The High-Stakes Game of Amazon Vendor Negotiations: How to Win Without Losing Your Shirt
The Reality of Amazon Vendor Negotiations (AVN)
For brands selling wholesale to Amazon, AVN (Annual Vendor Negotiations) is a yearly showdown that determines whether you’ll grow, survive, or end up with Amazon eating your margins. If you're a vendor doing $5-10M+ in sales, Amazon will knock on your digital door asking for more profit. Fun, right?
Amazon Calls It a ‘Partnership’—But Is It Really?
Officially, AVN is a “collaborative process.” Unofficially? Brands often describe it as stressful, frustrating, and downright brutal. The goal is supposed to be a win-win: Amazon gets its margin, and vendors get strategic support.
But here’s the kicker: your vendor manager (VM) is not your best friend. They’re a rotating Amazon employee (tenure is often 12-18 months) with one job—negotiate aggressively on Amazon’s behalf.
What You Can Do to Win
🚀 Know Your Numbers Before Amazon Tells You Theirs – If you only look at your data after Amazon sends their proposal, you’re already playing defense. Monitor your key metrics year-round so you can predict what Amazon will ask for and counter with confidence.
🚀 Think Like Amazon (And Beat Them at Their Own Game) – Amazon uses sophisticated negotiation tactics. They train their teams on data-driven arguments and high-pressure techniques. The best defense? Come prepared with hard numbers, not just opinions. Know what products drive traffic, what’s profitable, and what’s non-negotiable.
🚀 Flip the Script – Instead of waiting for Amazon’s demands, present your own. Highlight your supply chain initiatives, pricing plans, and marketing investments to shift the focus from margin squeezing to long-term partnership.
Claim Your Value
If Amazon needs your brand (high-demand products, strong search presence), don’t let them push you around. Come prepared, advocate for your brand, and don’t just accept their first offer.