Negotiating Trade Agreements

We just closed a $480K deal at Aligned - our biggest ever. But twice in the final weeks, it almost died. It was brutal. Two execs came out of nowhere with objections. We had no access. No time to fix it. But 22 (!!) stakeholders had already been engaged… And they saved it. That’s when it hit me: Multithreading isn’t a tactic. It’s deal insurance. Here’s the exact playbook we now run in every complex deal: 1. Early Exec-to-Exec Sponsorship Don’t wait until sh*t hits the fan. Initiate VP-VP or CXO-CXO alignment early. We send short, supportive emails without direct asks. Time after time, that builds genuine trust and establishes a safety net long before we need it. 2. Identify ‘Hidden Stakeholders’ Buyers often silently forward materials internally. By using Deal Rooms, we uncover up to 68% more stakeholders, often the real decision-makers influencing budget approvals or strategic buy-in. 3. Isolate Stakeholders 11 people on a call? You’re NOT multithreaded - it’s about quality, not volume. Our team opens separate 1:1 convos. They follow up with each buyer with next steps, suggestions or value that ties to something they said. 4. Proactive Signal-Based Engagement When stakeholders interact with key assets in the deal room, we use those signals to trigger follow ups - e.g. RevOps spends 20min on CRM integration; they might need more info, or could benefit from a dedicated session. 5. Multiple Champions Strategy Nothing beats having an army of internal champions instead of one. Whenever we see an opportunity to build champions, we do it. It derisks the deal in case someone leaves. Plus, budgets are shared, or are just easier to pass. 6. Real-time Alerts on New Stakeholders Our deal room sends instant alerts whenever there’s a new stakeholder (see #2). We then leverage this event as an opportunity for exec introductions or quick alignment note—”Hey, saw you joined the project”. 7. Support the Above-the-Line (ATL) Met an exec early? Keep them looped into POC updates, key milestones, or call takeaways. When we give regular status updates, it builds credibility and keeps momentum - as execs don't join every call, and appreciate the visibility. 8. Never Underestimate Below-the-Line (BTL) Decision-making today is flatter; end-users/junior stakeholders are increasingly influential. I’ve lost count on how many times AEs (our BTL buyers) were make or break in our deals. Give them genuine attention. Don’t underestimate any buyer. 9. Late-Stage Exec Reinforcement If a deal stalls, a concise, confident, personal email from me as CEO resets urgency. The message isn't pushy; it reinforces our shared vision, driving commitment. —— Multithreading isn’t a tactic. It’s insurance. A deal defense system. Built thread by thread, stakeholder by stakeholder. So when things break, and they will - You’re not the only one left to save it. P.S. The Deal Room we used to multithread is Aligned. It's free to try: https://lnkd.in/dYksGnfb

If customs walks in today, are you ready? Most aren’t and the penalties prove it. What triggers a customs audit ? 1. Random Selection Part of risk-based targeting systems to keep audits fair.  2. Red Flags Errors or inconsistencies in import declarations can raise alarms.  3. Industry Targeting   Customs focuses on industries with high fraud risks like electronics and pharma.  4. Prior Non-Compliance Past penalties or lack of response can trigger scrutiny.  5. **Related Party Transactions**   Intra-company deals face extra checks for pricing issues.  6. FTA Claims   Large claims for Free Trade Agreements may lead to reviews.  Common Mistakes That Trigger Penalties  - Misclassification  Customs uses data analytics to find errors. This can lead to a duty shortfall of up to three times.  - Undervaluation Transfer pricing reports can expose undervalued goods, resulting in fines and interest.  - FTA Misuse  Lack of origin support during claims can mean repayment of duties plus penalties.  - Poor Recordkeeping Random audits can catch missing documents, leading to fines.  - Misdeclared Dual-use Goods   These can lead to serious legal issues.  - Inconsistent Broker Instructions   Discrepancies can cause loss of benefits.  Preparation Best Practices - Assemble a Compliance Task Force    Include Trade Compliance, Finance, Logistics, and Legal teams.  - Review Historical Import Data Analyze reports from brokers and customs tools for the last 12 to 36 months.  - Validate HS Classifications  Cross-check with product specs and rulings.  - Review Valuation Methodology   Ensure all dutiable elements are included in declared values.  - Confirm Origin Documentation  Match each FTA claim with valid supplier declarations.  - Check Recordkeeping Protocol   Keep all documents accessible.  - Audit FTA Claims  Randomly select entries to trace back to source.  - Examine Related Party Transactions  Ensure customs values are based on fair market pricing.  - Spot Audit Broker Instructions  Pull recent declarations to check accuracy.  - Prepare a Compliance Report   Summarize risks and actions taken.  **Do's**  ✅ Designate a single point of contact for customs.   ✅ Be transparent but only provide requested information.   ✅ Keep an audit log of all communications.   ✅ Prepare an intro presentation outlining import processes.   ✅ Provide documents promptly and in order.  **Don'ts**  ❌ Don’t argue or blame other departments.   ❌ Don’t offer unsolicited documents.   ❌ Don’t allow unscheduled interviews with untrained staff.   ❌ Don’t say “we’ve always done it that way.”  **Post-Audit Actions**  Review findings with your broker or legal team.   Respond within the deadline to correct inaccuracies.   Implement corrective actions and document them.   Schedule a follow-up audit within six months.   Update SOPs and training based on findings.  

Your trade secrets just walked out the front door … and you might have held it open. No employee—except the rare bad actor—means to leak sensitive company data. But it happens, especially when people are using generative AI tools like ChatGPT to “polish a proposal,” “summarize a contract,” or “write code faster.” But here’s the problem: unless you’re using ChatGPT Team or Enterprise, it doesn’t treat your data as confidential. According to OpenAI’s own Terms of Use: “We do not use Content that you provide to or receive from our API to develop or improve our Services.” But don‘t forget to read the fine print: that protection does not apply unless you’re on a business plan. For regular users, ChatGPT can use your prompts, including anything you type or upload, to train its large language models. Translation: That “confidential strategy doc” you asked ChatGPT to summarize? That “internal pricing sheet” you wanted to reword for a client? That “source code” you needed help debugging? ☠️ Poof. Trade secret status, gone. ☠️ If you don’t take reasonable measures to maintain the secrecy of your trade secrets, they will lose their protection as such. So how do you protect your business? 1. Write an AI Acceptable Use Policy. Be explicit: what’s allowed, what’s off limits, and what’s confidential. 2. Educate employees. Most folks don’t realize that ChatGPT isn’t a secure sandbox. Make sure they do. 3. Control tool access. Invest in an enterprise solution with confidentiality protections. 4. Audit and enforce. Treat ChatGPT the way you treat Dropbox or Google Drive, as tools that can leak data if unmanaged. 5. Update your confidentiality and trade secret agreements. Include restrictions on AI disclosures. AI isn’t going anywhere. The companies that get ahead of its risk will be the ones still standing when the dust settles. If you don’t have an AI policy and a plan to protect your data, you’re not just behind—you’re exposed.

