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Identification of MAP (Minimum Advertised Price) violators in real-time is critical for brands as it could damage brand reputation and product worth beyond repair in a quick time. The path to success on eCommerce marketplaces depends upon your choice of sellers and their performance. Monitoring Seller performance gives brands a much-needed edge in the competitive digital commerce landscape. The brands selling through re-sellers need to be well aware of their performance as it directly reflects upon a brand image. Let’s delve deeper to understand why brands need to build their strategies with insights on sellers’ performance, need to track MAP violations, and how it affects brand reputation and product worth on eCommerce marketplaces. Are you aware of at what price your product is sold? Consider a scenario – India’s top water purifier manufacturing company is selling its RO via authorized seller X at ₹16,400 while another seller Y is selling it at ₹12,900 while the brand has set the Threshold price of ₹14,500. The offer is enticing for shoppers but how will it impact your brand? Prompt other sellers to lower the price This leads to a domino effect on pricing and ultimately reduces the actual worth of the product Lose the trust of shoppers due to such price variation across sellers on a marketplace It affects your distribution channel To combat such a scenario brand, need to track pricing across pin codes and platforms with seller-level analysis. These scenarios are known as MAP (Minimum Advertised Price) Violations or Pricing Violations. A Similar scenario takes place when a seller offers more discount than the brand’s threshold discount known as Discount Violations. Identification of MAP violators in real-time is critical for a brand as it could damage brand reputation and product worth beyond repair in quick time. Save Your Brands from the Domino Effect of MAP Violations The “Domino effect of MAP (Minimum Advertised Price) Violations” refers to the potential negative consequences that can occur for a brand if MAP violations are not effectively managed and controlled. When one seller violates the MAP policy by advertising a product below the set minimum price, it can trigger a chain reaction of other sellers following suit, leading to a price war. This can ultimately lead to price erosion, degrade brand value, and product worth, and reduce profit margins. To prevent the domino effect of MAP violations and protect their brand, companies can take several proactive measures: – Product Pricing Tracking: Brands should continuously monitor product prices across various eCommerce marketplaces and geographical regions. By doing so, they can identify sellers who are not adhering to the MAP policy and take appropriate action. – Awareness of Violations: Brands need to stay vigilant and promptly identify any MAP violations. Timely awareness allows them to address the issue before it escalates and impacts their brand reputation. – Strengthening MAP Policies: Companies should regularly review and update their MAP policies to ensure they are clear, comprehensive, and enforceable. By setting strict guidelines and penalties for violations, brands can deter sellers from engaging in price-cutting strategies. – Enforcement: Once a MAP violation is detected, the brand needs to take swift and decisive action against the non-compliant sellers. This could involve warnings, temporary suspensions, or even terminating partnerships with repeat offenders. By enforcing the policy consistently, the brand demonstrates its commitment to maintaining fair pricing and protecting its image. – Identifying Sellers with High and Low ASPs: Apart from focusing solely on MAP violations, brands should also analyze and categorize sellers based on their Average Selling Prices (ASPs). Sellers with significantly high ASPs may indicate potential unauthorized resellers, while those with extremely low ASPs might be engaging in MAP violations. Identifying and addressing such sellers helps in better controlling pricing and brand representation in the market. – Establishing Authorized Reseller Programs: Implementing an authorized reseller program can help brands maintain better control over the distribution of their products. By designating specific authorized sellers, brands can ensure that their products are sold through reliable and trustworthy channels, reducing the likelihood of MAP violations. – Monitoring and Reporting Tools: Brands can leverage technology and automated tools to monitor online marketplaces, flag potential MAP violations, and generate detailed reports on seller pricing trends. This data-driven approach can provide valuable insights for decision-making and identifying patterns of non-compliance. By taking a proactive and comprehensive approach to MAP policy management, brands can mitigate the risk of the domino effect of MAP violations. This not only protects their brand equity and pricing integrity but also fosters stronger relationships with authorized sellers and customers. Why do brands need to monitor seller performance on e-commerce marketplaces? Brands need to monitor sellers’ performance on eCommerce marketplaces for several important reasons: – Brand Reputation Management: The performance of sellers directly impacts the perception of the brand. If customers have a negative experience with a seller, they are likely to associate that negative experience with the brand itself. Monitoring seller performance allows brands to maintain their reputation and ensure that customers have a positive buying experience. – Quality Control: Brands often have specific standards and quality requirements for their products. Monitoring seller performance helps ensure that these standards are met consistently, maintaining product quality and customer satisfaction. – Customer Experience: Brands want to provide a seamless and positive customer experience across all channels. By monitoring sellers, they can identify and address any issues that might arise, regarding delivery time, customer experience, or product information. – Competitive Advantage: Brands usually have multiple sellers selling their products on various e-commerce platforms. By monitoring seller performance, brands can identify high-performing sellers and collaborate more closely with them to gain a competitive advantage. – Sales Performance: Monitoring sellers allows brands to track the sales performance of their products and identify trends and opportunities for growth. This data can be used to make informed decisions regarding inventory management, marketing strategies, and expanding product reach. – Monitoring the Seller Buy Box Win %: Brands must monitor the Seller Buy Box Win % to ensure marketplace dominance and maintain control