CoOp Operations

CoOp Operations encompass the comprehensive management of Cooperative Advertising (CoOp) activities within Amazon Vendor Central. Also known as Contra CoGS (Cost of Goods Sold), these operations facilitate collaboration between Amazon and vendors for product promotion, brand awareness, and traffic generation while also addressing operational costs such as freight and damaged goods.

Agreement Management

CoOp Agreements: Marketing and promotion collaboration agreements between Amazon and vendors that outline how costs for promotions, advertising, and other marketing activities are shared. These agreements are critical for structuring shared marketing responsibilities and ensuring clarity in vendor partnerships.

• Access and Management: Vendors manage CoOp agreements by navigating to Settings > Agreements in Vendor Central, where agreements are listed as Accepted, Rejected, or Pending
• Terms and Conditions: Vendors can review standard terms and conditions associated with each agreement
• Legal Authority: Vendors must have legal authority to accept or reject agreements on behalf of their company. Once accepted, agreements cannot be rejected
• Agreement Types: Include damage and freight allowances, accumulated monthly against net receipts at fulfillment centers, excluding price protection and straight payment agreements
• Admin Permissions: Agreement acceptance authority can be verified under “Manage Permissions” where authorized admins can accept or deny agreements

Invoice Management

CoOp Invoices: Financial documents that allow vendors to review invoice totals, details, and manage financial reconciliation within Vendor Central.

• Viewing and Access: Accessible through Payments > CoOp in Vendor Central, displaying invoice totals and detailed breakdowns
• Export Capabilities: Invoices can be exported to spreadsheets over a 90-day period for external analysis
• Backup Reports: Detailed billing verification reports available for most agreement types, downloadable by the seventh day of each month. Reports include ASIN, manufacturer, promotion details, and other verification data
• Discrepancies: May occur between invoices and shipments due to differences in received records over a calendar month, affecting total amounts due
• Documentation: Admin representatives have access to original invoice documents necessary for payment processing, with Amazon distributing these monthly to billing addresses specified in agreements

Dispute Resolution

CoOp Dispute Management: Comprehensive system for addressing and resolving discrepancies in CoOp transactions and balances.

Dispute Submission Process:

1. Access Methods:

   • From CoOp Page: Navigate to Payments > CoOp, select the respective invoice, and choose ‘Dispute deductions’
   • From Dispute Management: Go to Payments > Dispute Management, click ‘Create new dispute’, select ‘CoOp’, and enter the invoice number

2. Three-Step Creation Process:

   • Step 1: Select dispute reason and enter dispute amount, then continue
   • Step 2: Provide dispute title and summary with justification, upload supporting documents
   • Step 3: Review details and submit for processing; a Dispute ID is assigned for tracking

Purpose and Benefits: Ensures incorrect charges or discrepancies are addressed promptly, allowing vendors to contest deductions and seek adjustments to financial records. Regular review of CoOp balances helps identify potential issues early.

Payment Processing

CoOp Payments: Specific transactions where vendors pay Amazon for cooperative advertising contributions and related services.

Payment Requirements:

• Bank Details: Vendors must use designated Contra CoGS bank accounts, which vary by country
• Currency Compliance: Payments must be made in the exact currency stated on the invoice
• Invoice References: Correct invoice numbers must be provided, or payment remittance advice sent to designated email addresses
• Precision: Paying the exact amount listed is crucial to avoid processing discrepancies
• Digital Vendors: Special procedures apply to digital vendors (except digital video), with separate account requirements

Account Management: Vendors must verify that accounts payable ledgers display correct Contra CoGS bank accounts to ensure accurate payment application.

Financial Management

Balance Management: CoOp operations involve complex financial reconciliation including debit balances that emerge when payables exceed receivables, requiring vendors to settle balances accordingly.

Reconciliation Process: Involves aligning calculated amounts with billing estimates and ensuring compliance with specific agreement terms and conditions.

Reporting and Verification

Backup Reports: Detailed billing verification documents available for download from invoice search results, excluding price protection and straight payment agreements. Reports are not available for lump sum or estimated reconciliation agreements.

Verification Guidelines: Vendors are advised to use ASIN instead of product IDs for accurate verification purposes when reviewing backup reports and payment details.

Common Issues and Resolution

CoOp Issues in Vendor Central: Challenges vendors encounter when managing cooperative advertising agreements, requiring proper handling of invoices and financial claims.

Key Issue Areas:

• Invoice Verification: Using invoice IDs, agreement numbers, or date ranges to access documentation and selecting “Backup report” for detailed records
• Price Protection: Automatic agreements triggered by ASIN price drops, reviewable under “Accepted/Rejected” in the Agreements section
• Audit Notifications: RSS audits by Amazon’s team check for erroneously excluded balances from accruals in vendor accounts or business segments

Best Practices: Regular monitoring of agreements, prompt dispute submission for discrepancies, accurate payment processing, and proactive review of backup reports ensure smooth CoOp operations and financial accuracy.