Vendor negotiations with Amazon can be one of the trickiest challenges your brand will face, especially if your first offer is rejected out of hand. And this is a classic Vendor Manager strategy: they say no, hoping you’ll sweeten the deal without a word. But here’s an expert tip – don’t negotiate against yourself…
So what should you do?
As our CEO Andrew Banks said in his recent LinkedIn post on this topic, instead of immediately upping your offer, hold your ground and ask for a counter-proposal.
And if one isn’t forthcoming? It’s time to stand firm.
Negotiations are a 2-way street, and giving ground too quickly sets a precedent that can undermine your future terms.
Vendor Negotiation isn’t easy – but you can win out
We know this approach might sound easier said than done. If your Vendor Manager is playing hardball and you’re not prepared for it, it’s really easy to feel outmatched.
But the key to your success lies in preparation, data and strategy.
Here’s what our experts recommend:
1. Know what you want from the relationship
“Lots of vendors commit to terms they don’t understand, and then they’re fixed in their account,” explains Matt Briggs, Senior Amazon Account Manager at Venture Forge.
Instead, start every negotiation with a clear understanding of your priorities and the data to back them up.
2. Never agree to anything blindly.
Treat your Vendor negotiations like a poker game – because if you go in without knowing the rules?
You’re likely to lose out.
You might be new to negotiating, but it’s a good bet that your Vendor Manager is not – and it’s their job to fix you on the lowest terms they can.
And once you fix terms? That’s your base point for all future negotiations.
So, right from the start, take the time to understand every term offered and its potential impact on your business – and get expert help if you need to.
3. Ask for something in return
Amazon’s Vendor Central programme is a long-term partnership between your brand and the retail giant – it’s not all give on your part.
If you’re asked to let something go, ask for something valuable in return – from better payment terms to a damage allowance or additional support.
4. Document everything!
Simple but vital – keeping clear records of agreements and discussions protects your business and keeps things crystal-clear for future negotiations.
The Bottom Line
From your first Vendor negotiations on, the decisions you make set the foundation for your business’s future growth, profitability and operational efficiency – and there’s no need for your brand to accept less-than-ideal terms, even if it is your first time in the ring.
These negotiations are designed to create a sustainable, mutually beneficial relationship with Amazon that will benefit you both.
With preparation, commercial clarity and the right support on your side, you can secure terms that support your brand’s growth and profitability, not just today but in the long term.
Need expert help?
At Venture Forge, our dedicated Vendor division is here to help, with:
- Expert evaluations to identify improvement areas in your existing Vendor terms.
- Strategic guidance to prepare you for negotiations and make sure your data backs your goals.
- Ongoing support to help you put plans into action, navigate challenges and get the best from your Vendor relationship with Amazon.
Ready to unlock better terms for your Vendor business? Speak to the team today.