By Martin Heubel, Amazon Strategy Consultant at Consulterce
Make sure you ask for your money back. Here’s how:
Most vendors have invested in higher trade terms with Amazon.
But if Amazon fails to deliver agreed growth ambitions, vendors should ask for their money back
Quite literally.
That’s because Amazon Retail can’t grow your 1P account outside of price promotions and Subscribe and Save.
And if you’ve invested too much in terms that don’t drive revenue-generating growth, you need to reclaim that investment to reinvest in areas that drive better ROI (i.e. retail media).
Will your Vendor Manager agree right away? Of course not.
But they also face increasing pressure to drive category growth.
So here’s a 3-step plan for initiating the discussion:
- Demand reversal of incremental investments made for 2023.
- Be specific: Ask for a concrete percentage reduction.
- Give examples of the ROI of your media campaigns on Amazon.
If your Vendor Manager is concerned about margin, commit to directing part of retail media investments to ASINs with an accretive Net PPM%.
The bottom line?
Don’t accept missed growth targets. Instead, negotiate your money back.
For further information and support, contact Martin Heubel here
