This episode offers a crucial look at the 2024 Amazon Vendor Negotiation (AVN) benchmarks, revealing that brands are successfully resisting trade term increases. Ecommerce operators will learn that rigorous preparation, data-driven strategies, and building a healthy Amazon business year-round are paramount to securing favorable terms and improving margins, especially as Amazon's negotiation processes evolve.
Key takeaways
Despite challenges, 9% of brands achieved a year-over-year decrease in their trade terms, and 61% avoided a decrease in overall margins, indicating that resistance to Amazon's demands can be effective.
Embrace Amazon's data-driven negotiation approach; detailed homework and preparation are critical for successful AVNs, as 'wining and dining' vendor managers is ineffective.
Prioritize building a healthy and growing Amazon business throughout the year, as faster-growing and highly profitable brands generally experience better AVN outcomes.
Be aware of disparities: food and CPG brands, as well as European vendors, face tougher negotiations compared to other categories and regions, requiring even more robust strategies.
Anticipate potential trends towards less formal AVN processes due to Amazon understaffing, which may present new dynamics for negotiation and require adaptability.
Welcome to another episode of The Ecommerce Braintrust podcast hosted by Acadia's Head of Retail Marketplaces Services Julie Spear. In this episode, we're joined by Claire McBride, the VP of Research and Education at Stratably, to discuss the Amazon Vendor Negotiation (AVN) Benchmark Report. Authored by Claire alongside Martin Heubel of Consulterce, this report dives deep into the AVN process, offering valuable insights and benchmarking data for brands looking to navigate their negotiations with Amazon more effectively. Tune in to discover key takeaways, strategies, and trends that can help you prepare for next year's AVNs. KEY TAKEAWAYS In this episode, Julie and Claire discuss: The stress and lack of transparency that many brands experience during AVNs. The purpose of the benchmark report. Data gathered from 252 brands, split between North American and European vendors. Surprising Findings: Brands are becoming firmer in resisting trade term increases. 9% of brands achieved a year-over-year decrease in their trade terms and 61% of brands avoided a decrease in overall margins. The main challenge continues to be securing favorable trade terms. Disparities in AVN experiences between various types of businesses, with food and CPG brands facing tougher negotiations. <p dir="ltr" role="presentation
Frequently asked about this episode
What does this episode say about amazon vendor negotiations?
Despite challenges, 9% of brands achieved a year-over-year decrease in their trade terms, and 61% avoided a decrease in overall margins, indicating that resistance to Amazon's demands can be effective.
What does this episode say about data-driven decision making?
Embrace Amazon's data-driven negotiation approach; detailed homework and preparation are critical for successful AVNs, as 'wining and dining' vendor managers is ineffective.
What does this episode say about e-commerce strategy?
Prioritize building a healthy and growing Amazon business throughout the year, as faster-growing and highly profitable brands generally experience better AVN outcomes.
What does this episode say about vendor-retailer relationships?
Be aware of disparities: food and CPG brands, as well as European vendors, face tougher negotiations compared to other categories and regions, requiring even more robust strategies.
What does this episode say about amazon vendor negotiations?
Anticipate potential trends towards less formal AVN processes due to Amazon understaffing, which may present new dynamics for negotiation and require adaptability.
