The Complete Guide for Consumer Brands on the Cost to Serve Amazon

A man and a woman looking at a tablet in their kitchen. The woman holds a credit card.

As more business shifts to eCommerce marketplace platforms for consumer brands, understanding the cost to serve each marketplace is critical. What’s more, knowing how to drive efficiencies in each of these areas is key to maintaining profitability of this fast-growing channel.

To many consumer brand manufacturers, building an Amazon Profit & Loss statement (P&L) can be daunting. While you may have strong command of your negotiated coop terms and advertising costs, continuous asks from Amazon throughout the year, unexpected fees in the form or chargebacks or shortages, and other costs, such as Amazon-specific hard bundling or prep may be more challenging to not only track, but minimize.

Ideoclick has worked with thousands of brands to help them properly understand, negotiate, AND minimize costs to ensure a thriving, sustainable ecommerce marketplaces business. Below is a comprehensive look at our findings.

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About Andrea Leigh

Andrea a nationally known thinker, writer, and speaker on retail transformation, digital marketing, and ecommerce strategy, Amazon and beyond. She comes to Ideoclick from Andrea K. Leigh Consulting, a firm she founded to advise brands on strategies. This former senior executive at Amazon led 15+ product categories, helped launch Amazon’s automated pricing system and CRaP programs, and ran Amazon Prime for Amazon Canada.

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