Skip to content
Tahiti North.

Amazon Vendor Economics · Glossary

Vendor Manager (VM)

Updated

An Amazon Vendor Manager (VM) is the Amazon employee who owns a retail category's sales and profitability and the vendor relationships inside it. It is Amazon's buyer-side role, not a service a first-party (1P) vendor is owed, and the vendor manager is the vendor's counterpart at the Annual Vendor Negotiation (AVN), where the next year's trade terms are proposed. Vendors work with Amazon in Vendor Central, where the purchase order arrives, but meet this role through whoever contacts them and through that negotiation.

The title suggests a dedicated contact for every vendor. A former Amazon vendor manager, who worked in European categories, describes the role as a category leader instead: "managing a category in which hundreds of vendors sit in and then they are managing the top 10 to 20 vendors in those based off of revenue". On what vendors expect, the same former vendor manager says: "you're usually expecting that you have a buyer that works with you that checks in on you every couple of weeks at least ... and amazon simply does not do that". On that account, silence from a vendor manager is normal, not a sign of trouble.

What can a vendor manager do for a vendor?

Less than the title suggests, and, in former insiders' accounts, the role answers to a measure the vendor cannot see.

  • Narrow growth levers. The same former vendor manager names price discounts and Subscribe and Save as the levers before a vendor has to reach for advertising.
  • A scorecard past Net PPM. Net PPM (Net Pure Product Margin) is Amazon's product-level profitability metric. A former head of a European vendor manager team says it is not the end of it: "you then get to Contribution Margin [CM], and that's the metric Amazon really cares about". Contribution margin is not visible to the vendor.
  • Profitability calls. The vendor manager owns the category's profitability, and CRaP (Can't Realize a Profit) and de-listing are among the pressure tools the role holds, alongside excluding a vendor from programs; CRaP and delist defense covers the response.

In practice, how often a vendor hears from its vendor manager is the vendor manager's own call: no standard tier entitles a vendor to a set cadence. The role's goals also reach past margin, to availability, program participation, events and selection.

Amazon Vendor Services (AVS) is the paid alternative: a separate program with its own Amazon account manager, which the vendor pays for. The article What an Amazon Vendor Manager Actually Does covers the role in depth.

Related reading

Related service