Overview

Amazon’s first-party Vendor Central platform is entering a pivotal new era in 2024. After years of volatility, the rules are shifting—and Amazon agency professionals must adapt to stay competitive.

In our Amazon Vendor Insights and Tactics to Shift Performance in 2024 webinar, five seasoned vendor consultants unpacked the Q1 landscape and offered proven strategies to help brands thrive this year. Their message was clear: success on Vendor Central in 2024 demands embracing Amazon’s profitability agenda, outpacing intensifying competition, investing in creative marketing, and streamlining operations for maximum efficiency.

This article builds on those insights—going beyond a simple recap to explore why these shifts matter and how you can act on them.

We’ll break down how Amazon’s Q1 focus on profitability is influencing purchase orders and vendor negotiations. We’ll look at the mounting pressures from Chinese competitors and rising social commerce players like TikTok and Temu. We’ll explore profitability tactics such as assortment optimisation, bundling, and hybrid models, alongside creative growth strategies like influencer campaigns, video content, and off-Amazon traffic. Finally, we’ll highlight practical ways to achieve operational excellence and strengthen Amazon's relationships with Vendor Managers and AVS in this new environment.

By the end, you’ll walk away with a clear roadmap to navigate Amazon Vendor Central in 2024—and to position your clients for sustainable success.

Q1 Reality Check: Amazon’s Profitability Push Reshapes the Vendor Landscape

The first quarter of 2024 has underscored a stark new reality: Amazon is laser-focused on its own profitability, and it’s reshaping vendor relationships accordingly. In Q1, many vendors saw Amazon trim back purchase order volumes and adopt a “lean inventory” approach, ordering only what it needs for a few weeks of cover instead of stockpiling extra weeks of supply. This just-in-time ordering strategy is directly tied to Amazon’s company-wide drive for efficiency. In his April 2024 shareholder letter, CEO Andy Jassy revealed that Amazon reduced its cost to serve by $0.45 per unit in the U.S. year-on-year – an unprecedented cut achieved by streamlining operations and regionalising fulfillment. That drive for efficiency is now being passed down to vendors: Amazon is ordering less, ordering smarter, and pushing vendors to shoulder more of the inventory burden.

From an Amazon agency perspective, it’s critical to understand why your clients’ POs might be lighter even if consumer demand is steady. Amazon’s retail business, once willing to hold excess stock for the sake of sales growth, is now under pressure to improve its margins. In late 2023, Amazon’s operating income from retail swung back to positive, and this momentum continued into Q1 2024 as the company balanced solid revenue growth with cost cuts.

To maintain that balance, Amazon is tightening vendor terms: many brands report longer annual vendor negotiations (often 1–3+ months) with heightened pressure for concessions on costs and co-op fees. Simply put, Amazon is “turning the screws” on vendors to protect its bottom line. If you support Amazon vendors, you must help them navigate these tough negotiations and find win-win outcomes despite Amazon’s hardline stance on profitability.

“Amazon’s focus on profitability has created a new reality for vendors. Amazon is ordering less, negotiating harder, and expecting suppliers to be more efficient — vendors must optimise assortment, operations, and distribution to protect their margins.” — Martin Heubel, Founder of Consulterce

However, it’s not all doom and gloom. The panel noted that consumer demand on Amazon remains robust – Q1 sales outcomes were generally positive year-over-year for many categories. The key is that vendors can’t rely on Amazon to drive growth at any cost anymore; they need to grow profitably. That means scrutinising every product’s contribution to profit, not just top-line sales. It also means rethinking old habits. For example, cost price increase requests – which Amazon often granted in the past – are now extremely difficult to push through.

Most 1P suppliers had to hold their prices firm in 2024 negotiations, or even swallow higher trade discounts, because Amazon simply wouldn’t budge. In fact, trade terms (co-op, accrual, etc.) rose by an average of +0.69% for vendors year-on-year, indicating Amazon successfully pressed for bigger vendor concessions in many cases. The takeaway for agencies is to help clients find other ways to protect margins (e.g. cutting internal costs, improving supply chain efficiency, etc.) since Amazon is less willing to absorb cost increases on its end.

So, as we wrap up Q1 and look ahead, remember this fundamental shift: Amazon cares about profitable growth, not growth at all costs. To thrive, Amazon vendors must do the same. In the next sections, we’ll explore how to do that – from dealing with mounting competition to optimising profitability levers and beyond.

