A MAP is a minimal amount of money resellers are not going to advertise below. For example, if a company sets a MAP price of $30 for their best selling product, resellers have to advertise this product at $30 or more. If a reseller advertises the product ar $20, this will be a violation of the MAP agreement which is part of the whole brand protection on Amazon.
In fact, implementing MAP agreements across a competitive marketplace is not a piece of cake. Making such agreements clear and understandable for your partners and resellers is essential, especially on Amazon.
Let’s discover more details about Minimum advertised price and see how it works.
This kind of agreements are aimed at:
Still, not looking at the fact that MAP agreements protect sellers’ margins, this is not the only concern. Keep in mind brand identity. A product of a cheaper price can be assumed belonging to another brand by customers. Consistent pricing is what tells customers about brand value, as people are ready to pay for the brand and high quality. Low price is associated with the counterfeit. Amazon can’t allow counterfeiters to sell on the marketplace, as they have customer experience on the top on their values. So, MAP violators can suffer the same sanctions as counterfeiters.
Is a supplier or a manufacturer finds out that resellers violated the MAP agreement, they can contact this reseller and learn more about why the reseller does that.
To address a minimum advertised price policy violator, a manufacturer should:
If a former violator does the same thing once more, you can contact Amazon regarding this problem.
Manufacturers usually require sellers to sign MAP agreements with them. Still, if there is no signed agreement, they have little power and can’t influence resellers’ pricing. With MAP agreements, retailers can protect themselves against any price violations and can shut down all unauthorized listings. In some cases, manufacturers can remove such listings even without a MAP agreement, if the case is important to Amazon.
For example, if a reseller can’t provide the same warranty that a manufacturer does, Amazon is likely to terminate such listing.
If you have faced such a situation, collect the following data and submit it to Amazon:
MAP violators will receive notices based on law and their selling privileges will be completely terminated.
If you come across MAP violations in future, here is the list of things you can do to protect yourself.
Learn more about Amazon brand registry from our article. Amazon protects registered brands more precisely and this includes protecting minimum advertised prices too.
In addition to everything mentioned above, we recommend you being consistent. You can always act along MAP pricing agreements no matter whether someone violates them or not. Knowe Amazon guidelines, follow the rules, play fair, and keep an eye on your resellers.