By Martin Heubel, Founder and Director of Consulterce, a strategy consultancy for B2C Household & CPG brands.
Many Amazon vendors are negotiating pan-EU terms in 2023. The biggest problem?
Amazon breaks its own negotiation tenet: The P&L assessment at EU level.
Under this tenet, Amazon is only interested in increasing the P&L at an aggregated EU level.
It was designed to allow vendors to shift investments from individual marketplaces to the P&L of other EU locales.
However, more and more 1P suppliers are confronted with a different reality:
Amazon insists on improving terms and margins in each country. If you find yourself in this situation, here’s what you should do:
- Remind your VM of their negotiation tenets.
- Reject their request to improve in every locale.
- Offer to return to a local negotiation approach.
- Escalate to the EU sponsor of your negotiation.
Vendor Managers have a high turnover, so they tend to “forget” the promises made when vendors were asked to move to a pan-EU setup.
And it’s your job to remind them of their commitments.
For further insight and support, contact Martin Heubel here
