Podcast Summary
Welcome to the thirty-seventh episode of The Digital Shelf Insider Podcast hosted by Shreshta Joy. In this conversation, we’re joined by Martin Heubel, Strategy & Amazon Consultant, Consulterce, to break down how Amazon’s automated vendor negotiations, margin guardrails, and pricing policies are reshaping the playbook for one-party (1P) brands in 2025.
Martin shares a clear look inside Amazon’s evolving vendor model, including automated cost-support requests, Buy Box suppression risks, and the growing role of escalation as traditional retail managers get replaced by algorithm-driven systems.
Drawing from the latest Amazon Vendor Negotiation Study (200+ vendor leaders across North America and Europe), he explains why vendor talks have become tougher, how tariff-driven cost increases collide with Amazon’s price-follower stance, and what successful brands are doing to protect margins without losing distribution.
Key themes
Here’s what stood out in our conversation with Martin:
Automation Replaces Manual Negotiation
Amazon’s reduced retail headcount means fewer human buyers and more automated asks tied to structural profitability and price matching.
Margin Pressure Meets Tariff Complexity
Brands are facing tougher cost-increase approvals as Amazon maintains its long-standing price-follower strategy.
CRaP as a Profit Discipline Tool
CRaP is not random; it reflects flawed pricing and distribution fundamentals that brands must correct upstream.
Hybrid (1P + 3P) as a Strategic Lever
A hybrid can provide negotiating flexibility, but comes with limits, especially in the US, where Amazon can enforce exclusivity.
Distribution Control Drives Profit Stability
Ungoverned reseller activity directly fuels price erosion, Buy Box instability, and the eventual risk of delisting.
Key Highlights
Here’s what brands must understand to navigate Amazon’s evolving vendor environment:
- Amazon automation is accelerating, reducing hands-on support for vendors.
- Tariff pass-throughs require evidence of broad market pricing shifts.
- CRaP flags often reflect weak pricing power or loose distribution.
- Escalation paths work when the brand plays a meaningful category role.
- Hybrid works best when backed by strong channel governance and pricing discipline.
Takeaways
Practical actions Amazon vendors should put in motion:
- Audit price-pack architecture and margin resiliency ahead of AVN cycles.
- Track MSRP vs. average selling price patterns to predict CRaP risk.
- Deploy MAP enforcement and reseller control policies to protect price integrity.
- Build SKU strategies that prioritize profitable units, bundles, and formats.
- Treat Amazon as a margin-managed channel and not an extension of wholesale.
This episode is essential listening for e-commerce leaders, marketplace operators, and CPG teams navigating Amazon’s new negotiation reality. With automation tightening profitability rules and distribution discipline determining Buy Box strength, brands must evolve from reactive negotiation to structured commercial strategy.
If you lead Amazon channel management, marketplace operations, pricing, or revenue growth, this discussion with Martin Heubel will help you build a more resilient Amazon model; one grounded in margin clarity, disciplined distribution, and proactive SKU planning.
Watch now!
Disclaimer: The content shared in the Digital Shelf Insider Podcast by MetricsCart is for general informational and discussion purposes only. The insights, opinions, and perspectives expressed by hosts and guests are their own and do not constitute professional advice, recommendations, or endorsements by MetricsCart or any affiliated entity.
