Model the impact of Amazon deals (Prime Day, Lightning Deals, Best Deals) on your Net PPM — and see exactly how much funding you need to hit dollar or percentage parity.
The vendor funding required per unit — and in total across forecast units — to restore baseline profitability under the deal.
Restores the same profit-per-unit as before the discount.
Restores the same margin % as before the discount (cheaper for the vendor).
When Amazon runs a promotion, the deal price reduces the ASP — but your cost stays the same, so absolute profit per unit falls by the full discount amount, and the margin percentage falls even faster because you're measuring a smaller profit against a lower price.
Vendor funds the entire discount — profit per unit stays flat, but you sell more units, so total profit still grows.
Vendor funds just enough to hold the Net PPM% flat. Cheaper than $ parity, and usually what Amazon accepts in deal negotiations.
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