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Manufacturer Suggested Retail Price

The Manufacturer Suggested Retail Price (MSRP) is the sell-price for the given item, as recommended by its manufacturer. It is designed to standardize prices, and enables buyers to determine whether the prices demanded by sellers are fair and appropriate in the given product or industry.

In their attempts to capture buyers’ business, however, sellers do not necessarily follow the manufacturer’s recommendation. That is, sellers may undersell the MSRP for the sake of moving their inventory or capturing market share.

To prevent the price wars that may occur when Amazon third-party sellers try to undersell the MSRP, the manufacturer and seller may agree on a Minimum Advertised Price (MAP) as the lowest price to be charged by the sellers.

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