Calculate your Net Pure Profit Margin — the primary profitability metric Amazon uses to evaluate vendor bottom-line performance.
Sum of Contra-COGS / co-op terms (Damage Allowance, Marketing Allowance, Freight Allowance, etc.) expressed as a percentage of cost price.
One-off Contra-COGS investments not captured in your % trade terms (e.g. ad-hoc rebates).
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.
Total Contra-COGS rebate paid by vendor to Amazon, expressed as a % of cost.
One-off Contra-COGS items not captured in the % trade terms.
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% |