AVN Program, the annual negotiation with Amazon
The Annual Vendor Negotiation sets your margin, terms and co-op for the whole year. With Bettershop’s AVN Program you come to the table with the numbers, the scenarios and a clear strategy.
The negotiation levers
Each item has a direct impact on margin. We analyse them one by one.
Cost price
Price list to Amazon and cost increase requests (CPI) during the year.
Back margin and co-op
Marketing allowances, contributions and sales-linked co-op agreements.
Payment terms
Payment days, early payment discounts and deductions.
Logistics
Freight allowance, damages, Direct Fulfillment and delivery requirements.
Trade-offs
Promotions, visibility and advertising investment in exchange for better terms.
Vendor or Seller
When the terms don’t add up, we assess a hybrid model or a move to Seller.
Four phases, from preparation to monitoring
Analysis
Sales, margins and deductions over the last 12 months, ASIN by ASIN, with Bettershop Analytics.
Scenarios
We simulate the impact of each Amazon request on your P&L.
Negotiation
Strategy, counter-proposals and support on calls with the vendor manager and category team.
Monitoring
Monthly checks that the signed terms are actually applied.
Come to the table with the numbers
Amazon knows your data better than you do. With the AVN Program we turn that around: P&L by ASIN, deductions by code and market benchmarks, all from Bettershop Analytics.
- Vendor P&L by ASIN and by category
- Deductions, chargebacks and shortages by code
- Terms benchmarked against the market
- List of requests and trade-offs
Signed terms, actually applied
Every month we check invoices, payments and deductions against the signed terms. If Amazon applies something different, we open a claim.
- Monthly check of invoices and payments
- Claims on unexpected deductions
- Shortage and price claim recovery
- Report for the finance team
Let’s talk about your project
The first call is free: a 30-minute working session with a senior, not a pitch.