Overview

Imagine your entire e-commerce business riding on Amazon. It’s great during the early “honeymoon” phase of the vendor relationship – sales are skyrocketing, growth is triple-digit, and Amazon seems like an endless well of opportunity. But eventually, that honeymoon ends. Growth plateaus, Amazon’s demands increase, and suddenly, you’re facing an Amazon vendor negotiation strategy from a position of weakness. For many vendors and manufacturers, this scenario is all too familiar: 80–90% of their online revenue flows through Amazon, leaving them little leverage when Amazon pushes for higher fees or concessions.

In an episode of the MerchantSpring Marketplace Masters webinar, host Paul Sonneveld and e-commerce expert Miguel Alexander Strobel (founder of Watersky Digital and former Beiersdorf digital manager) tackled this exact challenge. Their discussion centred on how Amazon vendors can create “strategic counterweights” to Amazon – essentially, how to diversify e-commerce channels and build alternative sources of sales to reduce dependence on Amazon. By developing these counterweights, vendors gain leverage to negotiate better terms and mitigate the risks of over-reliance on a single platform. This article distills the webinar’s core insights into a step-by-step Amazon vendor diversification strategy that agency professionals and brands can apply.

Why Amazon Vendors Need Strategic Counterweights

What is a strategic counterweight? Miguel Strobel defines it as “someone (or something) that helps equalise the importance of one large client and spread out the risk across different retailers.” In plain terms, it means not putting all your eggs in Amazon’s basket. If Amazon currently dominates your e-commerce revenue, you’re effectively hostage to its terms. One unilateral change – a reduced purchase order, a new fee, a sudden suspension – could derail your numbers overnight. Vendors in this position have a very weak negotiation foothold. They lack leverage because Amazon knows they need the partnership more than Amazon does.

Creating strategic counterweights is about balance. By cultivating other channels (whether other marketplaces or retailer sites), a vendor can make Amazon just one piece of a broader puzzle rather than the whole game. Even if Amazon remains the largest piece, having several smaller channels that collectively contribute, say, 20–30% of your e-commerce sales can be enough to ease the risk management pressure. It signals to Amazon that you have options – you can walk away from bad deals or redirect investment elsewhere if necessary. That psychological and financial buffer changes the tone of negotiations.

Equally important, diversification protects your business’s continuity. “I learned the hard way what it feels like if you don’t have a strategic counterweight,” Miguel admits, reflecting on his time building an e-commerce unit that ended up solely dependent on Amazon. When Amazon was delivering hyper-growth, everything was rosy. But as he notes, “every market, even the vast ocean of e-commerce, is limited at some point. Growth starts to flatten out, and negotiations start to get tense… Amazon gets really serious in negotiations, and it’s not that much fun anymore.” In those later stages, Amazon often shifts focus from growth to margin, pressuring vendors for higher fees, coop accruals, and other concessions to boost Amazon’s profitability. Without alternative channels, the vendor has little choice but to concede.

Bottom line: Developing strategic counterweights is a proactive move to avoid being cornered. It’s about ensuring that when Amazon’s honeymoon ends, you’re not left in a toxic marriage with no escape. Instead, you’ll have built other routes to market that keep Amazon’s power in check and sustain your sales if Amazon sneezes.

“Don’t let Amazon be your single point of failure. If 90% of your e-commerce is with Amazon, a 10% drop in their orders can mean missing your budget. Strategic counterweights spread out that risk.” – Miguel A. Strobel

The Honeymoon Phase vs. the Hard Reality

Many vendors and their Amazon account managers fall into a trap early on: Amazon’s sheer scale and momentum. In the first couple of years as a first-party (1P) vendor, Amazon often delivers explosive growth with relatively little effort. This is the honeymoon phase Miguel describes – rapid onboarding, surging demand, Amazon’s algorithms picking up your products, and perhaps even Amazon itself investing in your success (since new vendors can be margin-accretive initially). The excitement and adrenaline of this phase make it easy to ignore the future. After all, when you’re seeing triple-digit growth and becoming a top vendor, why worry about anything else? Amazon feels like a gravy train that will never slow down.

