# Mastering the Art of Contracts and Negotiations: Strategies for Success

## Overview

## Podcast transcript

**Introduction**

Hi, and welcome to a live episode of Marketplace Masters, sponsored by [MerchantSpring](https://merchantspring.io/), your go-to marketplace analytics. We dive deep into the world of e-commerce, addressing challenges and opportunities that Amazon vendors face, improving their commercial performance.

Paul Sonneveld

I am [Paul Sonneveld](https://www.linkedin.com/in/paulsonneveld/), and today we're exploring the world of contracts and negotiation on Amazon, specifically as an Amazon vendor. Now, allow me to introduce to you [Alan Adams](https://www.linkedin.com/in/alanbadams/), the visionary behind [Navazon Consulting](https://navazonconsulting.com/). In 2010, Alan founded Navazon Consulting to assist companies in navigating the Amazon marketplace successfully. With a career spending roles as diverse as an Air Force pilot, entrepreneur, BP Oil Spill Cleanup Manager, Google Operations Manager and Amazon Program Manager.

Now, as an Amazon Senior Category Manager, Alan managed multiple product categories, led negotiations with over 3,000 companies, and handled more than 10,000 contracts. Today, Alan is here to really shed light on that number one cost-saving business on Amazon as a first-party seller. Alan, thank you so much for being a guest on our show today.

Alan Adams

Absolutely, Paul. I love being here. It's fantastic to be able to connect with you. This is a big, big change for me from my Air Force days.

Paul Sonneveld

It’s fantastic. I know we've got a jampacked show. Just a word of warning to the audience, we're going to try and do this in 30 minutes, but we're probably going to need a little bit more. This will be fully recorded and you can watch the end on demand later as well.

Let's get into the topic of contracts and negotiations. The first question, Alan, I want to ask you, you're in this world, day in, day out helping clients. What are the most commonly asked topics and questions when it comes to terms, conditions and the like that you come across?

Alan Adams

Excellent question. The common question just in general terms and conditions is, Do I own my content? When I put it on Amazon, do I own that? Can I tell them to take it off? Very simple question. The general terms and conditions specifically state that Amazon has a perpetual license to that content once it's listed on Amazon moving forward.

One recent development that impacts everybody is that if you have a dispute, you need to dispute as early as 30 to 90 days. These are things that can bite companies because you'll get down the road and realize, wait a minute, Amazon charged me 45,000 for this. We want to help everybody avoid those types of situations.

Paul Sonneveld

Fantastic. I know we have a number of topics to cover today.

Alan Adams

One way to help is to monitor your business. I know there are companies that want to have nothing to do with Amazon and then there's those that say, look, I want to put all of my second-tier distribution through Amazon business because it can save me a tremendous amount of money. In the general terms and conditions, Amazon can automatically put your products out on Amazon business and can add discounts that it funds itself to drive sales.

It's becoming increasingly important. The key takeaway here is to audit what Amazon pays you on each purchase order. Each purchase order provides prices, and it’s vital to confirm if you received what you were asking for.

In terms of monitoring Amazon business, many companies do not realize this and in the general terms and conditions, Amazon is providing a discount that businesses can utilize. Knowing your digital shelf has expanded in that way is important.

It's essential to keep records of every contract, because disputes might arise later where internal documentation is lacking. Don't feel pressured to accept contracts that don’t seem right; understand the implications.

There are provisions like COOP agreements that differ across categories and countries. In general, you have a marketing accrual that typically is anywhere from 5 to 15 percent. Now is a fantastic time to ask Amazon about the lowest cost to handle shipping, particularly because they have extra supply and need to optimize that.

Ultimately, I encourage everyone to reach out to consult on negotiations or to learn how to manage contracts effectively. Sharing ideas across the industry continues to enrich our understanding and helps navigate complexities in Amazon’s vendor relations.