cancel
  • Feed
  • GB Media
  • Resources
  • LinkedIn
  • X
  • AmzDesignKit
  • YouTube

Nov 30, 2024 12:00AM

Amazon's vendor negotiations are more flexible than most think. A three-step approach - understanding category position, making clear requests, and escalating to senior stakeholders - can help move past initial rejections and achieve better terms.

Martin Heubel | Link to post

Want to know #Amazon's red lines in annual vendor negotiations (AVNs)?

๐Ÿšซ There aren't many.

Amazon can move on most things:

- Reducing trade terms
- Increasing cost prices
- Operational Commitments (AVS)

But how can you push the boundaries of your negotiation?

๐Ÿ‘‡ By using this simple 3-step framework:

๐—ฆ๐˜๐—ฒ๐—ฝ ๐Ÿญ: ๐—ž๐—ป๐—ผ๐˜„ ๐—ฌ๐—ผ๐˜‚๐—ฟ ๐—–๐—ฎ๐˜๐—ฒ๐—ด๐—ผ๐—ฟ๐˜† ๐—ฃ๐—ผ๐˜€๐—ถ๐˜๐—ถ๐—ผ๐—ป
Vendor Managers will be more flexible if they need you to deliver their category targets. So you need to understand your position in Amazon's category.

If you are one of their top 5 vendors, you can pretty much ask for anything. But even if your position is less dominant, you can place your requests and move to step 2:

๐—ฆ๐˜๐—ฒ๐—ฝ ๐Ÿฎ: ๐—”๐˜€๐—ธ
State your request, and don't immediately back down when your Vendor Manager says No.

๐Ÿ‘‚Instead, listen carefully.

Are there any commitments your buyer needs from you? Or do they need more information to understand your request?

It's unlikely they will just say No. But even if they do, you still have:

๐—ฆ๐˜๐—ฒ๐—ฝ ๐Ÿฏ: ๐—˜๐˜€๐—ฐ๐—ฎ๐—น๐—ฎ๐˜๐—ฒ ๐˜๐—ผ ๐—ฆ๐—ฒ๐—ป๐—ถ๐—ผ๐—ฟ ๐—ฆ๐˜๐—ฎ๐—ธ๐—ฒ๐—ต๐—ผ๐—น๐—ฑ๐—ฒ๐—ฟ๐˜€
Amazon's leadership team wants one thing: Developing your business long-term.

That's why they will search for creative solutions to overcome gridlocked negotiations. So do your research and develop a relationship with them early.

If you show the same level of flexibility that you expect from Amazon, you will likely move the original red lines in your trade discussions.

---

What other ways have helped you overcome a No from Vendor Managers?

Let me know in the comments!

Content Image
0 0