Overview

The annual Amazon Vendor Negotiation (AVN) season for 2026 is around the corner, and the stakes have never been higher. Starting in Q4 and rolling into Q1, these negotiations set the tone for your profitability and partnership with Amazon in the year ahead. For Amazon agencies and Vendor Central professionals, preparation is everything. In 2025’s cycle, Amazon made aggressive moves to boost its own margins – from pushing standard payment terms out to 60 days, to demanding higher trade term contributions. 2026 promises to continue this tough stance, meaning vendors must come armed with data, strategy, and a clear game plan.

In this article, we’ll break down expert insights from a recent MerchantSpring webinar featuring  Oliver Tomaschewski (Founder & Managing Director of DiCommerce GmbH, a leading Amazon consultancy) and host Paul Sonneveld (CEO of MerchantSpring). Oliver has guided nearly 100 AVN sessions and knows Amazon’s playbook inside out. We’ll explore how Amazon’s negotiation tactics have evolved, what leverage points vendors can use to push back, and practical strategies to defend your margins while still securing favourable terms.

Whether you’re a large 1P vendor or a midsize brand feeling at the mercy of Amazon’s demands, these forward-looking strategies will help you negotiate with confidence. Let’s dive into the new AVN landscape and how to come out on top in 2026.

Amazon’s Changing Tactics: From Growth to Profit (What to Expect in 2026)

Not long ago, Amazon’s annual negotiations were relatively vendor-friendly, focused on growth and expanding selection. In the mid-2010s, Amazon primarily cared about having the broadest portfolio – sometimes even subsidising terms to get more products on the platform. Then came the pandemic era, when Amazon’s priority shifted to availability. Vendor terms took a backseat to keeping items in stock, and Amazon even halted orders on less-essential products to manage fulfillment of high-demand goods.

However, since about 2022, Amazon’s tone in Vendor Central negotiations has turned decidedly profit-centric. In recent AVNs, Amazon has zeroed in on improving its net PPM (net pure profit margin) – essentially the margin Amazon makes after all costs and vendor terms, relative to the sell-out price. Negotiations have become tougher, with Amazon often rejecting cost price increases and pushing for additional concessions. Last year (2025), a common ask from Amazon was extending payment terms (e.g. from 30 days to 60 days), directly impacting vendors’ cash flow.

So what’s on Amazon’s agenda for the 2026 negotiation round? Expect an all-out push for profitability. Amazon will likely resist any vendor-initiated cost price increases (citing their own rising costs in logistics and labour) and instead press for higher accruals and fees. Many vendors may hear that their category’s average margin is higher than what they provide – a tactic to justify Amazon’s demands for more margin. (Tip: Take these comparisons with a grain of salt; Amazon might exaggerate or cherry-pick data to pressure you.) Oliver notes that Amazon often claims the average net margin in your category is 2–3% higher than your account’s, regardless of the reality. The bottom line: brace for Amazon to demand more and give less in 2026, unless you counter with solid preparation and strategy.

Build Your Data Arsenal: Key Metrics to Gather Before Negotiations

If there’s one thing Amazon respects at the table, it’s data. As Oliver emphasized, “There will be no other client as well-prepared with KPIs on your account as Amazon itself.” Amazon’s Vendor Managers live and breathe the numbers – and you need to do the same. Before your AVN meeting, arm yourself with a data-driven case covering all aspects of your business. Here are the essential metrics and analyses to prepare:

• Net PPM (Net Pure Profit Margin): This is Amazon’s primary focus. Calculate the net margin Amazon makes on your products (after their fees, cost of goods, freight, etc.) relative to the retail price. Do this by marketplace and in aggregate. If Amazon says your net PPM is too low, you should know exactly which products or countries drag down that average. Identify any unprofitable ASINs well in advance (more on how to handle these later).
  
  
• Sell-Out vs Sell-In Volume: Many traditional vendors think in terms of sell-in (what Amazon buys from you, aka Net Receipts). But Amazon cares about sell-out (customer sales). Be ready with both figures, but focus on sell-out performance – that’s the real indicator of consumer demand and revenue. As the saying goes: if you don’t drive sell-out, you’ll soon have a sell-in problem (Amazon will simply order less).
  