The hard reality kicks in around year 3–5 of the vendor relationship. Growth inevitably levels off as your market on Amazon saturates. Suddenly, those rosy vendor management meetings turn into tough negotiations. Amazon starts scrutinising every percentage of margin. They might demand higher co-op marketing fees, bigger damage allowances, funding for programs like Amazon Vendor Services (AVS), longer payment terms – the list goes on. As Paul Sonneveld puts it, “the growth stops and it just becomes a margin play.” Amazon’s vendor managers are trained negotiators backed by troves of data, and they won’t hesitate to pressure vendors for concessions once the easy growth is gone.

Without counterweights, many vendors simply have no choice but to swallow these demands. Walking away from Amazon isn’t realistic if it’s, say, 85% of your online business. This dynamic often leads to vendors feeling they’re on the losing end of a one-sided game. Miguel recalls that “the old playbook doesn’t work anymore” at this stage. Tactics that once drove growth or appeased Amazon (like investing heavily in Amazon Advertising or agreeing to various programs) may no longer yield results, yet Amazon’s asks keep increasing. It’s a perfect storm for margin erosion and frustration.

This is exactly why planning beyond Amazon from the start is crucial. Vendors who treated Amazon as the only game in town often find themselves in a bind after the honeymoon. In contrast, those who diversify sales channels early – even if it means slower growth at first – can afford to push back when Amazon’s demands aren’t tenable. They have built-in leverage because a dip on Amazon can be offset elsewhere. In effect, a multi-channel vendor can call Amazon’s bluff in negotiations: if terms aren’t acceptable, they can allocate inventory and budget to other channels that are performing. Amazon, sensing that the vendor isn’t desperate, is more likely to compromise.

In summary, the early Amazon rush is intoxicating, but smart vendors look past it and prepare for the maturation phase. By acknowledging that Amazon’s “easy growth” will taper off and planning counterweights ahead of time, you avoid being caught off guard. The goal is to enjoy Amazon’s upside without becoming over-dependent on it when the tide turns.

Identifying Your Counterweight Channels and Markets

So, where do you find these strategic counterweights? The answer will vary depending on your category and geography, but the principle is the same: find other platforms that can serve as effective counterbalances to Amazon. This could mean other online marketplaces, brick-and-mortar retail chains with growing e-commerce arms, regional e-commerce leaders, or even your own direct-to-consumer (DTC) channels. Here’s how to identify the best opportunities:

• Scan the E-Commerce Landscape in Your Category: Start by listing out all significant sales channels in your category and region. For example, if you’re a beauty or FMCG brand in Europe, look at marketplaces like Otto, Zalando, or Douglas in Germany, Mercado Libre in Latin America, Allegro in Poland, Bol.com in the Netherlands, Rakuten in Japan, etc. In many countries, Amazon is not the only major player – it might not even be number one. (Miguel points out that in Poland and the Netherlands, Amazon’s share is relatively small; in India, Amazon competes fiercely with Flipkart; in Australia, Amazon only recently overtook eBay.) Consider regional e-commerce champions or category-specific retailers that have strong online sales. These platforms can be excellent counterweights because they already have traction with your target consumers.
  
  
• **Consider Alternative Models: Don’t forget non-marketplace channels. For instance, could a hybrid strategy (combining Amazon 1P and 3P via Seller Central) give you more flexibility? Some brands choose to shift certain products or markets to third-party selling to gain direct control – effectively creating an internal counterweight to Amazon’s 1P by leveraging Amazon’s marketplace infrastructure itself. Similarly, DTC e-commerce (your own website) can be a long-term counterweight if you invest in it. It may not rival Amazon’s volume immediately, but owning the customer relationship and data is strategically valuable. The key is to evaluate effort vs reward: launching your own site or a 3P Amazon presence has upfront costs and learning curves, but it might pay off in leverage down the road.
  
  
• Evaluate Cross-Border Opportunities: Sometimes the best counterweight isn’t in your home market at all. If you’re a North America-focused brand, expanding to Europe or Asia via local partners or marketplaces can create a new revenue stream somewhat insulated from Amazon US negotiations. Conversely, if you’re big on Amazon Europe, maybe diversifying into Asia-Pacific (where Amazon is less dominant) could be worthwhile. Expanding to additional Amazon country marketplaces (while staying within Amazon’s ecosystem) is another way to diversify risk – although if all are still Amazon, the counterweight effect is limited. Still, separate Amazon regions often have separate vendor negotiations and POs, so a strong Amazon Japan business could offset a tough year on Amazon US, for example.
  
