Annual Vendor Negotiations; Digital Advertising Spend; 4Q Amazon Sales Performance
Many vendors are kicking off the Annual Vendor Negotiation (AVN) process with Amazon. While the level of asks on basic terms like accruals and return allowances seem quite varied among brands, a common theme we’re seeing in our research is Amazon asking for greater participation in several supply chain programs,…
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Amazon Media; Social Commerce Update; Material Acceleration in eCommerce Growth
Amazon’s advertising business grew 44 % during 1Q (ending March 2020), up from 41% during the prior quarter. In our research, 1P manufacturers on average were increasing the amount of spend with Amazon’s paid search advertising units (AMS), citing continued positive ROI’s and the reduction in other promotional vehicles like…
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Dropshipping, Kroger Online, YouTube
Dropshipping Capability Growth In our 2019 supply chain benchmark, 56% of manufacturers we polled indicated they currently have dropship capability, an increase from 40% from last year’s benchmark. Hardline manufacturers tend to outpace CPG companies with this capability as CPG products tend to be very difficult to economically ship directly…
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