Amazon vendor negotiations can be scary, but they don’t have to be
It’s that time of year again. As sure as seeing the first signs of spring, this is the time of year that can cause brand owners an inordinate amount of stress. That’s right, it’s time for to renegotiate your vendor terms with Amazon.
If you haven’t already, brand owners around the world will soon get an email from the Amazon Vendor Negotiations team. That email will include Amazon’s new demands for their continued partnership. This could include a higher percentage for accruals, higher freight costs, more AMS spend, higher AMS budgets or a myriad of other costs that can seemingly ruin your day.
This can strike many brand owners with a sense of fear. Amazon is an incredible company and a giant in any space. The prospect of possibly saying no to their demands and risking your partnership can be daunting, but you also don’t want to stand idly by while your costs skyrocket. Additionally, these representatives can often be unclear when presenting these new terms, making it hard to even understand what is being proposed.
Take a breath and put your fears aside. We are here to help.
Unfortunately, many brand owners don’t realize that these terms from Amazon aren’t really demands, but an invitation to begin a conversation. The numbers you are getting from this Amazon representative are driven from the company’s own algorithms, not from the context, experiences or details of your partnership. In the same way you wouldn’t pay sticker price for a car, you shouldn’t agree to any of these terms without a larger conversation.
For many brand owners, this can be an intimidating process. They aren’t experienced in these negotiations, and since they lack the large data pools Amazon is bringing to the table, it can feel a bit like bringing a knife to a gun fight.
That’s where we come in. We have spent years working with Amazon on behalf of leading brands around the country, and have the insights needed to ensure you are getting the best out of these negotiations. We know how Amazon works, where the numbers behind their terms come from and how to not only advocate for your best interests but think outside the box to find additional benefits. We can turn this seemingly stressful obstacle into an opportunity for success.
We begin by getting to the bottom of the ask. You should never sign anything you don’t understand, and we can parse through the complex jargon to lay out exactly what you need to know. From there, we can discern where these terms came from, identify the critical ask and begin negotiating from a place of strength.
Throughout this process, we are able to leverage our relationships with Vendor Managers to ensure the discussion remains amicable and strategic. These negotiations don’t have to be a zero-sum game. With our expertise and experience, we can turn this problem into a growth opportunity for your business while strengthening your relationship with Amazon.
Whenever we enter these conversations, we aim to utilize the same skills and qualities that make us the premier partner for companies looking to overcome their obstacles to growth and dominate across platforms. We have the experience, insights and creativity to ensure that any brand owner can have a positive experience renegotiating their Amazon terms.
Don’t go into these negotiations blind. If you are serious about dominating your vendor negotiations and getting the most out of your relationship with Amazon, call in the experts. The Upstart Group is ready for your call!