  
• Match Channels to Your Category & Brand: Different platforms have different strengths. Ensure the ones you target align with your product and brand positioning. For example, a premium skincare brand might find better traction on a curated beauty site or an upscale retailer’s online store than on a mass marketplace. Miguel mentioned Sephora’s online push in Germany – a capable, well-designed platform with high brand cachet. While Sephora.de had a smaller footprint than Amazon, its luxury beauty focus could be an ideal fit for certain brands. Know your audience and where else they shop. If Amazon’s customer base covers everyone, a niche marketplace might deliver a smaller but more relevant audience that you can serve profitably.
  
  
• Watch Emerging Platforms: E-commerce is dynamic. Keep an eye on up-and-coming marketplaces or retail sites that are investing in your category. Early in the game, these platforms might have modest traffic, but if they’re growing rapidly (say 50% year-on-year) and investing in technology or marketing, they could become major players in a few years. Getting in early and growing with them can yield a strong partnership. For instance, if you notice a regional chain ramping up their online store with marketplace functionality, or a new app-based marketplace gaining popularity with younger shoppers, consider testing them out. Today’s minor player could be tomorrow’s strategic ally.
  
  

In short, your counterweights should collectively mirror Amazon’s role – not in size (that’s unlikely) but in providing alternative reach to your customers. It might take three or four platforms combined to equal even 20% of your Amazon sales, and that’s okay. The point is to establish a presence in those channels now, so they have time to grow. As Paul Sonneveld noted, “some of these channels do bring complexity, and returns aren’t immediate – but at scale, they provide healthy competition and incremental audiences.” Don’t be lured by any single shiny new marketplace; instead, look for sustainable channels that fit your brand and can be nurtured over the long term.

Measuring Potential: Data-Driven Channel Evaluation

Not all channels are created equal. Deciding where to invest your time and money requires a data-driven approach. Miguel Strobel emphasises benchmarking the “footprint” and “capabilities” of prospective channels to find the best strategic fits. Here are key factors to analyse for each candidate marketplace or retailer site:

• Market Footprint in Your Category: Gauge how much relevant traffic and sales the platform has in your product category. A marketplace might boast tens of millions of visitors, but if 90% of them are shopping for electronics and you sell skincare, its real footprint for you is small. Look at category share: How prominent is your category on that platform? Tools and third-party analytics can estimate traffic, or you can infer from the number of SKUs, search activity, and category rankings on the site. 
  
  For example, in Germany, Amazon’s raw traffic dwarfs any other site, yet only ~2–3% of Amazon’s traffic is for beauty products. Meanwhile, a site like Douglas (a beauty-focused retailer) or DM.de (a leading drugstore) dedicates a much larger portion of its traffic to beauty shoppers. The result, as Miguel’s data showed, is that Douglas and DM can each have ~60% of Amazon’s effective beauty traffic in that market – a surprisingly robust footprint for a counterweight. Key takeaway: Don’t judge a platform solely by gross size; weigh it by category relevance.
  
  
• Traffic Quality and Growth: Examine the traffic sources and trajectory. A healthy platform will have a strong base of organic or direct traffic (customers who navigate or search for it by name) and solid customer loyalty. If a site’s traffic is mostly paid ads or fleeting social media spikes, that’s a red flag – it means the platform might “buy” traffic inorganically and could struggle to sustain users. Additionally, consider growth trends: is the platform’s user base growing steadily? For emerging channels, double-digit or even exponential growth rates indicate momentum. Miguel suggests giving extra weight to growth in rapidly evolving markets (like India or Southeast Asia), where today’s small player could become a giant in a year. Avoid platforms that show stagnation or decline unless they serve a niche no one else does. A stagnant platform might lean on vendor fees to make up for a lack of growth, which is not where you want to invest.
  
  
• Platform Capabilities & Vendor Tools: This is about the quality of the shopping and selling experience on the platform. Evaluate features like site usability (especially mobile optimisation, search and navigation quality), advertising and promotional tools, data sharing, and vendor support services. An ideal counterweight platform has capabilities that approach Amazon’s. Can you run ads or promotions to boost visibility? Is there an option for brand stores or enhanced content, and do those actually get traffic? (In many Western marketplaces, brand storefronts exist but are hidden; in Asia, marketplaces often integrate brand minisites more visibly.) 
  