Rising Pressures: Competition Heats Up and Consumer Habits Evolve

Amazon vendors in 2024 aren’t operating in a vacuum. They face intensifying competition on multiple fronts – both within the Amazon marketplace and from the broader e-commerce ecosystem. Our expert panel highlighted two major trends you should be aware of:

• Chinese Sellers on Amazon: A surge of China-based manufacturers and sellers has flooded Amazon’s marketplace, even in product niches once dominated by Western brands. They often compete ruthlessly on price and efficiency. Recent analyses show Chinese sellers now account for about 39% of total sales on Amazon US, second only to US-based sellers. In some categories, Chinese sellers command over 50% market share, leveraging low prices, ample selection, and fast-follow product development. This influx is driving price pressure across the board. 
  
  As one panellist noted, brands have seen sales “nosedive” in the past year when an aggressive Chinese seller (or twenty) enters their category with rock-bottom pricing. For Amazon agencies, the implication is clear: you must help your clients differentiate beyond price. If a vendor’s entire value proposition on Amazon is being the cheapest, they’re vulnerable to being undercut. Instead, emphasise brand quality, unique features, bundling, superior content, and customer trust – things that can justify a premium and counteract a race-to-the-bottom dynamic.
  
  
• New E-Commerce Platforms (TikTok, Temu, Shein): Beyond Amazon itself, Chinese e-commerce platforms are rising as formidable competitors to Amazon’s empire. Apps like TikTok Shop, Shein, and Temu are exploding in popularity, especially among younger shoppers. TikTok Shop leverages the massive TikTok social media audience to integrate shopping and discovery; Temu (backed by Pinduoduo) offers a marketplace of ultra-low-priced goods shipped direct from China; Shein’s fast-fashion model is already outselling major global apparel brands. While these platforms collectively are still only a fraction of Amazon’s GMV (estimated <12% of Amazon’s sales), their growth is rapid, and they excel at creating impulsive demand through social feeds and unbeatable prices. 
  
  The panel emphasised that younger consumers are increasingly discovering products on social media (TikTok, Instagram) and even transacting there, rather than starting on Amazon. Does this mean Amazon is losing its relevance? Not exactly – Amazon is still the go-to for search-based, transactional shopping intent. But it does mean brands (and their agencies) should expand their marketing playbook. To reach new audiences and drive incremental traffic, brands should consider investing in social commerce and influencer marketing that ultimately funnels shoppers to Amazon for conversion.
  
  

“Brands can’t get complacent — if you’re still just thinking about infographics, you’re already behind. It’s time to move faster with video content, social selling, and creative strategies to drive traffic beyond just ads.” — Carina McLeod, CEO of eCommerce Nurse

In practical terms, this might involve creating viral-ready video content showcasing your product in use, partnering with TikTok creators or YouTube influencers for authentic reviews, leveraging Amazon’s own Influencer Program, or using Amazon Attribution links to reward off-Amazon traffic. Not only can this boost sales, it also mitigates rising Amazon Advertising costs by bringing in cheaper traffic. (Brands everywhere are feeling the pinch of higher CPCs on Amazon ads – hence, finding alternative traffic sources is now a must for maintaining ROI.)

Meanwhile, advise your vendor clients not to ignore TikTok Shop or other emerging marketplaces entirely. Even if they don’t start selling there immediately, they should monitor these channels for trends. For instance, if certain product categories are exploding on TikTok (skincare hacks, home gadgets, etc.), that’s intel you can use to adjust Amazon strategy (e.g. ensure your product detail pages have compelling videos, or even consider launching specific SKUs targeted at that trend).

Lastly, the panel touched on Amazon’s own policies, adding competitive pressure. Vendor Central is becoming more exclusive – Amazon has reportedly curated a list of ~20,000 brands it truly wants as 1P vendors, and it’s much harder for smaller or lesser-known brands to get an invite now. If a client isn’t on Vendor Central yet and isn’t a well-established brand, you may need to temper expectations about becoming a vendor. Amazon is favouring vendors that have strong brand recognition or multi-channel presence (think brands already in brick-and-mortar retail). Smaller brands are often advised to stick with Seller Central (3P) unless they have a compelling reason to switch. This is important for agencies to consider when crafting a long-term channel strategy for clients: the vendor model is not automatically the right fit for everyone, especially under Amazon’s tighter onboarding criteria in 2024.

