By Martin Heubel, Amazon Strategy Consultant at Consulterce
Are you setting realistic growth targets for your Annual Vendor Negotiations (AVNs) with Amazon?
Without a solid data foundation, you risk building a fantasy rather than a defendable business plan.
Avoid setting 2025 growth targets based on your:
- Gut-feeling
- Past growth performance
- Unrealistic leadership expectations
Instead, follow this simple 3-step framework:
Compare your growth vs the wider category
Start by comparing your growth performance vs the broader category. Use market research reports to understand whether you’re leading or lagging your competitors.
Understand your missed sales opportunity
Next, understand your lost sales opportunity due to stockouts, suppressions, catalogue errors, and a lost Buy Box. Ask yourself: If you can fix 50% of them, what revenue can you unlock?
Extrapolate the ROI of ad/promo investments
Then, identify the ROI from existing advertising and price promotions. For example, an ROI of £4 means an extra £500k could yield £2m in growth.
Bonus: Don’t forget about EOL listings in 2025! Account for these as a growth headwind unless you expect to fully offset the lost sales.
For further information and support, contact Martin Heubel here
