Asha Bhalsod of Etopia looks at how companies should be making preparations now for their imminent annual Amazon terms negotiations.

Asha’s Viewpoint column says now is the time to start planning for annual terms negotiations with Amazon. There are two phases to this annual negotiation and the first phase is preparation, she writes. “The earlier you create your Joint Business Plan, which considers how to manage the constant economic challenges we’re all facing currently, the better prepared you will be for Phase 2, which is the negotiation part. Make sure you know your revenue, margin, and operational figures for the last 12 months before entering the annual terms discussions,” she advises.

Asha goes on to look at the impact of the economic climate on Amazon and how manufacturers will inevitably want to implement a Cost Price Increase (CPI), giving tips on the best way to approach this.

She explains Amazon’s Pan-EU model/ Vendor Success Programme (VSP) and what this can mean for vendors, as well as how companies should undertake a full Supply Chain Review in order to maximise their business.

“When kicking off planning for 2023, make sure your teams understand the true root causes which led to the profit performance of your product listings,” concludes Asha. “Armed with this knowledge and data, your business will be optimally positioned to manage the annual terms negotiations. Spending the closing months of 2022 being extra savvy and embracing the opportunities Amazon has to offer will create an ideal segue into 2023 and those dreaded terms negotiations with Amazon.”

To read her full article, which appeared in the November edition of Toy World, click here.

Asha can be contacted on asha@etopiaconsultancy.com.