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By Martin Heubel · September 22, 2025 · Curated by George's Blog
Retailers like #Amazon are no longer responsible for your success on their marketplace. You either play by their rules, or face listing suppressions and CRAP.
Yet, most 1P vendors still list their entire assortment with Amazon. Including SKUs with a wide national distribution across retailers, wholesalers and distributors.
The resulting decline in Net PPM leads many to try and find shortcuts. They think they can outsmart Amazon's pricing algorithm by:
🚩 Improving packaging (SIPP/FF)
🚩 Launching multipacks
🚩 Introducing value bundles
Only to find Amazon still price-matching the single unit to stay competitive.
The inconvenient truth is that if you don't differentiate your portfolio strategy with Amazon, you will always face the highest margin pressure. National campaigns and rotating price promotions turn Amazon into an EDLP retailer and your most margin-dilutive customer.
Let me be clear: Despite what you may hear or read about Amazon, Vendor Managers won't stop focusing on Net PPM in 2026.
So if you want to stop paying margin and cost support to Amazon, you need to adapt your NPD process to deliver:
✅ True differentiation
✅ Stronger MSRP/ASP ratios
✅ Lower Net PPM pressure
The most profitable vendors don't just list their standard assortment with Amazon. They also differentiate their range across channels. If less than 20% of your annual net sales come from online channel exclusives, you've got work to do.
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What's your experience with online exclusive assortment launches on Amazon? Let me know in the comments!
#amazonvendor #amazonstrategy