How to Manage Channel Conflict Across Your Stores

Channel conflict can be a quiet tug-of-war that plays out every time you try to keep both your Amazon store and retail partners happy. And the costs aren’t just hypothetical. 

According to a survey, 93% of ecommerce channel managers admitted they regularly make decisions that hurt their online sales just to avoid upsetting distributors.

In addition, 6 in 10 ecommerce channel managers said their yearly revenue would likely grow without the limitations caused by channel conflict.

If you’re running a brand across Shopify, Amazon, and wholesale networks, chances are you’re constantly threading the needle between growth and keeping the peace. It’s not just about pricing or platforms anymore but about protecting your margins and your relationships. 

 

What is Channel Conflict in Ecommerce?

In today’s multi-channel ecommerce environment, it’s not uncommon for internal battles to quietly chip away at your revenue, customer trust, and partner relationships.

Channel conflict happens when different sales avenues for the same brand such as Amazon, retail stores, or your direct-to-consumer (DTC) site, end up competing against each other instead of working together.

There are three main ways channel conflict manifests:

 

Vertical Channel Conflict 

This conflict type arises between different levels of the same supply chain. For instance, a manufacturer vs a retailer, or a brand vs a distributor. 

If you run a brand that works with distributors to reach retail partners, conflict can emerge when your DTC pricing or promotions make it harder for them to compete.

• Example. A skincare brand starts selling directly on its own website at a lower price than what its retail partners offer. The retailers feel undercut and stop promoting the product.

 

Horizontal Channel Conflict 

This type of conflict, meanwhile, involves tension between players on the same level on the distribution model. When horizontal channel conflict arises, it frequently sparks price competition that diminishes the brand’s perceived value.

• Example. Two authorized Amazon resellers of a brand are competing by slashing prices to outdo each other. 

 

Multichannel Channel Conflict 

This conflict shows up when a brand sells through multiple platforms like Amazon, Shopify, and distributors, but fails to create distinct strategies for each. When horizontal channel conflict occurs, it often sparks price competition that can damage the brand’s perceived worth.

• Example. Your own Shopify store offers free shipping and bundles that undercut what your authorized Amazon resellers can offer. 

 

How Channel Conflict Manifests

In the world of omnichannel ecommerce, where your products might show up in various online or physical stores, there are many ways channel conflict could show up. When this happens, you can feel it in your margins, relationships, and customer satisfaction.

Here’s how channel conflict manifests:

 

Price Undercutting

Data tells us that 6 out of 10 shoppers compared prices online before buying. If a customer visits your DTC site and sees your product for $80, but a third-party Amazon seller is offering it for $69, who do you think gets the sale? Probably not you. 

This kind of undercutting trains customers to shop around and can erode trust in your brand.

Platform Cannibalization

You’re running a holiday sale on Shopify, while Amazon automatically adjusts its pricing based on competition. You end up competing against yourself.

 

Customer Confusion

Your brand looks one way on Shopify, another way on Amazon, and a third on a reseller’s site. Some ships in two days, others in two weeks. Some include gifts, others don’t. 

With the pricing inconsistency and difference in inclusions, customers can get mixed signals and may leave frustrated.

 

What Causes Channel Conflict?

In many cases, channel conflict emerges subtly when strategies across pricing, partners, and platforms aren’t in sync.

Below are some of the top triggers behind channel conflict.

 

No MAP Policy

A Minimum Advertised Price policy or MAP policy is a pricing rule that a brand sets to control how low a reseller can advertise its products for, but not necessarily how low they can sell them. 

If you don’t have a MAP policy, you’re leaving your brand vulnerable to price wars. The numbers speak for themselves: 20% of tracked products report MAP violations every single day, and a staggering $2.6 billion is lost annually in the U.S. due to these violations.

Even more concerning? 80% of online sellers are unauthorized, which means they have little to no incentive to honor your pricing or protect your brand’s value. Without a MAP in place, it’s easy for pricing to spiral out of control.

 

Unauthorized Resellers

When products show up on Amazon, Walmart Marketplace, or other third-party sites without your knowledge or control, you’re dealing with an unauthorized reseller problem. 

