Simpactful Senior Consultant and former Amazon Business vertical lead, Mike Kernish, reflects, “Amazon.com has always focused significant energy on annual vendor negotiations – and this has only grown as the company has automated operations, expanded Advertising and Supply Chain services, and now works to retain shoppers amidst tariff pressure.” Simpactful Senior Consultant, and former head of Amazon.com Private Label for Europe, Kyle Gustafson agrees, “Traditional AVN levers alone are no longer sufficient as media investment grows, cost-to-serve increases, pricing volatility rises, and operational complexity continues to expand. What was once a primarily commercial discussion now spans finance, supply chain, marketing, and senior leadership.”  

Simpactful Senior Consultant Dan Cook has spent the better part of 2 decades managing eCommerce for retailers and brands. “I have managed large eCommerce P&Ls, including the Amazon businesses for Paramount and Unilever. The key between feeling confident in the outcome of annual vendor negotiations – or living with remorse and the P&L implications – comes down to preparation. Brands need to develop a multi-functional Amazon.com negotiation strategy that starts with an understanding of what Amazon is trying to achieve, the internal guardrails for success across stakeholders, and a shared framework to align those perspectives.”

Recently, Dan and Kyle worked to support a large CPG client on a highly complex Amazon engagement. Using their combined experience working on both the manufacturer and Amazon sides of the desk, the team translated operational, financial, and media dynamics into a clear strategic Joint Business Planning framework that elevated the conversation beyond transactional terms and toward a more durable, value-based partnership model. The work focused on aligning how value is created across Retail, Media, and Operations – and ensuring that value is clearly articulated, understood, and negotiated effectively.

This approach reflects how Simpactful works with clients on Amazon negotiations today. Rather than treating AVNs as isolated, annual events of focusing the discussions on terms, we help teams approach AVN as a strategic and financial exchange by:

• Aligning on a Total Value Exchange Framework that reflects the full scope of value delivered to Amazon
• Considering strategic levers like joint partnerships, unique assortment, operational efficiencies, etc.
• Navigating pricing and net receipt volatility with clear governance principles
• Addressing cost-to-serve and operational complexity through practical, data-backed recommendations
• Integrating retail media investment commitments and vehicles into broader joint commercial and financial conversations
• Preparing leadership teams to engage Amazon with clarity, confidence, and consistency

This is expert systems-level channel management thinking grounded in real operating experience – designed to help brands move beyond short-term negotiations and toward more predictable, sustainable growth with Amazon. Simpactful co-founder and Chief Client Officer, David Friedler, has spent his career managing retail relationships and reflects, “Pulling in Amazon experts to prepare for these difficult negotiations is a game changer for account leaders because they can ask critical questions, secure benchmarked investment perspective for terms targets and get guidance on how to think about operations, as well as media and merchandising asks. These negotiations are handled by well-trained Retail Vendor Management teams, often have a large P&L impact – and a second set of eyes on the strategy and terms is critical.”

Navigating an upcoming AVN, rethinking how media and commercial investments show up in negotiations, questioning whether your negotiations are going to create long-term value, or looking to strengthen alignment across internal teams? Simpactful can help! To learn more about our Amazon expertise, contact us today at contact@simpactful.com or 925-234-6394. Visit www.simpactful.com.