By Martin Heubel, Amazon Strategy Consultant at Consulterce
Stop comparing your Amazon trade terms to those of other brands.
It won’t help you in trade negotiations. And it will create a false sense of insight that won’t match the reality of your account.
That’s because knowing the AVS or Base Accrual investments of your peers won’t give you any insight into:
- Amazon’s targets in their category
- Your peers’ Net PPM performance YoY
- Their front-to-back-margin investment ratio
- The difference in shipping costs of their items
- Their operational and supply chain performance
Yes, you can use an isolated insight into your peers’ trade terms to inform your investment corridors.
But fixating on the same investment $/% will likely lead to:
Buy Box suppressions / CRAP
- Unsuccessful vendor negotiations
- Offboarding from programmes like AVS
So, when benchmarking your investments with other vendors, make sure you understand their trading context with Amazon.
For further information and support, contact Martin Heubel here