  
• Traffic and Conversion Metrics: Demonstrate how you have invested to drive traffic to Amazon. Bring data on your Amazon Advertising spend (AMS, DSP) and any external traffic campaigns. If you achieved high organic traffic share (i.e. a lot of shoppers find your products organically), highlight that – it’s evidence of strong brand presence and desirable products. Increased traffic and conversion improvements bolster your case that you’re already helping Amazon grow sales, justifying better terms.
  
  
• Promotional Investments and Uplift: Document your funding for deals (Prime Day, Cyber Monday, coupons, etc.) and the resulting sell-out lift from those promotions. If you increased your deal funding budget year-over-year, show Amazon the ROI in terms of units sold and revenue generated during promotions. This proves you are actively partnering with them to drive sales, and it counters any argument that you’re not “investing enough.”
  
  
• Chargebacks and Shortage Claims: Every Amazon vendor faces some level of chargebacks, shortages, and other operational fees. Calculate how much Amazon has charged you (or owes you) in unresolved claims. This is your money on the line. If Amazon presses for more concessions, you can push back by highlighting outstanding amounts – e.g., “We’re still waiting on $200K in unpaid shortage claim credits.” It reminds Amazon that the partnership has financial friction on both sides.
  
  
• Historic Trade Term Changes: Chart out how your terms (MDF, base accrual, freight allowance, etc.) have evolved over the past 2-3 years. If Amazon already got increases in previous rounds, use that as a baseline to argue against further hikes. For instance, “We’ve raised MDF from 5% to 10% over two years – we need to see ROI on that before considering another increase.” Also, if you held off on cost price increases for several years and only recently raised prices due to inflation, document that history. It shows reasonableness on your part and builds the case for any current price increase requests.
  
  
• Category Market Share: If possible, gather data on your brand’s share in the category on Amazon. Being the #1 or #2 brand in a category gives you leverage, as Amazon doesn’t want to lose or disadvantage top sellers that customers expect to find. Even an estimate or third-party data of category rank can strengthen your position (“We contribute 30%+ of the sales in our category on Amazon”). A strong market position can justify pushing back on excessive concessions – Amazon needs your products as much as you need Amazon.
  
  
• Profitability by Product: Analyse profitability at the SKU level. Identify which products are margin accretive for Amazon and which are margin drainers (low or negative net PPM). This will inform your strategy on assortment (perhaps you’ll decide to prune certain items – we’ll discuss that soon). Modern analytics tools can help here – for example, MerchantSpring’s vendor profitability dashboard integrates COGS, rebates, chargebacks, and advertising costs so you can quickly assess true profit by ASIN from both sell-in and sell-out perspectives. Leverage such data to pinpoint problem areas and opportunities in your portfolio.
  
  

Remember, preparation means analysis at both a macro and micro level. Don’t just know your total annual numbers – break them down by country, by category, by quarter, and by ASIN. Granular insights will let you counter Amazon’s points with facts and steer the conversation to your advantage. As the saying goes, “Proper preparation prevents poor performance.” In an AVN, it can prevent profit erosion, too.

Leverage Points: How Even Smaller Vendors Can Push Back

It’s easy to feel like Amazon holds all the cards, especially if you’re a midsize vendor. Many vendors fear they have “no leverage” and end up conceding to every ask. The truth is, you have more negotiation levers than you might think – regardless of your size. Oliver insists that even smaller brands can create leverage by smartly using their assets. Here are key levers to identify and use in your negotiation:

• New Product Listings: One of the most powerful bargaining chips is your product catalogue. Amazon wants to be the everything store with the latest and greatest selection. If you’re launching new products or have top-sellers not yet offered to Amazon Retail, you can offer or withhold new listings as a negotiation lever. For example, you might say, “We can agree to a higher accrual, but in return, we want Amazon to list our upcoming product line in all EU markets.” Conversely, delaying or selectively rolling out new ASINs to Amazon can pressure them to be more flexible on terms.
  
  
• Expanded Marketplace Presence: Similarly, if you’re doing well on one Amazon marketplace (e.g. Amazon US) but haven’t yet expanded to others (e.g. Amazon UK, Germany, etc.), Amazon sees opportunity. They often encourage vendors to go pan-EU or global. Use this as a lever: “We’re open to launching in additional marketplaces – but we’d need support on terms or concessions on other asks.” The promise of growth in new markets can help offset Amazon’s push for margin today.
  
