MDF

Marketing Discretionary Funding (MDF), also known as the Marketing Development Fund, is a type of trade term used by Amazon Vendor Managers during Annual Vendor Negotiations (AVN). It’s a non-earmarked financial contribution that Amazon can use at its discretion to support marketing activities intended to drive sales for the vendor’s products.

Key characteristics of MDF:

• Flexible in nature - not tied to a specific campaign or timeline
• Can be used for promotions, on-site placements, email campaigns, or category support
• Usually calculated as a percentage of net cost or net shipped COGS
• Often included as part of a broader Joint Business Plan (JBP)
• Helps vendors secure visibility opportunities during key events (e.g., Prime Day, Q4 holidays)

Why MDF matters:

• Influences Amazon’s prioritization of your brand
• Can unlock marketing placements that wouldn’t be available otherwise
• Impacts profitability calculations and total cost-to-serve
• May overlap with other vendor terms like Coop, SVS/AVS fees, or Bonus Program Funding

💡 Example: A vendor agrees to a 3% MDF in their annual terms - Amazon later uses a portion of that to feature their brand in a holiday gift guide and category banner.

In short:
MDF is a flexible marketing fund provided by vendors during negotiations - giving Amazon the ability to support promotional efforts throughout the year without requiring pre-approval.