Search | LinkedIn
By Martin Heubel · October 27, 2025 · Curated by George's Blog
Here's why #Amazon will reject your request to move 1P trade terms in Advertising… and how to turn this ❌ No into a ✅ Yes:
Let's say you want to move 1% of your Base Accruals (Co-op) into Advertising.
Your Vendor Manager will see this as a 1% reduction in their Net PPM – something Amazon won't accept as part of your vendor negotiation.
𝗜𝗻𝘀𝘁𝗲𝗮𝗱, 𝘆𝗼𝘂 𝗻𝗲𝗲𝗱 𝘁𝗼 𝗳𝗿𝗮𝗺𝗲 𝘁𝗵𝗲 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝘀𝗵𝗶𝗳𝘁 𝗮𝘀 𝗮 𝗺𝗮𝗿𝗴𝗶𝗻 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆 𝗳𝗼𝗿 𝗔𝗺𝗮𝘇𝗼𝗻.
How?
By using the 3-C formula:
𝟭. 𝗖𝗼𝗹𝗹𝗮𝗯𝗼𝗿𝗮𝘁𝗲: Define profitable portfolio segments together with your VM. Look at which products are most profitable for both you and Amazon.
𝟮. 𝗖𝗼𝗺𝗺𝘂𝗻𝗶𝗰𝗮𝘁𝗲: Use data-driven arguments to show Amazon's Retail team how your past advertising investments have impacted your account-level Net PPM.
𝟯. 𝗖𝗼𝗺𝗺𝗶𝘁: Be ready to define and spend a % of your shifted investments on accretive products in your portfolio in 2026. If you commit to this in writing, your Vendor Manager now has a presentable business case for which they can seek approval internally.
The bottom line?
If you want to change your investment structure with Amazon, make sure to align your targets with those of your Vendor Manager.
---
Have you successfully shifted trade budgets to Retail Media in 2025? What was your recipe for success?
Let me know in the comments!
#amazonvendor #amazonstrategy