FAQ Section – Amazon Vendor Negotiations (AVN)

[Q] Has the client base started to see AVNs for the 2021 calendar year yet?

[A] Yes, a few clients have seen hand-delivered AVNs from their Vendor Managers as early as Nov/Dec 2020, but the larger automated email AVN push has just started over the weekend of January 23–24.

 

[Q] Looking at other AVNs from clients, are there any new boxes to worry about?

[A] With the increase in Amazon shipping costs, they have implemented a charge on LTL items which will pass down to the vendor as a $10 per unit fee. This is a monthly accrual setup in AVN on all LTL units (ASINs greater than 150 lbs) that are received into Amazon’s FCs. If anyone has follow up questions, please feel free to reach out to your sales manager for more details.

 

[Q] Looking at the AVN buckets, where have the biggest asks shown up in 2021?

[A] So far, the biggest asks have been on Freight Allowance and Payment Terms. Along with the normal AVN asks, we have also see product cost decreases in DI, In-Network, and Direct Fulfillment ASINs. The product cost asks are a supporting document along with the AVN monthly accruals.