How to protect your eCommerce brand with pricing?

Posted on 19 April by Simon Gomez in Pricing strategies

Pricing is important because it establishes the value that your products are worth to you and how much it costs to produce them. And also, it sets the price your customers are willing to pay. The price impacts how your customers see your brand, and it is one of the biggest reasons customers buy a product. According to the Jungle Scout Q4 Consumer Trends Report for 2021, lower product prices are the top reason consumers choose to shop online. For that reason, pricing is a tool that helps you protect your brand. How can you do it? Let's dive into it!     

1- Pick your policy 

When we say "pick your policy," we refer to minimum advertised price (MAP) monitoring. MAP is the lowest price a retailer can sell your products to customers. For example, if you set MAP of $50 on the shoes to a seller, the online retailer must advertise it and sell it at $50 or more, but never less than that value.    

To plan the MAP policy, you must understand the flexibility of your prices. Know how low you can put your products' prices without affecting your margins and brand value. And how high you can go without making the product overpriced, and no one will buy it. When it is time to implement the MAP arrangement, you have to notify all your sellers about the arrangement. If possible, try to have it as a written agreement also. 

Now, it is time to put your MAP policy into action and monitor it. Programs like PriceTweakers offer your company the best MAP monitoring solution. We track the prices of your products and detect infringements made by your dealers. Sellers continuously lower their products' prices because that is the way they think they are competitive in the market. That action hurts your brand value. PriceTweakers help you detect those price drops and allow your company to contact the vendor to prevent sellers from doing it again. 

2- Choose your pricing strategy 

Many strategies help you with brand protection for your company. These are two pricing strategies that will help you protect your brand. The first one is market-penetration pricing. That strategy focuses on having a low price on your products compared to the competitors.  

The objective is for customers to get to know your brand and product. Once you sell some items and people know you, you can increase your item’s price to make up for any margins you may have lost in the first place.    

The second strategy that can help you is market-skimming. This strategy is the opposite of market penetration. A brand will price its products at the highest price that consumers will pay. From there, reduce the price of their products over time to attract more customers. Apple and Sony’s PlayStation are two companies that use this strategy. When Apple launches a new product, the prices are high. But when time passes and more competitors arise, they lower the price of that product.   

This strategy is for brands that look to establish themselves on the market as premium or luxury brands.   


Pricing is one of the ways you can protect your brand. It is up to you to decide which pricing strategy fits your company. Above, we showed you methods you can protect your brand with pricing. PriceTweakers has the best MAP monitoring tool for your company and pricing strategies. We offer software that can help you keep an eye on the end prices customers pay for their products. From our MAP product overview, you can see the status of your products. And from the MAP action management, you can see the situation of your infringements. That means if the issue is resolved or if you got contacted by your seller.       

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