Amazon doesn’t negotiate – it tests your limits. In this episode, Ingrid and Valerie, together with Amazon expert Martin Heubel, reveal what really goes on behind the scenes of the annual vendor negotiations (AVNs). They discuss why brands are facing tougher terms, shrinking margins, and higher investments, and what smart strategies can help turn the tide. Martin explains how sellers can set clear investment caps, use retail media to strengthen their position, and avoid getting caught in Amazon’s profit spiral. They also talk about why hybrid models can be both a safety net and a trap, why Amazon Vendor Service (AVS) has become indispensable, and how Amazon’s innovation engine is slowing down even as the company opens its logistics infrastructure to competitors. A must-listen for anyone preparing for AVNs or managing a vendor account.
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Transcript
Now, this in itself is quite significant, but even paired with the fact that last year Amazon was able to improve trade terms by 70 basis points, so we're seeing multiple consecutive years where Amazon seemingly improves its overall trade investments with brands, thereby has a direct margin benefit.