VIP

VIP is part of Amazon’s structured approach to improving vendor performance in the 1P model.
 While the Vendor Growth Plan (VGP) focuses on growth opportunities, a VIP is more diagnostic and corrective, targeting weak areas that negatively impact customer experience or Amazon’s operational efficiency.

It outlines the specific KPIs where the vendor is underperforming and provides actions required to bring those metrics back to acceptable levels.

Typical KPIs included in a VIP:

• low in stock rate
• high OOS or SoROOS levels
• poor VCR (Vendor Confirmation Rate)
• persistent chargebacks or shortages
• catalogue defects (variation issues, wrong attributes, listing gaps)
• poor STR (Sell Through Rate)
• high CRaP risk
• weak PDP content quality
• slow lead times or recurrent delays in ship window compliance

Purpose of a VIP:

• highlight operational inefficiencies
• correct recurring issues impacting Amazon’s retail model
• protect customer experience
• stabilise vendor performance before scaling growth
• improve vendor scorecard results

How the VIP process works:

• AVS or the Amazon retail team identifies underperforming areas
• A structured improvement plan is created
• Vendor and Amazon align on timelines and corrective actions
• Progress is monitored in weekly or monthly check ins
• Performance is re evaluated at the end of the cycle

Benefits for vendors:

• clear visibility into Amazon’s concerns and expectations
• structured steps to fix operational bottlenecks
• reduced penalties and disputes
• improved PO consistency
• higher trust with Amazon category managers

Benefits for Amazon:

• stronger customer experience
• improved fulfilment reliability
• fewer operational defects (shortages, chargebacks)
• more predictable supply chain performance

Example:
A vendor with chronic shortages and low confirmation rates receives a VIP outlining corrective steps: improve lead time accuracy, fix ASN issues, reduce shortages by 30 percent, and enhance packaging compliance.
Within three months, their operational metrics improve and PO volume stabilises.

Why It Matters:
A VIP is essential for vendors experiencing operational issues.
It ensures corrective action, protects the customer experience, and rebuilds trust with Amazon’s retail organisation.

In short:
VIP (Vendor Improvement Plan) is a corrective performance plan created by the AVS Brand Specialist to fix operational, retail, and catalogue issues that limit a vendor’s growth on Amazon.