How a poor Net PPM can damage your relationship with Amazon

Selling on Amazon can be a bit of a double-edged sword. On the one hand, it’s probably your biggest growth channel. While on the other, it’s relentless. Amazon expects precision, consistency, and profit above all.

A lot of brands focus on revenue and RRP because that’s what feels exciting. But Amazon is more concerned with its own profitability – and when your Net PPM starts to look unhealthy, things can unravel faster than you’d think.

You’ll still get orders, at least for a while. But gradually, you’ll notice fewer POs, less visibility, and quieter inboxes from your Vendor Manager.

Can a poor Net PPM impact your vendor score?

Amazon tracks everything. Every SKU, every penny of contribution. If your products don’t meet its internal profit expectations, you slip further down the pecking order.

You might see smaller purchase orders or find yourself mysteriously left out of planning cycles. Once that happens, climbing back up isn’t quick. It can take months of consistent profitability before the algorithm starts to trust you again.

Does a poor Net PPM mean missing out on events?

The brands with healthy margins get the good invitations. They’re the ones with the Prime Day placements, Black Friday deals, and Lightning Deal slots. It’s not favouritism, it’s maths.

If your Net PPM’s poor, Amazon just doesn’t see a reason to push your range. Your products stop surfacing in prime positions, your Store tools feel a bit limited, and suddenly your competitors are everywhere you want to be.

Do products stay visible on Amazon when Net PPM is poor?

Amazon doesn’t get sentimental about unprofitable lines. If a SKU drags down margin, it might be delisted, lose its Buy Box, or end up marked as “non-replenishable”.

It sounds harsh, but the logic’s simple: why waste warehouse space or fulfilment effort on something that doesn’t make money? Once that flag’s raised, it’s difficult to convince the system you deserve another shot.

Will a poor Net PPM impact your Amazon vendor negotiations?

When your margins fall, your next vendor negotiation stops being about growth. It becomes about fixing their problem.

Suddenly you’re being asked for deeper discounts, higher freight allowances, or bigger co-op contributions. Before long, you’re stuck in a loop, fighting to stay relevant while your margin thins even more.

So, what can you do?

Although there’s no quick fix, there is a clear path back.

• Look at margins per SKU, not just at brand level. The averages hide a multitude of sins

• Audit deductions properly. Chargebacks and shortages add up, and half of them can be challenged if you’ve got evidence

• Tighten your operations. Fewer labelling errors and late deliveries mean fewer unnecessary costs

• Put together a profit plan. Sit down with your VM and show them how you’re going to turn it round. Timelines, targets, the more detail the better. It signals intent, and that matters

It’s not glamorous work, but it pays off

In Amazon’s world, profit really is power. If your margins are solid, you’re an asset. If they’re not, you’re an overhead.

Keep your Net PPM healthy and Amazon will keep you in the loop. This means more orders, better placements, stronger support. Let it slide, and you’ll slowly fade into the background.

It’s not about chasing short-term revenue; it’s about proving you’re a partner worth investing in. Once you do that, everything else comes far more naturally.