Did you know? Amazon's Net PPM YoY metric in Vendor Central is relative, not absolute! 💡
So if your 28% Net PPM increased by +5% year-on-year, it means your Net PPM last year was:
✅ 26.6%.
❌ Not 23%.
It's unclear why Amazon decided to apply this behavior to the Net PPM YoY metric. But it's causing confusion and frustration among brands, leading to nasty surprises in annual vendor negotiations.
So if you're monitoring your Net PPM in Vendor Central, ensure you calculate your actual YoY performance.
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How are you monitoring your 1P account margins with Amazon? Let me know in the comments!
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