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Oct 11, 2024 12:00AM

Amazon's Ireland expansion requires caution. Brands should avoid offering identical trade investments as in UK/EU. Ireland's market differs in pricing, retail landscape, and cost structures. Negotiate terms reflecting the new marketplace's volume efficiencies.

Martin Heubel | Link to post

Want to expand to hashtag#Amazon Ireland? Don't make this mistake ✋🚩

Right now, Vendor Managers are asking brands to offer the same cost prices and trade investment in Ireland as they do in the UK/EU.

But here's the problem:

The UK/EU and Ireland have different:

- RRP/MSRP levels
- Retailer landscapes
- Cost structures
- Revenue levels
- ...

So don't offer the same trade investments as in other locales.

While you can offer Amazon similar cost prices to those in other markets, your trade terms should reflect the different volume efficiencies between an established and new marketplace.

If Amazon wants more investment, ask for:

- Chargeback waivers
- Vine credits (flat-rate)
- Repayment of shortages in other markets
- Access to senior category teams at Amazon

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What do you think about Amazon's expansion to Ireland?

Let me know your thoughts in the comments!

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