By Martin Heubel, Amazon Strategy Consultant at Consulterce
Let’s face it: Most multinationals fail to operate Amazon’s vendor model successfully.
They:
- Hire specialised agencies to optimise their PDPs
- Invest in highly sophisticated Retail Media strategies
- Fall in love with the creation of (AI-powered) data dashboards
All while ignoring:
- Their declining Net PPM performance
- Amazon delisting (CRAP’ing) their products
- The centralisation of their commercial strategies
The truth is: If you don’t address the structural misalignments between your and Amazon’s business setup, no AI and Retail Media strategy will drive a healthy bottom line for your 1P business.
So instead of running after the latest shiny object, start focusing on the critical basics:
- Focus your efforts on distribution control
- Identify the root causes for changes to your Net PPM
- Define concrete negotiation strategies to elevate your trade relationship
The most profitable 1P vendors aren’t chasing the latest hacks or trends. They obsess about the same boring basics over and over again instead.
For further information and support, contact Martin Heubel here
