Amazon Vendor Economics · Glossary

Net PPM

Updated September 5, 2026

Net PPM (Net Pure Product Margin) is Amazon's product-level profitability metric for the ASINs a 1P vendor sells through Vendor Central: what Amazon earns reselling your products, net of co-op and other trade-term deductions, before advertising, chargebacks, and payment-term costs. It sits under Reports, Retail Analytics, Net PPM, and it is the number your Vendor Manager quotes to you when discussing profitability, though not the one they are judged on.

Three things make it an estimate rather than an accounting fact, and none of them is a formula. It excludes shipping costs, which vary with item weight and dimensions. There is no Net PPM threshold at which a catalog becomes profitable or not; Amazon publishes none. And Amazon books the contra-COGS inside Net PPM at sale time from an estimate, not from your actual co-op billing, so fixed-dollar agreements with no ASIN assignment cannot allocate cleanly; one documented vendor case shows a $31M gap between dashboard Net PPM and the vendor's books. And in May 2025 Amazon removed the Sales Discount and Contra-COGS fields from Vendor Central, so any formula that still references them is stale.

Why it matters to a 1P vendor

Net PPM decides how much attention your ASINs get. A product whose Net PPM flatters the category earns purchase orders and support; one that drags it triggers cost-decrease requests, term increases, or CRaP status, where Amazon quietly stops reordering. Your Vendor Manager is judged on category profitability, and Net PPM is the closest thing to that score you are allowed to see.

Use it directionally: trend, ASIN ranking, and early warning of CRaP risk. For actual margin, reconcile your own deduction-adjusted P&L. The gap between the two is usually the co-op and chargeback leakage a Margin Recovery Audit quantifies, and the audit starts from the same Retail Analytics exports.