EXAM

When are you normally notified by Amazon of pending Agreement updates?

Can you sell to Amazon if you are selling to them via Direct Fulfillment?

What three questions should you ask yourself before calculating cost to Amazon?

Is the following statement true or false?

Amazon calculates the Provision for Missing Actuals with an estimate of the total Value of Purchase Order Receipts from their Cost of Goods that they believe they will receive in a given month from you based on your current Purchase Orders in their system and the Purchase Orders you have already shipped for the month.  They then calculate the total percentage value of your Agreements against this estimate total Value of Net Receipts.

Is the following statement true or false?

As an Amazon Vendor, you can transact a Provision for Receivables to any income account you feel like.

Is the following statement true or false?

The Business Negotiated Pricing Agreement is where you need to negotiate prices with the customer offline prior to submitting them for approval in Vendor Central.

Where can you see how long an Agreement is valid for?

What is the name of the Amazon Agreement or Program that means that, if you reduce the cost price of your products to Amazon, the Policy will allow Amazon to automatically apply the lower cost price to all outstanding purchase orders, products in transit, and existing on-hand inventory?

What cost should you begin with when starting your cost to Amazon calculations?

Is the following statement true or false?

The key point of the Provision for Receivables Deduction is that the deduction will take place within the current month and not the following month.

Is the following statement true or false?

You can create your own account in your Company’s Accounts to transact Amazon’s Provisions.

Is the following statement true or false?

The Business Negotiated Pricing Agreement available to Amazon Business customers can be found on your Agreements Page in Vendor Central.

What do all Standard Agreements in Vendor Central get deducted from?

Which considerations should you have in mind when considering negotiating with Amazon on Agreement updates?

Can you choose to accept or reject the Price Protection Policy on Amazon?

If you are using a Third Party Logistics Company, what other costs should you consider?

Is the following statement true or false?

Amazon will submit a Provision for Missing Actuals 21 days from when you were supposed to have submitted actuals for a return or rebate.

Is the following statement true or false?

You can create Promo Codes or Coupon Campaigns to offer targeted discounts to consumers on your products and share with consumers through social media and marketing programs.

Is the following statement true or false?

Another name for Business Pricing Discounts is Volume Discounts.

Who are your initial Standard Agreement Terms agreed through?

What is it important for you to do from the beginning when it comes to renegotiating Agreements with Amazon?

What does Amazon claim that the Price Protection Policy will reduce the likelihood of?

What buffers should be considered in your costing model?

Is the following statement true or false?

Amazon normally emails your Remittances to you in a word document.

Is the following statement true or false?

The two options for a per-unit discount on a Promo Code or Coupon can be monetary or a fraction.

Is the following statement true or false?

You cannot run any other promotions on a product along with a Business Pricing Discount.

Who are your initial Standard Agreement Terms agreed through?

What should you determine before you start breaking down Agreement increases you can accept?

What agreements are used to ensure that a group of transactions meet an agreed-upon profit margin within a given billing period?

Is the following statement true or false?

Margin is calculated as: Revenue less cost of goods sold = gross profit; gross profit divided by revenue and then converted into a percentage.

Is the following statement true or false?

Amazon does not generate an invoice for Provisions.

Is the following statement true or false?

The minimum discount required off of Amazon’s site price for a Promo Code or Coupon Campaign is 5%.

Is the following statement true or false?

You can find Bulk Buy Requests from Amazon under the “Recommendations” section of your Vendor Central Home Page.

How will all of your Agreement updates be communicated to you?

What are some options Vendors have taken to end up with successful negotiations?

What may GMMs use to measure profitability?

Is the following statement true or false?

Markup is calculated as: Revenue less cost of goods sold = gross profit; gross profit divided by revenue and then converted into a percentage.

Is the following statement true or false?

You cannot download your Remittances from Vendor Central as a PDF Document.

Is the following statement true or false?

You should submit a Lightning Deal or Best Deal on Vendor Central at least 4 days in advance.

Is the following statement true or false?

You need to keep an exported spreadsheet of your accepted Bulk Buy Requests on hand because they don’t show up anywhere else on Vendor Central once they’ve been accepted and processed other than when the Purchase Orders are submitted.

When you enter into an Agreement with Amazon, who is the wholesaler?

What are the benefits of using Collect Freight?

How is Pure Profit Margin Calculated?

Is the following statement true or false?

The rule of thumb rule generally used for a return on investment on Amazon is called the three times rule.

Is the following statement true or false?

The purpose of a provision is to make a current year’s balance more accurate, as there may be costs which could, to some extent, be accounted for in either the current or previous financial year.

Is the following statement true or false?

An approved promotion cannot be suspended.

Which of the Agreements basically pays for all of Amazon’s marketing development funds and co-operation fees?

What are the benefits of using Collect Freight?

What additional terms are factored into the calculation of Net PPM?