𝗛𝗮𝗿𝘀𝗵 𝗥𝗲𝗮𝗹𝗶𝘁𝘆: 𝗠𝗼𝘀𝘁 𝘀𝘁𝗮𝗸𝗲𝗵𝗼𝗹𝗱𝗲𝗿 𝗺𝗮𝗽𝘀 𝘀𝘂𝗰𝗸 𝗮𝗻𝗱 𝗮𝗿𝗲𝗻'𝘁 𝗿𝗲𝗮𝗹𝗹𝘆 𝗺𝗮𝗽𝘀 𝗮𝘁 𝗮𝗹𝗹. A lame hodgepodge of names, emails and vague notes that don't move the needle towards achieving your policy, reputation, and political goals. Here are some more powerful ways to organize so you can have greater impact and influence, which is the whole purpose right? ⬇ ⬇ 𝗕𝘆 𝗧𝘆𝗽𝗲 𝗼𝗳 𝗦𝘁𝗮𝗸𝗲𝗵𝗼𝗹𝗱𝗲𝗿: —This is the often the first way to organize “tabs” or define labeled categories but it shouldn't be the last. Some examples: media (print, broadcast, bloggers/influencers, podcasts) think tanks and universities, charitable partners, elected officials and senior staff, trade associations and coalitions, embassies, etc. 𝗕𝘆 𝗜𝘀𝘀𝘂𝗲𝘀: —Depends on your org., but say you’re a hospital company, these would probably include ones like Medicare/Medicaid, drug prices, workforce, DEI, price transparency, EMR/data security, antitrust, site neutrality, etc. 𝗕𝘆 𝗣𝗼𝘀𝘁𝘂𝗿𝗲/𝗣𝗼𝘀𝗶𝘁𝗶𝗼𝗻: — Is the stakeholder currently an ally, neutral/persuadable, or a detractor? This will often depend on the issue. Obviously, consistent allies on all issues are rare (and super valuable if they’re influential, see below), but it’s crucial to know where you stand in real time. 𝗕𝘆 𝗜𝗻𝗳𝗹𝘂𝗲𝗻𝗰𝗲/𝗜𝗺𝗽𝗮𝗰𝘁/𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗠𝗮𝘁𝗿𝗶𝘅: —Regularly sketch out a side map outlining how interested and impactful various stakeholders are on important issues. Think high interest/low influence, high interest / high influence (the best of its aligned to your strategies, a challenge if not), low interest, high influence, etc. Recco doing this for your top 3 main issues. 𝗕𝘆 𝗘𝗻𝗴𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗜𝗻𝘁𝗲𝗻𝘀𝗶𝘁𝘆 𝗥𝗮𝗻𝗸: —Here, past performance is often (but not always) indicative of future results. Assign numbered 1-3 rankings to the most important stakeholders. Group 1 are the most engaged, group 3 the least engaged. **Do this for your allies, neutrals/persuadable and definitely for detractors.** 𝗕𝘆 𝗧𝗲𝗮𝗺 𝗠𝗲𝗺𝗯𝗲𝗿 (𝗶𝗻𝗰𝗹𝘂𝗱𝗶𝗻𝗴 𝗰𝗼𝗻𝘀𝘂𝗹𝘁𝗮𝗻𝘁𝘀/𝗳𝗶𝗿𝗺𝘀): —Whose been lead on “watering the plants” from particular groups? What is the nature of the relationship (e.g. former colleague, friend, acquaintance, donor/supporter), how far does it go back? Are there secondary connections within the org.? 𝗛𝗶𝗻𝘁 𝟭: This doesn’t need to be someone from Corporate Affairs, sometimes back channel relationships can do more than formal ones. 𝗛𝗶𝗻𝘁 𝟮:People come and go often. Develop and nurture secondary contacts wherever possible. However your org. manages the map, it needs to be a living, breathing asset. Feel free to add your ideas in comments and big thanks to my friends at Ortus Draws for the awesome infographic that brings it all home!

