By Martin Heubel, Amazon Strategy Consultant at Consulterce
Has your Vendor Manager rejected your cost price increase? It’s not Amazon’s fault.
It’s the numbers that don’t support your business case, if:
- Your teams don’t propose a change in MSRPs
- Your ASP hasn’t increased in the last 12 months
- You use qualitative arguments to justify the CPI
As a price follower, Amazon doesn’t care about your reasons for a cost increase.
Vendor Managers only care about whether you can demonstrate that the cost increase won’t negatively impact their front margins.
So what should you do? (Spoiler alert: it’s not pointing fingers)
- Use data-arguments to justify the cost increase
- Offer Amazon a bulk buy at the old cost price
- Update MSRPs with all national retailers
- Create your plan B (stop confirming orders, sell items via 3P/FBA)
For further information and support, contact Martin Heubel here
