Inside Amazon Vendor Management: Strategies and Insights from an Ex-Amazonian

That line set the tone. No, he didn’t spill corporate secrets—but when someone’s spent ten years at Amazon, they’ve seen more than any polished sales deck ever will. And that’s exactly what Bernhard brought to the table.

One question I personally couldn’t wait to ask: Can vendors calculate their own NetPPM?

“Yes, the NetPPM can be calculated pretty easily in two steps. First, you calculate the difference between the selling price and the cost price (your price to Amazon). […] Then you subtract everything you grant to Amazon in terms of conditions. […] That gives you your NetPPM.”

Sounds straightforward. But then he added:

“It’s important to know that it doesn’t stop with the NetPPM […], you then get to Contribution Margin [CM]—and that’s the metric Amazon really cares about.”

That’s where things get tricky for vendors. Because you don’t have access to the CM.
You can only make assumptions on it. And assumptions don’t fly at Amazon.

One of the big questions from our community:

“In an annual negotiation, can I use a strong CM to push back on backend fees or push through cost increases?”

Bernhard didn’t hesitate:

“Clear answer: No. The Vendor Manager is more likely to use a weak contribution margin to justify increasing the NetPPM.”

So if you thought strong performance would earn you better terms—think again.
At the end of the day, Amazon wants one thing: profit.
Later in the conversation, though, Bernhard explains how vendors can still learn to play—and even win—the Amazon game.

This was one of my favorite quotes from our conversation.
Because for all the dashboards, KPIs, and data models—at the end of the day, it’s still people making the decisions.

“I’d say it’s always smart to build a relationship. […] In the end, it’s about giving and taking—just like in life.”

Let me translate for you as vendors: don’t rely only on portals and emails. Talk to people. Ask questions. Build understanding.
Not every Vendor Manager will play ball—but if you don’t try, you’ve already lost the chance

Bernhard told us: “Data availability is basically unlimited. […] There are several separate KPIs just for sell-out performance.”
With that being said, working with Amazon feels like David vs. Goliath for vendors.
They’ve got the data, the power, the process. So how are we supposed to keep up with that?

Bernhard suggests: “I always recommend that vendors don’t just use data—really dig into it.”

That’s exactly where we can turn the tide. So the bottom line I see is:
Know your numbers—better than your Vendor Manager.
Be prepared. Think in scenarios. Ask smart questions.
Then you can negotiate on equal footing.

I asked a tough one from our community: What happens if Amazon stops ordering?
Or if I can’t live with the terms they’re offering? Bernhard shared a story I won’t forget:
“A vendor who was […] highly profitable said, ‘If Amazon doesn’t accept our cost increase, we’ll stop shipping.’ […] Amazon responded: ‘We need to start selling again—we’ll accept the increase.’ That’s the moment you hold the upper hand. But caution: this only works if your brand is strong, your timing is right, and you can absorb the short-term revenue hit.”

Another community question read: Why are some high-performing products suddenly invisible?
“Yes, that can absolutely happen […] I’ve seen a product flagged as ‘hazmat’ just because the word ‘chlorine’ was in the title—even if the product had nothing to do with it. Is it arbitrary? Sometimes, yes. But here’s what matters: Don’t get mad—get proactive. Use your AVS. Document everything. Prepare to escalate.”

My final questions for Bernhard:
Are there valid arguments for extending delivery windows?
“Yes. Always explain, and always support it with data. You could suggest for example: ‘If you extend the delivery window by X days, I’ll guarantee a 10% increase in availability.’”

All in all you can move your delivery windows but you need good arguments. Another question from the community regarded the control of chargebacks. Bernhards answer to that one:  “I always recommend disputing them, tracking everything, backing it up with data. […] Your arguments should always be supported by numbers.”

I digged deeper: Can you deactivate chargebacks entirely?
“Not that easily.”
And deeper: Can you manage them strategically?
“Absolutely.”