By Martin Heubel, Commercial Advisor to 1P Amazon Vendors at Consulterce
If your teams grant Amazon more trading terms each year, chances are your margins are in the deep red.
So if you’re worried about your profitability on Amazon, you probably need to take a firmer stance in your annual negotiations.
Why? Because Amazon does the same.
The reason why the online retailer is so effective in annual vendor negotiations is a brutally applied playbook.
In other words, your Vendor Manager has to apply certain disincentives when they reach pre-defined trigger points in the negotiation.
Knowing these triggers is essential to navigate and inform your trade discussions.
They include:
- A delay in reaching an agreement.
- Repeatedly inadequate proposals for vendor trade terms.
- A lack of access to senior management.
- Failure to meet pre-defined ETAs.
- etc.
So while your teams may prefer a collaborative negotiation approach, this is usually not a great idea when it comes to Amazon.
After all, you want to be in control of your negotiations with Amazon and not a victim of their pressure tactics.
For further information and support, contact Martin Heubel here
