By Martin Heubel, Founder and Director of Consulterce, a strategy consultancy for B2C Household & CPG brands.
It isn’t as straight forward as with other retailers. That’s because Amazon is a price follower.
In other words, it matches the price of other retailers and sellers.
As a result, Vendor Managers won’t accept your cost increases, unless:
- You fund the cost price difference through trade terms,
- You offer Amazon to place a bulk order at the old price, or
- The cost increase is already reflected in the market segment.
So if you want to elevate your profit margins with Amazon in 2023, plan your cost increases well in advance and disconnect them from your other retail channels.
Need a step-by-step blueprint for CPIs with Amazon? – Make sure you read this article.