  
• Marketing & Traffic Boosts: Amazon continually asks vendors to invest more in marketing (AMS ads, Vine reviews, A+ Content Premium, etc.). Instead of just conceding to a higher Market Development Fund (MDF) percentage (which often feels like a black hole), propose reallocating that spend to concrete marketing programs. For instance, “Rather than +2% MDF, we’ll put 2% into sponsored ads to drive traffic” or “We’ll fund A+ Premium content and Vine enrollments to improve conversion.” This way, you give Amazon something it wants (traffic, content) but in a form that also benefits you through increased sales. It’s a trade-off that feels more like an investment than a pure margin giveaway. (More on smart trade-offs in the next section.)
  
  
• Operational Adjustments: If logistics costs are a pain point, consider leveraging Amazon’s programs like PICS (Pan-Issue Credit Solution), direct import, or Dropship (Direct Fulfillment) if applicable. Sometimes, offering to use a more efficient supply chain program can earn you concessions. For example, “We can shift to a PICS consolidated shipment model – which saves Amazon inbound costs – but in exchange, we need a 1% reduction in damage allowances.” These operational levers show you’re willing to collaborate on efficiency, which can justify better financial terms.
  
  
• Control of Your Portfolio: Perhaps the most under-utilised lever is managing your own assortment on Amazon. You do not have to offer every product via 1P (vendor). In fact, carrying unprofitable products in the vendor catalogue drags down your net PPM, and Amazon will use that against you. One bold but effective strategy is to proactively delist consistently unprofitable or low-margin products from your Amazon vendor account before negotiations. This doesn’t mean removing them from Amazon entirely – you can move them to the 3P (Marketplace) side or supply them via a distributor (so they still appear on Amazon, just not sold by Amazon Retail). By pruning the worst margin offenders from your 1P catalogue, you improve your overall vendor margin profile. Then, in negotiations, Amazon has fewer reasons to complain about low net PPM. Oliver suggests doing this in summer or early Q3, so that by Q4 negotiation time, the impact of those products is already gone from your trailing metrics. It’s a strategic sacrifice that can strengthen your position when margin discussions heat up.
  
  
• Bundles and Exclusive Packs: Another portfolio lever is creating product bundles or Amazon-exclusive multipacks that naturally carry higher price points. For example, bundling two complementary products together can increase the average selling price, which often improves net margin (since Amazon’s handling cost per item goes down). Check your Amazon business reports for products frequently bought together, and consider proposing those as new bundle ASINs. By increasing your average order value through bundles, you boost Amazon’s margin dollars per order, helping meet their margin goals without a pure percentage increase in terms. It’s a win-win lever: customers get convenient bundles, Amazon gets more profit per sale, and you potentially move more units.
  
  
• Demonstrating Brand Strength: If your brand has high organic search volume on Amazon (lots of people search your brand name) or you have a strong off-Amazon following, make sure Amazon knows it. Strong brands drive traffic that Amazon doesn’t have to pay to acquire. This brand equity is a lever – Amazon needs popular brands to attract shoppers. Use data like “Our brand keywords account for X% of our Amazon search traffic” or mention any D2C sales figures that indicate consumers seek out your products. It subtly reminds Amazon that you’re bringing customers to their platform, and they can’t easily replace that value if terms don’t work out.
  
  

“Even if you are small, you have a lot of levers to push back and take control of the negotiation.” – Oliver Tomaschewski

In summary, think creatively about what Amazon wants from you beyond just money – selection, growth, traffic, efficiency – and tie those to your negotiation asks. By trading something valuable (but acceptable to you) in exchange for better terms, you reframe the negotiation from adversarial to collaborative. It shows Amazon you’re a savvy, long-term partner, not just a passive participant. Next, let’s explore how to structure these trades and which concessions make sense to give (or not give).

Smart Trade-Offs: Never Give Without Getting

In any negotiation, you’ll likely have to give up something. The key is to give up the right things and get fair value in return. A common mistake is to concede on Amazon’s asks (higher discounts, more MDF, longer terms) without securing something that benefits you. To elevate your negotiation outcome, prepare a “give and get” list: for every concession Amazon asks, identify a counter-concession or benefit you will request.

