VGP
What is VGP?
VGP is a core component of Amazon’s AVS (Amazon Vendor Services) programme.
It provides vendors with a clear roadmap of the metrics and actions needed to unlock better performance and accelerate sales.
The plan is customised for each vendor and normally includes a combination of:
- retail fundamentals
- content optimisation
- supply chain improvements
- advertising strategy
- promotional planning
- catalog expansion opportunities
Common metrics included in a VGP:
- in stock rate
- lost buy box rate
- glance view share
- conversion rate
- traffic growth benchmarks
- chargeback and shortage reduction
- PO confirmation rate (VCR)
- STR (sell through rate)
- ASP or margin improvements
- advertising ACOS/ROAS goals
How VGP is used:
- reviewed monthly or quarterly with vendors
- forms the basis for AVS performance discussions
- measures progress against target KPIs
- highlights actions needed by both Amazon and the vendor
- used to justify budget allocation for ads or promotions
Benefits for vendors:
- clarity on what Amazon expects and prioritises
- structured guidance from the AVS specialist
- better alignment with Amazon’s retail strategy
- more predictable growth and improved operational health
- increased likelihood of PO growth and feature placements
Benefits for Amazon:
- improved retail readiness across vendor catalogs
- stronger customer experience
- higher in stock availability
- more efficient supply chain
- increased category performance
Example:
A vendor with low in stock rates and weak content receives a VGP outlining improvements such as raising in stock to 95 percent, fixing PDP images, running Sponsored Products campaigns, and reducing shortages by 20 percent.
Why It Matters:
A VGP provides a clear, actionable plan for improving a vendor’s overall performance and reinforcing Amazon’s retail standards, making it a central tool in AVS partnerships.
In short:
VGP (Vendor Growth Plan) is a strategic improvement plan created by the AVS Brand Specialist to guide a vendor’s retail, operational, and marketing performance on Amazon.
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