Managing price, cost and marketing contributions with Amazon can be incredibly frustrating. Train your in-house team in best practices to negotiate your deals and selling prices with Amazon. Amazon will always put pressure on the longest payment terms and the lender will want the shortest payment terms. Payment terms are usually between 30 and 90 days, with an average of about 60 days. In order to motivate Amazon to accept shorter payment terms, the lender may offer an early account. This discount is usually all 1-3%. Before you contact Amazon to offer other conditions, make sure you`ve already colored your minimum offer, accuracy and solid balance sheet to find out what rickety space you have on every street corner. Think about the leverage you have to allow you to offer concessions that capture and catch Amazon`s attention. In addition to the qualities of your products, good press coverage and participation in marketing campaigns, promotions and merchandising can tip the balance in your favor. Finally, note that the best time to enter into negotiations with Amazon is close to the time when your lender agreement needs to be renewed.
You can have marketing plans and data from the previous year. What is your Amazon Advertising investment? How has this investment increased your business and has Amazon benefited? Use the tools and metrics available on Vendor Central and Amazon Ads to demonstrate your progress. Suppliers should be aware of the health of their business and be able to demonstrate that the lender account is profitable and generates a positive net margin with strong growth potential. If you work with Amazon on wholesale, you need to make sure that you have the margins to support this model and include all certificates in your total cost calculations. If you don`t, you`ll find that your account isn`t really profitable and can no longer work with Amazon on the vendor`s site. The same goes for Amazon: you need to make sure you offer Amazon enough margins to keep them profitable. Otherwise, you`ll find that Amazon cancels orders and puts your products on obsolescence. In addition, Amazon`s sales agreements may include cash weightings consisting of cooperative marketing refunds, discounts, etc. Amazon sees them as discounts on what they pay for products.
They generally apply when Amazon reaches minimum purchase thresholds that they estimate based on past achievements and forecasts for the current year.