Some smart trade-offs to consider in AVN negotiations include:

• Reallocating MDF to Measurable Benefits: As mentioned earlier, Market Development Funds (MDF) often run 5-10% (or more) of net sales – a substantial margin cut. Rather than outright refusing an MDF increase (which Amazon may not accept), propose shifting a portion of MDF into more tangible marketing programs. For example, Amazon offers an A+ Content Premium upgrade (enhanced product page content) for an additional fee (often ~0.5% to 1.5% of sales). You could say, “We’ll agree to 1% increase in terms, but let’s allocate that to A+ Premium content fee so we get value from it.” This way, Amazon still gets its money but you gain a better product detail page that could boost conversion. Other MDF reallocations could be into the Vine program (for review generation) via a flat fee, or a Merchandising Package that Amazon sometimes sells for placements. The principle is to convert generic “margin” dollars into specific initiatives that drive your growth. It’s easier to swallow a concession when you see a direct impact on sales.
  
  
• Extending Payment Terms vs. Cash Discounts: If Amazon presses for 60-day payment terms (net 60), that hits your cash flow. One way to negotiate is to offer an early payment discount instead. For instance, maintain 30-day terms but give Amazon an extra 1-2% discount for paying within 30 days. This can be framed as a win-win: Amazon gets a bit more margin (via discount) but you get cash faster, which might be worth the trade. Always run the math for your business – sometimes holding firm on shorter terms is critical, but if you can afford a small discount in lieu of doubling the payment period, it could save you from a liquidity crunch.
  
  
• One-Time Funding vs. Rate Increase: Perhaps Amazon is asking for a 2% increase in an annual accrual rate. Another approach is to negotiate a one-time lump sum marketing fund instead. For example, a $100k one-time funding for Q4 marketing, instead of a permanent 2% bump in terms. A one-time concession doesn’t compound into future years’ profitability, and you can designate it for a specific event or campaign (ensuring it potentially drives sales that benefit you too). Make sure any one-time agreement is clearly documented as such, so it doesn’t become the new baseline next year.
  
  

• Logistics Programs for Allowance Relief: If your freight or damage allowance is high, consider negotiating it down by offering to enroll in Amazon logistics programs. For instance, Amazon has programs like Collect (Amazon-arranged freight) or inventory placement services. If you currently handle shipping and incur many chargebacks, moving to Amazon-managed shipping might reduce those issues – you could then justify a lower damage allowance percentage in your terms. Essentially, you agree to operational changes that reduce Amazon’s cost/risk, and in return, you pay less in allowances.

   

• Co-Op on Growth Initiatives: Amazon Retail sometimes has cooperative marketing or growth programs (e.g., Amazon Business B2B discount programs, Subscribe & Save incentives, etc.). If Amazon proposes a costly program, frame your acceptance as conditional: “We can join this program or accept this new term, but only if Amazon supports us with X.” X could be improved retail marketing support, inclusion in certain site placements, or additional Amazon Ads credits. Don’t hesitate to ask for supporting commitments. For example, “We’ll increase our deals funding by 2%, but we expect Amazon to feature our brand in two Deal of the Day events next quarter.” Trading margin for guaranteed visibility ensures you get something tangible for your money.

“Never give something for free. If Amazon wants a 1% increase, ask for something in exchange.”– Oliver Tomaschewski

What Not to Trade: Just as important as knowing what to give is knowing what not to give. Avoid concessions that permanently weaken your position or lack clear benefit. For instance, be wary of simply agreeing to a high MDF with no accountability – if you give 15% MDF and don’t get robust marketing value, it’s pure margin loss. Also, think twice before agreeing to terms that could set a precedent (like an endless 60-day payment cycle or ever-increasing accrual rates) without an exit plan. Another red flag concession is anything that limits your multi-channel strategy – e.g., exclusivity arrangements or restrictions on selling via 3P or other retailers. Maintain flexibility for your business.

By planning alternative proposals and conditional yes’s (“We can do that if…”), you steer the negotiation towards a balanced outcome. Amazon’s Vendor Managers are trained to maximise Amazon’s gain, but they also have some latitude on how you achieve that gain. If you can meet their financial objectives in a way that also advances your interests, you’ve struck the right bargain.