Optimising for Profitability: Tactics to Protect Margins and Grow Smarter

With Amazon pushing for profitability, every Amazon vendor needs to optimise their business for margins – not just volume. Here are several practical strategies, drawn from the webinar insights, that agencies can help implement:

• Assortment & Pricing Strategy: It’s more important than ever to curate the right mix of products on Vendor Central. Evaluate your client’s ASINs: which ones are consistently profitable for 1P (even after all of Amazon’s fees and terms) and which are borderline or unprofitable (CRaP – Can’t Realise a Profit)? Consider trimming the fat. If certain low-ASP items are chronically unprofitable as 1P, you might: (a) discontinue them on Vendor Central (sell them via 3P instead, or not at all), (b) bundle them into multi-packs or variety packs to raise the effective selling price, or (c) negotiate a different pack size or cost structure with Amazon. 
  
  One panellist suggested creative bundling as a win-win – by packaging products together (e.g. a 3-pack, or a complementary product kit), vendors can increase basket size and margins, while offering customers a convenient value bundle. Amazon tends to support bundles because it drives higher ASPs and often uniqueness. Just ensure any bundles you create genuinely add value (e.g. a gift set, or a routine kit) rather than simply throwing items together. Also, monitor Amazon’s own “frequently bought together” and virtual bundle suggestions on your listings – if Amazon is algorithmically bundling your products on the PDP, that’s a signal you might successfully offer a real bundle ASIN.
  
  
• Emphasise Your Unique Value – Don’t Race to the Bottom: Competing with low-cost players (be it Chinese marketplace sellers or budget brands) on price alone is a losing proposition for most established brands. Instead, focus on differentiation. That could mean highlighting quality (strong branding, certifications, warranties), leveraging brand equity (make sure your Amazon A+ Content and Brand Store convey your heritage and values), and creating product versions or configurations that competitors can’t directly replicate. 
  
  For example, one strategy is to develop Amazon-exclusive SKUs – unique pack sizes, flavours, or bundles – so that price comparisons are apples-to-oranges. This helps maintain healthy margins because it’s harder for a competitor to undercut a product they don’t sell. Additionally, brands should explore targeting the premium segment of their category if feasible, where shoppers are less price-sensitive. As one expert put it, play to your strengths and unique selling points rather than getting dragged into a price war. In practice, agencies can use tools like Amazon Brand Analytics to identify if there’s a segment of high-end demand and tailor content and advertising to attract those customers.
  
  
• Hybrid Selling Model (1P + 3P): A notable insight from the industry is that nearly 44% of Amazon vendors also employ a hybrid strategy – either operating their own Seller Central account or using authorised 3P resellers alongside their 1P business. While hybrid selling adds complexity, it can be a strategic way to maximise both reach and profitability. For instance, you might keep your core assortment on Vendor Central (to benefit from Amazon’s logistics and bulk buying) but sell certain high-margin or niche items via a 3P storefront where you control pricing fully. 
  
  Hybrid can also serve as a backup: if Amazon suddenly reduces POs or delists an item (common if something is temporarily unprofitable or has supply issues), a Seller Central offer can keep the item available to consumers. However, a panellist cautioned: don’t rush into hybrid until you’ve mastered one channel. If your client’s Vendor Central operations are under-optimised (e.g. lots of chargebacks, out-of-stocks, poor content), fix that first. Managing hybrid sales requires careful coordination (to avoid buy box conflicts, channel cannibalisation, etc.). As an agency, you can add value by guiding clients on when and how to execute a hybrid model – it’s not one-size-fits-all. But in 2024’s climate, having the flexibility of a hybrid strategy can indeed help brands both capture sales and protect margins.
  
  
• Tackle Profitability Killers Proactively: Amazon Vendor Central comes with a host of hidden fees and deductions – from chargebacks for operational non-compliance, to shortage claims, accrual overcharges, and more. These often fly under the radar but collectively can erode 5% or more of a vendor’s revenue. Agencies should help vendors get a handle on these “profit leaks.” For example, dig into the data to identify patterns in chargebacks or shortages. Is a specific warehouse consistently causing prep errors leading to chargebacks? Is a particular ASIN often cited in shortage claims? By pinpointing root causes, you can implement fixes – maybe retrain the 3PL on Amazon carton labelling rules, or adjust the packaging on that ASIN to prevent damage/loss. 
  
