The Biggest Amazon Vendor Challenges Key Account Managers Must Prepare for in 2026

BLOG: Retail

4 Min Read | November | BY Teresa Heller

Same Challenges, Different Realities for Amazon Vendors in 2026

What connects one of Germany’s most traditional metal goods manufacturers, Alberts, with one of the world’s largest beverage brands, Coca Cola? At first glance, almost nothing. Their categories, business models and consumer realities could not be more different. Yet they share one fundamental challenge: navigating the increasingly complex world of e-commerce, especially as Amazon Vendors.

At the ASK Nordkurve 2025, I had the pleasure of listening to a highly insightful panel on vendor negotiations and margins. Marcel Hofmann (National Key Account Manager E-Commerce) from Coca Cola, René Groll (Chief Digital Officer) from Alberts and Miguel A. Strobel (Founder) from Watersky Digital shared their experiences and expertise on these topics, as well as highlighting pressures that transcend categories. Their perspectives revealed clear patterns around D2C expectations, profitability requirements for 2026 and the growing operational demands of Amazon.

The discussion surfaced several themes that will define where brands need to focus their efforts in the coming year. Here are their key takeaways:

E-Commerce varies by category, but pressure is rising everywhere

In categories like DIY and garden, the online share is still relatively low, but it is rising steadily and opening up new potential. This growth, however, exposes profitability challenges that are structurally embedded in the category. Bulky products remain costly to ship and difficult to handle within omnichannel logistics, which forces brands to constantly reassess their models.

FMCG sits at a much earlier stage of the curve, with e-commerce contributing only a small share of overall sales. Nevertheless, the segment has doubled in online penetration over the past five years. Markets such as the UK and the Netherlands demonstrate how much headroom still exists. Faster delivery, smaller and more convenient formats and the arrival of platforms like Temu are accelerating expectations in this space.

In the broader retail environment, a large portion of German commerce already takes place online. The pressure here is shifting from growth to profitability. Emerging formats like social commerce, entertainment-driven commerce and AI-driven commerce are introducing new variables and challenging established models.

Amazon Vendor negotiations now require year-round preparation

Negotiations no longer follow an annual rhythm, which means that before the negotiation is after the negotiation. They now resemble continuous performance management. Brands monitor logistics efficiency, internal margins, media effectiveness, operational accuracy and Amazon’s changing commercial structure throughout the year. Remaining relevant throughout the entire year is essential, and the recommendation from the panel was clear: expectations should move in both directions.

Some companies even operate without a dedicated Amazon Vendor Manager and instead rely on internal preparation, data discipline and scenario modelling. Others maintain traditional structures but still treat negotiations as an ongoing discussion rather than a single checkpoint.

Hybrid readiness has become a strategic requirement. Even brands deeply rooted in the Vendor model keep Seller capabilities available to protect operational continuity and maintain flexibility when Amazon’s terms shift.

Profitability has become the central decision filter

Profitability is now the primary criterion for assessing Amazon strategy. Brands evaluate their portfolios continuously, looking at profitability metrics from both their own perspective and Amazon’s. If an item cannot be made profitable, companies introduce Seller bundles, adjust logistics classifications or remove the item from direct sales entirely and let third party sellers cover demand.

Many organisations are moving away from looking only at how much they sell and are instead paying more attention to how much money they actually earn from each product. They look at how much is left after all important costs are paid, not just the top line sales number. This way, teams can make smarter decisions that might lower sales in the short term but make the business healthier and more profitable over time.

D2C strategies require realistic expectations

D2C can work well when brands sell products that only they can offer, for example through unique barcodes or specific product bundles. Using smart tools that automatically set the right price also helps. Some brands mix D2C with their Amazon business and use this approach only for certain products where it makes the most sense.

But problems start when expectations are too high. A D2C shop cannot handle the same sales volume as Amazon’s Vendor or Seller model. It also needs strong logistics, clear cost structures, good prices and ongoing advertising to attract customers. If these basics are missing, D2C costs more money than it brings in.

Buy Box dynamics reveal deeper channel conflicts

The Buy Box remains a fragile yet critical component of visibility and growth for everyone. Several participants described the challenge of listings with dozens of competing sellers, some operating from markets with different regulatory or cost structures. These dynamics not only affect the Buy Box but also diminish the ability to advertise and maintain ranking, which can quickly cascade into broader performance issues.

In FMCG, cross border discrepancies have become especially visible. Deposit free products from outside Germany have entered the Buy Box at lower price points, creating customer confusion and pushing legitimate sellers into an uncompetitive position. This often requires direct dialogue with Amazon to restore stability.

A fundamental mindset shift is underway

Success on Amazon increasingly depends on treating the platform not as a negotiating opponent but as a data driven system that rewards structure, clarity and measurable performance. Brands must balance operational discipline with the courage to challenge Amazon when needed. At the same time, they must avoid over dependence and treat diversification as a strategic constant.

The Road Ahead for Vendors on Amazon in 2026

The organisations that will win in 2026 are those that connect marketplace management with controlling, prepare for hybrid flexibility and place profitability at the centre of every major decision. It was eye opening to see that, even though the products and categories are so different, all of these organisations are facing very similar challenges. This shared reality is what brings them together. At the ASK Nordkurve, it was refreshing to see experts from completely different sectors discuss their experiences on equal footing and openly share their best practices.

Realising that everyone is dealing with comparable issues creates a sense of clarity and reassurance. It shows that, in the end, we are all in the same boat and can learn a great deal from each other.

I am already looking forward to what comes next and would like to give a huge thank you to the speakers for sharing their insights.

About the author

Teresa Heller

Teresa joined CATAPULT in 2025 as a Junior Marketing & Business Development Manager, supporting content production and marketing. She brings e-commerce insights to life through stories that deepen clarity and strengthen brand understanding.