E-commerce
September 17, 2026
Are you wondering how retail media is shaking up your supplier relationships? In short, retail media turns suppliers into advertising clients, demanding transparency and results. For merchants, it is a revenue driver, but also a challenge: proving the effectiveness of your channels to retain these budgets.
So, how do you navigate this change? On the agenda:
Why does retail media shift the power balance with suppliers?
What is the difference between trade marketing budgets and retail media?
How to meet suppliers' performance expectations?
What are the concrete benefits for merchants who excel?
How does Qstomy help strengthen these partnerships?
Here we go.
Summary
Why is retail media a game-changer with suppliers?
Retail media is the sale of advertising space on your own channels (website, publications, stores). For major merchants, it has become a major source of revenue. But this model has a side effect: it changes the relationship with suppliers. The latter, who were once simple commercial partners, become demanding advertising clients.
As Drew Cashmore, Strategy Director at Vantage, explains, "power dynamics have shifted." Suppliers are now comparing your offers to those of Google or Meta. They expect measurable results, precise reporting, and real performance. If you don't meet these expectations, they can move their budgets elsewhere.
For merchants, this is a challenge: you must prove that your channels are as effective as the alternatives. But it is also an opportunity to build stronger partnerships based on performance. By adopting a data-driven approach, you can demonstrate the added value of your spaces and retain suppliers over the long term.
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What is the difference between coop budgets and retail media?
Cooperative (co-op) budgets have been around for a long time. Suppliers pay retailers a rebate, usually 2 to 3% of the total purchase amount, to fund the advertising of their products. For example, a store that buys 1 million euros worth of products can receive 20,000 to 30,000 euros in advertising rebates.
With co-op, the retailer retains control: they decide how to spend these funds, and the supplier has little visibility over the results. It is a model that gives the advantage to the merchant.
Retail media is changing the game. Suppliers who buy advertising space demand transparency, campaign tracking, and proof of performance. They are no longer satisfied with a simple rebate; they want a measurable return on investment. This shift is pushing merchants to adopt a more professional approach to advertising, with appropriate measurement and reporting tools.
How has retail media evolved from co-op budgets?
Co-op budgets didn't create retail media, but they paved the way. Amazon started the movement in 2008 with its "Product Ads," followed by other e-commerce sites. Traditional retailers then saw an opportunity: to use co-op funds to finance their own advertising media.
For example, a retailer publishing a magazine can use co-op budgets to buy space in it. This is a form of retail media, even if it is not always formalized. Today, the definition is clearer: retail media is advertising sold by retailers on their own channels.
This shift is significant. It raises the expectations of suppliers, who now view retail media as a fully-fledged advertising channel, comparable to search or social media. For merchants, this is additional pressure to offer high-performance reporting and targeting tools, and to constantly innovate.
What are the supplier performance expectations?
With retail media, suppliers no longer want a simple advertising expense receipt. They want to know where their money is going, which campaigns are working, and what the impact is on sales. This demand for transparency is a major shift from the co-op model.
Suppliers compare your performance to that of digital giants. They expect detailed reports, key performance indicators (ROAS, CPC, conversions), and the ability to adjust their campaigns in real time. If you do not provide these tools, they can turn to other channels.
For merchants, this is a technical and organizational challenge. It requires setting up advertising management platforms, dashboards, and dedicated teams. But it is also an opportunity to position themselves as a strategic partner, not just a point of sale, by offering a clear and actionable vision of performance.
What is the performance dilemma for merchants?
The dilemma is simple: if you do not prove the value of your advertising channels, supplier budgets will disappear. As Drew Cashmore puts it, "the funds that were going into the retail space are going to go away, unless there is a mutually beneficial value."
Merchants must therefore act as advertising networks. They must provide reporting, analysis, and targeting tools comparable to what advertisers find on Google or Meta. Otherwise, they risk losing significant advertising revenue.
This dilemma is pushing merchants to invest in technologies and skills. But those who rise to the challenge can transform their retail media into a competitive advantage, offering suppliers a credible alternative to traditional platforms, and creating a stable and growing source of revenue.
What concrete benefits are there for merchants who excel?
Merchants who excel in retail media reap several benefits. First, incremental revenue: advertising generates high margins, with low additional costs once the platforms are in place. Second, an increase in sales: well-targeted campaigns boost products.
But most importantly, it is the supplier relationship. A high-performing retail media positions the merchant as a key growth partner. Suppliers are more loyal and allocate larger budgets. This creates a virtuous cycle: more advertising revenue, more sales, more data.