  Miguel gave a great example: “Most of my clients don’t make any revenue with brand shops [on certain retailer sites] because shoppers don’t even know they exist – they aren’t pushed in search results.” If a platform offers a feature but it doesn’t actually drive sales, that feature shouldn’t justify high investment. On the other hand, if a marketplace has a superb recommendation engine, personalisation, or a large loyal customer base (e.g., Prime-like membership or subscription programs), those are strong capabilities that can amplify your sales if you list there.
  
  
• Financial Health and Investment Ask: Try to discern how the platform makes money and how much support they expect from vendors. Some retailer sites might require heavy trade spend (e.g., paying for site placements, campaigns, or logistical arrangements) that eats into margins. Others might have a simpler commission model. If a channel is unprofitable or has thin margins itself, be wary: “If a platform is not healthy in their traffic acquisition strategy, they’re going to come back at you with very aggressive needs for investment,” Miguel warns. 
  
  You don’t want to end up subsidising an unhealthy business just to be present on their site. Look at things like: Do they demand co-op funds or retail media spend that seems high relative to their reach? Are they constantly asking for margin support or threatening to delist products if you don’t invest? A platform that can grow by driving its own consumer demand (rather than leaning on vendor money) will be a more sustainable partner.
  
  

Using these criteria, you can score or rank potential counterweight channels. In the webinar, Miguel illustrated a scoring model plotting platforms by Footprint (size in category) on one axis and Capabilities (features/tech) on the other. The ideal targets are those with a solid or growing footprint and decent capabilities – even if they are smaller than Amazon. For instance, in the data presented, Amazon was top-right (big and advanced) as expected, but Douglas and DM also scored high (mid-right, indicating a large footprint in beauty, albeit less advanced than Amazon). Meanwhile, Sephora.de scored very high on capabilities (a slick, modern site) but low on footprint (new in market).

The takeaway there was instructive: a platform like Sephora might pitch expensive marketing packages to brands based on its prestige, but a data-driven vendor would realise they should pay significantly less on Sephora than on a larger channel like DM, because Sephora simply doesn’t have the audience yet. In negotiations with these alternate channels, use data as your truth serum – ask them for traffic stats or use third-party analytics to validate any opportunities they sell you. Push for performance-based investments (e.g. pay per sale or per click) instead of lump-sum sponsorships if you’re unsure of their real reach. This not only maximises ROI on these channels, but it also conditions your team to think in terms of accountability and results – a mindset that will serve you well when dealing with Amazon too.

Building Your Multi-Channel Game Plan

Identifying great channels is one thing; building them into true counterweights takes strategy, investment, and patience. This is a multi-year journey, not a quick fix for next quarter’s vendor negotiation. Here’s a roadmap to develop and implement your counterweight strategy:

1. Get Internal Buy-In for Diversification: First, align your leadership and stakeholders on why diversifying beyond Amazon is necessary. This might involve presenting the risks of the status quo (what happens if Amazon cuts orders or increases fees) and the long-term benefits of a multi-channel approach. Be candid that smaller channels might have lower ROI initially. Miguel notes that within organisations, there’s often resistance to invest in accounts that don’t immediately match Amazon’s returns. 
   
   You may need to evangelise the concept that “we invest a little more now in other channels to avoid paying a lot more to Amazon later.” Use data: show how relying on one big account has backfired for other brands, or how competitors are spreading their bets. If possible, quantify the potential of other channels (“if we nurture X marketplace to 15% of our Amazon sales in 2 years, that’s Y million in incremental revenue and leverage to save Z in Amazon concessions”). The goal is to secure a mandate that e-commerce success = multi-channel success, not just Amazon growth.
   