🚢 SEZs & FEMA Compliance: A Guide to Transactions and Trade ✨ 📌 Special Economic Zones (SEZs) in India were designed to encourage trade, attract investment, and boost exports by offering businesses a globally competitive environment. However, operating in SEZs comes with its own set of rules under the Foreign Exchange Management Act (FEMA). 🧵Here's a simplified breakdown of what FEMA governs in SEZs and how transactions are regulated: 1) SEZ Units and FEMA Coverage SEZs are treated as foreign territory for trade and operations, which means FEMA plays a crucial role in regulating cross-border transactions. FEMA ensures that all financial transactions by SEZ units align with India’s external trade policies. Activities such as foreign direct investment (FDI), external commercial borrowings (ECB), and export-import dealings by SEZ entities are monitored under FEMA. 2) Transaction Regulations FEMA classifies transactions based on the type of entities involved: 1️⃣ Between Two SEZ Units Transactions between two SEZ units are treated as domestic and do not require FEMA compliance. Payments can be settled in Indian Rupees (INR) or foreign currency. 2️⃣ Between SEZ and Non-SEZ Units Any transaction with a non-SEZ unit is considered a cross-border transaction. FEMA compliance is mandatory for export/import between SEZ and non-SEZ entities. Payments must be made in freely convertible foreign currency unless specified otherwise. Non-SEZ units must adhere to customs duties for goods/services procured from SEZ units. 3️⃣ Between SEZ and Foreign Companies SEZs enjoy flexibility in transacting with foreign entities under FEMA. Exports to foreign companies are duty-free and can be made in freely convertible foreign currencies. However, FEMA restricts certain transactions like the export of prohibited goods or services. SEZ units can also receive FDI under the automatic route, subject to sectoral caps and guidelines. 3) Key Restrictions Under FEMA ✔️ Prohibited Transactions: Export of goods or services listed as prohibited under India’s trade policy. ✔️ Inbound Restrictions: Import of restricted items into SEZs requires approvals and compliance with FEMA guidelines. ✔️ Financial Transactions: Transactions such as payments for royalties, technical know-how fees, or interest must meet FEMA limits and approval requirements. ✔️ Transfer of Goods: Transactions between SEZ and Domestic Tariff Area (DTA) require customs clearance. ☕ SEZs are not just zones—they’re opportunities. They’re where businesses dream big, collaborate freely, and expand globally For those operating in SEZs or considering entering this world, remember: know the rules, play by them, and watch your business flourish Have you encountered any challenges navigating FEMA regulations in SEZs? I would love to hear your thoughts! #Banking #FEMA #SEZ #India #Compliance #InternationalTrade

They thought they had no choice. That’s why they almost gave in. I was in the room when it happened. A client (let’s call them Pollocks Pipelay) had been working with the same supplier for years. Solid relationship, reliable service. But one day, the supplier walked in and said: "𝙒𝙚’𝙧𝙚 𝙞𝙣𝙘𝙧𝙚𝙖𝙨𝙞𝙣𝙜 𝙥𝙧𝙞𝙘𝙚𝙨 𝙗𝙮 𝟯𝟬%. 