CPI

A Cost Price Increase (CPI) is initiated by vendors when their production, shipping, or operational costs rise - and they seek to adjust the price Amazon pays for their goods accordingly.

On Amazon’s Vendor Central, this process typically involves:

• Submitting a CPI form or cost change request
• Providing justification (e.g. raw material inflation, logistics cost increase)
• Receiving approval from Amazon before new prices are applied

Key details:

• CPI applies to 1P relationships (vendors selling directly to Amazon)
• Amazon may negotiate or reject the CPI if not justified
• Delays or denials can impact vendor margins significantly

Why it matters:
 Understanding how to submit and negotiate a CPI is crucial for maintaining profitability as a vendor. It’s often a part of AVN (Annual Vendor Negotiation) cycles, but can also be submitted outside of them when necessary.

💡 Example:
A vendor selling protein bars notices a rise in ingredient costs. They submit a CPI to Amazon requesting a 5% increase in their wholesale price per unit.

In short:
CPI allows vendors to request higher cost prices from Amazon due to increased expenses - essential for sustaining margins in a 1P partnership.