   
2. Set Clear, Long-Term Goals: Define what success looks like in, say, 3 years. Is it achieving a certain revenue split (e.g. Amazon no more than 70% of ecom sales)? Or building up 2–3 alternative accounts, each contributing at least 10%? Having targets will help justify resource allocation. Importantly, plan for an investment phase and a profit phase. For example, you might decide: “Year 1–2, we focus on net sales growth on new channels (even if profitability is low); by Year 3, each channel should break even or better, and by Year 4, we expect them to contribute positively to EBIT.” This phased approach prevents endless spending with no profitability, while acknowledging that instant profits aren’t realistic either. It also gives top management a timeline for returns so they don’t pull the plug too early.
   
   
3. Prioritise and Phase Your Rollout: You likely can’t tackle every promising channel at once – and you don’t need to. Based on your earlier evaluation, pick one or two channels to launch in the first wave, then the next, etc. Consider starting with the “low-hanging fruit”: channels that are easier to onboard or where you already have some presence that can be scaled. For instance, if you’re already selling a bit through a regional distributor’s site or have a dormant Seller Central account, those could be quick wins to activate. Stagger the launches to manage operational workload. Launching on a new marketplace requires effort – integrating systems, loading product content, setting up logistics, educating the team on a new portal, etc. It’s better to do it properly on a few than stretch too thin on many. Use pilot programs or test runs where possible, and gather learnings to apply to the next launch.
   
   
4. Invest in Capability Building: Treat each new channel as a long-term partnership. Dedicate or hire resources who can specialise in it (or if you’re an agency, ensure your account managers are trained for each marketplace’s nuances). Invest in content and marketing for the platform – optimise your product listings with the same care as on Amazon, try out its advertising options, and participate in its promotional events if they make sense. Often, you may need to over-invest at the start to gain traction. 
   
   Miguel suggests that sometimes you must “invest above what a client may currently be worth, to test how far it can go.” For example, you might allocate a disproportionately high marketing budget to a smaller marketplace for a year to see if it can scale up your category. This is essentially priming the pump. Just ensure you measure results meticulously. If you spend $X on promotions at a new channel, track the sales lift and new customer acquisition. These metrics will justify (or not) continued investment.
   
   
5. Foster Strategic Partnerships with Key Accounts: Remember, counterweights are allies, not just channels. Engage the marketplace’s category managers or retail buyers in a dialogue about growth plans. Share your brand’s ambitions and see if they are willing to commit to mutual growth. Perhaps they can feature your brand in campaigns or give you data insights in exchange for exclusive assortments or first-mover status. Miguel notes that some platforms will “pay lip service” to growing your category but not actually push it – you want to identify those that are truly committed. 
   
   If a particular retailer site says they aim to become a top player in your category, they might be worth extra effort (and negotiating support like better terms or guaranteed visibility). Conversely, if a platform seems disorganised or disinterested in working closely, you might deprioritise it and focus elsewhere. The ideal situation is when your counterweight channels see your success as their success. For example, if a regional chain is expanding online, perhaps they’ll agree to a joint business plan where you invest in content/ads and they invest in driving traffic to your category. Such alignment can greatly accelerate your non-Amazon growth.
   
   
6. Monitor, Measure, and Adjust: Diversification isn’t a set-and-forget strategy. Continuously monitor performance across channels. Utilise marketplace analytics tools (like MerchantSpring’s multi-channel dashboard for agencies) to track sales, traffic, conversion rates, and stock levels in one place. Keep an eye on profitability by channel, not just top-line. It’s normal that Amazon might be more efficient at first, but you want to see the gap closing over time. 
   
   If one channel consistently underperforms despite efforts, dig into why. Is it a lack of consumer demand, or perhaps an execution issue on your part (e.g., pricing not competitive or low brand awareness there)? If after a fair trial it’s not working out, you might reallocate resources to a stronger channel. Conversely, if a channel is exceeding expectations, consider doubling down on investments or even making it a centrepiece of your strategy. The mix of your counterweights can change; the key is you keep the overall diversification goal in sight.
   
   
7. Know When to Turn the Profit Dial: Earlier, we discussed an investment phase followed by a profitability phase. One of the hardest judgments is when to shift gears. Miguel suggests setting trigger points. For instance, once an alternate channel achieves a certain scale – say 20% of your Amazon sales or a steady run rate that puts it among your top 3 accounts – you can begin optimising for profit (improving trade terms, reducing extra spend) rather than pure growth. Until then, you treat it as a growth engine.
   
