Co-op or Coop

In the Amazon ecosystem, Co-op marketing (sometimes called Automated Marketing) is primarily used by 1P vendors. It involves cost-sharing agreements, where Amazon promotes a brand’s products through various placements and advertising formats, and then deducts a percentage from the vendor’s payments to cover the costs.

These deductions are often automated and outlined during Annual Vendor Negotiations (AVN).

Common types of Co-op activities:

• Amazon-generated display ads
• Inclusion in category landing pages or seasonal campaigns
• On-site banners and carousels
• Email marketing placements
• Enhanced content features (A+ Content, Brand Stores)

How it works:

• Vendors agree to a Co-op % fee (e.g., 10% of wholesale revenue)
• Amazon executes marketing campaigns or placements automatically
• The cost is deducted from vendor remittances via Co-op deductions

Why it matters for vendors:

• Can increase visibility without manual ad setup
• Helps vendors access premium placements
• Often part of broader negotiations around terms and margins
• May reduce control and transparency over spend performance

💡 Example:
If your vendor agreement includes a 10% Co-op fee and you invoice Amazon $100,000, then $10,000 may be allocated to automated Amazon marketing activities.

In short:
Co-op is Amazon’s automatic marketing cost-share program with vendors - deducted from earnings to fund promotional campaigns that increase product visibility.