How to Increase Sales by Skirting MAP Policy with Sales Promotions and Coupons
Trevor here with eCommerce Paradise.
Today is about MAP policy.
MAP stands for the minimum advertised price. There's a policy that a lot of manufacturers use to make sure that their dealers online and offline are selling at the same price. This is to make sure the competition is even across the board. The MAP policy is really important for us online dealers because we need to have some sort of the lowest price guarantee on our website to ensure the customer that they won't find a lower price by shopping elsewhere. That helps close a sale, and it helps retain customers in the future as well.
The MAP policy is important to you as an online dealer, building a really good, valuable eCommerce website. You only want to be working with suppliers that adhere to that policy. Now, some suppliers actually require their dealers to adhere to that policy. The thing about it is that there are ways to skirt MAP policy as an online dealer and close more sales that way.
I wanted to talk about that here.
Now, as far as skirting that policy goes, you have to be really careful because MAP stands for the minimum advertised price, not the minimum selling price.
Advertised price means anything that's advertised on Google, anything that's advertised on Facebook. Anything that's outside of your website, as well as anything that's advertised on your website. This could be your product page or collection pages, the home page, coupon page, any email popups, or call to action to get email sign-ups. These little places on your website can make a big difference in whether you're going to sell a product or not. You can skirt MAP policy by hinting at some sort of a special promotion. And within your marketing communications that are direct to your customer, you can offer those discount coupons, and that obviously lowers the MAP. It's pretty tricky, and it really does depend on the supplier.
Some suppliers are more stringent than others. Some suppliers don't really care about coupons issued right up there on the product page, but some suppliers really do. It depends on the supplier. You've got to figure it out for each supplier. You've got to figure out how you can skirt that MAP policy so you can close more sales, because more often than not, these days, it's the websites that are offering the discount coupons, either in email form or just over the phone to the customers that are actually closing those sales. You have to be the one that's willing to do that, and you have to be willing to put in a little bit of extra effort to get that done right. That means getting email flows created specifically for that brand's products and making it so that whatever your regular newsletter often is, you get that customer an option to choose that brand's products to choose to tell you that they're interested in them. And then you can get them that coupon, or you can just send them sales. Special sales process. "Hey, this brand's product is 10% off. Limited time ends tonight."That kind of stuff works really well. Those are ways to skirt MAP policy and to close more sales. It's important that you put a time limit on the coupons you offer people. If you just give them a coupon, they probably will still be shopping around and seeing if anybody else has that same sort of a coupon. If you give them a time limit, it tells them that they don't have the time to go shopping around all day long. If they want that deal, they have to take action now. You have to give somebody a reason to take action now. You have to make it an expiring coupon code.
Aside from expiring coupons, you should probably optimize your website trust. You want to build social proof out. You want to have those reviews. You have all the other things on your website, like free shipping, no sales tax, things like that so that your customer sees that all across the board. You probably have the best deal of all the websites out there. That way, you can get that customer to choose you when it comes to an expiring coupon code because all this stuff will add.
I've run into some really bad nightmares dealing with that policy. Some suppliers I get way crazy about that policy, especially if they don't have much online retail experience and are just into product development. So make sure that, like I said, depending on the supplier, you just work with them. You figure out what it is that they want or need or don't want for you to do. If they are against any coupons, even in emails, then find out other ways to provide extra special discounts to them in the form of gifts.
In the past, we had a supplier that didn't want any coupons no matter what. Even in emails, any marketing materials had to be sold at that price, which is fine. We decided to look at their extra accessories, extra add ons and offer those gifts to the customer because they wouldn't be getting that from any other competitor unless its competitors decided to do that. We did. They had extended warranties ahead, white glove delivery. They had accessories that could be added on. We made two or three different add on free offers. We started getting a lot more sales for those products again that our competitors could not match or did not decide to match. That's worked really well in the past, too.
