By Martin Heubel, Amazon Strategy Consultant at Consulterce
Q4 is right around the corner! So here are 4 tips to protect your Amazon margins during peak 2024:
1. Run Subscribe & Save vouchers instead of price promotions.
If you’re a CPG brand, you’ll simply forward purchases, and customers will stock up on your products. If you want to lower your CAC long-term, run SnS vouchers instead. This will help you capitalise on recurring orders and reward loyal customers.
2. Don’t run deals on GP% dilutive items.
Don’t run promotions on products that dilute your bottom line, unless they’re strategic for acquiring new-to-brand customers.
3. Always negotiate deal funding and ignore Amazon deadlines.
Vendor Managers and AVS will communicate artificial deadlines to add pressure to deal funding negotiations. Know that you can push these timelines and don’t have to accept their funding request. Use the extra time to negotiate.
4. Set limits to avoid over-funding deals.
Always limit the number of units you’re willing to fund in deal events. Since Amazon carries lower inventory WOCs right now, you may otherwise run out of stock after the deal event, when margins are the highest.
For further information and support, contact Martin Heubel here
