By Martin Heubel, Amazon Strategy Consultant at Consulterce
Many 1P vendors see Amazon as just another sales channel. So they…
- Hire a full-service agency
- Grant a large marketing budget
- Set high growth and margin targets
- Follow a more-for-more investment approach
- Expect Amazon to not price-match their products
The problem is:
They haven’t dedicated time to designing an Amazon strategy.
Instead, they focus on what works with other retailers.
…setting themselves up for low-profit margins with Amazon 1P.
So here’s a quick summary of what brands should do instead:
- Monitor the product ASP before listing.
- Reserve funds for promotional campaigns.
- Define realistic margin targets with Amazon.
- Review existing volume discounts for wholesalers.
- Negotiate trade terms oriented on growth and ROI.
- Coordinate the timelines of cross-channel promotions.
- Increase margins through a channel portfolio differentiation approach.
For further information and support, contact Martin Heubel here
