Bookmark this list of ideas by Martin Heubel, Amazon Strategy Consultant at Consulterce
Selection:
- Bundle products to reduce variable costs
- Launch channel-exclusive products
- Delist unprofitable selection
- Introduce larger pack sizes
Margin Mix:
- Reduce promotions on unprofitable selection
- Focus ad spend on more profitable listings
- Make mix part of your annual negotiations
- Shift price promotions to accretive items
- Review ASP and Net PPM metrics weekly
Distribution:
- Review discounts for wholesalers passing on discounts
- Setup selective distribution agreements with Amazon
- Use price monitoring tools to identify price leaders
- Understand the leaks in your distribution network
- Enforce MAP with re-sellers and distributors
Commercials:
- Disinvest from terms with low/no ROI (e.g., Auto Mkt.)
- Invest in external support for annual negotiations
- Move unprofitable products to a 3PL/FBA partner
- Increase cost prices on items with low margins
- Negotiate prices with suppliers
For further information and support, contact Martin Heubel here