𝙉𝙤𝙣-𝙣𝙚𝙜𝙤𝙩𝙞𝙖𝙗𝙡𝙚." Immediate silence and panic. They needed this supplier - They started calculating how to absorb the cost - There was no backup - No safety net Then I asked the team: "𝙒𝙝𝙖𝙩 𝙝𝙖𝙥𝙥𝙚𝙣𝙨 𝙞𝙛 𝙮𝙤𝙪 𝙬𝙖𝙡𝙠?" Nobody had an answer! I aimed to shift their view from fear to power Most negotiators consider a Fallback Plan (BATNA) a concept The best negotiators 𝙬𝙚𝙖𝙥𝙤𝙣𝙞𝙨𝙚 it. - We took a step back - We mapped the fundamental alternatives - We found a smaller but reliable European supplier Was it perfect? No Was it good enough to remove the fear of walking away? Absolutely At the next meeting, Pollocks Pipelay didn’t beg for a price adjustment Instead, they confidently said: "𝙒𝙚’𝙧𝙚 𝙬𝙚𝙞𝙜𝙝𝙞𝙣𝙜 𝙤𝙪𝙧 𝙤𝙥𝙩𝙞𝙤𝙣𝙨, 𝙗𝙪𝙩 𝙬𝙚 𝙬𝙖𝙣𝙩 𝙩𝙤 𝙢𝙖𝙠𝙚 𝙩𝙝𝙞𝙨 𝙬𝙤𝙧𝙠" You should have seen the supplier’s face The power dynamic instantly flipped: - Pollocks Pipelay secured better payment terms - The supplier dropped their price increase entirely - They knew they’d never be backed into a corner again I see this mistake constantly. Smart professionals walking into negotiations without a strategic fallback plan → 85% of negotiators lack a strong fallback plan →Those who anchor first with a solid BATNA secure deals 26% closer to their goals →Having a fallback plan reduces bad deals by 40% while preserving relationships Yet so many people still fear walking away. Make your Fallback Plan your power move 1️⃣ Before the negotiation: Identify at least two real alternatives. Don’t rely on assumptions. Map your ZOPA (Zone of Possible Agreement). Study their BATNA—what are their options if you walk? 2️⃣ During the negotiation: Signal strength (“We’re weighing options, but I’d like to find common ground”) Stay flexible—adjust if new information emerges. 3️⃣ After the negotiation: Document what worked. Refine your BATNA for next time. The Best Negotiators Don’t Fear Walking Away—𝗧𝗵𝗲𝘆 𝗙𝗲𝗮𝗿 𝗦𝗲𝘁𝘁𝗹𝗶𝗻𝗴 𝗳𝗼𝗿 𝗟𝗲𝘀𝘀. Don't be aggressive in negotiations. Just know your worth and your options. Think about your negotiations. Do you have a Fallback Plan? Or just hope for the best? Have you ever been in a deal where you felt trapped but found a way out? Or maybe you’ve walked away, and later realized it was the best move you could’ve made? Drop your story in the comments. Let’s talk about how having (or not having) a fallback plan (BATNA) changed your outcome.

The hidden cost of saying 'yes' too quickly in negotiations: Around the time I started my business, I had a procurement call for a major contract. I was excited and wanted to get the deal done. But I fell into the trap of one concession after another: - First they wanted to pay less….”errr ok, I guess” - Then payment terms had to be changed…”don’t really want to, but if we must” - Then delivery times..."oh fine then!" At the end, I'd changed everything without really understanding how or why. I felt outmanoeuvred and wasn't as excited as I should have been about this new deal. The pressure to move quickly is intense - particularly in tech. But when it comes to negotiations—whether for a new role or a partnership—maybe we should slow things down. This is how I'd approach that same conversation now: 1. 𝗗𝗲𝗳𝗶𝗻𝗲 𝘆𝗼𝘂𝗿 𝗰𝗿𝗶𝘁𝗲𝗿𝗶𝗮 𝗰𝗼𝗺𝗽𝗿𝗲𝗵𝗲𝗻𝘀𝗶𝘃𝗲𝗹𝘆 𝗯𝗲𝗳𝗼𝗿𝗲 𝗲𝗻𝘁𝗲𝗿𝗶𝗻𝗴 𝗱𝗶𝘀𝗰𝘂𝘀𝘀𝗶𝗼𝗻𝘀. What are your true priorities? What's genuinely non-negotiable? 2. 𝗔𝘀𝗸 𝗽𝗿𝗼𝗯𝗶𝗻𝗴 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻𝘀 𝗮𝗻𝗱 𝗿𝗲𝘀𝗶𝘀𝘁 𝘁𝗵𝗲 𝘂𝗿𝗴𝗲 𝘁𝗼 𝗮𝗴𝗿𝗲𝗲 𝗶𝗺𝗺𝗲𝗱𝗶𝗮𝘁𝗲𝗹𝘆. A simple "Let's circle back to that" can be your most powerful tool. 3. 𝗚𝗲𝗻𝗲𝗿𝗮𝘁𝗲 𝗺𝘂𝗹𝘁𝗶𝗽𝗹𝗲 𝘀𝗰𝗲𝗻𝗮𝗿𝗶𝗼𝘀. The best deals often emerge from creative problem-solving, not binary choices. 4. 𝗖𝗼𝗺𝗺𝗶𝘁 𝗼𝗻𝗹𝘆 𝘄𝗵𝗲𝗻 𝘆𝗼𝘂'𝗿𝗲 𝗴𝗲𝗻𝘂𝗶𝗻𝗲𝗹𝘆 𝘀𝗮𝘁𝗶𝘀𝗳𝗶𝗲𝗱 𝘄𝗶𝘁𝗵 𝘁𝗵𝗲 𝗼𝘃𝗲𝗿𝗮𝗹𝗹 𝗽𝗮𝗰𝗸𝗮𝗴𝗲. 5. 𝗕𝗲 𝗽𝗿𝗲𝗽𝗮𝗿𝗲𝗱 𝘁𝗼 𝘄𝗮𝗹𝗸 𝗮𝘄𝗮𝘆. Knowing your worth and sticking to it is far better than accepting a sub-par deal. If you're negotiating a job, this approach is crucial! Cheesy analogy, but negotiations are a bit like chess: it's not about winning every move—it's about securing the best overall position. What's your most valuable negotiation lesson from interviewing? #LinkedInNewsEurope

