AVN - Amazon Glossary

Annual Vendor Negotiation (AVN) is a structured, yearly negotiation process between Amazon and its 1P (first-party) vendors, typically conducted through Vendor Managers or Retail Category Managers.

The AVN process covers a wide range of commercial and operational terms, including:

• Cost prices (COGS)
• Marketing contributions (e.g. Amazon Marketing Package, co-op spend)
• Logistics allowances
• Damage/return terms
• Payment terms (Net 30/60/90)
• Volume incentives or growth-based discounts
• Participation in promotions and events (Prime Day, Black Friday)
• Joint Business Plans (JBPs) and supply forecasts

AVNs usually happen:

• Once a year, often in Q4 for the following calendar year
• With Vendor Managers leading the negotiations
• Through Vendor Central, email exchanges, and planning calls

Why AVN matters:

• Determines your margins and cost structure for the year ahead
• Affects Amazon’s purchasing behavior and inventory planning
• Influences your visibility and marketing support on Amazon
• Vendors may be pressured to offer lower prices or more support in exchange for growth opportunities

⚠️ For many vendors, AVN is a high-stakes moment where negotiation skill and preparation can significantly impact profitability.

In short:

AVN = Amazon’s annual price and partnership negotiation with 1P vendors - it sets the tone for the entire business relationship in the coming year.