Q4 is right around the corner! So here are 4 tips to protect your hashtag#Amazon margins during peak 2024:
𝟭- 𝗥𝘂𝗻 𝗦𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝗮𝗻𝗱 𝗦𝗮𝘃𝗲 𝘃𝗼𝘂𝗰𝗵𝗲𝗿𝘀 𝗶𝗻𝘀𝘁𝗲𝗮𝗱 𝗼𝗳 𝗽𝗿𝗶𝗰𝗲 𝗽𝗿𝗼𝗺𝗼𝘁𝗶𝗼𝗻𝘀.
If you're a CPG brand, you'll simply forward purchases, and customers will stock up on your products. If you want to lower your CAC long-term, run SnS vouchers instead. This will help you capitalise on recurring orders and reward loyal customers.
𝟮- 𝗗𝗼𝗻'𝘁 𝗿𝘂𝗻 𝗱𝗲𝗮𝗹𝘀 𝗼𝗻 𝗚𝗣% 𝗱𝗶𝗹𝘂𝘁𝗶𝘃𝗲 𝗶𝘁𝗲𝗺𝘀.
Don't run promotions on products that dilute your bottom line, unless they're strategic for acquiring new-to-brand customers.
𝟯 - 𝗔𝗹𝘄𝗮𝘆𝘀 𝗻𝗲𝗴𝗼𝘁𝗶𝗮𝘁𝗲 𝗱𝗲𝗮𝗹 𝗳𝘂𝗻𝗱𝗶𝗻𝗴 𝗮𝗻𝗱 𝗶𝗴𝗻𝗼𝗿𝗲 𝗔𝗺𝗮𝘇𝗼𝗻 𝗱𝗲𝗮𝗱𝗹𝗶𝗻𝗲𝘀
Vendor Managers and AVS will communicate artificial deadlines to add pressure to deal funding negotiations. Know that you can push these timelines and don't have to accept their funding request. Use the extra time to negotiate.
𝟰 - 𝗦𝗲𝘁 𝗹𝗶𝗺𝗶𝘁𝘀 𝘁𝗼 𝗮𝘃𝗼𝗶𝗱 𝗼𝘃𝗲𝗿-𝗳𝘂𝗻𝗱𝗶𝗻𝗴 𝗱𝗲𝗮𝗹𝘀
Always limit the number of units you're willing to fund in deal events. Since Amazon carries lower inventory WOCs right now, you may otherwise run out of stock after the deal event, when margins are the highest.
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What other tips would you add?
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