Every e-commerce merchant strives to make their product stand out, attract potential customers, and maintain a healthy profit margin. One critical aspect that contributes to achieving these goals is strategic and competitive pricing. However, to effectively implement this strategy, there’s a need for an intelligent tool that aids merchants in monitoring product pricing across various platforms. In the Walmart marketplace, such a tool is the Minimum Advertised Price (MAP) monitoring.
What is MAP Monitoring?
Minimum Advertised Price or MAP is a policy set by manufacturers to establish the lowest price at which a retailer can advertise their products for sale. Not the lowest price they can sell them for, but the lowest price they can advertise them for.
MAP monitoring, on the other hand, is the process of using software tools to track products sold across different platforms to ensure that they are not advertised below the MAP. These tools are designed to help brands and manufacturers enforce MAP policies, protect brand image, and prevent unfair pricing.
MAP Monitoring in the Walmart Marketplace
Walmart, as one of the largest retail corporations globally, hosts numerous sellers and an even larger number of products. With such an expansive product range, it becomes challenging for sellers and manufacturers to maintain a check on their products’ pricing across the platform. That’s where MAP monitoring comes into play.
A quality MAP monitoring tool helps sellers track product prices across Walmart’s marketplace. They alert sellers when their products are advertised below the agreed minimum price, enabling them to take corrective action promptly.
The Importance of MAP Monitoring in the Walmart Marketplace
MAP monitoring is important in the Walmart marketplace for a number of reasons:
- Brand Value Protection: Consistently low prices can lead customers to perceive a brand as “cheap” or of “lower value”. By maintaining MAP, sellers can safeguard their brand image.
- Maintaining Healthy Competition: MAP policies ensure that all retailers have a level playing field when it comes to pricing. This prevents larger sellers from consistently undercutting smaller retailers, fostering a healthy, competitive environment.
- Sustaining Profit Margins: By enforcing a MAP policy, brands can protect their retailers’ profit margins, ensuring that they have a financial incentive to continue stocking their products.
Best Practices for MAP Monitoring in the Walmart Marketplace
If you’re a seller or manufacturer in the Walmart marketplace, here are some best practices to follow for effective MAP monitoring:
Use an automated MAP monitoring tool: Manual MAP monitoring can be time-consuming and impractical, especially if you have a large number of SKUs. Automated MAP monitoring tools can monitor prices around the clock, alert you to MAP violations, and save you time and resources.
Establish clear MAP policies: Ensure your MAP policies are clearly communicated to all retailers selling your products. This includes the consequences of violating these policies.
Consistently enforce your MAP policy: Inconsistency in enforcing MAP policies can lead to confusion and can undermine your authority. Be consistent and firm in enforcing your policies, and make sure to follow through on any consequences for violations.
Regularly update and review your MAP policy: The marketplace is always changing, so it’s important to regularly review and update your MAP policies. Consider changes in market conditions, costs, and other factors that might affect pricing.
Build relationships with retailers: Building strong relationships with your retailers can make it easier to enforce MAP policies. Regular communication, offering support, and providing incentives for compliance can all help foster these relationships.
MAP monitoring is a critical aspect of maintaining competitive pricing in the Walmart marketplace. It helps protect your brand image, sustain healthy profit margins, and foster a fair competitive environment. With clear policies and effective monitoring tools, you can ensure that your products are always advertised at a price that reflects their true value.