Author Archives: Prabhat S

Amazon Vendor

The AVN Questions Every Vendor Is Asking Right Now (And the Unfiltered Answers)

The AVN season is in full swing. Here are some questions posted by Andrew Hamada, the CEO and co-founder of Reason Automation, on LinkedIn.

1. What is my category’s Net PPM benchmark / goal?

Hardlines ~45% Softlines ~39% Consumables ~37%

But remember that Amazon doesn’t consider these benchmarks and neither should you. Your VM wants to increase category profit by $X and will ask for it from anyone they think can/will pay it, no matter what your current PPM is.

Advocate for your own profitability beyond PPM inputs.

2. How transparent should vendors be during AVN? Does oversharing ever backfire?

Be very selective about what you share with Amazon; they do not reward generosity. Your VM will take any insights offered and happily use them to negotiate against you.

Share your strategic plans (e.g., moving selection to SIOC) as contingent on receiving help (e.g., chargeback waivers).

3. How can I model the ROI of investing in programs like Baby Registry?

You can’t.

Instead of sharing data, Amazon will send “proof of performance” documents every month or quarter. These have relative performance insights (e.g., your ASIN was in the top 10% most registered products in March), but no specific performance data.

Think of these investments as “brand exposure” opportunities — not measurable media.

4. We want to reduce coop accruals to spend more on sponsored ads. How?

This will be difficult because Amazon almost never decreases terms, and sponsored ad spend does not contribute to your PPM (or your VM’s P&L).

Therefore, approach this through your Ads AE, whose goals and compensation are tied to your ad spend.

Bring them into the conversation with your VM. Let Amazon negotiate against itself.

Final reminder

Bring your negotiation challenges and questions to our team of Amazon Vendor negotiation experts. Submit questions anonymously live during the webinar, or in advance using this link: https://bit.ly/avn-question

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