Can Shopify remove stores for selling at too low prices?

[fishbonezken]

Hi everyone,

I would like to ask if a Shopify store can be reported by brand owners for selling at too low prices.

Will Shopify remove such stores or product listings?

For example, I want to sell a Sony TV.

The MSRP set by Sony is USD1000 and everyone is following the price.

If I sell at USD600, and it is being reported to Shopify. Will Shopify have the right to block my store or remove my product listing?

Thank you in advance for any answer!

[SaaSEnthu]

Hello @fishbonezken

Nice question.

I am not an expert here however this is what I found on the web https://blog.mmwholesale.com/why-do-vendors-encourage-retailers-to-sell-at-msrp

You can read the article for more details. An interesting fact I found from this article is

While you, as a retailer, have the complete authority to sell the products on your shelves below the MSRP, you run the risk of severing crucial relationships with your vendors. Selling below the MAP adds the risk of legal action from vendors which can have devastating consequences for your business.

In Shopify, you can set your price for your product and Shopify may have no issues (PRODUCT SHOULD BE LEGIT) with it however you may need to check with the Vendors if they have no problem you can set your price on Shopify.

[fishbonezken]

Thanks for linking to the insightful article! Does help me with my question. Yes relationships with the suppliers will most likely be affected but I’m wondering if Shopify will do something about it when legally required by brand owner/supplier.

[wwwdepot]

Shopify can take down your store if it's against their AUP https://www.shopify.com/legal/aup.