Amazon Net PPM Calculator
Calculate your Net Pure Profit Margin (Net PPM) to measure and optimize your Amazon product profitability
Understanding Net PPM
Net Pure Profit Margin (Net PPM) is a key metric for Amazon sellers that measures the actual profit margin after accounting for all costs and investments. It's calculated by dividing net profit by sales price and expressing it as a percentage.
Formula: Net PPM = ((Sales Price - Cost Price + Trade Investment - Sales Discount - Additional Terms) / Sales Price) * 100
Net PPM Benchmarks
Below 10%: Poor performance
10% - 20%: Average performance
Above 20%: Excellent performance
Tips to Improve Net PPM
- Optimize your product pricing strategy
- Reduce product costs through better sourcing
- Minimize sales discounts and promotions
- Optimize trade investments and marketing spend
- Monitor and reduce additional costs