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Brands Worry about Pricing Violations on Amazon Prime Day

Amazon Prime Day

Amazon Prime DayThird-party sellers on Amazon.com are undercutting Minimum Advertised Price (MAP) by 13 percent, according to a new report released from ORIS Intelligence, while eBay sellers undercut by about 20 percent. The report from ORIS, which helps manufacturers preserve pricing integrity and discover unauthorized sellers, contains additional trends around marketplace pricing.

Press release follows:

With Amazon Prime Day looming, the daylong sales event with discounts for Prime users, it is critical that brands ensure their seller relationships are in tact and pricing is consistent across channels. Last year’s Prime Day was Amazon’s largest sales day ever, surpassing Black Friday and Cyber Monday. According to a new report released from ORIS Intelligence, provider of actionable insights that preserve pricing integrity for manufacturers, third-party sellers on Amazon.com are undercutting Minimum Advertised Price (MAP) by 13 percent – while eBay sees about a 20 percent differential and direct-to-consumer sites undercut pricing by an average of 14.7 percent.

The new data is part of The ORIS Intelligence Report, which examines quarterly trends in pricing inconsistencies and violations in MAP policies. The report shows that, on average, top U.S. brands are experiencing a 27.7 percent pricing violation, while U.S. manufacturers that are engaged with ORIS and are committed to enforcing MAP, saw their percentage of MAP violations drop significantly, with many dropping below five percent.

“Pricing inconsistencies can kill a brand and topple seller relationships for manufacturers, so we are committed to helping them navigate the complexities of the evolving world of online selling,” said Pamela Springer, CEO of ORIS Intelligence. “We start by making data integrity our number one priority, because without that, it’s impossible to protect brand integrity.”

While the last report found that pricing violations were more likely to occur after 5pm and on the weekends, the new ORIS Intelligence Report shows that pricing violations are now happening every day, and are almost evenly distributed among weekdays and weekends.

ORIS delivers ongoing price monitoring across the entire Web to help manufacturers identify violations and easily discover unauthorized sellers, no matter when they occur. By providing more insight and control, manufactures can ensure consistent pricing to protect the integrity of their brand and brand experience for customers and sellers alike.

“Once we found ORIS, we quickly realized how much we needed it,” said Dave Michael, sales director for Swagman, a sport transport management company. “Before ORIS, we had a MAP policy in place, but were only loosely enforcing it. Like most brands, we want to capitalize on big events like Prime Day, so it is important that we are able to identify unauthorized sellers and stop predatory pricing. With ORIS, we have significantly reduced violations – and have restored faith in our brand value.”

ORIS has seen unprecedented demand for its platform, which has driven considerable growth. The company expects to double its team and customer base compared to 2016, and triple its revenue by the end of the year. Investors have taken note of this impressive momentum – the company recently secured a growth equity round led by existing investors with participation from leading Midwest venture fund, Rev1 Ventures.

SOURCE: Oris Intelligence Press Release

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.

2 thoughts on “Brands Worry about Pricing Violations on Amazon Prime Day”

  1. Are these lower prices from small sellers who have just one of the item (that they may have received as a gift, and then could not return), or from those who have multiples??

    Funny how these companies do not hesitate to drop the hammer (by a VeRo claim or other reported “violation”) on someone who has only a single example.

    I can see how these manufacturers wish to protect their brand from counterfeiters and possible theft in the supply chain, but they do go overboard at times.

    Hopefully this ORIS is not another one of these firms that kills fleas on a dog with a stick of dynamite.

  2. I would think that its a combination of both. I have seen competitors sell so low as to only make a dollar or two profit. I work hard at building a relationship with vendors and comply with MAP. Its frustrating that more and more are not wanting to work with ebayer’s or Amazon sellers because of the blatant MAP violations. If you have a quality product that is in demand why shoot yourself in the foot by violating MAP? The days of weekend sales are over.

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