  Also, don’t leave money on the table: ensure someone is tasked with disputing invalid deductions. Shortage claims in particular can sometimes be won with solid proof of delivery – and recovering that money can swing an account from loss to profit. As one expert noted in a MerchantSpring webinar, “shortage claims are often where the biggest recovery opportunity lies”. The bottom line is that maximising profitability isn’t only about selling more – it’s about losing less through inefficiencies. Every dollar saved from a prevented chargeback or a recouped shortage is pure profit.
  
  

“Amazon is a long-term partnership, but it’s a self-service model. Vendors should focus on internal efficiency — streamline your supply chain, train your teams on Amazon processes, and solve issues proactively. The better you operate, the better your partnership with Amazon.” — Bruno Ferreira, Founder of Blue Dot Ecommerce

In sum, agencies in 2024 should adopt a profit-first mindset for their Amazon vendor clients. This might be a shift from previous years, where the mandate was “grow, grow, grow.” Now it’s about “grow, but profitably.” By optimising assortment, differentiating the offering, leveraging hybrid channels, and plugging profit leaks, you’ll help clients not only survive Amazon’s profitability push but actually thrive within it.

Content & Marketing: Creativity as the New Growth Driver

Another big theme from the webinar was the need for Amazon vendors to up their game in content and marketing. In a more competitive Amazon and e-commerce environment, simply having a good product at a fair price isn’t enough – you have to grab attention and convert. Here are key strategies the experts recommend:

• Invest in Rich Media (Especially Video): If your client’s idea of content optimisation is still just “add more infographics to the product page,” it’s time for a wake-up call. Video content is now arguably the most impactful way to enhance an Amazon listing and advertise a product. Short product videos, 15–30 seconds, can significantly boost conversion rates by demonstrating the product in action and building trust. Amazon now offers video slots in product galleries, Brand Stores, and Sponsored Brand Video ads – and shoppers increasingly expect to see video. 
  
  The panel stressed that brands should create video assets proactively for their top ASINs and ad campaigns, rather than playing catch-up later. This includes demo videos, unboxing videos, how-to guides, and even influencer testimonials. If budget is a concern, start with a few key videos on hero products – the uplift in engagement often justifies the cost. Also, enable Amazon Posts (a social-style content feed) and add videos there to repurpose on-site. The vendors who embrace video and other premium content (like A+ Premium content with interactive modules) are making their listings “shine” and stand out from competitors stuck with static images.
  
  
• External Traffic and Influencer Marketing: As discussed, driving off-Amazon traffic has become a crucial strategy to both reduce reliance on Amazon PPC and amplify your brand presence. There are multiple prongs to this:
  
  
  • Social Media Campaigns: Run brand awareness campaigns on Instagram, TikTok, Facebook, or Pinterest that highlight your product and include a call-to-action to buy on Amazon (for example, using Amazon Attribution links or affiliate links so you can track and maybe earn a bonus). Contests, giveaways, or hashtag challenges can spark user-generated content, which further spreads awareness.
    
    
  • Influencers and Affiliates: Identify influencers in your niche whose audience aligns with your customers. For a relatively modest cost (or sometimes just a free product), you can get influencers to create content that reviews or features your product. Their followers often trust these recommendations, driving a wave of traffic to Amazon. Amazon’s affiliate program and the Amazon Influencer Program provide incentive structures for creators to share Amazon product links. You can leverage that by providing custom promo codes or just by being an awesome product that they want to talk about. One pro tip: if an influencer posts a video that goes viral (“TikTok made me buy it!”), be ready – ensure your Amazon stock is sufficient and your listing is optimised, because viral moments can explode sales.
    
    
  • Brand Referral Bonus: Amazon actually rewards brands for bringing external traffic. Enrolled Brand Registry sellers/vendors can get a Brand Referral Bonus (a credit on referral fees) for qualified sales driven by off-Amazon marketing. Make sure your clients are enrolled and take advantage of this when running outside campaigns – it effectively increases your margin on those sales.
    
    
• Sponsored Ads and DSP: On Amazon itself, advertising remains a key driver of visibility. But with rising costs, it’s vital to be smarter with ad budgets. The experts suggest focusing on efficiency and new customer acquisition. For example, instead of throwing budget to defend low-margin products, concentrate spend on your hero ASINs and those that can drive repeat purchases (subscribe-and-save items, for instance). Utilise Amazon DSP (Demand-Side Platform) for retargeting high-intent audiences and even prospecting in ways you can’t with search ads. 
  
