2024 AVN Benchmark Wrap Up with Claire McBride from Stratably - Episode 349

Welcome to another episode of The Ecommerce Braintrust podcast hosted by Acadia’s Head of Retail Marketplaces Services Julie Spear.

In this episode, we’re joined by Claire McBride, the VP of Research and Education at Stratably, to discuss the Amazon Vendor Negotiation (AVN) Benchmark Report. 

Authored by Claire alongside Martin Hubel of Consultors, this report dives deep into the AVN process, offering valuable insights and benchmarking data for brands looking to navigate their negotiations with Amazon more effectively. 

Tune in to discover key takeaways, strategies, and trends that can help you prepare for next year's AVNs.

KEY TAKEAWAYS

In this episode, Julie and Claire discuss:

The stress and lack of transparency that many brands experience during AVNs.

The purpose of the benchmark report.

Data gathered from 252 brands, split between North American and European vendors.

Surprising Findings: Brands are becoming firmer in resisting trade term increases.

9% of brands achieved a year-over-year decrease in their trade terms and 61% of brands avoided a decrease in overall margins.

The main challenge continues to be securing favorable trade terms.

Disparities in AVN experiences between various types of businesses, with food and CPG brands facing tougher negotiations.

European vendors had a more challenging AVN experience compared to North American vendors, potentially due to Amazon's margin improvement efforts.

Preparation and data gathering are crucial for a successful AVN.

Brands that are growing faster or are highly profitable had better AVN experiences.

Build a healthy Amazon business year-round to ease the AVN process.

Do extensive homework and preparation before entering negotiations.

Embrace Amazon's unique, data-driven negotiation approach for better outcomes.

Potential trends in AVN processes becoming less formal due to understaffing at Amazon.

Importance of leaning into the challenging aspects of AVNs and Amazon as a whole to gain an edge in the marketplace.