Pushing Back Tactfully: Defending Your Position

Despite your best preparations and creative trade-offs, you may still face hardball tactics from Amazon. It’s not uncommon for Vendor Managers to assert things like “Your margins are the lowest in the category” or “If you don’t agree, we’ll have to reconsider our partnership.” Some vendors even experience veiled threats, such as buy box suppression or reduced orders, during negotiations. How should you respond when Amazon applies pressure? Here are some strategies to push back professionally and effectively:

• Verify Amazon’s Claims: As noted, treat broad claims (e.g., category margin benchmarks) with skepticism. You should verify with external or third-party data whenever possible. Tools and consulting firms exist that aggregate vendor terms data anonymously – Oliver mentions an “M-Visor” tool, for instance, that can show the range of net PPM in your category. If Amazon says the category average net margin is 30%, and your data shows it’s actually 25%, you have grounds to challenge their ask. Even without external tools, use your knowledge of competitors or industry reports to sanity-check Amazon’s statements. Push back by asking for clarification: “On what basis is that comparison made? Our information indicates vendors in this category operate at lower margins.” This signals that you’re not an easy mark and that you require fact-based justification for major concessions.
  
  
• Highlight Mutual Goals: When Amazon demands actions that harm your profitability, reframe the discussion to joint business goals. For example: “We both want to grow the business on Amazon. If our margins erode too far, we can’t invest in new products or marketing, which ultimately limits growth on Amazon.” By articulating that what’s bad for you can also be bad for Amazon’s sales, you make a case that extreme terms are counterproductive. Emphasise partnership: use language like “sustainable growth,” “long-term partnership,” and “mutual profitability.” This can sometimes temper a purely margin-grabbing stance on Amazon’s side.
  
  
• Use the Data You Prepared: This is where your homework pays off. If Amazon says “you need to improve terms by +5%,” counter with specifics from your data arsenal. For example: “Our net PPM was low last quarter due to one underperforming product – which we have since delisted – and due to $250k in unresolved chargebacks. Adjusting for those, our net PPM would be within an acceptable range. Rather than a blanket increase, let’s resolve those operational issues and improve profitability that way.” Such a response uses data to undercut the premise of their ask and offers a constructive solution.
  
  
• Stay Firm but Calm: If Amazon insinuates dire consequences (like delisting your products or shifting to third-party sellers), don’t panic or react emotionally. These scenarios are rare, especially if you have customer demand. In the EU, there are even regulations limiting Amazon’s ability to unilaterally drop vendors without notice. In any region, it’s not in Amazon’s interest to abruptly sever relationships with known brands – that would hurt the marketplace’s assortment reputation. You can calmly acknowledge Amazon’s point and redirect: “I understand Amazon needs healthy margins. We need a healthy business, too to keep innovating. Let’s find a solution that works for both.” Sometimes, simply not blinking first in the stare-down is enough; Amazon may moderate their demand when they see you’re not immediately capitulating.
  
  
• Escalate if Necessary: If you reach an impasse with your Vendor Manager, you might consider a top-to-top meeting or escalation. This means involving higher management on both sides to review the partnership holistically. Oliver shared an example where facilitating a meeting between a vendor’s executives and Amazon’s leadership led to a breakthrough – they reset terms by over 4% and achieved a more strategic agreement. Use escalation judiciously (and respectfully), but know that it’s an option if talks stall or if you believe your Vendor Manager isn’t seeing the bigger picture. Often, higher-level Amazon managers will appreciate a rational case for long-term partnership over short-term squeezes.
  
  
• Leverage Timing: AVN negotiations often have a timeline (Q4 into Q1). Amazon has thousands of vendors to get through, and they also have internal targets for funding they need to collect. This timing can be a pressure on both sides, but sometimes you can use it to your advantage. If you’re truly at a stalemate, it’s possible to delay agreement (e.g., take discussions into the next quarter) to show you won’t accept bad terms. Amazon might implement temporary measures (like holding POs for a few weeks), but often they’ll come back to the table if they see you’re willing to walk away from a bad deal. Clearly, this is a high-stakes move – you should only slow-roll if you’re prepared with a Plan B (more on that next). But remember, Amazon reps have KPIs to close negotiations; they may become more flexible as deadlines loom.
  
  

In all cases, maintain professionalism. Document your communications, remain factual, and avoid personalising the conflict. Show that you mean business in the business sense. By firmly defending your position with data and logic, you increase the chances Amazon will moderate their demands and work with you on a compromise.

