Amazon is squeezing our wholesale margins with rising trade terms and co-ops. How do we protect profitability?

Protecting profitability starts with an itemized cost-to-serve audit across your entire catalog to calculate true net margin per SKU—factoring in trade terms, co-op deductions, freight, and shortage chargebacks. Rather than granting flat margin concessions in negotiations, terms should be tied strictly to volume commitments, co-op spend ROI, or price adjustments. For SKUs that consistently fail to deliver target margins, transitioning them out of the 1P vendor model protects total brand profitability.