Amazon MAP: Can You Regain Pricing Control In The Modern Grey Market?
If you’re looking for how to enforce your pricing on Amazon, you are in the right place!
In this article, we cover how to maintain brand control and protect your pricing integrity on Amazon.
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Highlights
🚫 MAP agreements are unenforceable except against signatories, as ruled by the United States Supreme Court.
❌ Amazon disregards complaints mentioning MAP violations, even if other claims are valid.
👥 Instead, create liability within your distribution network to hold distributors responsible for unauthorized products, and MAP violations on Amazon.
📧 Contact us for a free consultation to learn more about using MAP pricing policy agreements and how to protect your brand on Amazon.
🔄 Evaluate the number of sellers with MAP violations and develop strategies to efficiently remove unauthorized sellers and protect your brand sales.
Unauthorized sellers, undercutting prices, and damaging brand reputation have become common issues for brand owners.
However, there are strategies and solutions available to help you regain control and reduce MAP violations and start enforcing Amazon MAP pricing.
Legal Disclaimer:
The information provided in this article is for general informational purposes only and does not constitute legal advice.
While we strive to present accurate and up-to-date information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the content contained herein.
The Significance of Brand Control on Amazon
Without proper brand control, unauthorized sellers can manipulate your prices, tarnish your brand’s image, and erode your customer trust. If you’ve started losing this battle then regaining brand control on Amazon will be essential for rebuilding a strong brand presence and driving profitability.
Legion - And The Truth About Minimum Advertised Pricing Agreements
“Legion” is a Supreme Court case that involved a leather goods company. The United States Supreme Court ruled on this case, and their decision affected the ability to enforce MAP pricing (Minimum Advertised Pricing) agreements.
The Court stated that MAP agreements are unenforceable, except against the people or businesses that have actually signed those agreements. The case of Legion serves as an important reference point for understanding the limited scope of enforceability when it comes to MAP violations.
Bottom Line…
MAP pricing policy agreements were declared unenforceable except against signatories.
This crucial ruling highlights the first issue with MAP policy agreements and their enforceability.
Now, what you’ve been waiting for…
Does Amazon Enforce Map?
Amazon currently disregards MAP violation complaints. That said, we still have some guidance for Amazon MAP enforcement.
First, however…
Going beyond the Supreme Court ruling in the Legion case, Amazon has taken a very narrow view.
Basically, if you file a complaint on Amazon and mention the word “MAP,” your entire complaint will be ignored, even if other claims in your case are valid.
This approach underscores the importance of knowing and navigating the intricacies of Amazon’s policies when dealing with MAP violations.
Does Amazon display MAP pricing on product listings?
No, Amazon does NOT offer prices for MAP and this is the reason: Amazon does not care to start enforcing MAP pricing. They correctly view MAP pricing as an agreement is entered into between the producer and retailer.
Sellers are reselling products without brand approval
There are many retailers online offering different brands and types of products in one shop. They’re only selling products at low margins and making swift earnings. The sellers often have no legal or contractual relationship with the brands they sell.
They are sometimes called…
Unauthorized “Unknown” Sellers (aka Rogue, Ghost, or Diverter Sellers)
These sellers often use Retail Arbitrage to acquire inventory, and they show up on listings only long enough to sell off inventory. Because of their transitory nature, they become the hardest sellers to remove.
For a bit more insight into this issue, check out our article on removing Hijackers and Piggybackers from your Amazon listing
Why don't Amazon sellers follow MAP pricing?
Again, many sellers on Amazon are not branded sellers or authorized wholesalers. Rather they are opportunistic Arbitrageurs who sell their inventory online without any direct endorsement by a brand.
Also, many distributors generally offer dozens of different types of items to multiple companies. Thus they are less concerned about brand loyalty because they have no specific relationships with the brand or signed agreements.
Lastly, Amazon benefits from having multiple competitors fighting over selling at the lowest price the same product (Amazon becomes the low-priced leader). Earning the Buy Box is how multiple sellers compete by price for the same product. And generally, the lowest-priced offer makes the sale on Amazon. 80% to 95% of sales go to buyers with the current lowest Buy Box offer.
