By Martin Heubel, Commercial Advisor to 1P Amazon Vendors at Consulterce
If you’re a 1P vendor, you’ve likely faced cost support requests or threats to delist selection in recent months. As Amazon heads into peak season, its buyers are focused on improving their bottom line.
But their rationale for demanding cost reductions, margin support, and increased trade investment gives us a great insight into their upcoming AVN strategy.
Here are three key takeaways vendors should take note of:
1. Net PPM remains Amazon’s NorthStar metric in 2026
As brands feel more pressure to improve their sales performance, price promotions to drive volume have picked up again.
This puts Amazon’s Net PPM under pressure, especially in CPG categories. Which leads Vendor Managers to focus on recovering Net PPM losses across vendor accounts.
2. Defensive sales strategies will become more important
Amazon is known to remove the Buy Box from listings with low margins. So make sure you protect your business from sudden sales interruptions.
CPG brands should use the fourth quarter to increase Subscribe and Save revenues. And work with 3P distributors to back up their 1P business when Amazon decides to pull the Buy Box during annual negotiations.
3. Vendors must find ways to bridge the profitability gap
The current economic dynamics remain difficult for brands to navigate. Amazon attracts tons of traffic, with suppliers scrambling to protect their top and bottom line.
So, as you prepare your AVN strategy for 2026, make sure you have a solid plan to close the profitability gap with the online retailer. The best way to do this is to ignore Amazon’s obsession with cost prices and trade investments.
Instead, consider how investing in retail media and off-site traffic can positively impact your portfolio margins. And combine this with other cost-saving initiatives, such as logistics and fulfilment programmes.
For further information and support, contact Martin Heubel here
