Want to know #Amazon's red lines in annual vendor negotiations (AVNs)?
๐ซ There aren't many.
Amazon can move on most things:
- Reducing trade terms
- Increasing cost prices
- Operational Commitments (AVS)
But how can you push the boundaries of your negotiation?
๐ By using this simple 3-step framework:
๐ฆ๐๐ฒ๐ฝ ๐ญ: ๐๐ป๐ผ๐ ๐ฌ๐ผ๐๐ฟ ๐๐ฎ๐๐ฒ๐ด๐ผ๐ฟ๐ ๐ฃ๐ผ๐๐ถ๐๐ถ๐ผ๐ป
Vendor Managers will be more flexible if they need you to deliver their category targets. So you need to understand your position in Amazon's category.
If you are one of their top 5 vendors, you can pretty much ask for anything. But even if your position is less dominant, you can place your requests and move to step 2:
๐ฆ๐๐ฒ๐ฝ ๐ฎ: ๐๐๐ธ
State your request, and don't immediately back down when your Vendor Manager says No.
๐Instead, listen carefully.
Are there any commitments your buyer needs from you? Or do they need more information to understand your request?
It's unlikely they will just say No. But even if they do, you still have:
๐ฆ๐๐ฒ๐ฝ ๐ฏ: ๐๐๐ฐ๐ฎ๐น๐ฎ๐๐ฒ ๐๐ผ ๐ฆ๐ฒ๐ป๐ถ๐ผ๐ฟ ๐ฆ๐๐ฎ๐ธ๐ฒ๐ต๐ผ๐น๐ฑ๐ฒ๐ฟ๐
Amazon's leadership team wants one thing: Developing your business long-term.
That's why they will search for creative solutions to overcome gridlocked negotiations. So do your research and develop a relationship with them early.
If you show the same level of flexibility that you expect from Amazon, you will likely move the original red lines in your trade discussions.
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What other ways have helped you overcome a No from Vendor Managers?
Let me know in the comments!