Most VCs think negotiation is about tactics. About the perfect one-liner. About playing hardball. → Wrong. Negotiation is “strategy, not spontaneity.” It’s about: - Knowing the value of what you bring to the table - Reading the room before anyone says a word - Winning trust while securing terms that matter Here’s the framework to change that: 1️⃣ Know Your BATNA (Best Alternative to a Negotiated Agreement): → Before stepping into the room, map out: - The worst deal you can accept. - Your fallback options. Why? Because the side with the best alternative always has more leverage. 2️⃣ Research Like Your Deal Depends On It (It Does): → Dive deep into: - What the other party values most (not always money). - Their constraints, needs, and goals. - Use this to frame your pitch as their solution – not a favor. 3️⃣ Start With Questions, Not Offers: → Ask, don’t assume: - What are their non-negotiables? - What challenges are they trying to solve? -Great negotiators listen more than they talk. Why? - The more you understand, the more power you have. 4️⃣ Anchor High – But Stay Flexible: → Set the tone with a strong opening offer. -But always leave room for collaboration. - A rigid stance kills deals faster than a bad offer. 5️⃣ Use Silence as a Tool: → Say your piece – then pause. - Silence creates tension and forces the other side to fill the gap. - Often, that’s where the real value lies. 6️⃣ Focus on the “Win-Win” (But Don’t Lose Sight of the Math): → It’s not just about closing the deal. → It’s about securing terms that work ‘today and 5 years from now.’ Negotiation isn’t luck. It’s a system. Thoughts? #startups #negotiation #deals #capital

#Tradeupdate India-UK Free Trade Agreement (FTA) Talks Resume — What It Means for Indian Businesses & Exporters After a pause of over eight months, India and the UK have officially resumed negotiations on their much-anticipated Free Trade Agreement (FTA). This marks a critical milestone in India's ongoing strategy to strengthen trade partnerships with key Western economies. As someone deeply involved in international trade advisory and export logistics, I’ve been closely tracking this development — and it holds considerable implications for Indian exporters, manufacturers, and professionals. So, what exactly is an FTA? A Free Trade Agreement is a pact between two or more countries to reduce or remove import duties and non-tariff barriers on a majority of traded goods and services. This creates better market access, enhanced price competitiveness, and smoother trade operations. What’s on the table in this India-UK FTA? Key Indian export sectors set to benefit: Textiles & Apparel Footwear, Carpets & Leather Goods Marine Products Automobiles Fresh produce like Grapes & Mangoes Select processed foods For the UK: Lower tariffs on Scotch whisky, wines, electric vehicles, confectionery Greater market access in India for services like telecom, financial services, legal services, and education Improved investment protection mechanisms Why this matters: Currently, over 50% of Indian exports to the UK already enjoy low or zero tariffs, but with this FTA, remaining high-duty items can gain better access, especially