VM

 The Vendor Manager plays a central role in Amazon’s 1P (first-party) retail business model. Each VM typically manages a portfolio of vendors within a specific product category (e.g., Consumer Electronics, Home & Kitchen, Beauty). Their responsibilities span commercial negotiations, operational efficiency, and strategic growth planning:

Key Responsibilities:

• Commercial Negotiations: Setting trade terms, annual agreements (AVN), funding mechanisms (e.g., VIR, VFBD), and promotional support.
• Assortment Strategy: Deciding which new products and ASINs to list, delist, or prioritise within their category.
• Vendor Performance Management: Monitoring key metrics such as instock rates, lead times (VLT), PO confirmation, and defect rates.
• Promotions & Events: Coordinating vendor participation in major Amazon events (Prime Day, Black Friday, Cyber Monday).
• Category Growth: Working with vendors on growth initiatives such as launching Subscribe & Save, A+ Content, or international expansion.

Impact for Vendors:
The VM is the vendor’s primary business contact at Amazon for strategy and commercial discussions. Strong relationships with a Vendor Manager can unlock better visibility, higher purchase volumes, and opportunities in promotions. Conversely, poor vendor performance or weak negotiations may result in reduced support from the VM.

Example:
A Vendor Manager for the Kitchen Appliances category negotiates with a blender manufacturer to:

• Improve lead time from 14 to 10 days.
• Fund a Volume Incentive Rate (VIR) agreement.
• Launch three new SKUs ahead of Prime Day.
• Enrol top ASINs into the Vine programme for review generation.

By managing these levers, the VM ensures Amazon remains competitive in pricing and availability while the vendor benefits from stronger sales and category share.

In short:
Vendor Manager (VM) is Amazon’s category-level business owner who negotiates terms, drives growth initiatives, and manages vendor performance to deliver the best outcomes for customers and Amazon retail.