Calculate your Net Pure Profit Margin — the primary profitability metric Amazon uses to evaluate vendor bottom-line performance.
Contra-COGS / co-op / trade investment paid back to you by Amazon ($). This is added to your margin.
Any promotional or negotiated price discount deducted from your selling price ($).
The Net PPM (also referred to as Procurement Margin) is the main profitability metric that Amazon refers to when evaluating a vendor's bottom-line performance. It considers the average selling price, cost price, and trading terms (Contra-COGS) to determine profitability.
Average price Amazon sells your product for, excluding VAT.
Contra-COGS / co-op investments Amazon pays back — increases your margin.
Deducted when customers receive a discount on the Buy Box price, reported in Vendor Central.
There is no single benchmark — margins differ by category. Vendor Managers typically target min. 45% in Hardlines and 40% in Consumables. The closer you are to these, the lower the margin pressure from Amazon.
| Product Family | Avg. Net PPM% |
|---|---|
| Hardlines | 44–48% |
| Softlines | 36–42% |
| Consumables | 35–40% |