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By Martin Heubel ยท August 18, 2025 ยท Curated by George's Blog

Net PPM is the worst margin metric you can track with hashtag#Amazon. โœ‹๐ŸšฉThat's because it tracks what's not broken:- Cost Prices- Trade Terms- Average Selling PricesAnd still, Vendor Managers only want to discuss Net PPM targets.Why?๐—•๐—ฒ๐—ฐ๐—ฎ๐˜‚๐˜€๐—ฒ ๐˜๐—ต๐—ฒ๐˜† ๐—ฎ๐—ฟ๐—ฒ ๐—น๐—ฎ๐˜‡๐˜† ๐—ฎ๐—ป๐—ฑ ๐˜„๐—ฎ๐—ป๐˜ ๐—พ๐˜‚๐—ถ๐—ฐ๐—ธ ๐—ฟ๐—ฒ๐˜€๐˜‚๐—น๐˜๐˜€ (๐˜๐—ฎ๐—ธ๐—ฒ ๐—ถ๐˜ ๐—ณ๐—ฟ๐—ผ๐—บ ๐—ฎ ๐—ณ๐—ผ๐—ฟ๐—บ๐—ฒ๐—ฟ ๐—ฉ๐— ). ๐Ÿ’คThink about it: Structural margin improvements take time to materialise in your P&L with Amazon.You need to invest in:- Supply Chain Improvements- E-Channel Packaging (SIPP/FFP)- Free Cash Flow InitiativesAll of these aren't reflected in Amazon's Net PPM.So the next time your Vendor Manager wants to review Net PPM targets?Don't get bullied into improving cost prices or trade terms.Instead, let them know that you need to discuss a more holistic approach to improving profit margins.---How are you working with Vendor Managers on the profitable development of your account? Let me know in the comments!hashtag#amazonvendor hashtag#amazonstrategy

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