The Secret to Unlocking Better Vendor Terms for Your Amazon Brand
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.
Useful Links:
- Watch now – Our expert webinar on “Amazon Vendor Mastery: Winning Strategies for Marketplace Success” is here
- Read now – our Blog breakdown of the Amazon Vendor Mastery webinar is here
- Connect with our CEO, Andrew Banks, on LinkedIn here
How does a small team with big ambitions rise to dominate their market on Amazon?
We were delighted to help Trends UK do just that! Armed with bold objectives – including achieving £2.3M in annual sales, hitting 35% growth and dominating their product category – they enlisted the strategic nous of our award-winning team to unlock their full potential on the world’s largest shop. Here’s what happened next…
The Transformation
We deployed our tried-and-tested methodology of commercial clarity, rigour and vision to make sure we didn’t just meet Trends UK’s ambitions – we wanted to smash them, laying a strong foundation for future growth as we went.
And our initiatives, which included…
- Doubling down with a super-smart Amazon Ads strategy;
- Robust participation in key Amazon Events with carefully designed promotional campaigns;
- Expanding the product catalogue to boost their brand presence;
- A full SEO and branding overhaul to increase visibility and conversion rates; and
- The negotiation of better Vendor terms,
… produced results that were nothing short of game-changing.
The Results
Working in harmony with Trends UK, we achieved:
- 46% YoY sales growth, smashing their £2.3M/35% target.
- 75% growth in paid ad sales – keeping ACOS under 20% all the while.
- Their key product, Paint Pop, was crowned #1 in the Paint Sticks category – one of their primary objectives.
- 30% increase in Amazon purchase orders, strengthening their Vendor relationship.
- 15 new product launches in 2023, enhancing their category dominance.
With a massive uplift in annual sales and expansion into Amazon Germany set for 2024, Trends UK has proven that big results are possible when you combine ambition with the right expertise.
What do Trends UK say?
“Since partnering with Venture Forge, we’ve made huge strides in product listings, created brand stores, and improved licensing partnerships. Our performance indicators have seen strong growth, and we’re refining our advertising for even better results next year.”
Lindsay Hardy | Trends UK
The Bottom Line?
For Trends UK, partnering with our award-winning experts has delivered real, measurable progress – helping them overcome the challenges of managing Amazon with a small team and positioning them as leaders in their category.
With significant growth across sales, profitability and brand visibility, we’re thrilled to say that they’re now set up for sustained success – and in prime position to take advantage of the Amazon opportunities coming their way this year and beyond.
Keep your eyes peeled for more of our client success stories – coming to our website very soon!
We’ll keep you updated… and in the meantime, if you’d like your brand to join the ranks of brands reaping Amazon growth glories with Venture Forge, get in touch today.
Amazon.ie – What you need to know to start selling successfully in a nutshell
Amazon’s expansion into Ireland will open up a projected €500M+ market and give brands a powerful new platform to grow their Amazon footprint. But with new GPSR (General Product Safety Regulations) complications and other compliance challenges to deal with, we wanted to give those thinking of expanding into the market a brief lowdown – looking at how to get started, who’s affected by GPSR and how to navigate these challenges…
Getting started – our 4-step checklist to selling on Amazon.ie
1. Prepare your product listings
Ireland should be live for your brand now in Seller Central, and the Build International Listings (BIL) tool is brilliant at simplifying the process of listing your products on Amazon.ie – here’s how:
- Sync your listings in bulk by accessing the BIL tool under the “Sell Globally” section in Seller Central.
- Your offers will be automatically translated (if needed) into English for Irish customers.
- Prices will automatically be shown in Euros – you can adjust them in BIL if needed.
- Once set up, BIL will regularly update and sync your listings across linked accounts.
2. FBA (Fulfillment by Amazon) is your friend
Especially when you’re just moving into a new International market, using FBA (Fulfillment by Amazon) programme makes things so much easier logistically, because:
- It means you can ship your inventory to a local fulfilment centre, benefiting from domestic fees and streamlining your logistics.
- Then Amazon takes care of storage, packing, shipping, returns and customer service (7 days a week).
3. Understanding VAT requirements
You’ll need to get your head around VAT compliance across the border, because it’s an essential for Sellers on Amazon.ie.
Briefly:
- Non-Irish sellers using Amazon.ie’s domestic FBA program need to register for VAT in Ireland.
- For EU sellers not storing goods in Ireland, VAT registration is required if sales exceed the EU-wide distance sales threshold of €10,000 unless enrolled in the One Stop Shop system.
- Irish-based sellers must register for VAT if their domestic sales exceed €80,000 annually.
If you’re not sure, this is one area you absolutely should seek expert advice – click here to speak to our team.
And, for a little background information, we covered international VAT in our specialist webinar with tax specialists Taxually – you can watch on demand here.
4. GPSR Compliance is essential
Coming into effect on 13 December 2024, the General Product Safety Regulation (GPSR) replaces the EU General Product Safety Directive.
Read on for a deeper dive into the potential challenges GPSR raises for UK Sellers…
What’s GPSR, and how might it impact your Amazon business?
GPSR strengthens safety requirements for consumer products sold in the EU, and it impacts Sellers in a number of key ways:
- GPSR applies to all businesses selling consumer products in the EU, including those using Amazon.ie.
- UK brands not based in the EU face an additional hurdle, as GPSR requires products sold into the EU to have an authorised representative based in the EU.
- Sellers need to ensure that all products being sold internationally comply with GPSR requirements, including traceability, detailed product documentation and accurate labelling.
- Without compliance, UK-based brands could find it harder to take advantage of Amazon.ie’s opportunities, because failing to meet regulations can lead to product delistings.
