For Amazon 1P vendors, annual negotiations with Amazon can lead to punitive actions that damage sales and profitability. This episode reveals defensive strategies, including a 1P/3P hybrid approach, to protect your business from Amazon’s tactics and maintain leverage in negotiations.
Key takeaways
Implement a 1P/3P hybrid strategy to maintain sales and protect rankings during difficult Amazon negotiations, especially in Europe where legal restrictions are less stringent than in the US.
Utilize the 3P channel to recover lost sales and maintain your best-selling rank if Amazon stops ordering or suppresses your 1P listings.
Understand that while a 1P/3P hybrid may not always yield higher profitability, its primary value is in creating negotiation leverage and safeguarding sales from Amazon's punitive actions, such as buy box suppression or traffic redirection.
Be aware of regional differences: the 1P/3P hybrid approach is generally more viable in Europe than in the US, where Amazon’s “standards for brands” policy can restrict manufacturers from operating a 3P account simultaneously.
Proactively plan for potential cost negotiation deadlocks by having a 3P inventory strategy ready to avoid stock-outs and loss of sales.
Recognize that Amazon’s priorities have shifted from pure growth to profitability, leading to more aggressive negotiation tactics and greater risk of punitive actions for vendors not meeting Amazon’s net PPM targets.
Are you an Amazon 1P Vendor looking to protect your sales during tough annual vendor negotiations (AVNs) while still reaching your growth targets? Join Carina McLeod, former Amazon Vendor Manager and CEO of eCommerce Nurse, along with special guests Rob Murray (Client Services Lead at eCommerce Nurse) and Martin Heubel (Amazon Consultant and former Amazon Category Manager), as they explore key defensive sales strategies tailored for 1P vendors. In this episode, you'll learn why it’s essential...
Frequently asked about this episode
What does this episode say about amazon vendor strategy?
Implement a 1P/3P hybrid strategy to maintain sales and protect rankings during difficult Amazon negotiations, especially in Europe where legal restrictions are less stringent than in the US.
What does this episode say about multi-channel strategy?
Utilize the 3P channel to recover lost sales and maintain your best-selling rank if Amazon stops ordering or suppresses your 1P listings.
What does this episode say about profitability & negotiation?
Understand that while a 1P/3P hybrid may not always yield higher profitability, its primary value is in creating negotiation leverage and safeguarding sales from Amazon's punitive actions, such as buy box suppression or traffic redirection.
What does this episode say about risk management?
Be aware of regional differences: the 1P/3P hybrid approach is generally more viable in Europe than in the US, where Amazon’s “standards for brands” policy can restrict manufacturers from operating a 3P account simultaneously.
What does this episode say about amazon vendor strategy?
Proactively plan for potential cost negotiation deadlocks by having a 3P inventory strategy ready to avoid stock-outs and loss of sales.
