Pure Profit Margin (PPM) is a measure of profitability in the Amazon multiverse. This measure helps to understand how much income or profit is generated as a percentage of revenue. And, in an Amazon context, represents the ratio of net profits to estimated revenue. An alternate name for this measure is Net Profit Margin.
How to measure Net PPM is a question that a lot of business owners and entrepreneurs have been asking, as they look for ways to ensure that they are netting as much profit out of Amazon as possible. For Amazon this is a key metric for ecommerce business owners, as it’s useful to understand how this metric calculates profits in the Amazon multiverse.
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NET PPM CALCULATIONS / FORMULA:
(Net PPM) Pure Product Margin= (Product Revenue – Product COGS +Vendor Funded Co-Op)/Product Revenue