As a brand or manufacturer selling on any type of online marketplace (Amazon, eBay, etc.), you most likely have a working MAP policy. This policy states the minimum average price that your products can be sold for on these e-commerce platforms. Unfortunately, many brands – especially those that are smaller or mid-size – have no way to efficiently track MAP policy compliance, leaving e-commerce sellers free to list products at whatever price points they want.
If your brand is starting to sell on Amazon in particular, it’s important to remember that Amazon is not brand loyalto anyone but Amazon. Yes, Amazon runs the e-commerce marketplace as a whole and caters to the billions of sellers and customers that use the platform every day, but the brand also acts as a seller for many companies of all sizes to move their products on the site. When Amazon acts as a third-party seller for these brands, it will do whatever it takes to win the elusive buy box – even if it means dropping below MAP policy prices.
The Amazon buy box – that easy-access, one-click buying area that accounts for over 82% of all sales made on Amazon – is a golden opportunity for sellers. This opportunity is so great, in fact, that when Amazon is a seller it will do whatever it takes to own this real estate. Sometimes, larger manufacturers and brands will have agreements in place with Amazon to control MAP policy compliance, but for most small and mid-size brands, their pricing structure is constantly in jeopardy. If too many units are sold at a lower price than a MAP policy dictates, the brand’s overhead costs could skew beyond repair and profits could sink drastically.
In order to ensure 100% MAP policy compliance, brands must be able to control their listings on Amazon and other online marketplaces. This can take a substantial amount of manual time and energy, however, which is why many brands choose to work directly with a single third-party seller to handle the ins and outs of selling on Amazon. Third-party sellers, like SupplyKick, always abide by MAP policies and are constantly on the lookout for any violations that may occur across the platform. With SupplyKick, brands can rest assured knowing their products are always listed in the right way, with the right prices, no matter what. You can learn more about how SupplyKick handles MAP policy compliance here.