In the era of e-commerce, the main factor affecting the competitiveness of a company is price. People began to make most of their purchases in online stores. And there are more and more online stores every year, which only increases competition in e-commerce. We can observe the dynamic trend of prices in online stores: the difference in one day can radically change the price, it can both increase and decrease. Also, a huge number of profitable offers for buyers, for example, discounts, various delivery and payment options, are also indispensable factors in the competition in e-commerce to increase sales and margins. But e-commerce encompasses relationships not only between sellers and online buyers. Participants in this market are also e-commerce providers who enter into an agreement on the Minimum Advertised Price (MAP). And if suppliers do not monitor compliance with this agreement, they will suffer significant losses.
What is the minimum advertised price?
The Minimum Advertised Price or MAP is the lowest price agreed by the retailer and the supplier, the price at which the seller agrees to sell the product or brand in his online store or other platform. It is recommended that all online retailers do this in order to maintain the position of their goods in the market and keep the business in the long term.
There are cases when a MAP violation of this agreement is inevitable, because otherwise the company could not survive in the conditions of an ultra-competitive struggle in e-commerce. Such a violation is often found on such large sites as Amazon.
In order for the supplier to protect himself, he needs to find a good monitoring software that will help to it helps to do Amazon MAP Monitoring, as well as track the price dynamics of other stores.
Using MAP monitoring software, you definitely win, because there are a number of positive aspects:
- Having relationships with various retailers on a long-term basis;
- Assistance to small and medium-sized businesses with an online store;
- Creating conditions for fair competition in the e-commerce market;
- Maintaining stable sales and margins;
- Allows you not to reduce prices, but to keep at a stable level as long as conditions allow.
How can suppliers monitor compliance with the agreement?
Many suppliers forget that it is necessary to constantly engage in MAP violation tracking so that the effectiveness of the Minimum Advertised Price violation is at a high level. You should regularly monitor the change in the price of your product in all online stores.
It is impossible to do this manually, but there is monitoring software that can help all suppliers. There you can track any price change in any online store where your brand or products are sold.
Thus, you automate the MAP monitoring process and constantly check its results. Due to the fact that you do not waste time on manual monitoring, you can engage in the development of your brand.