  DSP allows you to reach people off Amazon (on websites, apps) based on Amazon’s data – it’s great for things like re-engaging lapsed buyers or targeting competitors’ customers. Another advanced tactic is using Amazon Marketing Cloud (AMC) to analyse the customer journey across channels – this can help you attribute which external campaigns are actually leading to Amazon conversions and refine accordingly. The overarching idea is to allocate spend where it has the highest impact, and that often means tapping into Amazon’s broader ad tech (Sponsored Brands video ads, DSP, etc.) and measuring results granularly.
  
  

Keep in mind, creative marketing isn’t just for “top of funnel.” It also directly impacts conversions on Amazon. The panel mentioned brands losing market share because they grew complacent – while they were resting on their brand name, smaller competitors invested in flashy content, aggressive deals, and social hype. Don’t let that happen to your clients. Encourage them to refresh their content regularly, run seasonal campaigns, and basically treat Amazon as a dynamic platform where they can execute brand storytelling (not just a set-and-forget catalogue page).

One more note: Prime Day and seasonal events. These big spikes are as much marketing events as sales events. Prime Day 2024 is expected to be mid-July (though Amazon announces the exact dates later). Vendors should start planning early – what deals or coupons will they offer? How will they maximise visibility (e.g. budget for extra ads, leverage Amazon Posts, email their off-Amazon customer base about their Prime Day deals, etc.)?

The panel advised vendors to use Prime Day strategically rather than just dumping stock. For example, consider featuring new products on deals to spur trial and gain reviews, or use Prime Day to drive Subscribe & Save sign-ups by pairing deep discounts with subscribe options (this can create long-term loyalty beyond the event). Also, since Amazon is keeping inventory lean, submit any “Born to Run” orders or stock requests well in advance so you’re not caught without inventory when the Prime Day wave hits. In short, treat Prime Day as a campaign that starts weeks before and continues after (with follow-up engagement to retain the surge of customers).

Operational Excellence: Aligning Internal Processes for Amazon Success

Operational missteps in Vendor Central can cost dearly – in fees, lost sales, or even suspension of vendor privileges. A recurring message from our panel of experts was that operational excellence is the foundation of profitable growth on Amazon. Agencies should help clients get their “Amazon house” in order internally. Key focus areas include:

• Compliance and Chargeback Prevention: Amazon has strict requirements for vendors (packaging, labelling, shipping windows, ASN accuracy, etc.). Failing to comply leads to chargebacks and disruptions. For example, sending goods with wrong carton labels might incur fines and delay reception. It’s crucial to train your client’s warehouse and logistics teams on Amazon’s guidelines. Create internal checklists for booking carriers, labelling pallets, and packing shipments according to Amazon’s specs. 
  
  Many vendors find it useful to designate an “Amazon compliance champion” – someone in operations who stays up to date on Amazon’s routing requirements, the new ASN 2.0 system, and other changes, then disseminates that knowledge internally. This proactive approach can drastically cut down costly errors. Remember, as one panellist quipped, Amazon basically publishes the “answers” in Vendor Central help guides – but vendors need to actually read and implement them. By aligning internal SOPs with Amazon’s, you not only save money but also improve your standing with Amazon (fewer hiccups means Amazon trusts your supply chain more).
  
  
• Inventory Management and Forecasting: With Amazon reducing its forward buys, vendors have to be nimble in how they manage inventory. Fast, reliable fulfillment is a competitive advantage now. If Amazon knows your client can ship quickly against POs, it may feel more comfortable ordering closer to need. Encourage clients to improve their lead times or consider programs like Vendor Flex or Direct Fulfillment (dropship) if appropriate, so Amazon can lean on those when FC stock is low. Additionally, help clients forecast demand around promotions or seasonality and proactively communicate with Amazon. 
  
  The Born to Run program (for new products) or Bulk Buy opportunities can be channels to suggest larger buys if you have data to back up anticipated demand. Some panellists noted that Amazon is open to vendors suggesting order increases for big events (Prime Day, Black Friday) – but you need to raise it early and provide a solid case (sales history, comparable item performance, etc.). In short, don’t passively wait for Amazon’s POs; actively manage that process through data and dialogue (via the Vendor Manager or Amazon Vendor Services (AVS) rep if you have one).
  
