STOP THE VENDOR CENTRAL (1P) PROFIT LEAK

STOP THE VENDOR CENTRAL (1P) PROFIT LEAK

Amazon Vendor (1P)
Negotiations

Unfavourable vendor terms bleed 5-20% of revenue annually. Extended payment cycles, excessive co-op rates, aggressively quietly erode margins. Strategic negotiation with Amazon recovers these losses whilst securing improved terms that protect profitability as you scale.

Unfavourable vendor terms bleed 5-20% of revenue annually. Extended payment cycles, excessive co-op rates, aggressively quietly erode margins. Strategic negotiation with Amazon recovers these losses whilst securing improved terms that protect profitability as you scale.

400+

400+

Vendor Benchmarks We Track

Vendor Benchmarks We Track

10+ years

10+ years

Amazon Vendor (1P) Expertise

Amazon Vendor (1P) Expertise

Subject to Terms and Conditions

Subject to Terms and Conditions

Subject to Terms and Conditions

Amazon Vendor Terms Negotiations

What Is Amazon Vendor Negotiations?

Our Vendor Negotiations service provides expert representation in your Amazon vendor relationship discussions from initial contract negotiations through annual reviews and ongoing term optimization. We leverage deep knowledge of Amazon's negotiation frameworks, benchmark data across hundreds of vendor relationships, and proven negotiation strategies to secure terms that protect your margins and support sustainable growth on the platform.

Amazon Vendor Negotiations

What Makes Vendor Negotiations Unique?

Leaders tell us Amazon Vendor negotiations are often uniquely shaped by data opacity and shifting terms.
Here's what sets these talks apart:

Proactive management of account health and chargeback issues.

Benchmark Intelligence

Leverage data from 400+ vendor relationships to understand what terms are achievable in your category, ensuring you don't settle for unfavorable conditions.

Proactive management of account health and chargeback issues.

Strategic Leverage Development

Identify and develop negotiation leverage based on your volume, growth trajectory, category positioning, and competitive dynamics that strengthen your position.

Proactive management of account health and chargeback issues.

Multi-Year Term Optimization

Secure favorable terms not just initially but establish frameworks for ongoing optimization through annual reviews and performance-based improvements.

Proactive management of account health and chargeback issues.

Risk-Adjusted Negotiation

Balance aggressive term improvement with relationship preservation - securing better economics without jeopardizing your vendor standing or operational partnership.

Proactive management of account health and chargeback issues.

Quantified Financial Impact

Provide detailed financial modeling showing the P&L impact of term changes, ensuring you understand exactly what each negotiated point means to your bottom line.

Process steps:

01

Term Analysis & Benchmarking

02

Leverage Strategy Development

03

Negotiation Execution

04

Ongoing Term Optimisation

A person in a mustard sweater is working on a laptop, seated at a wooden desk with a cozy atmosphere.
A person with a yellow sweater typing on a laptop, with a blue accent in the corner of the image.

Why Choose Amazon Vendor Negotiations

Recovering Margin Through Strategic Term Improvement

Payment Term Optimisation

Accelerate cash flow by negotiating shorter payment cycles, earlier payment discounts, and favorable remittance terms that improve working capital.

Payment Term Optimisation

Accelerate cash flow by negotiating shorter payment cycles, earlier payment discounts, and favorable remittance terms that improve working capital.

Payment Term Optimisation

Accelerate cash flow by negotiating shorter payment cycles, earlier payment discounts, and favorable remittance terms that improve working capital.

Co-op Rate Reduction

Systematically reduce mandatory marketing co-op contributions while maximising the ROI of co-op spending through strategic program participation.

Co-op Rate Reduction

Systematically reduce mandatory marketing co-op contributions while maximising the ROI of co-op spending through strategic program participation.

Co-op Rate Reduction

Systematically reduce mandatory marketing co-op contributions while maximising the ROI of co-op spending through strategic program participation.

Mitigation

Negotiate lower rates, dispute thresholds, and grace periods that protect margins from operational penalties and compliance costs

Mitigation

Negotiate lower rates, dispute thresholds, and grace periods that protect margins from operational penalties and compliance costs

Mitigation

Negotiate lower rates, dispute thresholds, and grace periods that protect margins from operational penalties and compliance costs

Volume Incentive Structures

Establish tiered pricing, volume rebates, and growth-based incentives that reward scale and create favorable economics as your business expands.

