Why can Amazon keep violating the MAP
We have multiple listings where there are brand MAP in place. Amazon keeps selling a lot lower than the MAP, which steals sales from 3rd party like us. Amazon doesn't pay referral fee, obviously. Why can Amazon keep doing this without getting notices from the brands? How can we resolve this?
Why can Amazon keep violating the MAP
We have multiple listings where there are brand MAP in place. Amazon keeps selling a lot lower than the MAP, which steals sales from 3rd party like us. Amazon doesn't pay referral fee, obviously. Why can Amazon keep doing this without getting notices from the brands? How can we resolve this?
0 replies
Seller_7LrAV0m5llaI7
When the brands sell to Amazon, as part of the purchase order agreement, MAP is unenforceable. In the seller university help files, it explains that Amazon does not follow any sort of MAP policy whatsoever.
Ask your brand sales rep to stop selling to Amazon as they are violating MAP.
Seller_aUbEyzlSSnsDJ
Why because amazon says it like my dad used to say.
Do as I say not as I do.
Seller_LyYw7fQRKc5G7
Amazon says outright in the help files that they do not obey brand MAP.
Seller_ctlHhuYQK8UHO
I used to sell direct to Amazon but they refused to follow MAP (among other issues) so we discontinued selling wholesale to them and moved to direct selling on the platform. This was the only solution which worked.
Seller_FrXHd0LADkNQb
You're talking about a Vendor Central account owned by the manufacturer. It is up to them if they want to stop supplying Amazon or not. MAP is enforced by the brand owner, not by law.
Seller_7LrAV0m5llaI7
Yea, but if the brand is sitting on a mountain of inventory, Amazon can move it extremely fast for them. Brand gets paid up front through vendor central, win win for the brand. It would be up to the brand's existing brick and mortar customers to file a grievance with their brand sales rep. Some brands have done that with us, and we've stopped purchasing from them until they stop selling on Amazon. Even though we're warranty authorized, if we stop purchasing, the brand no longer has a place a customer can come in and deal with a warranty claim at.
Seller_NzEmZKTEdcpPZ
Unfortunately, this is common. Amazon doesn't follow any MAP, even if they sign such agreement with a manufacturer. It really up to manufacturer to either stop selling to Amazon or keep ignoring other dealers' complaints. And, if they choose the latter, it's up to you whether you drop such manufacturer from the products you offer or keep on working with them.
We drop manufacturers who tell us to stick with MAP, but ignore our reports about Amazon (or other dealers) selling below MAP. No point fighting. If that's how manufacturer treats its dealers and MAP - then let them deal with Amazon as the only dealer. Then, eventually, they will be sorry they neglected their other dealers.
I know some higher-ups at a major electronics manufacturer who did just that. I told them they are going in a wrong direction when dealers were dropping their product lines because of Amazon ignoring MAP. At first, they said the volume that Amazon was too great to ignore. Then they complained about the huge amount of returns from Amazon they had to deal with, even months and months after the regular return policy. Eventually, my friend there told me they are stuck in this relationship where they constantly lose money, but too deep to get out. That's a typical story, unfortunately, when manufacturers choose Amazon over its dealers.
Seller_An5RTfRk1QxhO
From my understanding, a brand must enforce MAP pricing unilaterally for the policy to be valid. If the brand sells directly to Amazon, who does not support MAP, then the brand's MAP policy is probably not binding.
Several brands in our industry have stopped selling directly to Amazon, likely so they can enforce their MAP policy. Others have stopped enforcing MAP, probably since they want to sell directly to Amazon.
You may want to contact the brand, to educate them that they should choose Amazon or MAP, but not both.
Seller_IjRs0xPKdfdaI
I feel your pain. We sell products that a certain brand promises they do not sell to Amazon but somehow Amazon has the product and gets the buy box selling below MAP.
If a moderator is reading this, I would like to know in the same manner that a seller is falsely accused of "counterfeiting" a product and the seller is forced to provide an invoice to prove that they are indeed an approved seller of a product, can the seller hold Amazon to the same standard?
If the manufacturer promises that they don't sell to Amazon, I think a seller (like me who is negatively impacted) has the right to know where Amazon is sourcing the product from (since they may be sourcing from either an un-authorized seller or an authorized seller) which either way, would be un-ethical.
Thoughts.....
Seller_6hFuE3oTzYyFr
report the MAP violation to the manufacturer. The manufacturer will notify the violators with a warning letter. Usually, after three strikes, the violators will be barred from purchase at the direct sale and distribution levels. Of course if the seller is not obtaining from distributors, then it’s another problem which will lead to a cease and desist or counterfeit claim.
Amazon does not care about MAP They insist on being the lowest cost to win the sale They don’t care if this causes their selling partners to liquidate or file for bankruptcy. They simply do not care
