While shopping, every rational buyer thinks a lot about the prices and products they are about to buy. This mindset also remains the same while doing online shopping. But the way of selecting, ordering, and paying for a product has evolved for both the buyers and sellers. To get the best experience of this online shopping and buying products at the lowest prices by using MAP policy without worrying about online scams, people prefer to shop from renowned online stores like Amazon.
According to the survey conducted, 87% of Americans agreed that price is the most important factor while buying a product. Similarly, another study confirmed that about 52% of people compare prices while doing e-shopping. That means prices matter a lot to the customers, but they are equally important for brands. That’s why brands use MAP policies to control the pricing of their products that retailers are selling online and in physical stores.
What is MAP policy?
A minimum advertised prices policy is an agreement signed between manufacturers and retailers. It is a mutual commitment for the settlement of the costs of the products. Additionally, it is not legally binding. Map pricing is a bar set for the vendors from brand owners and manufacturers to advertise products, not below the predetermined price.
Why Enforcing MAP Policy is Beneficial on Amazon?
Now, the question arises how to enforce map pricing on Amazon brand protection? There is no one-word answer for that.
To manage and monitor the map policy in the world’s largest e-commerce platform is not an easy task. In addition, Amazon doesn’t enforce MAP policies on sellers and also accepts no responsibility for doing it.
That leaves all the responsibility on brands to monitor the sellers and catch those who are violating their brand policies. Many brands hire agencies for Amazon brand protection that monitors MAP policies on Amazon and report the brands.
There are also Amazon analytics tools through which you can receive information about all the buying and selling activities. It tells about who is buying from whom at what price. This information is valuable and plays a vital role in determining whether the reseller is approved or not.
Role of MAP Policy in Branding
MAP binds retailers to market their products at low costs, for which resellers set lower trade prices for their product promotion. This enables their customers to earn trust and confidence in their brand. It also makes it clear for buyers to recognize fake products. MAP plays a vital role in protecting the brand’s reputation. Customers expect a balance in price from brands. If they see the same brand priced differently on different online or physical stores, it can hurt their reputation.
Not just that, also if your brand is dealing with multiple retailers and resellers, a MAP policy helps brands in selling their products at the same price to all retailers so no retailer can complain about getting their products at lower or higher prices. Here are some other crucial roles of having a MAP policy for brands.
#1: Brand Protection
Amazon brand protection becomes better with the implementation of MAP policy as low prices attract more customers and boost their sales. Regular monitoring of buying and selling will lessen the chances of being scammed.
#2: Resellers’ Protection
It forces all the retailers to minimize their rates to maximize their sales and earn profit. Hence, it secures retailers to trade at a loss or become less competitive.
#3: Multiple Channels for Sales
To increase the profitability of their merchandise, retailers usually use several channels to increase sales. MAP provides this opportunity to their retailers so that small organizations with large maintenance can also get satisfied that their stocks will be advertised at competitive prices.
#4: Better Execution
When all the retailers sell their products at almost similar prices, then brands can monitor their performance more closely and effectively. It also enables the brands to have insights into their customers’ behaviors and make business decisions accordingly. Also, brands can use amazon seo services to get the best insight of online buyers and optimize their products online.
#5: Control of Brand Online Presence
Having a MAP policy controls the brand presence online. It also helps in optimizing the product listing and makes monitoring the retailers easy.
To sell at minimum prices might not be beneficial for all brands. However, with the growth in e-commerce over time, having a MAP policy makes sense to brand owners and manufacturers. If you’re a brand owner and don’t already have a MAP policy, you should create an effective MAP policy right away. Many brands hire a third-party company or Amazon ppc agency to create and monitor them for the brands. We hope this article has helped you to get the better idea
of the significance of MAP policies and how to enforce MAP pricing on Amazon.