By Martin Heubel, Amazon Strategy Consultant at Consulterce
Amazon Vendor Managers are quick to discuss:
- Auto Marketing
- Retail Merchandising
- Damage Allowance
- …
Yet, none of these terms help brands grow their category or market share. They’re merely funding Amazon’s Net Pure Profit Margin (PPM).
With competition on the virtual shelf at all-time highs and Amazon being the #1 online retailer for your brand, your teams need to reframe the negotiation:
Away from Sales towards »Market Share Growth« targets.
You can do that by:
- Asking for non-indexed category insight reports
- Linking investments to category share targets
- Orient leadership escalations on market share goals
- Shifting trade terms to Retail Media if market share declines
- Rejecting terms that won’t grow (or protect) your market share
Let’s be clear: Absolute growth targets are vital to discuss as part of your AVN.
But your investment decisions should focus on winning market share. Not Amazon’s Net PPM.
For further information and support, contact Martin Heubel here