Your Next Steps For Dealing With Amazon MAP
Basically, you will need to address Amazon MAP issues without mentioning “MAP” directly.
Instead, try to focus your Seller and Vendor support cases on other aspects of the complaint that are relevant and actionable for Amazon.
Highlight other violations or concerns:
Unauthorized sellers
Pricing discrepancies
Product Distribution
These three issues can be addressed without explicitly referencing Amazon MAP Pricing.
This approach increases the likelihood of your complaint being considered and acted upon by Amazon’s staff.
Using MAP Agreements to Create Liability
While direct Map enforcement may be difficult within the Amazon support system, there is a strategic way to leverage these agreements.
By incorporating clauses in your agreements, you may be able to establish liability within your distribution network (again, seek qualified legal representation to better understand and execute on this topic).
When executed properly, with sound legal advice (again, not by us, or this article) you can develop a powerful path forward if your products find their way onto the Amazon marketplace through unauthorized distributors. Your distributor agreement can hold distributors responsible.
Those distributors may be required to bear the costs of protecting your brand and removing unauthorized products from Amazon.
Understanding Minimum Advertised Price (MAP)
Minimum Advertised Price (MAP pricing) is a policy that establishes a minimum price at which a brand’s products can be advertised.
It is designed to protect brand value and prevent the manufacturer’s suggested retail price erosion caused by aggressive discounting. Ensuring all sellers recognize MAP pricing policies (and follow them) helps ensure fair competition among authorized sellers and maintains consistent pricing across various sales and distribution channels.
Why do brands have MAP policies?
MAP policies preserve consistency in brand value to consumers and protect profits for manufacturers, retailers, and brick-and-mortar stores. These policies will often describe the types of discounts permitted and how product ads are advertised to sell, situations where MAP cannot apply, and actions companies should adopt to implement the MAP policies.
Challenges in enforcing Amazon MAP pricing
Enforcing Amazon MAP violations comes with several challenges. Some of the common obstacles faced by brand owners include:
Unauthorized sellers: Unauthorized sellers can list products at lower prices, undercutting authorized third-party sellers and damaging your brand’s reputation.
Pricing transparency: The open marketplace model of Amazon makes it challenging to control and monitor prices across all sellers.
Legal complexities: Enforcing pricing policies can involve legal considerations, such as identifying and then distinguishing between an authorized seller and unauthorized sellers and addressing grey market issues.
Continuous monitoring: With a vast number of listings and constant changes in pricing, monitoring compliance with pricing and MAP policies requires ongoing efforts.
How can businesses effectively monitor and enforce MAP policies?
Implementing a robust monitoring system to detect and address pricing violations promptly requires a proactive approach. Here are the steps to effectively monitor and address pricing violations:
Define pricing policies: Establish clear and well-defined pricing policies that outline the minimum advertised price (MAP) and consequences for non-compliance. Ensure that authorized sellers are aware of these Amazon MAP pricing policies, and their obligations and have signed the agreement.
Leverage technology: Utilize advanced technology tools and software solutions to monitor pricing across Amazon’s platform. These tools can automatically track and analyze prices, compare them against the set Amazon MAP pricing, and identify any violations.
Current top monitoring options:
Set up automated alerts: Configure automated alerts to receive notifications whenever a pricing violation occurs. This enables you to promptly address any discrepancies and take necessary actions.
Regular data analysis: Regularly analyze pricing data to identify patterns, trends, and potential violations. Look for unauthorized sellers offering products below the agreed MAP pricing or engaging in price manipulation tactics.
Monitor product listings: Monitor product listings on Amazon to ensure that sellers accurately represent the brand, its products, and their prices. Check for any unauthorized modifications or misleading information that may violate pricing policies.
Conduct random checks: Perform random checks on product listings and pricing to verify compliance. Select a sample of products and sellers to review periodically, ensuring that they adhere to the established pricing policies.