Is the following statement true or false?

If you are selling a product to Amazon for $20, your MAP should be $50 if you use the maximum markup Amazon allows.

Is the following statement true or false?

The more prevalent reason for Amazon to raise a Provision for Receivables is when they feel like it.

An approved promotion cannot be suspended.

A Vendor needs to be approved by Amazon to run a Best Deal.

Which is arguably the most essential Agreement you can have with Amazon?

What are the benefits of using Prepaid Freight?

What does CCOGS stand for?

Is the following statement true or false?

The main reasons for calculating your MAP for Amazon are to avoid Amazon monopolising trade on your product; to give your brand a brand value; and to offer Amazon a chunky profit with which to play with.

Is the following statement true or false?

Amazon will raise a Provision for Missing Actuals when a Vendor failed to submit a rebate or refund to Amazon on an invoice that Amazon then paid in full.

Is the following statement true or false?

The two costs associated with running a lightning deal are a per-unit cost and a per-grouping cost.

Which of your Standard Agreements is normally around 10%?

Which Return Option can result in a higher Damage Allowance percentage Agreement?

How may transactions for GMM be grouped?

Is the following statement true or false?

You can edit your ASIN costs in the “Edit Product Details” section of Vendor Central.

Is the following statement true or false?

According to Amazon themselves, the purpose of these provisions is to fix a Vendor’s account.

Is the following statement true or false?

The Base Merchandising Fee may be higher at times due to significant events that create higher traffic.

What incentive can you offer Amazon to agree to shorter payment terms?

Which Return Option can greatly reduce your Damage Allowance percentage on your Agreement?

What is Cost to Amazon?

Is the following statement true or false?

You can include Effective Date, reason for cost increase and HTS code when editing the edit item costs spreadsheet

Is the following statement true or false?

You can avoid Provisions for Missing Actuals by submitting return authorisations and refunds or rebates on invoices timeously before Amazon pays that invoice.

Is the following statement true or false?

The two funding options available for Lightning Deals are to offer a temporary discounted cost price for promotional purchase orders (POs); or pay per unit sold by Amazon during the promotion.

Which of your Standard Agreements can often be considered permanent?

Which percentages for Damage Allowance should you consider when doing your costing model?

What do you need to consider when calculating cost to Amazon?

Is the following statement true or false?

You can edit your ASIN MAP in the “Edit Product Details” section of Vendor Central.

Is the following statement true or false?

The three places on Amazon where you can find your returns to authorise them are under the “Orders” tab on Vendor Central; under the “Required Actions” section on the Vendor Central Home Page; and on your “Dashboard” under the “Payments” tab on Vendor Central.

Is the following statement true or false?

A Price Discount Promotion be featured for up to 2 months.

Which Agreement does Amazon use as a means to not have to return any damaged goods to you?

What is the term used for Amazon reviewers used in the Vine Program?

When would you need to factor in a freight percentage to your cost to Amazon?

Is the following statement true or false?

You are only able to edit your ASIN MAP singly by product on Vendor Central.

Is the following statement true or false?

You can avoid Provisions for Receivables by renegotiating the billing cycle for your Annual Agreements and ensuring that Amazon owes you more than you owe Amazon.

Is the following statement true or false?

A Price Discount Promotion be featured for up to 2 months.

How much is the Damage Allowance usually?

Does enrolling in the Vine Program automatically mean you will receive good reviews?

What does MAP stand for?

Is the following statement true or false?

You upload your ASIN costs on the “Bulk Submissions” page under the “Items” tab on the top menu of Vendor Central.

Is the following statement true or false?

The three Standard Annual Agreements which can be included in the Provision for Receivables calculation are the Base Accrual, Damage Allowance and Freight Allowance.

Is the following statement true or false?

There is no campaign budget for a Price Discount Promotion.

When do you, as the Vendor, need to pay the Freight Allowance?

What does it mean if you cannot find the option to enable your participating in Subscribe and Save in your Account Management settings?

What other terms can be used for MAP?MSRP only.

Is the following statement true or false?

Provision for Receivables is an estimate of what Amazon calculates your monthly Agreement Deductions will be based on an estimated Net Receipts for the month

Is the following statement true or false?

Provision is an Income Item.

Is the following statement true or false?

Products must be economically viable and have good in-stock performance in order to be eligible for purchase using a Dash Button.

What is the Freight Allowance percentage normally?

What does Amazon base its Subscribe and Save Program eligibility criteria on?

Who is the MAP for?

Is the following statement true or false?

Provision for Missing Actuals is an estimate of what Amazon calculates your monthly Agreement Deductions will be based on an estimated Net Receipts for the month

Is the following statement true or false?

A business would normally transact a Provision to a Liability Account.

Is the following statement true or false?

Products distributed through Prime Now, Fresh, or Pantry are currently eligible to be purchased using a Dash Button.