These sellers often buy your products in bulk, undercut official pricing, and offer poor customer experiences, all while competing with your legitimate channels.

This not only erodes brand equity, but also causes pricing conflicts and can cost you the Amazon Buy Box.

 

Poor Ecommerce Integration

When your ecommerce tools and platforms aren’t talking to each other, inventory sync issues, pricing errors, and fulfillment delays can creep in. 

Lack of ecommerce integration between systems like your ERP, Amazon Seller Central, and Shopify backend can cause duplicate listings, overselling, or pricing discrepancies that fuel channel confusion.

 

Overlapping Audiences with No Strategy

Selling the same product with the same messaging across Amazon, Shopify, and your retail partners might seem efficient, but it often creates internal cannibalization. 

Without clear segmentation (exclusive bundles, channel-specific offers, or messaging), your own stores can end up competing with each other for the same customers.

 

How to Prevent Channel Conflict

Here are a few ways you can avoid channel conflict as an ecommerce seller.

 

Enforce a Strong MAP Policy

A MAP policy is your first line of defense against pricing wars. But simply writing one isn’t enough; it needs to be monitored and enforced across all channels.

To be able to enforce your MAP policy, make sure that you share it with resellers, distributors, and retail partners―ask for a written agreement or signature, as much as possible. 

It also pays to educate them on why MAP matters and how it protects everyone’s margins and the brand’s value.

• Actionable Tip. Use monitoring tools to automatically detect MAP violations and alert your team in real-time.

 

Remove Unauthorized Resellers

Unauthorized resellers often acquire inventory through distributors, liquidation sales, or arbitrage and list it online without your approval. They often undercut your prices, hurt your brand reputation, and steal sales from legitimate partners.

One tool you can leverage against unauthorized resellers is Amazon Brand Registry. Once enrolled, you gain greater control over your product listings and access to powerful tools that help detect and report policy violations.

• Actionable Tip. Set up a process to routinely audit your product listings. Conduct Amazon competitor analysis and marketplace monitoring to identify unfamiliar sellers and track how they price, bundle, and ship your products.

 

Differentiate Your Channel Offerings

If every channel is selling the exact same product in the exact same way, you’re setting them up to compete. Instead, segment your offerings to create channel-specific value. 

This isn’t just about preventing overlap, but also about delivering what shoppers actually care about. According to a survey, 46.8% of consumers value competitive pricing and discounts, while 36.4% want detailed, accurate product descriptions and photos. 

That means one-size-fits-all listings across your channels won’t cut it. For example, you can differentiate your channel promos by offering bundles on your Shopify store, retail exclusives for in-store partners, and unique packaging for Amazon.

• Actionable Tip. Make sure your top-performing channels reflect what your customers care about most, like fast shipping, secure checkout, or detailed specs.

 

Stay Ahead of Platform Policies and Enforcement Risks

In marketplaces like Amazon, failure to comply with pricing policies, seller terms, or listing standards can quickly spiral into bigger issues like suppressed listings, lost Buy Box privileges, or even account suspension. 

At the same time, not staying on top of policy changes can leave your brand wide open to unauthorized resellers, counterfeiters, and aggressive competitors.

• Actionable Tip: If you’re struggling to control Amazon resellers, track violations, or strategize around your DTC vs retail mix, reach out to specialists like AMZ Advisers. Trusted by brands all over the globe, AMZ Advisers offer custom solutions to help brands manage Amazon channel conflict while maintaining strong relationships with other sales partners.

 

The Lowdown

Channel conflict can fracture relationships, confuse customers, and erode your brand’s credibility across every platform you sell on. And as more brands embrace omnichannel ecommerce, the risks only grow.

But conflict isn’t inevitable. With the right mix of strategy, communication, and tech-powered enforcement, you can keep your Shopify store, Amazon listings, and retail partners aligned, never at war.

Whether it’s tightening up your MAP policy, cleaning house of unauthorized resellers, or simply offering smarter product bundles per channel, these small moves can make a big difference in protecting your margins and your message.

 

Author

Carla Bauto Deña is a journalist and content writer producing stories for traditional and digital media. She believes in empowering small businesses with the help of innovative solutions, such as ecommerce, digital marketing, and data analytics.

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