Prompt action: Take immediate action when pricing violations are identified. Contact the non-compliant sellers and request them to adjust their prices or remove their listings. In severe cases, consider escalating the issue with Amazon’s seller support or seek legal remedies if necessary.
Maintain communication: Regularly communicate with authorized sellers to reinforce the importance of pricing integrity. Provide updates on any changes to pricing policies, address their concerns, and emphasize the benefits of complying with the MAP pricing policy.
By following these steps and implementing a robust monitoring system, you can effectively detect and address pricing violations promptly, thereby regaining brand control and maintaining pricing integrity on Amazon.
Are there legal implications when you enforce MAP pricing on Amazon?
Again, this article does not claim to offer legal advice.
And, enforcing pricing policies on Amazon may involve legal considerations, particularly when dealing with unauthorized sellers and grey market issues. It is highly advisable to seek legal counsel to ensure compliance with applicable laws and regulations and to develop effective strategies for enforcement.
What are the benefits of regaining MAP pricing on Amazon?
Regaining pricing control on Amazon brings several benefits, including:
Protecting brand reputation and value
Maintaining consistent pricing and preventing price erosion
Strengthening relationships with authorized sellers and distributors
Enhancing customer trust and loyalty
Driving profitability and long-term growth
Conclusion
Navigating the world of brand protection agreements enforcing MAP pricing on Amazon can be complex. Understanding the limitations imposed by the Supreme Court ruling and Amazon’s policies is crucial.
While MAP pricing policy agreements may not provide direct enforcement against unauthorized vendors, leveraging agreements to create liability within your distribution network can offer a viable solution.
By implementing strategic measures and staying informed, you can take proactive steps to protect your brand’s sales and maintain control over pricing on the Amazon marketplace.
Businesses can employ various strategies to monitor and enforce MAP pricing policies on Amazon. This includes utilizing advanced monitoring tools, data analysis, and collaboration with brand control experts to identify non-compliant sellers. Prompt action should be taken to address violations, such as issuing warnings, imposing penalties, or seeking legal remedies.
Remember, we are here to help you. Contact us for a free consultation, where we can evaluate your brand, devise tailored strategies, and provide cost-effective solutions to remove unauthorized sellers and protect your brand’s reputation on Amazon.
Frequently Asked Questions (FAQs)
Q: What is the purpose of enforcing MAP on Amazon?
Enforcing MAP on Amazon helps protect a brand’s value and reputation by preventing unauthorized sellers from undercutting prices. While Amazon created the Amazon Brand Registry to protect brands and ensure fair competition among authorized sellers, Amazon Brand Registry does nothing to help maintain consistent pricing on the platform.
Q: Are MAP policies effective in protecting brands on Amazon?
MAP agreements have limitations, as they are unenforceable against third-party sellers or entities that haven’t signed them. However, by creating liability within your distribution network, you can indirectly hold unauthorized distributors accountable and protect your brand on Amazon.
Q: What should I avoid when filing a complaint on Amazon regarding MAP violations?
It is crucial not to assert a MAP policy violation in your complaint on Amazon. Amazon’s staff in India will entirely disregard your complaint if the term “MAP” is mentioned, even if other claims in your complaint are legitimate.
Q: How can I leverage MAP agreements to protect my brand on Amazon?
To leverage MAP effectively, focus on creating liability within your distribution network with enforceable MAP policies spelled out in enforceable contracts. Track your goods through the distribution channel and hold distributors responsible for unauthorized products on Amazon. Make sure your agreements clearly state the obligations and costs distributors must bear to remove unauthorized products.
Q4: How can I evaluate the number of sellers and remove unauthorized sellers from selling my products on Amazon?
Contact us for a free consultation. We will evaluate your brand and products, providing insights into the number of sellers and developing strategies to efficiently remove unauthorized sellers, thereby safeguarding your brand’s sales.
Take the Next Step Toward Unlocking The Power Of Amazon
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