When it comes to AVNs with #Amazon, Vendor Managers like to focus on one thing: Sales growth and Net PPM. The problem is:

❌ 𝗧𝗵𝗲𝘀𝗲 𝗮𝗿𝗲 𝗮𝗹𝗹 𝗢𝘂𝘁𝗽𝘂𝘁 𝗺𝗲𝘁𝗿𝗶𝗰𝘀.

They measure the outcome of your and Amazon's actions on the account.

But they don't tell you anything about how to achieve the set goal(s).

So instead of focusing vendor negotiations on Output metrics, shift the conversation to the Inputs required to achieve the desired outcome.

For example:
» If your Vendor Manager wants to talk about sales growth (Output), make sure you request joint forecasting sessions and the unrestricted usage of Born-to-Run.
» If your VM wants to increase Net PPM, align on defining a % of your deals budget to promote ASINs with above-average margins.

𝗧𝗵𝗲 𝗯𝗼𝘁𝘁𝗼𝗺 𝗹𝗶𝗻𝗲 𝗶𝘀 𝘁𝗵𝗶𝘀:

Amazon will always focus on Outputs in annual negotiations. It's their past of least resistance with little to no commitment. That's why your Vendor Manager always talks about a 'sales ambition' instead of a sales target.

And it's your job as a vendor to focus your annual trade negotiations on the required Input metrics to navigate your joint business.

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Have you made Input metrics already part of your AVN with Amazon? Which ones have you found to be most effective?

Let me know in the comments!

#amazonvendor #amazonstrategy