Here’s how to use this to your advantage:
Vendor Managers relied on organic growth for years to raise trade terms with brands.
But 2022 changed this dynamic.
Now, most brands aren’t seeing double-digit growth.
In fact, most vendors will miss their growth targets.
So how can you take advantage of this situation in your AVN?
By flipping the Amazon negotiation script.
Show your Vendor Manager how you have driven growth this year.
To do that, measure the returned revenue from your:
- Advertising campaigns
- Deals and Promotions
- Exclusive Amazon products
Once you have these figures, subtract them from your total Amazon turnover in 2022.
By doing that, you take away the commercial leverage from your Vendor Manager.
Which allows you to steer the negotiation to proven growth levers.
And reduce terms that don’t drive any return on investments.
For further insight and support, contact Martin Heubel, Founder and Director of Consulterce, a strategy consultancy for B2C Household & CPG brands (Email: [email protected])