Volume Incentive Structures

Establish tiered pricing, volume rebates, and growth-based incentives that reward scale and create favorable economics as your business expands.

Volume Incentive Structures

Establish tiered pricing, volume rebates, and growth-based incentives that reward scale and create favorable economics as your business expands.

FAQ

Frequently asked questions

FAQ

Frequently asked questions

What leverage do we have in negotiations?

Primary leverage includes: sales volume and growth trajectory, category importance, brand exclusivity or uniqueness, operational excellence (low chargebacks), marketing cooperation, and credible alternatives (adding 3P, working with competitors). Even smaller vendors have leverage Amazon values reliable partners who grow consistently and operate cleanly.

What leverage do we have in negotiations?

Primary leverage includes: sales volume and growth trajectory, category importance, brand exclusivity or uniqueness, operational excellence (low chargebacks), marketing cooperation, and credible alternatives (adding 3P, working with competitors). Even smaller vendors have leverage Amazon values reliable partners who grow consistently and operate cleanly.

Will aggressive negotiations damage our relationship?

Professional negotiations strengthen relationships by establishing clear expectations and mutual value. Amazon expects vendors to negotiate it's built into their framework. The key is strategic aggression: pushing for fair terms while demonstrating commitment and operational excellence. We've negotiated hundreds of improvements without relationship damage.

Will aggressive negotiations damage our relationship?

Professional negotiations strengthen relationships by establishing clear expectations and mutual value. Amazon expects vendors to negotiate it's built into their framework. The key is strategic aggression: pushing for fair terms while demonstrating commitment and operational excellence. We've negotiated hundreds of improvements without relationship damage.

Should we negotiate ourselves or use an expert?

Vendor managers have negotiated hundreds of deals; most brands negotiate once or twice. Expertise matters significantly. Expert negotiators understand Amazon's frameworks, know achievable benchmarks, recognize leverage opportunities you might miss, and avoid common mistakes that weaken position.

Should we negotiate ourselves or use an expert?

Vendor managers have negotiated hundreds of deals; most brands negotiate once or twice. Expertise matters significantly. Expert negotiators understand Amazon's frameworks, know achievable benchmarks, recognize leverage opportunities you might miss, and avoid common mistakes that weaken position.

Can we renegotiate after signing poor initial terms?

Yes. While annual reviews are easiest, significant performance improvements, category growth, or competitive dynamics can justify mid-cycle discussions. If current terms are significantly unfavorable, we often secure "performance-based improvement" frameworks achieving specific metrics triggers term improvements, creating a path to better economics within current contract periods.

Can we renegotiate after signing poor initial terms?

Yes. While annual reviews are easiest, significant performance improvements, category growth, or competitive dynamics can justify mid-cycle discussions. If current terms are significantly unfavorable, we often secure "performance-based improvement" frameworks achieving specific metrics triggers term improvements, creating a path to better economics within current contract periods.

What leverage do we have in negotiations?

Primary leverage includes: sales volume and growth trajectory, category importance, brand exclusivity or uniqueness, operational excellence (low chargebacks), marketing cooperation, and credible alternatives (adding 3P, working with competitors). Even smaller vendors have leverage Amazon values reliable partners who grow consistently and operate cleanly.

Will aggressive negotiations damage our relationship?

Professional negotiations strengthen relationships by establishing clear expectations and mutual value. Amazon expects vendors to negotiate it's built into their framework. The key is strategic aggression: pushing for fair terms while demonstrating commitment and operational excellence. We've negotiated hundreds of improvements without relationship damage.

Should we negotiate ourselves or use an expert?

Vendor managers have negotiated hundreds of deals; most brands negotiate once or twice. Expertise matters significantly. Expert negotiators understand Amazon's frameworks, know achievable benchmarks, recognize leverage opportunities you might miss, and avoid common mistakes that weaken position.

Can we renegotiate after signing poor initial terms?

Yes. While annual reviews are easiest, significant performance improvements, category growth, or competitive dynamics can justify mid-cycle discussions. If current terms are significantly unfavorable, we often secure "performance-based improvement" frameworks achieving specific metrics triggers term improvements, creating a path to better economics within current contract periods.

Contact us

Address

2 Leman Street,
London
E1W 9US

Contact us

Address

2 Leman Street,
London
E1W 9US

Contact us

Address

2 Leman Street,
London
E1W 9US