Need expert help? Speak to our team today.
How to navigate GPSR
Here’s a quick lowdown on navigating GPSR compliance requirements::
Review your product safety protocols
First, evaluate your existing processes to make sure your products meet the updated GPSR standards – this will include confirming your manufacturing practices, materials and testing procedures align with the new safety requirements.
Update your documentation
GPSR places a strong emphasis on traceability and accurate product labelling, so get your product information, technical documentation and product labels up to date and compliant with EU standards.
Appoint an EU-based authorised representative
If you’re a UK-based seller or operating from outside the EU, you’ll need to designate an authorised representative within the EU to act on your behalf. This representative has to ensure that your products meet EU safety requirements and serve as the point of contact for compliance inquiries.
Get help from the experts
The new regulations can be complex, especially for brands new to the ins and outs of EU product safety laws. If you don’t know what you’re doing, enlisting the help of a good partner now will save you time and effort – making sure you’re compliant as efficiently and effectively as possible, avoiding potential delays and protecting your Amazon account.
The Bottom Line
The launch of Amazon.ie is a great opportunity for brands to launch and grow their presence in an expanding market – but there are VAT and GPSR compliance challenges that UK-only Sellers will need to overcome first.
It should be noted though that these challenges are relevant to any EU expansion, so dealing with them now sets the stage for easier expansion into other European stores.
And, with tools like the Build International Listings (BIL) and the FBA programme at hand, there’s lots of potential for Sellers to scale efficiently.
If you’re looking to get an international Amazon expansion strategy up and running, our expert team is here to help – let’s chat today.
What’s Amazon’s Vision for Ads in 2025?
The Amazon Ads leadership team has shared their vision for 2025, and it’s packed with AI innovations, better measurement tools and more opportunities for advertisers to reach the right audiences. But what does it mean for your brand? Here’s how we see these developments shaping your success in the year ahead…
Full-Funnel Measurement
“Customers are always looking for more full-funnel measurement solutions that accurately assess the success of their campaigns…”
Alan Moss, VP of Amazon Global Advertising Sales
Amazon has confirmed that they’re working to deliver a series of more robust solutions, expanding measurement tools across first-party data, ad tech and external partners.
For brands, this means:
- Better data: Enhanced insights should show you what’s driving your results more precisely.
- Stronger strategies: With more transparency and actionable insights, it’s easier to make your campaigns smarter through faster and more focused refinements..
What we hope will happen?
Let’s hope that Amazon’s renewed focus on full-funnel measurement will empower brands to plan more effectively, helping to optimise budgets and maximise ROAS.
The AI Advance marches on
“The future of programmatic, full-funnel media buying will be defined by the transformative power of AI.”
Kelly MacLean, VP | Amazon DSP
We’ve already talked about some of the ways AI is set to redefine how we plan, launch and manage Amazon Ads campaigns in 2025 – but what else is on the cards this year?
Kelly MacLean’s statement also talked about:
- Real-time campaign adjustments: AI-driven decision-making tools designed to make sure every penny of ad spend is used efficiently.
- Deeper consumer insights: Machine learning will reveal more nuanced audience behaviours, helping brands to better refine ad targeting.
- Optimised media allocation: AI-supported campaigns will work harder across channels, maximising reach and ROI and helping brands scale campaigns faster with data-backed decisions.
“As advertisers seek to maximize the efficiency and effectiveness of their campaigns across the digital landscape, innovative AI-powered solutions will be essential. By leveraging advanced machine learning algorithms to uncover granular insights, optimize media allocation, and drive real-time decisioning, the next generation of programmatic services will enable advertisers to seamlessly navigate the complexities of the modern media ecosystem and achieve their full-funnel marketing objectives with unparalleled precision.”
Kelly MacLean, VP | Amazon DSP
The exponential growth of Video Ads
“Advertisers know what premium content looks like, and the deeper we can marry our consumer insights, ad products and integration opportunities with the audiences they are looking to reach, the more we are able to establish ourselves as a differentiated streaming service…”
Krishan Bhatia, VP of Amazon Global Video Advertising
Video advertising is only getting bigger, and Amazon is making major moves to meet the demand, with an emphasis on the importance of premium content and audience-first strategies.
What’s coming includes..
- More video advertising solutions across Amazon’s streaming ecosystem.
- An expansion to new markets like Brazil, India, Japan, the Netherlands and New Zealand, opening fresh opportunities to brands for global growth.
- Advanced insights through clean rooms, combining viewership data with advertisers’ datasets for unparalleled targeting.
- Premium sponsorships to connect brands with audiences in authentic, meaningful ways.
“From sponsorship opportunities that drive a deeper brand connection with viewers to clean rooms that enable segments leveraging our customer insights alongside our viewership and behavioral insights, to deal-based programmatic activation on the Amazon DSP, we can align marketers more deeply with fan-favorite series, films, and live sports across global markets.”
Krishan Bhatia, VP of Amazon Global Video Advertising
The Bottom Line
This year, Amazon Ads is doubling down on innovations designed to help brands succeed in what is an increasingly competitive space.
From AI-driven campaign management to premium video opportunities, the tools and strategies on offer could redefine how you grow your brand through 2025 and beyond – but, as ever, your brand’s success will lie in the execution.
Leveraging these tools effectively – and staying ahead of the competition – requires expertise, strategy and constant adaptation, and that’s where our award-winning Amazon Ads Team comes in!
With the skills you need to turn potential into real results, they’re here to help you make 2025 your brand’s best marketplace year ever.
Get in touch today to learn how we can drive you to all-new Amazon heights.