What is the Amazon Net PPM Compass?
The Amazon Net PPM Compass helps you understand how profitable your products are compared to Amazon’s category benchmarks and close competitors. It shows how your Net PPM stacks up against similar vendors, so you can see whether your margins meet Amazon’s expectations and where adjustments may be needed.
Why the Net PPM is crucial for 1P vendors
Understanding Net PPM is essential for maintaining financial health and competitiveness.
Regularly tracking this KPI helps vendors:
- Identify improvement areas
- Enhance profitability/efficiency
- Negotiate better terms with Amazon
All in all the Amazon Net PPM Compass provides insights to benchmark, compare, strategize, and understand Amazon’s expectations for better navigating annual vendor negotiations.
Why does the Net PPM vary across categories?
Amazon’s Net PPM expectations fluctuate across categories due to varying market dynamics:
- consumer demand
- cost structures
- competitive forces
Each category has its own benchmarks reflecting these unique factors, leading us to set upper price limits.
Available on 22 Amazon marketplaces
Powered by global market expertise and millions of data points, AMVisor’s Amazon Net PPM Compass offers category insights to strategically position your product for optimal competitiveness. Further the Amazon Net PPM Compass supports 22 Amazon Marketplaces, including their local currencies, so you can benchmark your product’s Net PPM within specific Amazon categories. Our tool covers listings in Europe, America, Asia, and beyond.
We currently monitor:
Available on
Amazon US | Amazon UK | Amazon UAE | Amazon Turkey | Amazon Sweden | Amazon Spain | Amazon South Africa | Amazon Singapore | Amazon Poland | Amazon Netherlands | Amazon Mexico | Amazon Japan | Amazon Italy | Amazon Ireland | Amazon India | Amazon Germany | Amazon France | Amazon Egypt | Amazon Canada | Amazon Brazil | Amazon Belgium | Amazon Australia
What is the corridor?
The corridor represents the middle 50% of the market, showing typical Net PPM values for similar products.
Key aspects include:
- Normal Distribution (showing the range of Net PPM values)
- Median (identifying the central value)
- Market Concentration (focusing on product frequency within this range)
A Net PPM in the upper corridor half is above average, indicating strong potential for success.
What is the 6-month trend?
How does the 6-month trend affect my product’s Net PPM?
The Net PPM Compass displays the 6-month trend of your entered Net PPM value (rising, falling, or fluctuating), helping you see if the development aligns with the market. The corridor shows the middle 50% of the market; a narrow corridor means most products have similar values, while a wider one suggests more variance.
How do you calculate the Amazon Net PPM?
Calculating your Net PPM involves many factors:
- Margins (backend conditions, returns, losses)
- Logistic costs (picking, handling, storage, shipping)
- Category Variances (calculation differs across Amazon categories)
The Net PPM is crucial for Amazon vendors because it is tied to pricing and your overall ASIN performance.
Higher-priced items often have lower Net PPM percentages, with the best range for profitability being within the corridor’s median to maximum.
Lower-priced items usually have higher Net PPM percentages, though this can fluctuate depending on your Amazon category.
