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Amazon Net PPM calculator

Net PPM (net pure product margin) is Amazon's margin on a vendor's product after cost of goods, vendor funding and sales discounts: shipped revenue minus shipped COGS, plus CCOGS, minus sales discounts, divided by shipped revenue. Enter four totals from the same shipped period.

Net PPM

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Enter shipped revenue to calculate Net PPM.

PPM, before funding and discounts: —
CCOGS adds: —
Sales discounts take away: —
Net PPM in dollars: —

Calculated in your browser. Nothing you enter is sent anywhere.

How to calculate Net PPM

Net PPM divides what Amazon keeps after cost, vendor funding and promotions by what customers paid:

Net PPM = (shipped revenue − shipped COGS + CCOGS − sales discounts) ÷ shipped revenue
PPM     = (shipped revenue − shipped COGS) ÷ shipped revenue

Input	Amazon's definition	Where a vendor finds it
Shipped revenue	The gross price the customer paid for the shipment item at the time of the order.	ARA Sales dashboard
Shipped COGS (PCOGS)	The price Amazon paid the vendor for item procurement.	ARA Sales dashboard
CCOGS	Funds Amazon collects from the vendor under its agreements: the Vendor Allowance, including Quick Pay Discounts and the Discretionary CoOp amount, excluding display-ads contra-COGS.	Your co-op agreements and invoices; the Net PPM dashboard
Sales discounts	Amounts related to promotional activities for a shipment item, such as gift-card promotions, Buy X Get Y and employee discounts.	ARA Sales dashboard

Net PPM worked example

With illustrative totals of $100,000 shipped revenue, $70,000 shipped COGS, $8,000 CCOGS and $3,000 sales discounts, the margin is $100,000 − $70,000 + $8,000 − $3,000 = $35,000. Divided by $100,000, Net PPM is 35.0%. PPM, before funding and discounts, is 30.0%: CCOGS adds 8 points and the discounts take away 3.

Six rules for calculating Net PPM correctly

It is Amazon's margin, not yours. Amazon's glossary calls Net PPM "our margin", and vendor funding raises it. Amazon's agreement definitions also use PPM or Net PPM to calculate the actual margin in a margin agreement.
COGS is subtracted. Amazon's ARA metric glossary prints the formula as "shipped CCOGS + CCOGS", which cancels out and would leave COGS out entirely. The agreement definitions subtract COGS, and so does this calculator.
Warehouse Deals are excluded. ARA leaves Warehouse Deals sales out of Net PPM, so a total that includes them will not reconcile with the dashboard.
One shipped period for all four inputs. Mixing an ordered figure with a shipped one, or two different weeks, gives a number Amazon never reports.
Totals, not averages. Net PPM across several ASINs is total margin divided by total revenue. Averaging each ASIN's percentage gives a small ASIN the same weight as your best seller.
Display-ads contra-COGS stays out. Amazon's CCOGS definition excludes it, so leave it out of the CCOGS you enter.

Amazon's documents write Net PPM three ways

Amazon's own pages state the formula three ways, and only one is unambiguous:

Agreement definitions: "Shipped Product Revenue plus VFCC and Quick-Pay Discounts … minus that product's COGS and Sales Discounts divided by such product's Shipped Product Revenue." VFCC is vendor-funded contra-COGS. This is the version the calculator follows.
Amazon Retail Analytics overview: "shipped revenue minus shipped PCOGS + CCOGS (cost of goods) minus sales discounts, then divided by shipped revenue." Read without brackets, it leaves open whether CCOGS is added or subtracted.
ARA metric glossary: "(shipped revenue - shipped CCOGS + CCOGS - sales discount) / shipped revenue." Taken literally, the two CCOGS terms cancel and COGS disappears.

All three are Vendor Central help content, read on October 18, 2026. If your internal reports were built on one wording and a teammate used another, two Net PPM figures for the same week is the expected result.

Net PPM per ASIN, from your own account

A calculator answers one total. The question vendors ask next is which ASINs moved it, and why. The Amazon Vendor Central MCP lets the AI client you already use request the Net PPM report from your account in the Manufacturing view, and the Net PPM margin leakage guide shows how it ranks the ASINs losing margin and separates cost, funding and discount pressure. The Amazon Retail Analytics guides cover the other dashboards.

Request beta access Read the Net PPM leakage guide

Frequently asked questions

Questions vendors ask about Net PPM.

What is Net PPM on Amazon?

Net PPM (net pure product margin) is Amazon's margin on a vendor's product after cost of goods, vendor funding and sales discounts. It is calculated as shipped revenue minus shipped COGS, plus contra-COGS (CCOGS), minus sales discounts, divided by shipped revenue.

What is the difference between PPM and Net PPM?

Amazon's agreement definitions calculate PPM (pure product margin) as shipped product revenue minus COGS, divided by shipped product revenue. Net PPM also adds vendor-funded contra-COGS and quick-pay discounts and subtracts sales discounts, so it shows the margin after vendor funding and promotions.

What is CCOGS in Net PPM?

Contra-COGS (CCOGS) is the money Amazon collects from a vendor under its agreements: the Vendor Allowance, including Quick Pay Discounts and the Discretionary CoOp amount. Amazon's definition excludes display-ads contra-COGS. Because it is funding Amazon receives, it raises Net PPM.

Is Net PPM the vendor's profit margin?

No. Net PPM is Amazon's margin on your product; Amazon's ARA metric glossary calls it 'our margin'. Your own margin depends on your manufacturing and operating costs, which Net PPM does not include.

Why doesn't my Net PPM match the ARA dashboard?

Check three things. ARA excludes Warehouse Deals sales from Net PPM, so totals that include them will not reconcile. All four inputs must come from the same shipped period. And a total across ASINs is total margin divided by total revenue, not an average of each ASIN's percentage.

Who can see the Net PPM dashboard in Vendor Central?

Amazon says the Net PPM dashboard is typically only displayed to manufacturers, in the Manufacturing view of Amazon Retail Analytics (ARA). Shipped revenue, shipped COGS and sales discounts also appear in the ARA Sales dashboard, in both the Sourcing and Manufacturing views.