How To Handle CSA Requests From Your Amazon Vendor Manager

By Martin Heubel, Amazon Strategy Consultant at Consulterce

Should you agree to Cost Support Agreements (CSA) with Amazon?

No, you shouldn’t.

Here are 3 reasons why:

1. Amazon often sets a margin target above your category average.
2. You may end up paying for overstock markdowns and pricing errors that are out of your control.
3. Nothing stops Amazon from discounting your products to drive demand (to reach a higher tier in your Volume Incentive Agreement, for example).

If your Vendor Manager pushes for a CSA, simply point to the fact that Amazon cannot guarantee the absence of markdowns and pricing errors.

For further information and support, contact Martin Heubel here