If your Amazon Net PPM sits below 30%, you might want to buckle up. Amazon will
By Martin Heubel · November 4, 2026 · Curated by George's Blog
If your Amazon Net PPM sits below 30%, you might want to buckle up. Amazon will no longer subsidise your business in 2027.
Your Vendor Manager may have already told you a Net PPM target of 30%+.
Ignoring it used to work. Especially if you carried a highly category-relevant selection.
But this is starting to change.
Vendors with Net PPM below 30% will see more:
👉 Buy Box suppressions
👉 PO constraints
👉 Temporary CRAP'ing
👉 Advertising suppressions
... as part of their 2027 Annual Vendor Negotiations.
The reason is simple:
Amazon continues to invest in faster delivery, expanding its Sub Same Day fulfilment capabilities to fight off growing competition. In the U.S. alone, this will cost Amazon over $6.8bn in Capital Expenditures by 2031.
For vendors, this means a few things:
- Amazon will continue a profit focus in AVNs
- Listing your entire portfolio will hurt your margins
- Investments should target Core selection to protect sales continuity
- Keeping a 20-29% Net PPM will lead to more Buy Box disruptions
- Amazon will terminate its relationship with small, unprofitable vendors
This has been a long time coming. If you keep ignoring the development of differentiated selection and price activation strategies for the online channel, 2027 is going to be a tough year on Amazon.
How are you preparing for this margin reality on Amazon?