By Martin Heubel, Amazon Strategy Consultant at Consulterce
“Amazon’s price follower strategy is driving down our margins.”
I hear this statement all the time.
But Amazon is just the mirror of your distribution strategy.
In other words:
Bad distribution management leads to low Amazon margins.
If you are serious about increasing your margins with the online retailer, your teams should focus on:
- Creating value bundles
- Delisting highly unprofitable items
- Launching Amazon-exclusive products
- Introducing selective distribution agreements
- Focusing marketing budgets on profitable listings
- Differentiating your portfolio through premiumisation
- Educating offline sales teams on Amazon’s business model
For further information and support, contact Martin Heubel here
