Almost 70% of people who plan to shop on Black Friday this year will do so through online channels. That is why retailers should be vigilant that their products are correctly priced, especially on Amazon. Hence, a minimum advertised price (MAP) policy is important since consumers can easily make comparisons on different products. If your business deals with several authorized resellers, a MAP pricing policy can discourage stores from placing your products below an agreed-upon price.
Black Friday Sales
The National Retail Federation (NRF) expects overall retail sales on the day after Thanksgiving to reach nearly $721 billion. More people will continue to shop online due to the convenience of not having to fall in line, especially on a day when people are supposed to have a relaxing time. In fact, a Deloitte survey showed that e-commerce sales on Black Friday might be 22% higher in 2018. It could even be a busier day for retailers than Cyber Monday, which falls on the date after the Thanksgiving weekend.
Deloitte and NRF’s separate surveys revealed that Americans would spend between $1,000 and $1,500 per household for this year’s holiday season. As early as now, some retailers have begun to offer pre-holiday bargain offers to make the most out of people’s holiday budgets. A caveat, though, requires you to be prudent in offering discounts on products, especially if you are unsure about the manufacturer’s pricing policies. Retailers are also responsible for monitoring authorized resellers’ product pricing, aside from keeping an eye on your competitors’ rates.
While retail transactions are expected to increase on this year’s Black Friday, businesses should know the implications of not being aware of MAP policy guidelines. Some services allow retailers to track online prices, so consider this as one way to remain updated on pricing standards.