Finally, retail media offers valuable insights into purchasing behavior, category trends, and campaign performance. This data helps improve merchandising, pricing, and supplier negotiations, thereby strengthening your position in the market.
How does retail media strengthen supplier partnerships?
Successful retail media transforms the supplier relationship. Instead of a simple commercial exchange, you become a marketing partner. Suppliers see your channels as a way to achieve their sales goals, not just distribute their products.
This strategic partner position strengthens loyalty. Suppliers are more likely to increase their advertising budgets with you because they see concrete results. They are also more open to sharing data and collaborating on innovative campaigns.
For merchants, it is a competitive advantage. You no longer depend solely on product margins; you create an additional source of revenue while consolidating your business relationships. It is a virtuous cycle that benefits all parties and makes you more resilient to market fluctuations.
What are the risks of ignoring retail media?
Ignoring retail media means risking the loss of advertising revenue and weakening your supplier relationships. Suppliers are looking for high-performance channels; if they don't find the tools and transparency they expect from you, they will go elsewhere.
This can also weaken your competitive position. While other merchants develop robust retail media programs, you are left with traditional trade marketing budgets, which are less attractive. Your suppliers could reduce their investments with you.
Finally, without retail media, you lose valuable data on shopper behavior. These insights are essential for optimizing your offering, pricing, and campaigns. Ignoring them means giving up a major strategic advantage, and risking becoming obsolete in an increasingly competitive environment.
How to professionalize your retail media offering?
To succeed, you must act like an advertising network. This means offering reporting, analytics, and targeting tools comparable to those of digital platforms. Suppliers must be able to track their campaigns in real time and measure their impact.
Invest in an advertising management platform, or use existing solutions. Train your teams in digital advertising professions. Set up space sales, billing, and reporting processes.
The goal is to create a seamless experience for suppliers, from space booking to results analysis. The more professional you are, the more you will attract and retain advertising budgets, and the more you will be able to justify your rates to advertisers.
Which performance indicators should be tracked to convince suppliers?
To convince suppliers, you must track precise performance indicators. Return on ad spend (ROAS) is essential: it shows how many sales each euro of advertising generates. Cost per click (CPC) and conversion rate are also important.
Also track the advertising share of voice, meaning the share of impressions your ads capture compared to the competition. And measure the impact on incremental sales, which are the sales that would not have occurred without the advertising.
This data allows you to prove the value of your channels, but also to optimize your own campaigns. They are a powerful negotiation tool with suppliers, helping you justify your recommendations and continuously adjust your strategy.
How does Qstomy help strengthen these partnerships?
Qstomy, the Shopify AI agent, can help you get the most out of retail media. By analyzing customer conversations, Qstomy identifies recurring questions and needs. These insights allow you to create more relevant advertising campaigns that meet shopper expectations.
Qstomy also improves the shopping experience, which increases conversion and cart value. Higher sales make your advertising channels more attractive to suppliers. You can show them concrete results, thereby strengthening their confidence.
Finally, Qstomy automates order tracking and after-sales service, freeing up time to focus on your retail media strategy. A seamless customer experience builds shopper loyalty, which benefits your campaigns and supplier partnerships, and allows you to stand out sustainably.
In short, checklist and FAQ
At a glance
Retail media is a powerful lever, but it requires professionalising your advertising offer. Suppliers expect transparency, performance, and measurable results. Those who meet the challenge strengthen their relationships and create a sustainable source of revenue.
Checklist
Audit: assess your current channels and advertising capabilities.
Tools: set up a reporting and targeting platform.
Training: train your teams in digital advertising skills.
Offer: define clear advertising formats and rates.
Tracking: measure ROAS, CPC, and incremental sales.
FAQ
What is the difference between co-op and retail media? Co-op is an advertising discount, while retail media is the sale of space with performance expectations.
How can you convince suppliers? By providing detailed reports and proving the effectiveness of your channels.
Can Qstomy help? Yes, by improving conversion and providing customer insights.
To go further: How to drive traffic to an online shop (SEO, ads, social media)? - Qstomy, Integrating customer service answers into an e-commerce SEO strategy useful to customers - Qstomy, E-commerce SEO strategy for category pages - Qstomy, How to build an e-commerce Facebook Ads strategy? - Qstomy, Which platform to choose to sell digital products? - Qstomy, Does Texas levy a sales tax on online purchases? - Qstomy, E-commerce conversation analysis: understanding real customer questions - Qstomy.
Enzo
September 17, 2026
