Amazon’s Approach to Vendor Profitability
Net PPM (Net Pure Product Margin) is one of the most poorly understood metrics in the Amazon vendor ecosystem – partly because of numerous, sometimes incorrect, definitions floating around. This limits all aspects of brand strategy: operations, GTM planning, and negotiations.
In this paper, we will clarify many aspects of Net PPM while sharing methods for expanding the utility of PPM data provided by Amazon through Retail Analytics, and provide strategies for making net PPM a key part of your business development process.
Understanding Net PPM: how the metric is calculated and why it matters
Working with margin data: translating PPM% into actuals for easier aggregation
Taking action on PPM-driven insights: ideas for leveraging insights to improve margin and your Amazon relationship.
