Product pricing plays a pivotal role in perceived value of your product. Yet marketplaces are focused on driving price to the lowest possible point. A fair MAP policy can help you reap the benefits of marketplace sales while maintaining an optimal price point.
Here is a step by step guide to implementing a MAP policy and making sure Amazon sellers follow it.
1. Determine your threshold
Use your market research to determine the best MAP price for your products. You can base this price off MSRP or at a fixed pre-determined price. Amazon sellers will still be able to sell products at a lower price with coupons, but you can limit the price that your product is advertised at.
2. Create your policy
Write a MAP policy that clearly outlines your pricing requirements and the penalties for MAP violations. We have sample MAP policies you can copy and use. You should have a lawyer review your policy to ensure it complies with federal and state laws.
3. Distribute your policy
Send your new policy and MAP prices to your authorized sellers. Require an acknowledgment from sellers to make sure you are both on the same page.
4. Monitor your pricing
Track your listing to see which sellers are upholding MAP policy and which sellers are violating. We can help you monitor your listings for MAP policy violations.
5. Enfore MAP pricing
A MAP policy is only useful if it is enforced. You'll need a system in place to contact sellers who violate price and impose the restrictions you outlined in your MAP policy. The best method for restricting sellers is to contact your distributor and put the seller on a do not sell list.