MAP (Minimum Advertised Price) is a policy set by manufacturers or distributors that establishes the lowest price at which a product can be advertised by retailers. This policy aims to protect the brand’s value by preventing retailers from advertising products at unreasonably low prices. While retailers are still free to sell the product for any price, the MAP restricts how low the product can be marketed in public ads, including online listings. This ensures fair competition among retailers and helps to maintain the perceived value of the product.
For dropshipping businesses, it’s important to comply with MAP pricing when selling products from suppliers who enforce this policy. Dropshippers must ensure that their advertised prices on platforms like their website, Amazon, or social media do not go below the minimum price set by the supplier. Violating MAP agreements could result in penalties, loss of access to products, or termination of the relationship with the supplier. By adhering to MAP pricing, dropshippers can maintain a strong relationship with suppliers and protect the long-term profitability of their business.