Fractional ownership.
- Commercial teams know their retail budgets.
- Media teams know their advertising spent.
- Finance teams have insights into financial disputes.
The problem is:
Each division only has insight into their budgets and spending. So every team thinks their investments are reasonable.
The better way?
Appoint a central team that brings all the pieces together:
- Cost prices
- Trade terms
- Advertising costs
- Supply chain benefits
- Chargebacks
- Shortages
- Price variances
- …
Then, divide your total spend by your Net Receipts.
If your investments are >35%, your teams should:
- Renegotiate cost prices
- Reduce trade terms
- Improve supply chain efficiencies
- Request chargeback waivers
- Escalate financial disputes
Then: rinse and repeat.
And that’s how you overcome the silent killer of your Amazon margins.
Here’s a proven tool to better understand your total costs to serve Amazon
For further insight and support, contact Martin Heubel, Founder and Director of Consulterce, a strategy consultancy for B2C Household & CPG brands (Email: [email protected])
