Pretty much every vendor can tell you their total terms percentage.
By Ant Finch · September 22, 2026 · Curated by George's Blog
Pretty much every vendor can tell you their total terms percentage.
Very few can tell you what each term is giving them.
When terms roll over and nobody signs them off each year, they just carry forward. Then then AVN ask lands on top of a baseline which hasn't really been challenged.
Before your next AVN, run every term through three questions:
What did it fund?
Did it deliver a result I can point to?
Would I agree to it again if it were new today?
Then go line by line:
➡️ Co-op and marketing allowances
➡️ Freight allowance
➡️ Damage allowance
➡️ Subscribe & Save
➡️ AVS fees (if you're on the service)
➡️ Payment terms and ESD
For each one then decide...keep it, reshape it, or trade it.
A term that can't answer question 2 isn't an investment, it's free margin given to Amazon.
The ones you keep should have a condition attached.
An AVS fee with an agreed service level.
An allowance tied to a specific action/outcome.
Unconditional money is the easiest money for Amazon to ask for again next year.
Which term in your agreement do you know least about?
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🚀 I help Amazon vendors fix the issues that slow sales and kill margin.