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Jun 25, 2024 12:00AM

Controlling prices on Amazon 1P is a major challenge. Many brands mistakenly focus on raising cost prices, delisting products, or moving to 3P. Instead, control your distribution by avoiding bulk discounts, selective selling, and not distributing the same products across channels.

Martin Heubel | Link to post

How to control prices with #Amazon 1P?

It remains the biggest challenge for vendors: The Price Algorithm.

To overcome it, many brands focus their resources on the wrong things:
❌ Trying to raise cost prices
❌ Delisting products
❌ Moving to 3P

What's overlooked is that improving your #Amazon margin starts »outside« the Amazon account.

So how do you get a handle on your margins?

You have to start controlling your distribution:

✋ No bulk discounts
✋ Not selling your products to everyone
✋ Not distributing the same products across channels

If that sounds hard, it's because it is.

Changing these elements takes time and effort.

But if Amazon is an important part of your 2030 retail roadmap, you can't ignore its business model at the same time.

Read the article here

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How are you managing your distribution with Amazon?

Let me know in the comments!

#amazonvendor #amazonstrategy
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