𝗛𝗼𝘄 𝗶𝘀 𝗔𝗺𝗮𝘇𝗼𝗻'𝘀 𝗡𝗲𝘁 𝗣𝗣𝗠 𝗰𝗮𝗹𝗰𝘂𝗹𝗮𝘁𝗲𝗱?

It's a question I get asked by almost any client. So today, let's take a closer look at the definition of this metric. To start, we need to identify the components of the Net Pure Profit Margin (Net PPM).  They are: 

- Average Selling Price (ASP)
- Cost Price
- Trade Terms
- Sales Discount 

To calculate the Net PPM, we use this formula: 

(ASP - Cost Price + Terms - Sales Discount) / ASP * 100 = Net PPM %

Until late 2022, Amazon did not reflect the Sales Discount in ARA and Brand Analytics dashboards in Vendor Central.  Thankfully, Amazon has now added it to the new Retail Analytics. So what is classified as a Sales Discount? 

» Any discount that shoppers redeem in the checkout process and not in the Buy Box. « This includes discounts from: 

- Subscribe and Save
- Lightning Deals
- Spotlight Deals
- Coupons 

Want an easy way to calculate Net PPM? Here's my free to use Amazon Net PPM Calculator: https://lnkd.in/dDfEXMdU 

--- Have questions? Leave them in the comments below!

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