01/14/2015
What's new in 2015 at debnroo.com?
Well, we are changing the way our site works for the first time in 15 years, and here's why: We do business on Amazon, and Amazon has a Price Parity clause in their agreement.
Why is this important?
Well, Amazon requires that our website must have prices that are equal to or higher than our prices on Amazon. Amazon MUST have the lowest price - to the penny. If they catch a violation of this policy, they threaten us with lifetime suspension from Amazon!
Because we use auto-pricing technology to keep our prices competitive on Amazon, and because servers sometimes don't synchronize in real time, we've actually spent over 18 months redeveloping our technology so that we can have the freedom to remain competitive on Amazon without the fear of a price on our website causing a problem for the entire business.
Is this fair or legal?
Well, we aren't attorneys, but the UK and Germany have both determined that this is an anti-trust violation of their laws. So sellers in these countries have been freed of this requirement. However, here in the USA, Price Parity still rules the day. So, until our government says otherwise, Price Parity is legal in the USA.
So how does this affect debnroo.com?
After considerable exploration of solutions, the one thing that no one seems to be able to guarantee is that servers will keep everything synchronized. So, the best solution we can find is to simply hide our prices from the general public, and require a log-in to see our prices.
This, in turn, makes our website kind of like a special club. It frees us not only from the concerns of Amazon's Price Parity, but also allows us *some* freedom with product that have a MAP policy.
What is a MAP policy?
MAP stands for Minimum Advertised Price, and is something that a manufacturer uses to avoid having their products severely devalued in online marketing. While some have labeled this as price-fixing, it's actually just a requirement on dealers for the privilege of representing their products. And, it serves a purpose - without profits, companies can't provide the post-sale service customers deserve, pay their employees, or develop new and better products.
We honor and respect the MAP prices for the manufacturer's we represent.
When possible, however, some do allow forms of discounting or bundling within their MAP programs. The problem is, Amazon's Price Parity, once again. In some cases, the allowed promotions just can't be done (or done easily) on Amazon's platform.
We want to give you the best deals possible while remaining within the boundaries of our agreements with both marketplaces and manufacturers. Therefore, by using a log-in "wall" on the website, we are not advertising these things to the public.
How do I get the best deal?
It's simple: Just sign up for our mailing list, which creates a log-in to debnroo.com. Once you've done that, you'll see all the best deals from us, and can purchase at any time. Plus, you'll be the first to get notice on any deals we offer.
http://www.channeladvisor.com/blog/?pn=marketplaces/is-price-parity-still-on-your-radar-because-its-on-amazons
