Amazon Vendor Negotiations With Andrea Leigh

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Amazon Vendor Negotiations With Andrea Leigh

Andrea Leigh

Andrea Leigh is the Founder and CEO of Allume Group, an eCommerce knowledge-sharing network. She is also the co-host of The CPG Guys podcast. With over 20 years of eCommerce experience working with thousands of brands, she is an educator, speaker, and writer involved with various organizations, including The Digital Shelf Institute and Path to Purchase Institute. Andrea spent 10 years as a Senior Executive at Amazon, where she led over 15 categories, helped launch Amazon’s automated pricing system and other programs, and managed Amazon Prime in Canada.

 

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Here’s a glimpse of what you’ll learn:

  • [4:32] Andrea Leigh shares how she helps brands navigate Amazon vendor negotiations
  • [9:39] The four-step FIRM framework for winning Amazon negotiations
  • [15:25] How to prepare for Amazon vendor negotiations 
  • [25:51] Can paid media spend be used as a negotiation tool?
  • [29:27] Tips for negotiating with Amazon’s AI chatbots 
  • [32:58] How potential tariffs will impact Amazon negotiations

In this episode…

Amazon vendor negotiations differ from standard, relationship-based retailer negotiations. With Amazon prioritizing data, algorithms, and automation, brands often feel overwhelmed and unsure of how to approach the process. How can you leverage your strengths to arrange favorable trade terms?

As an early Amazon adopter, Andrea Leigh has developed the FIRM framework — find your data, isolate your leverage, relax and go slow, and make requests — to help brands take a strategic, data-driven approach. After discovering and harnessing your data sources, you should identify the unique value you bring to Amazon, leverage delaying tactics to strategize further, and request concessions in areas that benefit the retailer. Andrea also recommends aligning trade terms with retail media planning to communicate your investments. 

In this episode of The Digital Deep Dive, Aaron Conant sits down with Andrea Leigh, the Founder and CEO of Allume Group, to talk about navigating Amazon vendor negotiations. Andrea shares common mistakes brands make in the process, what to expect from Amazon’s evolving negotiation process, and how to mitigate tariff-related cost increases.

Resources mentioned in this episode:

Quotable Moments:

  • "Amazon subscribes to interest-based negotiation; aligning with that approach can lead to better outcomes."
  • "The more interests you put on the table, the higher your likelihood of mutual success in negotiations."
  • "Most brands struggle in the preparation phase; without data, you’re negotiating blind."
  • "Slowing down the negotiation process can prevent costly mistakes and give you leverage."
  • "Your negotiation with Amazon isn’t just about trade terms; it’s your joint business plan for the year."

Action Steps:

  1. Prepare your data early: Gathering insights on trade terms, profitability, and operational efficiencies before negotiations begin will give you a stronger position and reduce stress. Keeping a well-organized record of past negotiations ensures continuity, especially if team members change.
  2. Identify your leverage points: Understanding what value you bring to Amazon — whether it’s growth potential, retail media investment, or supply chain efficiency — can help you push back on unfavorable terms. Using competitive benchmarking can strengthen your case further by showing how your brand stacks up in the marketplace.
  3. Slow down the negotiation process: Avoid agreeing to terms too quickly. Take time to assess Amazon’s requests, ask for clarification, and propose counter-offers. If needed, use strategic delays like requesting additional data or breaking negotiations into smaller steps to stay in control.
  4. Make strategic asks: Negotiation is a two-way street; brands should push for operational improvements, additional data access, or co-op relief alongside financial discussions. Finding "easy gifts" that Amazon values but cost you little can help build goodwill without major concessions.
  5. Align trade terms with broader business goals: Don’t view Amazon negotiations in isolation. Consider how they fit into your overall strategy, including media spend, supply chain investments, and long-term profitability. Ensuring alignment across internal teams like finance and marketing will create a unified approach to negotiations.

About BWG Connect...

BWG Connect provides executive strategy and networking sessions that help brands from any industry with their overall business planning and execution. We network and knowledge share together to better understand and adapt to the newest trends, strategies, and pain points shaping growth in the digital space. BWG Connect, in conjunction with BWG Strategy, has built an exclusive network of 125,000+ senior professionals and hosts over 2,000 virtual and in-person networking events on an annual basis.

In addition, we have had 1x1 conversations with over 5,000 brands and have a real-time pulse on what digital strategies are successful and why. This in-depth knowledge allows our team to operate on the cutting-edge and provide our clients with best-in-class guidance on how to win in the digital world. We have provided free consultations and strategy sessions for companies of all sizes, from start-ups to Fortune-100, to enable growth, resolve issues and make curated service provider introductions that can impact your digital footprint.

We have held to the philosophy of providing high-level insights and actionable knowledge with no sales pitches in order to provide to our network the ability to listen, learn and act to improve themselves as well as their organizations. Our ultimate goal is to be the resource out there to help digital executives find the research they need to excel in the modern marketplace.

If you are interested in getting involved with any of our current or past events, you can find them here. If you are looking for help & would like to set up some time to chat with our team, you can schedule a time or reach out directly to Aaron@bwgconnect.com or Tiffany@bwgconnect.com.

BRINGING TOGETHER INFLUENTIAL EXECUTIVES AND SENIOR PROFESSIONALS

What is BWG Connect?

BWG Connect provides executive strategy & networking sessions that help brands from any industry with their overall business planning and execution. BWG has built an exclusive network of 125,000+ senior professionals and hosts over 2,000 virtual and in-person networking events on an annual basis.
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