In addition, Amazon`s supplier agreements may include cash compensation consisting of cooperative marketing refunds, discounts, and more. Amazon sees them as a reduction in what they pay for products. They are generally applicable when Amazon meets the minimum purchase thresholds that they estimate based on past performance and forecasts for the current year. F-7.4 You will immediately notify us of potential recalls or recalls or safety alerts of your products and assist us with safety recalls or warnings, including opening procedures for returning items to you in accordance with our standard procedures. You are responsible for all costs and expenses incurred by you, us or any of the associated companies in connection with a potential recall or recall or safety warnings of their products (including the costs of returning, storing, repairing, liquidating or delivering to you or a supplier of such products). Whatever points you want to negotiate or renegotiate, remember that you will be in a much better position to make things happen in your own way if you have a good relationship with your vendor manager. If you`re in a very difficult position and you`re considering terminating your vendor agreement, make sure you`re really ready to leave Amazon if you want to take an aggressive stance towards them. Be aware of what you risk in any case and don`t use tactics as a last resort, for example.B. stopping all orders to get Amazon to start negotiations, unless you`re serious. At the end of the day, however, you benefit from maintaining a good relationship with Amazon, even if you no longer sell on the platform. Before you contact Amazon to offer alternative terms, make sure you`ve already colored your minimal offer, your happy medium, and your solid end result, so you know what leeway you have around every corner. Think about the leverage you have to allow yourself to offer concessions that attract and maintain Amazon`s attention. In addition to the qualities of your products, good press coverage and participation in marketing campaigns, promotions and merchandising can be the weak link in the balance in your favor.
Finally, note that the best time to enter into negotiations with Amazon is close to the date your supplier agreement is due for renewal. Accepting amazon`s offered terms at face value can be a major mistake. Often, these supplier agreements turn out to be unfavorable and can even be totally unbearable in the long run. In the excitement of joining Amazon, many don`t realize how much they get into giving up to lose. It makes much more sense to carefully check the terms in advance to make sure you get a deal that will satisfy you in one, five, and even ten years.