By Martin Heubel, Amazon Strategy Consultant at Consulterce
It remains the biggest challenge for vendors: The Price Algorithm.
To overcome it, many brands focus their resources on the wrong things:
- Trying to raise cost prices
- Delisting products
- Moving to 3P
What’s overlooked is that improving your Amazon margin starts outside the Amazon account.
So how do you get a handle on your margins?
You have to start controlling your distribution:
- No bulk discounts
- Not selling your products to everyone
- Not distributing the same products across channels
If that sounds hard, it’s because it is.
Changing these elements takes time and effort.
But if Amazon is an important part of your 2030 retail roadmap, you can’t ignore its business model at the same time.
For further information and support, contact Martin Heubel here
