TL;DR: Solve for ad ineligibility on promoted items by working closely with your Amazon contacts, consider a Safe Listing Accrual, or reserve your promotional and advertising dollars for ASINs with above average net PPM. Strategic internal planning and baking your promo discount into POs can help minimize the disruption and financial impact of incremental funding requests from Amazon.
2 minute read
Promotions remain one of the most important growth-driving vehicles for consumer brands.
This is why a net +35% of brands increased promotions for Amazon’s T-12 event this year and a net +34% plan to increase promotional plans across Amazon, Walmart, and Target in 2025 versus an already elevated 2024.
While effective for top-line growth, the aggressive promotional environment is challenging brands’ P&Ls. In fact, brands cite maintaining profitability as their top challenge and they are working to optimize promotional investments through targeting and personalization, ensuring deal visibility, and more.3Q24, with eCommerce leading the way up 7.4%, and physical stores growing 1.1% Y/Y.
Amazon is also working to protect its own profitability, which puts pressure on vendors in a variety of ways.
In this pointed and practical article, we share our recent research on managing two key profitability-related challenges brands face during Amazon’s promotional events: advertising ineligibility and incremental funding requests.
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