Unraveling the Complexities of Amazon's Annual Vendor Negotiations


In this episode, Ashley Wales-Brown of Podean joined Paul Sonneveld and explored how to enhance your negotiation skills and gain a competitive edge in 2024 and beyond! 


Understanding the Importance of Amazon in E-commerce

The podcast emphasized Amazon's status as the most successful e-commerce company globally, making it a crucial sales channel for businesses. It underscored the need for a data-driven approach and emotional detachment throughout the negotiation process to secure favourable terms.

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Key Strategies for Successful Vendor Negotiations

One of the critical points raised by Ashley Wales-Brown, the Managing Director of Podean Australia was the importance of being well-prepared before entering negotiations with Amazon. Understanding profitability, fees, charges, and other financial aspects on a per-ASIN basis was highlighted as a key strategy for success.

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Navigating Amazon's Unique Language and Terms

The podcast shed light on the unique language and terms used by Amazon during vendor negotiations. Terms like CRAP (Can't Realize a Profit) and collect freight terms were discussed, emphasizing the need for vendors to familiarize themselves with Amazon's terminology.

“There are hundreds of terms. And we have a whole glossary actually on our website, which we update regularly, to kind of help brands understand it as best as possible. When it comes to negotiation, there are certain ones that are used more than others. And understanding this will give you such an advantage. ” - Ashley Wales-Brown, Managing Director, Podean Australia

Overcoming Challenges and Maximizing Success

The conversation touched upon tactics used by Amazon and how vendors can counter them effectively. It also highlighted the importance of operational improvements, such as reducing damages and returns, to enhance profitability and secure favorable terms.

“Operational improvements are designed to reduce damages and returns. Maybe a modified return rights so that Amazon's no longer responsible for damaged products or a reduced increase in the requested accrual.” - Ashley Wales-Brown, Managing Director, Podean Australia

Embracing Flexibility and Profit-Oriented Approaches

The podcast emphasized the value of flexibility in bundling products, offering exclusive access to Amazon, and adopting a profit-oriented approach. It noted a shift towards direct and less flexible negotiations with Amazon due to its established market position.

Seeking Support and Advice

As the episode concluded, Ashley shared avenues for further support and advice, including visiting the website podean.com and connecting via LinkedIn for additional insights and assistance in navigating vendor negotiations with Amazon.

The podcast episode provided valuable insights into the complex world of vendor negotiations with Amazon, offering practical tips and strategies for success. By understanding Amazon's unique language, embracing flexibility, and focusing on profitability, brands and individuals can navigate negotiations effectively and secure favourable terms. 

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