  
• Cross-Functional Team Alignment: Succeeding on Amazon requires Sales, Supply Chain, and Finance at the vendor to work hand-in-glove. Break down silos – the sales/marketing team should understand operational constraints (they shouldn’t promise a lightning deal on an item the warehouse can’t get out on time), and the operations team should grasp sales plans (so they can staff up for a big Amazon push). One expert, Bruno Ferreira of Blue Dot Ecommerce, specialises in exactly this: helping vendors build a cross-functional “Amazon task force” internally. As an agency, you can facilitate cross-department meetings or reporting dashboards that keep everyone on the same page. For example, implement a weekly Amazon performance meeting with reps from each team to review KPIs: in-stock rates, fill rates, chargebacks, sales trends, advertising ROI, etc. When everyone’s looking at the same data, it’s easier to spot issues and solve them collaboratively.
  
  
• Global Expansion and Distribution Control: Operational excellence also means having the right distribution strategy. Amazon is tightening the reins on unauthorised sellers and even on distributors. Last year, Amazon shocked many by announcing plans to cut out many distributors and go direct-to-brand. In practice, Amazon still works with distributors in cases where the brand relationship isn’t established (especially for certain international markets or product categories). But the direction is clear – Amazon prefers dealing with the manufacturer when possible. If your client currently sells via distributors on Vendor Central, it’s time to re-evaluate that setup. 
  
  Are those distributors adding value, or could the brand transition to a direct relationship? If distributors remain, ensure they are adhering to brand pricing policies and Amazon’s terms, because Amazon could off-board those who don’t meet performance metrics. On the flip side, some brands need distributors for geographies where they lack presence. In those cases, one tip from the panel was to make your distributorship indispensable by expanding Amazon’s coverage. For example, if you’re a distributor selling a brand on Amazon UK and EU, consider pitching Amazon (and the brand) to also open Vendor Central in emerging markets (Amazon Middle East, Brazil, etc.) that the brand can’t easily handle alone. Being proactive in expansion can secure the distributor’s role and benefit Amazon with more selection – a win-win.
  
  

In essence, operational excellence comes down to being proactive rather than reactive. Don’t wait for Amazon to penalise a mistake to then fix it; strive to prevent the mistake in the first place. When issues do arise (they inevitably will), address them swiftly and thoroughly. Use Amazon’s escalations properly – if something like an ASIN suppression or compliance hold happens, respond with a detailed plan of action and involve your Vendor Manager or AVS if needed. The smoother your client’s operational performance, the more Amazon will reward them (in the form of more consistent orders, inclusion in programs, etc.). Plus, efficient operations directly save money, contributing to the profitability goals we discussed.

Managing Amazon Relationships: Vendor Managers, AVS, and Joint Business Planning

The human element of Amazon’s vendor relationship should not be overlooked. While Vendor Central is largely a self-service platform, most sizable vendors have some account management in the form of a Vendor Manager (VM) or an Amazon Vendor Services (AVS) brand specialist (a paid account support service). Cultivating a productive relationship with these Amazon contacts can yield significant benefits. Here’s how to approach it:

• Vendor Managers – Think Partnership (Within Constraints): Vendor Managers are primarily category business managers at Amazon; their job is to grow sales and margin for Amazon in their category. In 2024, that means your Vendor Manager will be very margin-focused. As our panellists noted, their agenda likely includes pushing for higher co-op agreements, closing unprofitable items (CRaP), and ensuring vendor compliance to reduce costs. To work with VMs effectively, come to the table with a data-driven plan. For instance, if you need a cost price increase due to raw material inflation, bring evidence (commodity price charts, other retailers’ increases) and offer something in return – maybe expanded selection or marketing support that drives volume. 
  
  If a VM flat-out refuses a cost increase (common this year), consider alternative solutions: could Amazon accept a different pack size or item that hits a better price point? Could they reduce a co-op fee in exchange for something else? These discussions go better when you have a good rapport with the VM. Always be professional and honest; don’t make promises you can’t keep. It’s also wise to acknowledge Amazon’s perspective: e.g. “We understand Amazon is prioritising low prices for customers; our aim is to find a sustainable model where we can maintain supply. Let’s problem-solve this together.” That kind of collaborative tone can differentiate you from other vendors who merely issue ultimatums.
  
