Does your company sell to retailers? Are your company’s products also for sale on Amazon – often at prices that are below the MAP? If you’re a brand selling to retailers and struggling to enforce MAP pricing on Amazon, then you should be aware of two major issues:
• When your products are available on Amazon below MAP, your retailers tend to get worried
• Controlling MAP is a huge challenge on Amazon
The Ultimate Challenge of Managing MAP on Amazon
If your brand is depending on MAP pricing on Amazon then it will be a big challenge for you to deal with.
If you don’t actively manage it, you are essentially surrendering control of your product(s) on Amazon – which over the long term, will negatively impact both your relationships with your retail partners, as well as your brand equity overall.
While there is no ‘silver bullet’ for MAP management, there are definitely a number of steps you can take to keep control of your product listings on Amazon.
Managing MAP Pricing in Onine Channels
First, is to sign an exclusive/semi-exclusive agreement with a third party seller and then work with them and Amazon, to systematically remove all of the other 3rd party sellers on a given product listing that are not authorized to sell on the platform. This will reduce the price erosion that has been affecting you up until now.
Once you have decided to work with a single 3rd party seller, ensure any distributor selling your products know that in order for any retailer to get an approved wholesale account, these retailers must have a verified physical location, and they aren’t going to sell the product on Amazon. That is, update seller contracts to exclude online channels altogether.
Next will be to contact each of the other sellers on your product’s listing to discover where product was procured if not an authorized seller. As part of this process, you should also inform them they are in violation of your MAP policy and aren’t authorized to sell your products on Amazon. If they don’t agree to remove their listing, you should check how much inventory they have, and then if necessary, have your attorney send out notice of possible legal implications.
On Amazon.com, one method to check the quantity of inventory they have to try to add 999 items to cart and Amazon will tell you how many they have left in the warehouse. If they have sufficient quantity to justify the effort, then have your attorney send the letter. In addition to notifying the seller, you should also inform Amazon that you owe an exclusive agreement with just one seller, have a MAP policy, and that this seller is in violation of both.
How to Keep Control of Your Amazon Presence
The easiest way to keep control of your product’s presence on Amazon is to work with only one seller in an exclusive relationship. That way, you will have more control over things like:
• MAP Enforcement
• Inventory Levels
• Customer Service Levels
• Sponsored Products (PPC advertising)
• Product Listing Quality
We Can Help!
At Jim’s Whims, we have demonstrated experience spanning years assisting brands with Amazon.
Additionally, we can bring value to our brand partners by improving Amazon listing optimizations and Pay Per Click (PPC) Advertising campaigns at a very reasonable cost while building your brand with your image. We’re upbeat about the future, and would love to talk further, call us at (469) 487 8221
About Jim’s Whims
We’ve built relationships on trust, results, and a long-term vision for growth and sustainability. Ultimately, we are passionate about creating a business of quality endeavor and connectivity. This is how we seek out partnerships with brands and distributors; a genuine, personal investment in the lives of customers. We will get to know you. You will get to know us. Let’s get to mixing!
By: The Team @ Jim’s Whims