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Having trouble with ecommerce price erosion? How about unauthorized sellers on Amazon? In this video Pattern ecommerce experts explain why your retail partners are mad at you (and why you’re probably mad at them too) because of the effects of price erosion.

When unauthorized sellers or MAP-breaking online retailers sell your products for cheap online, price erosion inevitably follows, especially in your brand’s brick-and-mortar channels. Since ecommerce sites like Amazon always favor the lowest price, to keep selling at all you’re forced to keep marking down prices.

This leads to a downward spiral of price-matching until your margins are razor thin and you have absolutely zero control over your product pricing. At this point, brick-and-mortar retailers start pointing to online pricing and demanding pricing concessions from the manufacturer as well.
At worst, retailers may refuse to sell your products. At best, your margins have been slashed. They’re mad. You’re mad.

Luckily, the answer is pricing control. If you can get back in control of your ecommerce pricing online, you can repair the damage price erosion may have inflicted on your margins.
Pattern helps brands establish and enforce their own MAP (minimum advertised price) policies to help them keep their retail partners happy and grow their margins—not shrink them.

Learn more: https://pattern.com

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