By Martin Heubel, Amazon Strategy Consultant at Consulterce
Price pressure will dictate this year’s Christmas season. After years of cost increases, retailers expect CPGs to invest in volume growth.
Amazon is no different.
But a blind promo focus will cost your Amazon business massive losses if you don’t:
- Focus on your portfolio margin mix
- Avoid promos on pack sizes with a wide distribution
- Don’t streamline your promos across channels
That’s because it creates a downward spiral in price.
The better way?
- Run promos on less distributed ASINs (e.g., B2B items)
- Focus on Subscribe & Save discounts to lower CAC
- Avoid promos on items with dilutive Net PPM / Gross Margins
- Create funds to protect ASINs from getting delisted (CRAP)
Remember:
Don’t just use deals for growth. Also keep your margins in check at the account and ASIN level.
And if you run a lot of promotions with other retailers, set aside funds to protect Amazon’s Net PPM.
For further information and support, contact Martin Heubel here
