Why does Amazon sell below MSRP Price? 

No doubt that Amazon vendors often sell below Manufacturer’s Suggested Retail Price (also called MSRP Price – the price recommended for the retailer’s sale).  

But before jumping into the MSRP Price, what Amazon does as a business? Basically, Amazon is a multinational technology company. It provides customers worldwide with e-commerce, cloud computing (AWS), digital streaming, and artificial intelligence. Recently, Amazon announced entering the Polish marketplace which made a big buzz in competitor’s companies. As a big, worldwide player, Amazon has lion’s share on the market and its competitors in Poland (e.g. Allegro) awaits Amazon’s entry with concern.

By the effect of scale, Amazon is a really attractive e-commerce platform for the third-party resellers as it has plenty of them. The company treats its vendors by the strength of their brand. A lot of brands experience price erosion because there are many cheaper substitutes and used products as well as products that don’t have MAP policy and thus offer small margins. 

If a third-party manufacturer doesn’t agree on the unfair treatment and is made to sell below the price they advertised, Amazon doesn’t lose much. This is why Amazon MAP violations will occur as well as the lack of respect for the suggested prices a manufacturer wants to sell for. 

But adding to all that, Amazon has a powerful tool up its sleeve, too.

What is Amazon Keepa?

Price monitor is an essential tool for a company to be successful today – especially that competition is fierce and dynamically tests different solutions to win end-customers. Price Trackers allow companies to stay on track with what competition does and be easily adaptable to changing situations in the e-commerce marketplaces. 

Keepa is Price Monitoring by Amazon that helps end-customers make better buying decisions. Every visitor who pays the subscription cost of $15 dollars per month grants access to price and rank history and Amazon selling activity. Keepa Amazon charts also have an effect of scale because it concerns most of the products sold by Amazon. The user can track price drops and set up price alerts. Everyone who knows how to read chart statistics will benefit from using Amazon price tracking tool.

If you are a corporate person, looking for a tool for price monitoring, Dealavo can help you with this!


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Is there any way to stop Amazon MAP and MSRP violations?

When the situation with Amazon market position doesn’t change, there is no good solution to the e-commerce environment to change. If Amazon was forced to change their business moves and stick to the law according to every country where the company operates, then it would move the market towards retailer protection. In the current market situation, sellers don’t have alternatives in exchange for the access to the Amazon platform, where millions of people shop daily. The more Amazon leverages their dominance as a platform, the more they are in power to violate prices. 

With Amazon’s less buyer power, and more companies offering Price Trackers and balancing the respect for Minimum Advertised Pricing as well as Manufacturer’s Suggested Retail Price, there would be a chance to turn the markets’ powers. 


Learn more about Price Tracking!