The Hybrid Strategy: Keeping Plan B in Your Back Pocket

One of the strongest pieces of leverage you can have is the credible option to walk away from Amazon’s vendor model. This doesn’t mean abandoning Amazon as a channel, but rather switching to (or threatening to switch to) a third-party seller (3P) approach for your products. This hybrid model strategy – using 1P (vendor) and 3P (Marketplace) strategically – is gaining traction as vendors seek to protect themselves from onerous terms.

How can you use a hybrid strategy as a negotiation tool?

• Establish a 3P Seller Account (Quietly): If you aren’t already selling via Seller Central, consider setting up an account or partnering with a trusted third-party seller who can carry your catalogue. This gives you a fallback to continue selling on Amazon even if you temporarily pause vendor shipments. The mere existence of a functional 3P channel makes your Plan B real. You don’t necessarily want to publicise this to Amazon upfront, but you should have it ready in case negotiations go south.
  
  
• Broker Model: If running a seller account yourself isn’t feasible, another option Oliver mentioned is using a broker or 2P model. In this scenario, you sell your products to a third-party distributor who then sells on Amazon Marketplace. This approach can be particularly useful if you want to claim “we don’t sell on Amazon, only Amazon sells our products” for channel conflict reasons – the broker is technically the seller, not you. It’s like an insurance policy for the AVN period: the broker can list your items on Amazon if Amazon Retail stops ordering them, ensuring continuity of sales. Yes, using a broker or 3P will involve some margin sacrifice (the middleman or fees), but it can be worth it for a few months as leverage. Think of it as a short-term safety net so Amazon knows you won’t be left high and dry if they play hardball.
  
  
• When to Play the Card: You don’t necessarily want to start a negotiation by saying “We’ll go 3P!” – that could sour the tone. Instead, use it as a last-resort bargaining chip. If Amazon’s final offer is unacceptable, you might calmly let them know that, while you prefer to continue as a 1P vendor, you have the capability to transition to other distribution methods on Amazon. In Europe, especially, Amazon cannot legally retaliate punitively for you selling 3P (and in fact, many brands do both). In the U.S., Amazon has been known in the past to “encourage” vendors to shift to 3P if they aren’t meeting profitability targets – so the idea isn’t foreign to them. By mentioning your alternative, you signal that you won’t accept a deal that jeopardises your business and you’re prepared to take your destiny into your own hands if needed.
  
  
• Maintain Relationships: If you do pivot to a hybrid model (even temporarily), try to exit on good terms. Let Amazon know it’s a business decision and that you’d be open to revisiting Vendor Central when conditions are better. That keeps the door open to return as a 1P if more favourable terms can be reached later. Some vendors have left 1P for a year and then been invited back by Amazon on better terms once Amazon realised the sales potential they were missing. The key is, don’t burn bridges – you’re simply executing a strategy to protect your brand.
  
  

Using a hybrid strategy effectively turned one negotiation in Oliver’s experience: a client signalled readiness to switch wholly to 3P if Amazon’s terms didn’t improve, and as a resul,t Amazon significantly moderated their demands and the vendor achieved a much better outcome. The threat was credible and the result was tangible.

Of course, for a Plan B to truly have power, you must be ready to implement it. That means understanding FBA (Fulfillment by Amazon) fees, 3P pricing, and possibly running two channels in parallel. It’s not trivial, but many agencies and partners specialise in exactly this – helping brands create a parallel 3P presence. Even if you never fully deploy it, just having the infrastructure set up increases your confidence during AVN talks. You know that Amazon isn’t your only way to reach its customers.

Avoiding Common Pitfalls

Through all the strategic planning and tactical maneuvers, it’s also important to learn from others’ mistakes. There are several common pitfalls Amazon vendors fall into during negotiations – make sure you steer clear of these:

1. Going in Blind: Perhaps the most fatal mistake is not knowing your own numbers in detail. Walking into an AVN meeting without precise data is like fighting with one hand tied behind your back. If Amazon cites a metric you weren’t tracking, you’re immediately on the defensive. Don’t rely on Amazon to tell you how your business performed – have your own analysis ready.
   
   
2. Focusing Only on the Event, Not Year-Round: Negotiation prep isn’t something you do the night before the meeting. Successful vendors manage their Amazon business throughout the year with the AVN in mind. That means continuously monitoring net PPM, watching for any margin erosion, and proactively addressing issues (e.g., distribution glitches causing heavy chargebacks) before Amazon brings them up. The vendors who scramble only in Q4 to fix a margin problem often find it’s too late – Amazon’s data already shows a decline. Make AVN prep a year-long effort.
   
