CSA

A Cost Support Agreement (CSA) is a formal arrangement in which a vendor provides Amazon with financial compensation - typically to offset costs, support promotions, or ensure margins are protected when prices are reduced. It is commonly used in 1P (first-party) Vendor Central relationships.

Examples of when CSA may apply:

• To support promotional discounts: Vendors agree to cover part of the discount during a sale (e.g., Prime Day).
• To maintain Buy Box competitiveness: Vendors may offer a CSA to help Amazon price-match against competitors.
• To prevent CRAP-outs (Cannot Realize Any Profit): Vendors may apply CSA to keep products profitable and avoid delisting.

Key characteristics:

• Typically negotiated during annual vendor negotiations (AVN)
• May be set as a fixed dollar amount or percentage per unit
• Often tracked and invoiced automatically through Amazon systems

💡 Example: If Amazon wants to lower the retail price of a product from $20 to $17, but this makes the item unprofitable, the vendor may agree to a CSA of $3 per unit to make up the difference.

In short:
CSA = Cost Support Agreement - a funding agreement where vendors help Amazon maintain profitability, especially during promotions or price reductions.