   By having a predefined trigger (time-based or metric-based), you avoid two extremes: pulling back too soon (killing the momentum) or investing too long without return (bleeding margins). When the moment comes, start negotiating better terms with that channel just as you would with Amazon, and carefully manage trade spend for ROI. Ideally, your counterweights mature into profitable, self-sustaining channels that continue to grow your business and margin.

“If you invest too little in a new channel, you kill your growth engine – it becomes a self-fulfilling prophecy that the channel ‘doesn’t work’ because it never got enough fuel.” – Miguel A. Strobel

Gaining Negotiation Leverage with Amazon

With strategic counterweights in place (or underway), how does this translate into better outcomes in your Amazon vendor negotiations? Essentially, it changes the balance of power. Here are ways your diversified channel strategy can directly or indirectly improve your Amazon dealings:

• Psychological Leverage: Vendor negotiations, whether annual or ongoing, are partly a mind game. If Amazon senses that your business depends entirely on them, they have little incentive to bend. But if they see (or you subtly communicate) that you have other thriving channels, the tone can shift. For example, you might mention in a meeting, “We’re seeing strong growth in e-commerce with Walmart and Target online contributing 30% of our volume – we need to consider our investments holistically.” Even a comment like that signals that Amazon is not your only bet. Be tactful – you’re not threatening to leave (Amazon is still hugely important), but you’re reminding them you have alternatives. This often leads to a more collaborative discussion rather than Amazon dictating terms.
  
  
• Ability to Say “No” (and Mean It): In negotiations, the power to walk away or decline an ask is crucial. If Amazon requests an extra 5% co-op fee or a new packaging compliance charge, a vendor with no fallback must comply to keep the account alive. A vendor with counterweights can evaluate the demand more coldly. Is that 5% fee worth it, or would the money yield better returns if diverted to ads on another platform? If the latter, you can push back: “We cannot agree to that increase – it would force us to reallocate funds to other channels where we see better ROI.” Backing this stance with data (e.g., your Amazon Advertising efficiency vs. other platform ads) makes it credible. You might be surprised – Amazon may actually negotiate instead of issuing an ultimatum. Miguel’s advice from a similar webinar was that almost every Amazon term is negotiable if you have a clear ask and rationale. By having options, you create the conditions to negotiate two-way trading concessions rather than just granting them.
  
  
• Reallocating Spend as Leverage: One practical tactic is leveraging your retail media and marketing spend. Many vendors pour money into Amazon Advertising, sometimes inefficiently, because they feel they must “pay to play” on Amazon. As your other channels grow, you can start to diversify your advertising budget as well. If Amazon’s ACOS (Advertising Cost of Sales) is rising or returns are diminishing, shifting a portion of that budget to, say, Walmart Connect ads, Google Shopping, or social media could yield better overall sales for your brand. When Amazon’s algorithm sees lower ad spend or when your vendor manager sees you’re not participating in certain programs as before, it sends a message. 
  
  Amazon might respond by offering incentives – they could provide free placements, better terms on Vendor Powered Coupons, or other perks to win back your focus. In effect, you’re voting with your dollars. The key is to do this based on data, not emotion: if Amazon ads are still the best use of your money, keep at it. But having other channels lets you constantly benchmark Amazon’s performance. If Amazon wants more coop or higher fees, it requires justification in performance terms or be prepared to invest that increment elsewhere. This approach can lead Amazon to either improve their offering (e.g., giving you more marketing support for the same fee) or accept a lower ask.
  
  
• Improved Resilience During Standoffs: Sometimes negotiations with Amazon reach a stalemate – e.g., during Annual Vendor Negotiations (AVNs), you might reject Amazon’s terms and they temporarily reduce orders or push out your ship dates (a common pressure tactic). Vendors who have diversified can better weather this storm. If Amazon cuts a few POs while you’re hashing out terms, your business isn’t crippled; your other channels still generate revenue. This patience can force Amazon back to the table. Many vendors who lack alternatives cave quickly when Amazon turns the screws (like pulling marketing or threatening to go out of stock) because every lost sale hurts. With counterweights, you gain time – time to negotiate properly without panicking, because your entire quarterly earnings don’t hinge on Amazon alone. As Miguel put it, when “sh* hits the fan”* (i.e., things go south with Amazon), you won’t be at your wits’ end – you have somewhere else to put your efforts and inventory.
  
