What is Net PPM?
The Net Pure Product Margin (Net PPM) is defined by Amazon as the “Net Pure Product Margin after cost of goods sold and various agreed services such as damage allowance are deducted. Sales discounts are not factored in.” It constitutes one of the top 10 KPIs to track on Amazon as a Vendor. The Net PPM allows you to know the level of profitability of Amazon on your products.
Why tracking Net PPM is crucial for your business?
Tracking your Net PPM on a recurring basis is key to ensure sustainable business growth on Amazon. If your Net PPM decreases, it means Amazon is losing profitability on your product and may stop selling it. The product will be categorized as CRAP, meaning “Can't Realize A Profit”.
How to track Net PPM in Seelk Studio?
Net PPM is a vendor-only metric available in the following Apps:
Buy Box, in the Net PPM table inside the Overview tab
Dashboards & Exports, when choosing a metric in the builder under the theme Profitability
In a glimpse, you can quickly identified what products are contributing to profitability and adjust accordingly to ensure sustainable business growth on Amazon.
⏱ Data availability
The Net PPM metric is available in daily, weekly and monthly view.
Net PPM reports are available in the Amazon API per ASIN and per marketplace. As such, It can be leveraged in Seelk Studio at a breakdown by:
Marketplace, without filters
ASINs, with filters
Note: we don’t recommend using Net PPM with an attribute breakdown as the result for each groups will be an average of all ASINs’ Net PPM, meaning an average of percentage.
Amazon releases the report 168 hours after the period end. If there is no delay from Amazon in reports availability, Net PPM data will be available in Seelk Studio 7 days after the period end.
Net PPM daily data of March 1st will be available March 7th (J+7). Net PPM weekly data from February 20th to 26th will be available March 5th (W+7). Net PPM February monthly data will be available on March 7th (M+7).
🔙 Data historic extent
The Amazon Selling Partner API unfortunately limits the extent of data history we can retrieve at account onboarding:
daily: 2 years
weekly: 8 weeks
monthly: 13 months
Note: this limitation only applies when onboarding a new account to the Amazon API. Once your account is connected to the Amazon API, data history will be kept.
♼ Data frequency update
To ensure we take into account Amazon's report updates post-release, we retrieve on a recurring basis a certain extent of data history:
Every day: until same day the previous month
On Sundays, Mondays and Tuesdays: last 2 weeks
The 10th of each month: previous month
On March 1st, Net PPM daily reports will be updated from January 21st to February 21st. On Sunday March 6th, Net PPM weekly reports will be updated for the weeks starting February 13th and February 20th. On March 10th, we will update Net PPM February report.