Vendor Central Net PPM Calculator
Welcome to the RootAMZ, Net PPM Calculator! With this free RootAMZ online calculator, you can promptly assess your Amazon Net Pure Profit Margin.Just enter the required information below & click “Calculate” for an instant overview of your Net PPM.
RootAMZ Net PPM Calculator
Your Net PPM Results
Industry Benchmarks
Understanding Net PPM
What is Net PPM?
Net PPM, or Net Pure Profit Margin, is a key profitability metric used by Amazon to assess a vendor’s overall performance. It factors in the average selling price, cost price & trading terms to evaluate product profitability.
Net PPM Formula
- For a Single ASIN:Net PPM=Average Selling Price−Cost Price+Vendor Terms−Sales Discount.
- For Your Vendor Account::Net PPM=Shipped Revenue−Shipped COGS+Vendor Terms−Sales Discount.
What is a Good Net PPM?
The ideal Net PPM varies by sector, with typical benchmarks generally defined as follows:
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- Hardlines:40-45%
- Softlines:30-37%
- Consumables:30-35%
Meeting these benchmarks can help reduce margin pressure from Amazon.
Why Might Your Net PPM Differ?
The Net PPM recorded in Vendor Central may not align with the figures provided by your Vendor Manager. Discrepancies can arise from:
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- Variations in data reporting timelines.
- Different levels of profitability assessment (manufacturer vs. sourcing).
Confirm the data’s periods & levels if you notice significant differences.
Understanding Sales Discounts
Promo Code Redemptions
Gift Card Promotions
Employee Discounts
Buy X, Get Y (BXGY)
Loyalty Points
Best Deals
Lightning Deals
Prime Day Spotlight Deals
Subscribe & Save Discounts
Accessing Sales Discounts &
Contra-COGS in Vendor Central
To find these metrics:
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- Navigate to Vendor Central >Retail Analytics >Net PPM.
- Click on “Customise Columns.”
- Select “Sales Discount” & “Contra-COGS,” then save.
Reminder: As of May 2025, Sales Discount & Contra-COGS data have been removed.
Get Your Net PPM Excel Calculator
Want a handy Excel calculator for your Net PPM?
Email Address: info@rootamz.com