  
• Data and Benchmarks to Strengthen Your Case: Another advantage of having multiple channels is the wealth of comparative data. You can analyse pricing, conversion rates, return rates, and other metrics between Amazon and others. If, for instance, your out-of-stock rate on Amazon is higher than on another retailer due to Amazon’s ordering patterns, you can bring that up: “Our in-stock rate on Amazon is X% lower than on Channel B because of Amazon’s volatile orders. 
  
  This hurts sales – we need a commitment or we will prioritise stable partners.” Or perhaps your customer acquisition cost on Amazon has become higher than on D2C or other marketplaces; that’s an argument to Amazon that their increasing fees aren’t sustainable. Essentially, you can call out Amazon’s inefficiencies or high cost demands by showing that other channels do better. Amazon vendor managers might not concede easily, but it can moderate their stance when they know you’re tracking everything. It also flips the script: instead of you justifying why Amazon should keep you as a vendor, Amazon has to justify why you should keep investing in them versus alternatives.
  
  

In sum, strategic counterweights give you negotiation ammunition. They won’t remove Amazon from the equation (nor should they – Amazon will likely remain your single largest channel), but they change the narrative from “Amazon is the only game in town” to “Amazon is one of several important channels.” The latter mindset leads to more balanced partnerships. Remember, the goal isn’t to antagonise Amazon; it’s to build a more sustainable, profitable relationship with Amazon by ensuring they respect your business needs. Paradoxically, Amazon might value you more when they see you’re a savvy multi-channel operator, because it means you’re a strong brand in the broader market (and Amazon ultimately wants strong brands). As Paul Sonneveld observed, this strategy isn’t about spitting Amazon; it’s about growing your overall business and thereby making each part – including Amazon – healthier and more mutually beneficial.

Conclusion: Leverage Through Diversification

For Amazon vendors, the path to greater leverage and long-term success lies in diversification. Creating strategic counterweights to Amazon is essentially an insurance policy and a growth strategy combined. By expanding your presence to other marketplaces and channels, you reduce your vulnerability to Amazon’s whims and gain negotiating power to shape a more favourable partnership with it. Equally, you open new streams of revenue that can propel your brand’s growth beyond what Amazon alone can offer.

It’s important to set realistic expectations: building up alternate channels takes time, resources, and often a cultural shift within your organisation. You may not see dramatic results in a single quarter – this is about where you want to be in 2, 3, or 5 years. As the webinar discussion highlighted, if you’re looking at the next Amazon negotiation cycle (say the upcoming AVN season) and you have no counterweights today, you likely can’t change that outcome overnight. But you can start now so that by the time next year’s negotiations roll around, you’re in a stronger position.

Think of diversifying e-commerce channels as planting a tree: The best time to do it was yesterday; the second-best time is today. The sooner you begin, the sooner your counterweights will mature into meaningful contributors. Every step – whether launching on a new marketplace, optimising a regional channel, or investing in DTC – is a step toward greater autonomy and resilience.

In practice, many top brands and savvy Amazon agencies have already adopted this approach. They use data tools to monitor multi-channel performance, allocate investment dynamically, and ensure no single customer (even one as mighty as Amazon) calls all the shots. Your brand can do the same. With a thoughtful strategy and commitment, you can transform a precarious Amazon-only business into a robust multi-channel operation where Amazon remains a key partner but not your only lifeline.

Ultimately, the power dynamic with Amazon shifts when you can genuinely say: “Amazon is important to us, but we’re prepared to walk away from bad terms because we have built other successful routes to market.” Ironically, that is also when Amazon will likely value your business even more. By creating strategic counterweights, you not only protect your profitability – you also set the stage for healthier growth on Amazon and beyond.

To delve deeper into these strategies and hear real-world examples, be sure to watch the full webinar on demand featuring Miguel Strobel. It’s a masterclass in marketplace diversification and negotiation tactics. And if you’re looking to monitor and maximise your performance across Amazon Vendor and other channels, consider leveraging a platform like MerchantSpring for integrated marketplace analytics. By staying informed and proactive, you can navigate the Amazon-dominated waters with confidence – and chart a course where your brand, not Amazon alone, defines your success.