Amazon Mdf Agreement
Before you contact Amazon to offer alternative terms, make sure you`ve already colored your minimal offer, your happy medium, and your solid end result, so you know what leeway you have around every corner. Think about the leverage you have to allow yourself to offer concessions that attract and maintain Amazon`s attention. In addition to the qualities of your products, good press coverage and participation in marketing campaigns, promotions and merchandising can be the weak link in the balance in your favor. Finally, note that the best time to enter into negotiations with Amazon is close to the date your supplier agreement is due for renewal. Not everything in your supplier agreement is flexible. It is more likely that you will get something in your negotiations by demanding changes in cost prices, allowances, provisions, returns, freight and payment terms. One of the important factors to consider in the decision is the structure of the fees. A seller sells at a wholesale price and there are additional fees with supplier agreements that include: Whatever points you want to negotiate or renegotiate, remember that you will be in a much better position to balance things your way if you have a good relationship with your vendor manager. If you`re in a very difficult position and you`re considering terminating your vendor agreement, make sure you`re really ready to leave Amazon if you want to take an aggressive stance towards them.
Be aware of what you risk in any case and don`t use tactics as a last resort, for example. B stopping all orders to get Amazon to start negotiations, unless you are serious. At the end of the day, however, you benefit from maintaining a good relationship with Amazon, even if you no longer sell on the platform. In addition, Amazon`s supplier agreements may include cash compensation consisting of cooperative marketing refunds, discounts, and more. Amazon sees them as a reduction in what they pay for products. They are generally applicable when Amazon meets the minimum purchase thresholds that they estimate based on past performance and forecasts for the current year. Other things they should keep in mind in negotiations are the concessions amazon can give you or you give Amazon to get the best deal possible. Concessions to Amazon can include deal placement, ad spend, increased choice, and product exclusivity. Among the concessions you can get from Amazon are Amazon Vine credits to increase customer reviews, product placement on category pages, or access to ARA Premium (ARAP), while this could soon be a standard service with the launch of Brand Analytics. If Amazon asks for more discounts, what do you get in return, other than the ability to continue trading directly with Amazon? Fifth, try to follow the system defined in the supplier contract, for example, how to count payment dates. Understanding how they formulate things can save you a lot of headaches.
Amazon is as much in business as any potential provider on the platform. Any counter-proposal you propose must therefore remain beneficial for Amazon, even if it adds a few s to your cart. If your supplier agreement proposals do not add value instead of Amazon, your application will not be accepted. In collaboration with Amazon.com, Inc. (“Amazon”) on the supplier`s side, you act as a wholesaler. This means that you offer your products to Amazon at wholesale prices and offer additional discounts to Amazon in the form of cooperation agreements and certificates.