There are all these different ways, but you have to provide more value to the customer than your competitors. If you're not getting any sales guys, make sure you go to your competitors' websites and see what they're offering. Some competitors probably offer those gifts, or in the emails, they probably offer coupon codes or something like that. Figure out what they're doing. Model that. Figure out how to make it better yourself. Make your website the best offer available online, and then I guarantee you start making more sales. Of course, this goes along with traffic. You have to be driving a lot of traffic to your listings to get sales. I would say at least 100 to 200 visitors per day to your website in order to make at least two to three sales. That's on average because the average eCommerce conversion rate is one to two percent. If you're talking one hundred customers, that's one sale. Depends on your niche. Seasonality is a big issue. If you have an outdoor niche, it's probably going to be a summer net. You've got an indoor niche. It's going to be a wintertime net. It just depends. All these things really do matter, and you should keep them in mind.
Make sure you get out there, skirt MAT policy research, your competitors, find out what they're doing, do better than them. I guarantee you'll start making more sales. Drive more traffic to your website, start making more sales.
eCommerce really does span a broad section of things. There are all these different types of eCommerce. I do high-ticket dropshipping, but I also have experience improving people's websites, no matter what thing they're in. That's my skills and expertise, and that's why I'm trying to help you guys out. A lot of these are videos are going to be directed towards people that use dropship as a fulfillment method. Even people that use dropship means fulfillment method. You can grow into other business models like you can do your product lines. If you find something that's the best selling, you can go ahead and source it from Alibaba from China Direct.
You can have it shipped to a fulfillment warehouse. Since the profit margins can be much higher instead of 20 percent, you can make 50 to 70 percent. Then you can afford the fulfillment warehouse. You can afford the shipping costs and all that. You can still make a really good profit, and you can be building your own separate brand. There are different ways to scale. You can do the same kind of stuff. You can do affiliate marketing and things like that.
Subscribe to my Youtube channel, eCommerce Paradise, if you haven't already. Make sure you hit that bell icon. You get notified for every new release. I'm really excited to bring you more awesome content. You guys have any questions, and you want me to cover any particular materials? Please comment, and I'll definitely get to that.
I'm looking forward to sharing more cool value with you.
eCommerce Paradise was created by Trevor Fenner of Seattle, Washington in 2015 to help you, the entrepreneur, to start and scale your own eCommerce business selling high-ticket products online with the drop shipping fulfillment method so you can make more profit per sale, have a sustainable and evergreen online business, get started with very little upfront investment, and live a location independent lifestyle. Trevor owns multiple 7-figure High-Ticket Drop Shipping eCommerce stores and is a digital nomad, traveling the world while working remotely with the help of his team of over 10 virtual assistants from around the world. Trevor is currently located in Bali, Indonesia. Trevor is also a passionate skateboarder, surfer, scuba diver, photographer, environmentalist, outdoorsman, fitness and tattoo enthusiast.
AFFILIATE DISCLOSURE: Some of the links on this page may be affiliate referral links. I will get a commission from the vendor when you make a purchase after clicking them at no added cost to you. As a result, many of them also provide you with a special discount just for using my link. You can go directly to their support if you have any issues with their software or product.
Step-By-Step Training for High-Ticket Drop Shipping
Here are the next steps you'll need to take to start your high-ticket dropshipping business:
- Lesson 1: Research The Market And Choose Your Niche
- Lesson 2: Start Your Shopify Website and Legal Business Structure
- Lesson 3: How To Find And Recruit The Best Suppliers
- Lesson 4: Optimize Your Shopify Website and Sales Funnel
- Lesson 5: Launch Your Store With Paid Traffic
- Lesson 6: How To Manage Your Business
- Lesson 7: Automate and Outsource Your Day-To-Day Work
Resources for Starting A High-Ticket Drop Shipping eCommerce Store
These are the resources I've created to help you start your own high-ticket dropshipping eCommerce store:
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