MAP policy explained for Amazon wholesale sellers

Many brands ask their resellers to sign a minimum advertised price (MAP) policy before they open an account. To a new seller it can look like a restriction. In wholesale it is often the opposite: a brand that enforces MAP is protecting your margin. Here is what a MAP policy means for Amazon wholesale sellers, and how to work with one.

What MAP is

A MAP policy sets the lowest price at which a reseller may advertise a product, for example $29.99. On Amazon, the price shown on the listing is the advertised price, so in practice MAP is the lowest price you can list at. The brand sets it; you agree to it as a condition of buying from them.

Who enforces it

Amazon does not enforce MAP. The brand does. A brand that watches its listings can warn a reseller who prices below MAP, stop selling to them, or close their account. Some brands are strict and check every week; others publish a policy and never look at it. How well a brand enforces MAP decides how much it is worth to you.

Why MAP is good for wholesale sellers

• It puts a floor under the price. On a listing where every seller follows MAP, nobody can start a race to the bottom. See how to avoid price wars.
• It makes your profit predictable. When the lowest possible price is known, you can work out your worst-case profit before you buy.
• It keeps the listing healthy. Stable prices mean fewer sellers leave in a hurry and dump stock.

The catch: if a listing has a MAP and the Buy Box sits well below it, someone is ignoring the policy and the brand is not stopping them. That listing behaves as if there were no MAP at all.

How to work with a MAP policy

1. Read it before you order. Note the MAP for each product, how violations are handled, and whether it applies to coupons, promotions and bundles.
2. Do your numbers at MAP. Calculate your profit with MAP as the selling price, not today's Buy Box. If the product only works above MAP, it is too tight.
3. Set a minimum price in Seller Central. If you use an automatic repricer, set each product's minimum price to MAP so the repricer can never go below it.
4. Watch for changes. Brands update MAP when their list prices change. Keep the latest version and update your minimum prices.

When the listing is below MAP

Do not follow the price down: it puts your account with the brand at risk. Hold at MAP and let the low sellers run out of stock, or tell your account manager at the brand which offers are below MAP. Some brands act quickly; if yours does not, the listing is not as protected as you thought, and you should buy less of it.

Use MAP in your analysis

MAP is the safest price to plan on. In Wholesale Analyzer, every product shows its max buy cost: the most you can pay and still meet your ROI and profit targets at the current Buy Box price. Compare it with the supplier's price, and for MAP products check the result at MAP too with our free profit and ROI calculator. The price war risk on each product warns you when sellers are already undercutting, which on a MAP listing is a sign that the policy is not being enforced.