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hi everyone this is Andrea Leigh, Vice President of strategy and insights at Ideoclik and Im coming at you today to talk about margin guarantees. This is the question of the week - we have been getting a lot of questions from clients about margin guarantees Amazon has put some of them out in proposals to some of our clients and I wanted to share with you how were thinking about them and how you might think about them too. So first of all what is a margin guarantee? Its providing Amazon with a guaranteed amount of funding to hit a target PPM so if they, for example, say they need to hit a 50 net PPM or PPM on your products and they have to price match - that makes them fall short of that, you would owe them the difference. So its kind of like a true up co-op agreement and it protects them against any price matching they need to do for your products. So first a few questions to ask yourself when youre considering one of these agreements - you know assessing your level of risk will
