Vertical electronic toy retailer doesn’t play games with pricing

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Vertical electronic toy retailer doesn’t play games with pricing

By Dan Berthiaume - 07/02/2019
Vtech ensures distributors and resellers follow the rules when setting prices.

In addition to selling its electronic toy products aimed at adolescents via its own e-commerce sites, Vtech also sells items through third-party platforms such as Amazon and Google Shopping. Operating different channels made enforcing minimum advertised prices (MAP) time-consuming and complicated, putting the brand’s reputation at risk.

To track MAP violations and enforce pricing compliance across multiple reseller and distribution networks, Vtech implemented a MAP monitoring solution from Wiser. Data from the Wiser solution identifies sellers that are consistently in violation of MAP, allowing Vtech to remind resellers of their pricing policy and educate them on standards. As a last resort, Vtech can limit distribution to non-compliant sellers or take additional enforcement actions until compliance is restored.

Using Wiser’s proprietary MAP monitoring platform, Vtech tracks each SKU for MAP violations from direct sites and marketplaces. The company is now better able to control customer perception of the brand and protect profit margins across its assortment.

“When we notify someone of a violation, we have a snapshot of the violation and we can go to the reseller and remind them of our standards,” said Ray Richardson, director of customer service & order management at Vtech. “It’s educational for them the first time, and after that we can proceed with additional action.”