MAP, or minimum advertised price, seeks to create a standardized price for online 3P sellers so that the brand can sustain a consistent identity and value in the minds of consumers. It is an important part of the manufacturer’s or brand’s larger e-commerce pricing strategy as they aim to expand the presence of their product through multiple channels. MAP monitoring for online sellers is essential for businesses as it prevents price erosion and promotes fair competition in the online marketplace.
Importance of E-Commerce MAP Monitoring in Brand Protection
Online marketplaces are rife with thousands of retail and brand-owned stores. To establish a presence and generate healthy AOV, businesses must create a foolproof pricing strategy that works for both the manufacturer and the retailer.
A prudent MAP policy is the first step toward aligning the interests of brands and 3P sellers. From there on, the manufacturer becomes responsible for monitoring the minimum pricing agreed upon in the MAP policy. This step will ensure that every third-party seller involved in business with the brand advertises the product price within a standardized structure.
MSRP, or manufacturer’s suggested retail price, is another pricing method online retailers use. Unlike MAP pricing, it is not set in stone and doesn’t require monitoring. MSRP is just a reference price point third-party sellers can choose at their discretion.
Read more: Best MAP Monitoring Tool You Should Consider for E-Commerce
MAP Monitoring in E-Commerce for 3P Sellers: An Overlooked Perspective
A third-party seller or 3P seller often has a mutually beneficial relationship with the manufacturer. However, sometimes, third-party sellers tend to develop a gripe with the manufacturer if the MAP monitoring is not done properly.
This strained relationship can lead to:
Undermining Retailer’s Trust
Authorized third-party sellers will also have to pay the price if the brand fails to effectively monitor MAP violations. A non-compliant seller will snatch their profit margins in a matter of days. This will lead to a lack of trust in the brand from the retailer’s side and can harm the brand’s reputation in the long run.
MAP Price Renegotiations
Once a MAP violation occurs without proper monitoring, renegotiations happen, and the terms and conditions can turn in favor of the seller. This would be a good position for the online seller but can affect the brand’s profit margins.
Losing Quality Retailers
A higher number of 3P seller presence increases profit margins for brands in the e-commerce business. But are these third-party sellers authentic and trustworthy? These two qualities decide whether the brands would have to resort to MAP enforcement or not. Quality retailers maintain MAP price discipline and stay compliant throughout their relationship with the brand.
Read more: How to Protect Your Brand Online?
Most Common Challenges in E-Commerce MAP Monitoring
MAP monitoring for online stores comes with its own set of challenges. Some of them are:
Dynamic Pricing of Products
All major retailers in the online marketplace often use a dynamic pricing strategy, where product prices change repeatedly in short frequencies. This makes it difficult for a brand to monitor MAP violations. Intelligent MAP monitoring solutions can help solve this problem.
Vast Pool of Online Sellers
Insider Intelligence projects that global e-commerce sales will cross $6 trillion by the end of 2024.
So everyone wants a piece of the pie, making MAP monitoring for e-commerce a sophisticated and crucial process that requires expertise at fundamental levels.
Anonymous and Fake 3P Sellers
Unauthorized online sellers destroy fair competition and ethical business practices by selling under MAP prices. They sell counterfeit products with low quality, harming the brand’s reputation. MAP monitoring tools identify these violations and instill confidence in quality 3P sellers.
Read more: How to Stop Unauthorized Sellers on Amazon?
MetricsCart: We Deliver the A-To-Z of MAP Monitoring
Choosing the right MAP price monitoring tools for e-commerce paves a reliable future for a company. Brands and retailers must keep their pricing policies updated in today’s growing e-commerce market to thrive among a large pool of online competitors.
MetricsCart offers a wide range of MAP and price monitoring solutions to stay ahead in the game.
Some of the key MAP services are:
- Monitor 3P sellers for MAP violations
- Analyze competitor prices to create better brand value
- Swift MAP report delivery every week
- Customizable stats catering to business preferences
If business scalability is your priority, then look no further. Contact MetricsCart and take a breather.
