The Complete Guide to Amazon MAP Pricing for Brand Owners


Over the last few years, Amazon has gained a substantial amount of momentum, gaining millions of sellers on the platform and not just buyers. The reason for this growth is primarily due to how Amazon caters to different sellers by offering them numerous services, allowing them to make higher sales than ever before.

Amazon has amassed a net worth of over 1.6 trillion dollars and is only expected to keep on rising over the years to come. One of the notable things to note when it comes to Amazon’s platform is how it avoids the exploitation of other sellers and or brand reputation while helping in the listing of all sorts of products.


The main source through which the repute of most brands is maintained is through something known by the masses as MAP Pricing.


What Exactly is MAP Pricing?

When it comes to the age-old question, “What is Map Pricing?” It can be termed as the minimum price to be advertised and is set by the brand itself. Now, it may be important to note that the minimum price to be advertised is not the same as the price that the product is sold for. It is simply the price that retailers are allowed to advertise in accordance with the brand itself.


Amazon integrates MAP Pricing onto its sellers and reinforces it since Amazon contains notable products from all over the world. Ergo, Amazon has a duty to fulfill, not just in terms of its sellers, but the branded products it sells on the platform too. MAP Pricing is an integral part of Amazon Brand Protection.


But whereas the implication of MAP policies is concerned, you’ll see that many Amazon sellers are not following it, yet their stores are running well on Amazon. But, why? The reason is that when a seller is creating a product listing, Amazon doesn’t display the MAP policies. Hence, every day thousands of sellers take entry into Amazon. That leaves all the responsibility of monitoring the MAP policies on the brand owners and manufacturers to see which sellers are violating their MAP policies and take legal action against them or stop their supplies. 


Another reason behind this negligence is that many manufacturers don’t even have a MAP policy. So, being a manufacturer or brand owner, it has become absolutely important to create an effective MAP policy. 


Why is a MAP Policy Important on Amazon?


A MAP policy can be defined as a permissible document that allows for sellers, brands, and customers to stay protected from potential price erosion that may occur. 

If price erosion does occur, it may lead to the diminishing of the perceived value for a certain product. Taking this into consideration, the lack of a MAP policy would allow fraudulent sellers to roam the markets without any trouble whatsoever.


Lacking a MAP Policy: What Are the Implications?

Furthermore, without a proper MAP policy, the margin for the sellers would lessen, leading to lower profits. Also, since the freedom to advertise any price leads to the lessening of the perceived value for a product, consumers wouldn’t be inclined to pay more for the product. This may be problematic for most brands since companies work for several years on end in order to justify their products as being priced adequately.


In this way, the potential of map pricing may be deemed limitless by the brand and sellers alike. A MAP Policy can help sellers on Amazon retain their profits while allowing a brand’s reputation to remain intact.


How is a MAP Policy Different from Other Pricing Strategies?

To start, a MAP Policy may be different since it works on targeting just the advertised price as opposed to the price that a product is sold at. Considering this, a MAP policy can assist in protecting the reputation that a brand has maintained for itself, all the while not influencing the perception of the prices either.


Nonetheless, the sellers still possess the chance to sell the product at their own prices so as to be able to negotiate in a much better way with the consumers.


How to Enforce MAP Pricing on Amazon?

In order to ensure that the elements of both compliance and or protection are maintained with regards to MAP, Policies are through the maintenance of brand presence online. This may indicate that any seller violating the MAP Policy on Amazon is to be met with certain consequences.


Now, another way through which MAP Pricing is enforced on Amazon’s platform is by allowing only some sellers to list certain products. This may stop most sellers from going rogue, all the while being easier to enforce.


Summary:

To conclude, a MAP Policy is an undeniable lifesaver for brands and sellers alike since it enables brands to maintain their reputation while making sure sellers get their fair share of profit. Now, although physical stores may violate map pricing and advertise at random, however, this may be deemed to be highly inconsistent, hence attracting lesser customers.


Post a Comment

0 Comments