Amazon does not care about your cash margin. It cares about relative Net PPM% im
By Martin Heubel · October 10, 2026 · Curated by George's Blog
Amazon does not care about your cash margin. It cares about relative Net PPM% improvements.
(And no, advertising dollars don't count either).
This is still confusing brands left, right and centre.
Vendor Managers won't care about your dollar investment growth if their Net PPM% is in decline. Amazon wants to participate proportionally in the growth of your account within its category.
So when preparing for your 2027 AVN, make sure you account for this reality. Amazon won't close your negotiation, just because you're offering more dollars YoY.
If you're not prepared to increase your investment relative to your account's revenue, Amazon will happily stop growing your business in 2026/27.
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