Optimizing Amazon Vendor Agreements and Pricing
Transcription
To be eligible for Amazon best deals, only approved accounts with vendor managers or buyers can enroll in this program. Best deals are featured on the deals page for two weeks. Deals offered under this program have to be 20% less than the lowest price offered in the past 90 days in the Amazon marketplace.
show moreA lightning deal is a price discount campaign featured for a limited period on Amazon’s deals page. Lightning deals are for our expiring deals that are featured on the Amazon deals page. Your products need to qualify to be eligible for this program. There are two costs associated with running a lightning deal, a base merchandising fee charged for each lightning deal that goes live and a per unit funding.
The base merchandising fee is where the fee amount is based on the merchandising value you receive by having your product on the deals page for special events like prime day, the merchandising fee may be higher due to the increased traffic. Amazon expects to the Amazon site. On event days, you will see the fee amount when you create your deal.
The fee amount shown is based on the start date you propose. If the start date changes, you will be charged the base merchandising fee applicable to the actual start date of your promotion. You can find the current fee structure by going to a specific URL through your vendor central account. This link will appear in your cheat sheet further down in this section of the course.
The base merchandising fee will be charged in a separate invoice after the promotion ends. If your promotion is suppressed before it goes live, you won’t be charged. However, if your promotion is suppressed after it goes live, you will be charged. Promotions may be suppressed after they go live. If for example, Amazon runs out of inventory of the product in their fulfillment centers.
Or the promotional funding you provided does not support a promotional price. That is the lowest price in the trailing 30 days. By at least 5%, Amazon is unable to provide refunds on fees. If your promotion has already gone live, the per unit funding is where you decide how much to fund per unit. And depending on the applicable funding time.
You are responsible for the per unit funding on each unit bought or sold for the promotion. Amazon allows you to choose between specifying your per unit funding as a monetary amount, or as a percentage of the Amazon retail website price. On the day you submit your promotion. The final per unit funding amount is tax exclusive.
You may set a maximum unit quantity for each style, size and color variation included in the promotion. This is the maximum number of units that you agreed to provide funding for essentially a unit budget.