Amazon price monitoring to ensure MAP compliance

Mastering pricing on Amazon is more crucial than ever to protect profitability and brand image. With millions of searches launched within this marketplace, manufacturers and brands face the strategic challenge of ensuring Minimum Advertised Price (MAP) policy compliance.

According to Jungle Scout, 56% of consumers start their product searches on Amazon, underlining the need to monitor prices on this platform. Amazon also boasted a 37.8% market share in US eCommerce. In 2024, according to Statista, the US generated more than 638 billion dollars in global net sales.

What is the MAP (Minimum Advertised Price)?

The Minimum Advertised Price, or MAP, is the lowest price at which a retailer or distributor can publicly advertise a product. Manufacturers use MAP policies to uphold their brand value and avoid aggressive price wars between sellers. Although the policy doesn’t prevent a retailer from selling a product at a lower price at the point of sale, it does prevent them from advertising below the agreed MAP.

Strategic benefits of MAP price monitoring on Amazon

Tracking MAP pricing on Amazon is not just a good idea; it is a must to protect your business. It involves closely monitoring the prices at which different sellers advertise your products on the platform. This allows you to:

Maintain profitability: Failure to comply with MAP can erode profit margins.
Protect brand value: Avoid devaluing your products with price wars.
Encouraging fair competition: Create a fair market between authorized sellers.
Identify unauthorized sellers: Identify those selling without permission.
Optimize your pricing strategy: Improve decisions with real market data.
Improve business relations: Strengthens trust with distributors who comply with the policy.

How can you track MAP prices on Amazon effectively?

Manual tracking is limited and prone to errors, especially when it comes to extensive catalogues. Amazon alerts offer basic information but lack accuracy. The best alternative is an advanced technological solution:

Minderest’s AI-powered MAP monitoring allows you to monitor your distributors’ prices daily on Amazon and other channels. Its AI-based matching algorithm ensures accurate product identification, even with geographic segmentation. You can also set up personalized alerts to detect non-compliance and analyze historical price variations.

It is vital to keep in mind the importance of Amazon reference or strike-through pricing when monitoring sellers in this marketplace. Understanding your product price positioning relative to competitors is critical to an effective MAP strategy.

Find out how a leading European retailer competed with Amazon prices on Prime Day, a comprehensive strategy detailed in our use case on how to compete with Amazon on Prime Day.

Steps to take in the event of MAP non-compliance

Once you’ve identified a breach of MAP, it’s crucial to act strategically:

Direct communication: Contact the offending seller professionally and explain your MAP policy, requesting that the price be amended.
Formal warnings: If initial communication is unsuccessful, send a formal written warning.
Penalties (according to your policy): Depending on your agreements with distributors, you may wish to consider penalties such as suspension of shipments or even contract termination in persistent cases.
Root Cause Analysis: Try to understand why the seller is breaching the MAP. Is it a specific strategy, a lack of awareness of the policy or a bigger problem?
MAP Enforcement: Implements a strict compliance program, supported by Minderest’s monitoring and notification technology for distributors.

It is essential to have a MAP policy that is clear and properly communicated to all your distributors and vendors.

Conclusion

Tracking MAP prices on Amazon is essential to protect your brand’s profitability and value in the eCommerce market. While manual monitoring is limited, Minderest’s AI-powered MAP monitoring offers an advanced and accurate solution to monitor MAP compliance across Amazon and other channels, thanks to its artificial intelligence and detailed analytics capabilities.

Don’t forget how important it is to understand the Amazon Best Sellers Rank, its benefits, and the keys to mastering the Buy Box, as these factors are also intrinsically linked to your Amazon pricing strategy.

Ready to grab the reins of your Amazon pricing and ensure MAP compliance across your online distribution network? Request a Minderest demo now and discover how our tool can help optimize your pricing strategy and protect your business.

FAQ about MAP price monitoring on Amazon

What is the difference between the MAP and the final sales price on Amazon?

The MAP (Minimum Advertised Price) is the minimum price at which a seller can publicly advertise a product. However, this does not prevent the product from being sold at a lower price at the point of sale, as is the case on Amazon. The final selling price may vary, but advertising a product below the MAP without authorization may breach manufacturer policies.

Does Amazon automatically respect MAP prices?

No. As a marketplace, Amazon does not impose or control manufacturers’ MAP prices. Manufacturers and brands must enforce their policies by monitoring sellers’ behaviour.

What happens if a seller breaches MAP on Amazon?

Failure to comply with MAP can erode brand value, damage margins, and cause conflicts with distributors who respect the policy. When this happens, it is advisable to contact the seller directly, send formal warnings and apply penalties if necessary, according to existing business agreements.

Can you automate MAP monitoring on Amazon?

Yes. Technology solutions like Minderest’s AI MAP Monitoring allow you to automatically track and manage MAP price compliance on Amazon and other marketplaces. These tools offer alerts, historical data analysis and full visibility of pricing behaviour.

What benefits does MAP monitoring bring to a brand?

It helps protect profitability, ensures consistent brand positioning, detects unauthorized sellers and encourages fair competition between distributors. It also helps make more accurate strategic decisions based on real market data.

Can I use Minderest to monitor MAP in other marketplaces besides Amazon?

Yes. Minderest’s solution can monitor prices across multiple online channels globally, not just Amazon. This helps brands implement a unified and consistent MAP compliance strategy across all their online points of sale.