  
• Joint Business Plans (JBPs): Many larger vendors engage in annual or semi-annual Joint Business Plan discussions with Amazon, outlining mutual goals (growth targets, new product launches, marketing activations, etc.). According to industry data, nearly 40% of vendors found recent JBP discussions challenging or unsuccessful, often because they felt one-sided. How to improve this? Prepare a detailed plan from your side and drive the agenda. Identify 2-3 big opportunities for growth that benefit both parties (for example, “If Amazon can improve our in-stock levels and search placement for Product X, we will invest in a 12-month marketing calendar including A+ content overhaul, seasonal brand campaigns, etc., which should drive Y incremental sales”). 
  
  By showing you’re willing to invest if Amazon helps in specific ways, you turn the JBP into a true partnership dialogue. Also, use the JBP to address pain points with a constructive approach: if operational issues hurt last year’s sales, present a plan to fix them and perhaps ask Amazon for support (maybe waive a certain chargeback after improvements, or provide an AVS resource for a few months to clean up catalogue issues). Document everything agreed upon in a JBP and follow up religiously. This not only holds both sides accountable but also builds credibility with Amazon when you execute your commitments.
  
  
• AVS – Is it Worth It? Many vendors pay for the AVS (Amazon Vendor Services) program, which typically costs a percentage of sales (often 2-3%). AVS provides a dedicated “brand specialist” who offers support with things like troubleshooting issues, advising on content, and pitching marketing opportunities. The panel had mixed views on AVS. Some noted that Amazon has offshored much of this program, and the quality of support can vary – it’s not a substitute for an in-house account manager. Before renewing or signing on to AVS, evaluate the ROI. Did having AVS demonstrably increase sales or save costs (via faster issue resolution) for your client? If yes, it can be worthwhile, especially since Amazon often gives AVS subscribers a bit more attention. If not, you might negotiate the fee down or opt out. 
  
  One practical approach: during annual terms negotiation, if a vendor is pressed to sign up for AVS, try to bundle it in as part of the overall terms (e.g. agree to AVS but at a lower rate, or in lieu of another co-op increase). And if you do have AVS, make the most of it – treat the brand specialist as part of your extended team. Set up weekly touchpoints, give them clear priorities, and hold them accountable for getting answers or pushing Amazon internally when needed. Essentially, you want an AVS rep who will escalate issues on your behalf (like fixing a stranded listing or improving retail readiness for a new ASIN). If they’re not proactive, don’t be afraid to request a change in representative. You’re paying for the service, so it should add value.
  
  
• Escalation Paths: In tricky situations (chronic catalogue errors, unjustified suspensions, etc.), knowing how to escalate within Amazon can save the day. Beyond your VM or AVS, Amazon has internal teams and leadership you can appeal to. A polite, factual email to a category leader or even Jeff Bezos’s old public email (which still forwards to a high-level escalations team) can sometimes break a logjam. Use those sparingly and only for significant issues that haven’t been resolved through normal channels. As an agency, you often have the expertise on what lever to pull when – that’s part of your value to clients.
  
  

To summarise, managing the Amazon relationship in 2024 requires a balance of strategic negotiation and partnership-building. Understand Amazon’s goals (they want growth and profit) and align your proposals to show how you will deliver both. Be firm in advocating for your brand, but also flexible and creative in meeting Amazon’s asks. When Amazon sees a vendor as a solid operator and a collaborative partner, that vendor is more likely to get soft benefits – whether it’s a heads-up on upcoming programs, inclusion in a beta test, or a bit more leniency in a tough quarter. Those things can make a big difference over time.

Prime Day and Beyond: Planning for Peak Success

A special call-out is warranted for Prime Day 2024 and peak season, as they are massive opportunities for vendors – but only if handled correctly. Prime Day (usually mid-year) and the Q4 holiday season still generate the largest spikes in Amazon demand. Here’s how the panel suggested vendors prepare:

• Secure Inventory Early: As mentioned, Amazon’s leaner inventory stance means they might not build deep stock weeks in advance like they used to. In 2022, some vendors were caught off guard by last-minute surges in orders right before Black Friday, leading to logistical bottlenecks. To avoid that, start conversations with your Vendor Manager now about Prime Day projections. Use Amazon’s forecasting if available, but also inject your own. If you believe a product can sell, say, 5,000 units on Prime Day with a deal, you might request Amazon to raise its order levels or utilise Born to Run to get inventory in. Some brands even forward-position additional inventory via Vendor Flex or backup Seller Central offers to ensure they don’t run out if Amazon under-forecasts. Running out of stock during Prime Day is a worst-case scenario, as you miss out on the sales bump and hurt your listing’s rank. So, collaborate with Amazon and build in some safety stock. Note: Consider the lead time to Amazon FC – if your client ships by ocean or has long production times, they need to plan many weeks or months out.
  
