rule for some time, and restart it again.