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By Martin Heubel · September 3, 2025 · Curated by George's Blog
How can you overcome the strict Net PPM targets of your Vendor Manager?
By giving #Amazon what it wants (but not in the way you think).
❌ Don't sign a cost support agreement
❌ Don't guarantee Amazon's margins
❌ Don't even agree with the narrative
Vendor Managers threatening to suppress ASINs want only one thing:
𝗔 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 𝘁𝗼 𝗯𝗿𝗶𝗻𝗴 𝘆𝗼𝘂𝗿 𝗮𝗰𝗰𝗼𝘂𝗻𝘁 𝗽𝗿𝗼𝗳𝗶𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗯𝗮𝗰𝗸 𝗼𝗻 𝘁𝗿𝗮𝗰𝗸.
Net PPM targets act as a proxy for these discussions, as they are visible to both you and Amazon.
But what's critical to remember is that Net PPM does not reflect any supply chain initiatives that reduce costs for Amazon (e.g. Vendor Flex, Direct Import or Direct Fulfilment).
However, it does include inefficiencies caused by Amazon itself (e.g. over-ordering of products leading to overstock markdowns affecting Net PPM).
This requires you to do two things:
✅ Record and quantify the impact of Amazon-led issues on PCOGs and Net PPM
✅ Define a plan that increases the sales share of your accretive assortment. Every dollar you spend on promos and advertising should be directed to items that stabilise your net margins and Amazon's Net PPM.
If you want to go the extra mile, highlight the possibility of any supply chain initiatives your teams are willing to implement to unlock cost savings for both parties.
And if all fails, escalate to Amazon's leadership teams.
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How do you engage in Net PPM discussions with your Vendor Manager?
Let me know in the comments!
#amazonvendor #amazonstrategy