What it measures
Net PPM looks at the product from Amazon's side of the table. Start with what Amazon pays for the goods, add back the allowances, funding and fees you pay Amazon after the invoice, and subtract what it costs Amazon to fulfill and ship. What remains, as a share of revenue, is the margin Amazon earns on your ASIN. Two brands with the same invoice price can show very different Net PPM because their terms and pack formats differ.
The benchmarks brands cite
Amazon does not publish thresholds. Industry sources cited by brands put the working range at roughly 40 to 45 percent for hardlines, 30 to 37 percent for softlines and 27 to 35 percent for consumables. Modern Retail reported in 2024 on brands losing distribution because realized Net PPM came in at 32 percent against Amazon's 35 percent target. Treat the ranges as directional, not contractual.
Why it matters to a CPG brand
Net PPM links your commercial terms to your availability. Every point of co-op, every compliance deduction and every bad pack format lowers it. When it slips under Amazon's target, the consequences show up as lost Buy Box and reduced purchase orders, not as a message. Pull Net PPM per ASIN before the JBP, not after the first suppression.