🙋‍♂️ One of the questions I get asked in every workshop is:

» 𝗛𝗼𝘄 𝗶𝘀 𝗔𝗺𝗮𝘇𝗼𝗻'𝘀 𝗡𝗲𝘁 𝗣𝗣𝗠 𝗰𝗮𝗹𝗰𝘂𝗹𝗮𝘁𝗲𝗱? «

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 dashboard.

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 your Net PPM? Use my tried and tested Net PPM calculator: https://lnkd.in/dDfEXMdU

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Have questions? Leave them in the comments below!

#amazonvendor #amazonstrategy