   
3. Accepting One-Way Concessions: As stressed earlier, never concede without countering. This is a mindset to maintain. If you find yourself saying “yes” too quickly, pause and ask: What am I getting for this? Even if the only return concession is something small or non-monetary, ensure you get acknowledgment in return. For example, if you agree to a term increase, perhaps Amazon agrees to joint business planning meetings each quarter or provides a report or tool you’ve been asking for. Insist on a partnership dynamic, not a dictation.
   
   
4. Overextending on MDF: Many vendors regret signing up for high MDF percentages. It’s often the largest single slice of terms and yet the least tangible. Don’t let Amazon simply slide an MDF increase into the contract without a fight or a plan. If you do end up agreeing to higher MDF, make it a priority to track the ROI of those funds and ask Amazon for detailed marketing activity reports. If they can’t justify it, that becomes your case next year to pull back. The worst pitfall is treating MDF as a “cost of doing business” and not scrutinising it – because it will quietly eat your margin alive.
   
   
5. Poor Internal Alignment: Negotiation pitfalls aren’t only external. Internally, make sure your sales, finance, and supply chain teams are on the same page. A frequent internal failure is the sales team pushing volume via heavy discounts to other channels, which then bleed into Amazon (through grey market or arbitrage sellers), undermining your Amazon pricing and margin. Align incentives internally so that no one is inadvertently sabotaging your Amazon business. As Oliver suggested, if needed, adjust bonus schemes so that sales managers are accountable by country or channel, not just aggregate volume – to avoid someone dumping stock to hit a number, only to create a pricing nightmare on Amazon. Presenting a unified front to Amazon requires internal unity first.
   
   
6. Neglecting the Relationship: While the numbers matter, don’t forget the human aspect. Cultivate a good working relationship with your Vendor Manager before negotiations. Regular touchpoints, sharing wins, asking for input on growth opportunities – these can all make the AVN conversation more collegial. If the only time you talk to Amazon is when you’re arguing over terms, you’ve missed chances to build goodwill. Relationship equity can sometimes translate to a bit more flexibility or willingness to find solutions during a negotiation. It’s harder for Amazon to play hardball with a vendor who has been an engaged, responsive partner throughout the year.
   
   

By avoiding these pitfalls, you set yourself up to negotiate from a position of strength and savvy. Many Amazon vendors have learned these lessons the hard way – you don’t have to. As you prepare for the 2026 AVN season, keep these “don’ts” in mind and stick to the strategic approach we’ve outlined.

Conclusion: Win in 2026 with Data, Strategy, and Confidence

As Amazon’s AVN approach continues to evolve, one thing remains constant: preparation and strategic finesse are your best allies. Going into the 2026 vendor negotiations, armed with a data-backed story and a clear set of levers, you can flip the script from feeling powerless to feeling prepared and in control. You’ve learned to anticipate Amazon’s profit-driven tactics and counter them with facts. You’ve identified where you can give a little (and get something in return) and drawn red lines where you must protect your business’s viability. And importantly, you’ve got a contingency plan in the form of hybrid selling if needed – meaning Amazon does not have unchecked power over your fate.

By synthesising the insights from Amazon experts like Oliver Tomaschewski, we see that thought leadership and practical execution go hand in hand. It’s not just about negotiating harder, but negotiating smarter. Use Amazon’s own mindset – KPI obsession and long-term growth focus – to frame your negotiations. Turn what could be a contentious showdown into a constructive business discussion about growth and profitability for both parties.

Finally, remember that you’re not alone in this process. Many vendors are navigating the same challenges right now. Don’t hesitate to seek expert guidance or use advanced tools to strengthen your position. MerchantSpring, for example, has analytics solutions (like the new vendor profitability module mentioned earlier) that can illuminate where you stand and what to fix before Amazon ever points it out. As an Amazon agency professional, leverage these resources to give your clients or your brand an edge.

If you’re ready to take your Amazon vendor management to the next level, consider reaching out to our team at MerchantSpring. We can help you analyse your Amazon business data in granular detail and prepare a negotiation strategy that defends your margins while fostering growth. Don’t enter the 2026 AVN season unprepared – equip yourself with the right data, support, and partners so you can negotiate with confidence and secure the profitable partnership with Amazon that your business deserves.