Why Do Amazon Vendors Need to Be Planning Defensive Sales Strategies Ahead of Their Annual Vendor Negotiations?

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7 January, 2025
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2 minute read
Why Do Amazon Vendors Need to Be Planning Defensive Sales Strategies Ahead of Their Annual Vendor Negotiations

This article is based on insights shared during the eCommerce Nurse podcast hosted by Carina McLeod, featuring guests Martin Heubel from Consulterce and Rob Murray from eCommerce Nurse.

As the eCommerce landscape evolves, Amazon Vendors face increasing challenges, particularly during annual vendor negotiations (AVNs). Historically, Amazon’s focus was on rapid growth, especially during the pandemic. However, in recent years, the company has shifted its priority to profitability. This change has placed additional pressure on vendors, who must meet stringent cost and performance targets to maintain their standing on the platform.

The Importance of Defensive Strategies

Vendors are no longer just negotiating favourable terms; they are fighting to protect their sales, rankings, and visibility during these negotiations when they can’t come to an agreement with Amazon. With Amazon's growing focus on profitability, negotiations are becoming increasingly challenging, looking to squeeze even more margin out of vendors. When discussions reach a standstill, Amazon has employed tactics such as buy-box suppression, halting orders, and redirecting traffic to competing brands to exert pressure and capture attention. For vendors, these actions can have significant consequences, including revenue dips and long-term damage to their product rankings.

A well-thought-out defensive strategy helps vendors mitigate these risks. By identifying potential pitfalls and proactively implementing measures, vendors can safeguard their operations and maintain stability during the negotiation period.

Here are 3 key defensive strategies vendors can implement:

  1. Use a 1P/3P vendor/seller hybrid approach to stay competitive, protect your sales, and maintain your ranking.
  2. Leverage Subscribe and Save to maintain ongoing sales.
  3. Accelerate and weight ad spend to ramp up sales demand whilst ensuring average NetPPM remains on track.

Planning defensive sales strategies ensures vendors are not caught off guard and can navigate negotiations confidently, maintaining their sales and brand visibility.At eCommerce Nurse, we specialise in crafting tailored strategies to drive long-term growth for Amazon vendors. From account and ads management to data insights, product optimisation, copywriting and design, our team is here to help. Let’s discuss how we can support your Amazon journey—reach out today!

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