AVNs are tougher than ever, so if yours are looming? Here’s how to defend your margins with data, not guesswork.
We all know that your Annual Vendor Negotiations (AVN) set the tone for your entire year, but with rising asks and shifting Net PPM, how can you secure a win for your brand?
Long experience tells us that, in a scenario where co-op pressures, MDF uplifts, super-picks and returns are on the up, the Vendors that win aren’t the loudest – they’re the best prepared.
What’s really driving the ask
When it comes to your AVN, Amazon will be basing its decisions on its view of profitability (Net PPM) – so, if it thinks that your catalogue is likely to weaken its margin picture in any way, you can expect price pressure, higher contributions or tighter terms.
Your job? It’s to reshape that picture with credible, quantifiable value.
Ways to reshape the picture
Build a case that lands
You should look to demonstrate the values that Amazon won’t see without you saying – any operational wins, packaging improvements, lower return rates, reductions to chargebacks, these can all work in your favour.
Make sure you’ve got the data – in numbers – to back up your claims, and tie to specific ASINs.
Attach conditions to spend
If you’re funding co-op or AVS, tie it to deliverables (placements, coverage, service levels) and timelines – don’t make open-ended commitments.
Frame pricing changes with offsets
When you must move your cost price, you need to be strategic. Show how you’ll protect Amazon’s margin, for example by refining your Subscribe & Save strategy, or improving conversions with content upgrades.
Turn deductions into leverage
Shortages and chargebacks aren’t just cash leaks* – they’re evidence you can use. Trend data will help you show the root causes that you’ve fixed, and you can then pair recovery requests with a forward trading plan.
* Want help to plug the gaps? Click here to learn about our Chargeback Recovery Service
Never forget that the goalposts only ever move up
This year’s agreement? That’s next year’s bottom line.
So make sure that you create the strongest case you possibly can, back everything up with quantifiable data and don’t be afraid to argue your points to secure a better deal.
What good looks like in the room
- Lead with facts, not feelings. Anchor all your points in data – then make the ask.
- Keep it ASIN-specific, so you can negotiate better terms where you’ve got the most value.
- Separate short-term fixes from long-term value. Logistical clean-ups (OTIF, labelling, ASN) are near-term; range expansion, media plans and programme pilots are strategic.
- Tie everything back to the Joint Business Plan by framing your proposals as commitments within it: that way, “gives” and “gets” are trackable on both sides.
- Align finance and leadership before the meeting so you can arrive with signed-off scenarios you can act on.
- And document everything! Capture actions, owners and dates, record decisions and then circulate a recap with owners and timelines that you can follow up later.
Love some Expert Advice from our Vendor Team?
You’re in luck!
We covered Vendor Negotiation Strategies in detail last month, and the full session is available to watch on demand through our extensive Amazon Events library.
An hour’s watch, in it we cover:
- How Amazon’s 2025 terms are shifting across co-op, MDF, AVS and logistics programmes – what’s standard, what’s negotiable and what’s new.
- The data that wins the room, exploring which metrics strengthen your case and how to present them.
- Where strong brands say “yes” and “no”, and why.
- Exclusivity, hybrid models and JBP alignment: when they help, how to structure them and the guardrails to set.
- And internal readiness: aligning your finance and leadership teams beforehand, modelling outcomes and setting red-lines you’ll actually keep.
The Bottom Line
To win your AVN, you need two key things – disciplined preparation and a value story Amazon can’t ignore.
With these in hand, you can quantify your impact, attach conditions to investment and use deduction trends as proof of operational progress – protecting your margins and earning a more productive year.
And if you need specialist help to craft your case and secure a position of strength for the year ahead?
Our brilliant Vendor team is here to help – get in touch today.