By Martin Heubel, Amazon Strategy Consultant at Consulterce
That’s because Amazon will outright accept:
- Invoices with lower-than-agreed-cost prices
- Accidental cost price reductions due to vendor-initiated catalogue updates
- Lower than expected invoice quantities caused by catalogue errors
What a nightmare.
But it doesn’t end there: Amazon also won’t automatically pay vendors back any price discrepancies. Instead, the online retailer may even create price protection agreements to apply any cost discrepancies to its existing inventory.
So vendors need to monitor their cost prices with Amazon regularly.
How can you do this? By following these simple but important steps:
- Don’t accept any line items on POs with incorrect cost prices
- Avoid manual catalogue updates – use Amazon’s API instead
- Conduct monthly master catalogue checks with AVS
- Dispute any price variances immediately via Vendor Central
- Escalate any rejected disputes to your Vendor Manager
The key takeaway?
While Amazon won’t easily agree to cost price increases, cost price reductions will be accepted immediately.
So make sure to create processes to avoid this costly mistake in the first place.
For further information and support, contact Martin Heubel here
