Mid-Year Review: Analyzing MAP Trends and Challenges

As we reach the midpoint of the year, it’s essential to reflect on the evolving landscape of Minimum Advertised Price (MAP) policies. MAP violations remain a significant concern for brands and retailers alike, affecting market positioning, revenue, and brand reputation. Let’s take a look into the trends observed in MAP violations over the past six months and explore the challenges faced by stakeholders in maintaining compliance.

1. Increase in Online Violations:

The most prominent trend observed in the first half of the year is the surge in online MAP violations. E-commerce platforms continue to grow exponentially, providing numerous opportunities for unscrupulous sellers to list products at below-MAP prices. The anonymity and vast reach of online marketplaces make it challenging for brands to monitor and enforce MAP policies on their own. This is where we come in. Our diligence in monitoring and enforcement exceeds even the most dedicated brand administrator.

2. Sophisticated Violation Techniques:

Violators have become more sophisticated in their methods, employing techniques such as dynamic pricing algorithms and limited-time promotions to skirt MAP policies. These tactics make it harder for brands to detect and respond to violations promptly. Continuous innovation in monitoring technology is essential to keep up with these evolving strategies and we’ve answered the call with SIFT Systematic Information Fetching Tool), our new scraping robot. SIFT keeps honest sellers honest and roots out shady players.

3. Increased Use of Third-Party Sellers:

More them 60% of Amazon’s sales come from third-party sellers and this number increased by more than 16% in the first quarter of 2024! Most of these sellers operate independently from the brands they represent, making it difficult to ensure compliance. Collaboration between the brand and their dealers is crucial to address this issue effectively.

Challenges in MAP Enforcement

1. Resource Allocation:

Enforcing your MAP policy requires significant resources, including time, manpower, and technology. Brands may struggle to allocate the necessary resources to monitor and address violations. This challenge is exacerbated by the increasing number of online marketplaces and sophisticated violation techniques. Don’t go it alone. We’re here to provide you with world class service along with our industry leading enforcement process to make MAP headaches a thing of the past.

2. Balancing Relationships:

Maintaining good relationships with retailers while enforcing MAP policies is a delicate balancing act. Factory personnel enforcing MAP can strain partnerships and undo months of work building a relationship and can lead to retaliation, such as reduced shelf space or promotional support. Brands must find a way to enforce policies without jeopardizing these crucial relationships. Enter MAP Services Corp. Let us be the ‘bad guys” and deal with rogue or unsupportive sellers so your staff can concentrate on building relationships and selling more product.

3. Technological Limitations:

While technology plays a crucial role in MAP monitoring, handled carelessly or without regard to accuracy can generate false positives, leading to unnecessary enforcement actions and hard feelings. We’re built around accuracy and pour resources into maintaining it so you don’t have to worry about false positives, upset customers or dealing with the effects of them.