In the world of e-commerce, MAP (Minimum Advertised Price) violations pose a significant challenge for brands. These violations occur when a retailer advertises a product below the minimum price set by the manufacturer in their MAP policy. This article will delve into the intricacies of MAP violations and offer strategies for brands to effectively manage and mitigate them.
Understanding MAP Violations
A MAP violation takes place when a retailer advertises a product at a price lower than the minimum price stipulated by the manufacturer. This policy is designed to maintain fair competition across various storefronts, safeguard profit margins, and ensure consistency in product value. However, with the surge of online shopping and unauthorized sellers, MAP violations have become increasingly common.
These violations can have serious implications for brands. They can divert customers, damage brand identity, and erode trust with distributors. Moreover, they can trigger price wars among a manufacturer’s resellers, which ultimately leads to revenue losses.
Strategies for Dealing with MAP Violations
Active Communication with Distributors
One of the most effective ways to prevent MAP violations is through active communication with distributors. Brands should ensure that their distributors are fully aware of the MAP policy and understand the consequences of violations. If a brand’s response to a price violation is to do nothing, then the MAP policy essentially becomes useless.
Brands should also monitor their resellers for price violations. This can be done by assigning someone to keep an eye on them or using monitoring tools available online. Automating MAP monitoring through a tool like Visualping helps identify infractions quickly and effectively at large scales.
Enforcement of MAP Policy
Enforcing the MAP policy is crucial in dealing with violations. Brands should identify all resellers with violations under their names, inform them that the MAP will be enforced, and remind them to respect the MAP or risk getting banned as a reseller. Routine violators should be blacklisted and banned from redistributing the brand’s products.
Ensuring Accurate Evidence
When dealing with MAP violations, it’s important to ensure accurate evidence. Brands should provide violators with all relevant information such as product details, violation dates, MAP prices, violation prices, and links to images of listings. A copy of the MAP Policy and its price list should also be attached to these warning emails.
Swift MAP Violation Alerts
Brands should also set up swift MAP violation alerts. This allows them to enforce their MAP policy efficiently and take immediate action against violators.
Dealing with MAP violations requires a combination of active communication, vigilant monitoring, strict enforcement, accurate evidence, and swift alerts. By implementing these strategies, brands can effectively manage MAP violations and maintain their brand integrity in the competitive e-commerce landscape.