By Martin Heubel, Amazon Strategy Consultant at Consulterce
Today marks the fourth anniversary of my Amazon strategy consultancy. So here are some of the key observations I’ve made working with clients over the past few years:
1. Channel Management
To win with Amazon, you must actively manage it as a dedicated sales channel. Amazon will not grow your sales or profit margins. You, as the brand, have to grow them.
Learning: If you sell on Amazon, ensure your teams are held accountable for sell-in and sell-out!
2. Execution > Pride
Digital is different from brick-and-mortar retail. Brands with a traditional sales background tend to pride themselves on their past successes… and get overtaken by newcomers because they fail to execute the right strategies.
Learning: Your offline success doesn’t matter as much online. It’s a hard pill to swallow, but establishing digital competencies is key.
3. Distribution Control
Selling products with no distribution control will quickly lead to unsustainable margins on your vendor account. Creating a channel-agnostic distribution strategy is key to managing your omnichannel margins in 2025/26.
Learning: Managing your margins on Amazon starts offside the marketplace.
4. Portfolio Differentiation
Amazon’s price-follower strategy is ruthless. If you cannot control your distribution, you must differentiate your portfolio. Larger pack sizes and online exclusives are effective ways to do this.
Learning: Make sure you create a unique selling proposition for the end customer. Otherwise, your exclusive product might simply be matched against its non-exclusive counterpart.
5. Negotiation Capabilities
Few retailers require as many negotiating skills as Amazon. Once you invest a certain $ amount, it remains in your Amazon P&L for several years.
Learning: Make sure every $ is invested in trading terms with a clear ROI and growth impact. If you want to assess your commercial setup with Amazon, my benchmarking diagnostic service might be a good fit (PM me for details).
For further information and support, contact Martin Heubel here
