By Martin Heubel, Commercial Advisor to 1P Amazon Vendors at Consulterce
Don’t let your brand and marketing teams decide how to activate your portfolio on Amazon! It’s a surefire way to erode margins and derail the commercial strategy you’re trying to execute.
I see this all the time: Brand teams push promo and advertising budgets onto pre-defined SKUs, because they’re part of a national promo campaign.
But what works in-store quickly backfires on Amazon.
If your brand teams push volume on dilutive SKUs, your Amazon sales team faces suppressions, CRAP, and calls for margin support from Vendor Managers.
Instead, make sure your brand teams account for the commercial reality with the online retailer. Build a master report that updates monthly and provides all your teams with insights into your own and Amazon’s profitability at SKU level.
Then, overlay that with your category sales share on Amazon. This effectively allows you to define and inform an integrated sales and marketing strategy for each product you sell with the online retailer.
Which reduces the chance that silos between sales and marketing does more harm than good to your growth on Amazon.
Profitability-Share Performance Matrix
For further information and support, contact Martin Heubel here