  
• Optimise Deals and Pricing: Prime Day is all about deals. Work with clients to decide which ASINs make the cut – ideally, products that will attract new customers or boost your overall catalogue’s visibility. Some might be loss-leaders to bring folks into the brand ecosystem. Others might be bundles curated just for Prime Day. Ensure the deal pricing is truly compelling (at or below the lowest price in 60 days to pass Amazon’s deal standards). Also, ensure the items are retail-ready: strong titles, images, reviews, A+ content – because you’ll get a flood of eyeballs, and conversion counts. In the weeks prior, ramp up advertising so those ASINs climb in organic rank (the higher your organic rank on the big day, the more you’ll sell even beyond the deal slots). During the event, monitor performance hour by hour if possible. If one deal is flying and another is slow, you might adjust budgets accordingly. And after the event, analyse the halo effect – did you get a lift on non-deal items? More reviews? Use that data for Q4 planning.
  
  
• Leverage Subscribe & Save: Prime Day and holiday peaks are a perfect time to acquire subscribers for replenishable products. If your client’s items qualify, push Subscribe & Save enrollment and maybe even mention on social media, “extra 5-10% off with Subscribe & Save,” stacking on the deal. The panel mentioned that a key to profitability is repeat business – so turning a Prime Day one-off purchase into a long-term subscription is gold.
  
  
• Global Events: If the brand sells in multiple marketplaces, remember that Prime Day and other events (like Singles Day on Amazon China, or Diwali sales on Amazon India) can differ in timing. Prepare a global calendar and localise plans for each region. Some Amazon markets may have slightly different rules or deal structures – coordinate with local vendor managers or use the Amazon Vendor Central tools in each region to execute deals. An agency can really shine by synchronising a global Amazon strategy, ensuring the brand story and promotions are consistent worldwide.
  
  

Finally, keep expectations reasonable but optimistic. As one panellist said, don’t get too fixated on any single quarter’s results. Instead, focus on the long-term trajectory and building the capabilities to succeed consistently. If Q1 was soft, use the learnings to rebound in Q2. If Prime Day exceeded forecasts, double down on what worked for Cyber Monday. The Amazon game is a marathon, not a sprint – especially now that it’s maturing.

Conclusion

2024 is shaping up to be a pivotal year for Amazon vendors. The marketplace is more complex and demanding – but also full of opportunity for those who adapt. Amazon’s sharpened focus on profitability, the rise of new competitors and channels, and ever-higher customer expectations mean that agencies and brands must elevate their strategies. The expert insights we’ve covered – from tightening operations and negotiating smarter, to embracing video content and driving external traffic, to innovating on assortment and prioritising profit – form a comprehensive game plan for Amazon vendor success.

Remember, thriving on Amazon Vendor Central isn’t just about playing defense (coping with Amazon’s demands); it’s about going on offense – building a brand that customers love, leveraging Amazon’s scale while mitigating its challenges, and ultimately growing profitably and sustainably. As an Amazon agency professional, you have the toolkit to guide your clients through these choppy waters and turn challenges into competitive advantages.

If you found these insights valuable, don’t stop here. This article only scratches the surface of the nuanced strategies discussed in our webinar. Watch the full webinar on-demand for deeper dives and live Q&A with the panellists. And if you’re eager to put these ideas into action, consider partnering with experts (like our team at MerchantSpring) who specialise in accelerating Amazon vendor performance. We can help audit your Amazon business, craft a custom strategy, and provide the tools to monitor and manage it all (our MerchantSpring analytics platform is built to give Amazon vendors and agencies a crystal-clear view of their KPIs).

Take the next step: Watch the webinar recording, subscribe to our newsletter for regular Amazon insights, or contact us to see how we can help your Amazon vendor business thrive in 2024. Let’s master Amazon Vendor Central – and make this your clients’ most phenomenal year yet on Amazon!