Enforce Your MAP Policy on Amazon: Boost Your Brand!

What is Amazon's MAP Policy?

Manufacturers’ minimum advertised price (MAP) is a regulation that defines the lowest price at which their distributor or reseller can advertise the goods online or in marketing materials, but it does not dictate the price at which they can sell it in physical stores or in private transactions.

For example, the manufacturer may stipulate in a reseller agreement that the product cannot be offered for less than $159, or the minimum advertised price. The manufacturer has the right to terminate the contract if the distributor or reseller sells the product for less.

MAP pricing (get your Map Agreement ready) is separate from price maintenance agreements, which are prohibited since they set a minimum price at which something can be sold.

There are several reasons why MAP pricing is beneficial. It avoids pricing “race to the bottom” rivalry and protects a brand’s margins by establishing a minimum level. It also enables smaller merchants to compete with larger retailers that can sell at the lowest feasible price.

MAP policies also aid in the preservation of a brand’s value. Consumers will come to expect that price if the product is frequently sold at a lower price than its actual value. They may also have difficulty differentiating your goods from a comparable but lower-quality or counterfeit item.

How can I enforce my MAP Policy on Amazon?

If you want to properly enforce your MAP policy on Amazon, you’ll have to make major adjustments to your current business practices. But, in most cases, the time and effort are well worth it. When done correctly, you may raise your margins, strengthen your connections with your distributors, and develop a monitoring system that works for your company.

Why is it so difficult to manage MAP Pricing on Amazon?

MAP Policy on Amazon impacts both sellers and brand owners uniquely, shaping how prices are displayed and maintained on the platform.

If the distributor fails to inform you of these policies, you may not even be aware that they exist as a seller. And, depending on how the producer prepares it, they may not even apply to you.

If you’re a brand owner or manufacturer, keeping track of and managing MAP pricing across a big distribution network can be difficult. You must keep track of each Amazon seller of your product and keep an eye out for stated prices that are too low. This is difficult for Amazon US because their stores do not reveal legitimate company organizations. Amazon UK makes things a little easier because each seller’s storefront offers legal information about who they are.

Furthermore, any violators of your policy on Amazon must be dealt with completely by you, the brand or the manufacturer. Amazon refuses to police Minimum Advertised Price agreements and does not recognize them.

However, if you don’t take action against violations, your resellers may continue to cut prices in order to obtain the Amazon buy box. Low pricing, on the other hand, reduces your margins, drain your profits, and obscure your brand’s genuine worth.

Why are Amazon sellers not adhering to MAP Policies?

There are a few reasons why Amazon sellers don’t always adhere to MAP pricing standards.

To begin with, many Amazon merchants are reselling products without the permission of the brands they carry. These resellers typically stock a wide range of products from a variety of manufacturers. Because these vendors have no meaningful relationship with a brand or explicit agreement in place, they are unconcerned about sustaining brand value.

The second reason has to do with how Amazon’s marketplace is set up for selling. To make sales on Amazon, you must first earn the Buy Box. According to research, the seller whose offer is currently in the Buy Box will receive 80-90 percent of sales. When there are numerous resellers on a single product listing, Amazon determines which seller gets the Buy Box depending on a number of factors, one of which being the lowest price.

There is a huge incentive to cut prices when numerous merchants compete for the Buy Box on the same product. While resellers would prefer to sell products with larger margins, they are forced to compete nearly entirely on price on Amazon.

Is the MAP Pricing displayed on Amazon listings?

The MAP Policy on Amazon does not display the MAP price directly in listings. Previously, sellers could include the manufacturer’s suggested retail price (MSRP) when creating a product listing, which would appear as a ‘list price’ on the product page.

This was usually done so that the list price could be struck through when the item was on sale for less. To prevent consumer confusion, Amazon has began taking off the display of list prices, which were frequently altered by merchants.

Your marketing action plans (MAPs) should reflect your branding efforts

MAP policies are not only a strong indicator of your business’s success but are also essential to positively identify and establish your brand, especially under a MAP Policy on Amazon.

Brands can defend their profit margins and maintain a constant perception of brand value among consumers by developing effective MAP rules and enforcing them consistently on Amazon. It also encourages fair competition between large and small retailers.

What makes enforcing MAP Policy on Amazon so difficult for many sellers?

There’s no denying that MAP compliance is a difficult task for many merchants. This is particularly true for merchants that sell to a large number of resellers. It can be difficult to keep track of a big distribution network of resellers.

Another factor that makes enforcing a MAP Policy on Amazon challenging is that Amazon does not officially recognize MAP pricing policies, meaning it doesn’t participate in their enforcement. This leaves brands responsible for creating and independently enforcing their MAP agreements.

Furthermore, Amazon will not punish resellers that break Minimum Advertised Price agreements. Because US merchants are not required to provide legal business information on their storefronts, enforcing MAP pricing on Amazon is considerably more challenging.

Despite these obstacles, merchants will need to monitor MAP pricing on Amazon on a regular basis to ensure that their MAP policies are followed and safeguarded.

Resellers can continue to undercut pricing in an attempt to attract more customers if you don’t check MAP pricing on Amazon as a seller. This would not only tarnish the genuine worth of your brand, but it will also diminish your margins, among other things.

Brand Alignment Can Help You Avoid MAP Violations On Amazon. Don't Know How To Enforce Amazon's MAP Pricing?

Brand Alignment can be beneficial. We are one of the most reputable Amazon marketing agencies in the world at Brand Alignment. To ensure comprehensive MAP policy compliance and protection, we use innovative tracking systems to monitor your product’s prices. For dependable MAP enforcement, contact Brand Alignment now.

For example, let’s say you have 100 unauthorized sellers to contact, and you manage to find email addresses for 20 of them. Even in the best-case scenario, you’re only able to reach 20% of violators. From there, the success rate depends on whether those emails are seen, read, and acted upon. This low reach and engagement are why many brands experience poor removal rates with email enforcement, often leading them to seek out new brand protection providers or give up on enforcement efforts altogether.

Thank you for reading our post, “Enforce Your MAP Policy on Amazon.” We hope you found it helpful.

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April 18, 2024 by Brand Alignment

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