I’ve seen this trending now with AVN in-progress for most vendors, but Amazon is getting strict with their profitability requirements—and I don’t mean NetPPM.
I’m referring to Contribution Profit, the profitability measure that drives most of Amazon’s decisions.
Are you:
- Getting repeated price protection agreements or chargebacks?
- Sitting on total weeks of inventory (at the vendor code level) greater than six weeks?
- Seeing damage or freight costs that exceed your allowance?
All these factors will decrease Amazon’s profit, and they aren’t tolerating it anymore.
These metrics are not easy to find; you have to know where to look or have the right tools.
Start digging into your data—these could be the reasons you’re not seeing those POs from Amazon. If you need help, don’t hesitate to reach out.
