As a new trading year dawns, so do new trading terms with Amazon. Asha Bhalsod of Etopia Consultancy highlights the need for successful Amazon negotiation skills.
With the pandemic bringing such strong growth in eCommerce, many toy manufacturers experienced double-digit growth through Amazon. As a new trading year dawns, so do the much-awaited trading terms negotiations with Amazon. For a business to successfully navigate 2021, Asha writes, they will need to understand and consider the impact of a vaccine, as well as differentiate between the lasting/temporary effects of the pandemic to identify what the new ‘normal’ will look like. Only then will they be able to successfully negotiate the favourable Amazon trading terms that business will benefit from.
“With the majority of toy companies not having access to an Amazon Vendor Manager, agreements will auto renew,” Asha explains. “With no human contact at Amazon, there is a strong likelihood that these increases will remain unchallenged – and if you do decide to challenge them, it certainly won’t be easy or straightforward.”
Asha looks at how to handle these negotiations and how to re-strategise Amazon channel planning. She also looks at whether companies should consider investing more in Amazon Advertising and examines Amazon’s AVS programme – and whether a PAN EU approach would be more beneficial than a localised strategy for each individual market.
With tips on how to make the most of the digital landscape and how to challenge the norm, to unearth how to make the most of trading terms in order to grow in a supercharged eCommerce landscape, read the full Viewpoint column, which appeared in the January edition of Toy World, here.