How To Monitor and Enforce MAP Pricing On Amazon
How to Monitor MAP Pricing on Amazon?
As a brand owner on Amazon, you must have a clear understanding of your MAP policy as it helps protect your brand image, retail value, and of course the profit margins of sellers being a notable factor. While working with numerous sellers on the Amazon marketplace, a lack of transparency creates a significant price disparity once the products are shoved off from the warehouse. Amazon itself has introduced some helpful guidelines vital for the brand's protection, its integrity and issues about pricing. This blog will highlight the importance of monitoring MAP pricing on your Amazon Business to implement it effectively.
What is MAP Pricing?
Suppose you have been through the definition of Minimum Advertised Price and explored what exactly it means when you are on the right path. Minimum Advertised Price or MAP is a minimum price or amount settled by manufacturers for authorized sellers or retailers not to promote below and advertise their products above that. For say, if any fashion brand sets a Minimum Advertised Price of $50 for its best-selling item, all the resellers- online and in-store are obliged to market that item at $50 or above only. In case they opt to sell that item below the fixed price, they could be in direct violation of the company's MAP agreement.
NEED FOR MAP PRICING POLICIES
Latterly, several third-party marketplaces have escalated, and there is a big chance for the product to be sold worldwide by infinite resellers, capacitating difficulty to remain up to date. So, to make it in order, there is a necessity of a MAP monitoring solution for a brand owner amid the e-Commerce inflation, especially in the crucial pandemic era. MAP pricing policies delegates you to have transparency and visibility into the rates employed by all the resellers if they respect the fixed MAP pricing. In that scenario, if they violate the MAP policy, it would for sure impact your business and the profit you make.
Thus, MAP agreements are utilized for:
- Avoiding the Underpricing;
- Assisting the small scale sellers in competing with large scale retailers;
- Sustaining and preserving the Brand Value and Integrity;
- Promoting rational competition across distinct distribution channels;
- Safeguarding the Seller Margins.
Accordant Pricing Enhances the Brand Value and Brand Integrity
Suppose the buyer is interested in buying a brand of fashion. In that case, the buyer has to pay the price being settled and that eventually offers the Minimum Advertised Price value of that particular product. It is, therefore, primarily evident for significant marketplaces like Amazon, where prices are extensively vital to the buyers.
Inexpediently, the blame for two principal culprits on Amazon links to MAP violators and counterfeiters, who can end up any brand viability. Interestingly enough, the fake products fall under the same chest as a genuine item as Amazon hit on to commingling the products. There is always a possibility of delivering the product from the fake seller, thereby producing a poor customer's experience.
MONITORING MAP PRICING ON AMAZON
Saving Your Brand from MAP Violations
The possibility of MAP violations increases with your business, and Amazon does not have any policy regarding alerting you for that. It is all your responsibility to monitor and manage your brand's reputation and put a plan into action against violators.
The most rewarding option that can help save your brand from violators on Amazon is Brand Registry. It employs user access to tools that can assist you blotch and report the violators of MAP, precisely promoting and representing your brand and sustaining its integrity.
- You can also take action by discovering all resellers violating MAP;
- Connect to these distributors and inform them that you will fiercely enforce MAP;
- Sending them constant reminders about respecting MAP while giving them warnings;
- Keep constantly monitoring your MAP pricing policy.
SAFEGUARDING YOUR BRAND FROM FUTURE MAP VIOLATIONS ON AMAZON
Reinforcing your distribution channels
Keep accurate information about your sellers, their identities, and the channels they are further supplying the product, as most MAP violation issues initiate through a weak supply chain.
Remain updated about the tricks of resellers
Try to learn all the standard tricks that resellers usually violate MAP pricing policies. Resellers can represent your brand in another image, supplementing false information and changing their Amazon Product listing to befool you and hide their infringement.
Issuing an authorized retailer contract to all retailers
It will help if you put in place a strong and effective MAP policy while selling your products. Using distribution must be limited and always provide the retailers selling your product with an "authorized retailer" agreement.
By using a different store name on Amazon, product serialization is the best method to fight resellers marketing your brand.
Forbidding resellers to have competition with you on Amazon
Ensure that you are prohibiting your retailers and resellers from having a competition with you as Amazon sales are often high margin sales for the brands.
Enrol for Amazon Brand Registry
As mentioned earlier, Amazon Brand Registry is the optimal technique to safeguard your brand against MAP violators. Amazon assists in shielding your brand like Amazon's team of Brand Registry is aware of that.
Link to the MAP enforcement programs or plans using the leading retailer partner
Discuss the brand guidelines openly with all the big players involving Amazon and Walmart and let them know that you are policing a marketplace while ensuring that their rates are the most economical in the market.
ENSURING MAP POLICY IS PROTECTED OR ENFORCED
The only thing that can ensure your complete compliance is maintaining control of your brand presence online. It implies optimizing the product listing and monitoring the whole on Amazon for MAP policy violators.
So, all the above tips are precious. All that you have to be is Reliable!
Always stick up for MAP guidelines. When monitoring procedures are reliable, you will understand how to cope with that and utilize the information to make your MAP enforcement plan stronger for the future as a robust solution with best suitability.