in textiles, automotive, agri-exports, and FMCG. At the same time, India is negotiating for greater mobility for Indian students and professionals, and market access for select goods — a significant move for our growing services economy. For businesses engaged in global trade, this agreement can offer: New market entry opportunities Improved export margins through lower tariffs Diversified export destinations reducing market dependency Protection of investments through the proposed Bilateral Investment Treaty (BIT) My Take as an International Trade Professional: India’s gradual shift from ASEAN-centric FTAs to engaging Western markets like the UK, EU, and potentially the US reflects our larger ambition of integrating into high-value global value chains. Businesses — especially in textiles, processed food, automotive, marine, and services — should start aligning their export strategies now, identify product categories that stand to gain, and prepare operationally for when this agreement comes into force. If you’re an exporter, importer, or international trader — now is the time to explore how this upcoming FTA could reshape your opportunities in the UK market. Interested in understanding how this impacts your business or trade strategy? Let’s connect. I’d be happy to exchange insights or assist with custom advisory for your product lines. #mahavirlogistics #internationaltradeconsultancy #importsexports

Can you reduce terms with #Amazon in your upcoming vendor negotiation? ✅ Yes, you can. ✋ 𝗕𝘂𝘁 𝗼𝗻𝗹𝘆 𝗶𝗳 𝘆𝗼𝘂 𝗰𝗮𝗻 𝗯𝗿𝗶𝗱𝗴𝗲 𝘁𝗵𝗲 𝘀𝘂𝗯𝘀𝗲𝗾𝘂𝗲𝗻𝘁 𝗡𝗲𝘁 𝗣𝗣𝗠 𝗶𝗺𝗽𝗮𝗰𝘁. That's because your Vendor Manager is targeted on this key margin metric. So instead of cutting down investments and risking Amazon to stop ordering on your account … … make sure you prepare your game plan. You can bridge the resulting Net PPM impact by: 𝟭- 𝗗𝗿𝗶𝘃𝗶𝗻𝗴 𝘆𝗼𝘂𝗿 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝗺𝗶𝘅 When you activate products through advertising or price promotions, you are likely not only stimulating growth. Instead, you're also driving an impact to your overall account Net PPM. So if you can reliably sell more of your margin-accretive items, this net margin benefit allows your teams to position a reduction in trade terms to your Vendor Manager. 𝟮- 𝗟𝗮𝘂𝗻𝗰𝗵𝗶𝗻𝗴 𝗹𝗼𝗴𝗶𝘀𝘁𝗶𝗰𝘀 𝗶𝗻𝗶𝘁𝗶𝗮𝘁𝗶𝘃𝗲𝘀 Reducing the cost along your shared supply chain with Amazon is another way to reduce trade terms. While Vendor Managers ask for investment in logistics initiatives by default, your teams need to pause and evaluate which side is actually saving costs. For example, setting up a Vendor Flex or Direct Fulfilment node should almost always be compensated through 1) an increase in cost prices, or 2) a reduction in trade terms. This is because you, as the vendor, bear a greater share of the variable handling costs that Amazon saves because it does not inbound the items in its warehouses. 𝟯- 𝑰𝒎𝒑𝒓𝒐𝒗𝒊𝒏𝒈 𝒚𝒐𝒖𝒓 𝗽𝗿𝗶𝗰𝗲-𝗽𝗮𝗰𝗸 𝗮𝗿𝗰𝗵𝗶𝘁𝗲𝗰𝘁𝘂𝗿𝗲 This point is particularly important for CPG brands: If your product portfolio includes many low-ASP items, your Amazon buyer must command higher trade terms to offset the cost of handling and shipping these items to end customers. So if you launch SIOC/FFP-eligible products or introduce new value bundles at higher price points, you can ask for a reduced trade investment in exchange for listing these items on Amazon. --- What other ways can you think of to reduce your terms with Amazon? Let me know in the comments! #amazonvendor #amazonstrategy