💲Profits and Margin Overview (Vendor)

Dashboard link: https://app.emax-digital.com/performance-summary-hub-vendor/profits-and-margin-overview

Overview

The Profitability Development dashboard gives Vendor Central brands a focused view of margin performance over time, combining three complementary profitability lenses on a single page:

• Net PPM (Net Pure Product Margin) — Amazon's view of how profitable your products are for Amazon.

• Amazon Margin — emax digital's reconstruction of Amazon's margin using Shipped Revenue and your Cost Price.

• Company Margin — your margin from selling into Amazon, calculated from the cost data you maintain in the Vendor Central Catalog (Fixed Costs per ASIN and Additional Cost Ratio).

Together these three metrics let you monitor profitability from both sides of the relationship — Amazon's profit from your products and your own profit from selling them — and track how each evolves week-over-week, month-over-month, quarter-over-quarter, or year-over-year.

Important prerequisite: Amazon Margin and Company Margin only return meaningful values if you have populated Cost Price, Fixed Costs per ASIN, and Additional Cost Ratio in your Vendor Central Catalog. Without that data, Company Margin will display 100% and Amazon Margin may be incomplete.

What You Can See on This Dashboard

Section: Net PPM, Amazon Margin & Company Margin — Trend Chart

A single line chart plotting the three profitability metrics across the last 12 months, 12 weeks, or 6 quarters depending on the Reporting Range selected, with a prior-year Net PPM series overlaid for direct year-over-year comparison.

Key metrics:

• Net PPM (Net Pure Product Margin) — Amazon's profitability measure for your assortment. Formula: (Product Revenue − COGS − Vendor Funded Coop) ÷ Product Revenue. This is the number Amazon's vendor managers reference in negotiations.

• Net PPM Prior Year — The Net PPM value for the equivalent period one year ago, shown as a separate line for year-over-year comparison.

• Amazon Margin — Amazon's estimated profit margin from selling your products, reconstructed from Shipped Revenue and your configured Cost Price. Formula: (Shipped Revenue − (Shipped Units × Cost Price) + (Net Received Revenue × Additional Cost Ratio)) ÷ Shipped Revenue.

• Company Margin — Your company's profit margin from selling into Amazon. Formula: ((Net Received Revenue − (Net Received Units × Fixed Cost)) − (Net Received Revenue × Additional Cost Ratio)) ÷ Net Received Revenue. Displays 100% if no cost data has been configured in the Vendor Central Catalog.

Visualization: A multi-series line chart with one line per metric, time on the X-axis at the granularity chosen in Reporting Range.

Section: Net PPM, Amazon Margin & Company Margin — Detailed Trend Table

A period-by-period breakdown of the same three metrics, with full trend columns for period-over-period (PP) and year-over-year (YoY) comparison. Rows are broken down by marketplace, so you can see margin evolution per country in one table.

Columns shown:

• Date / Report Date — the reporting period.

• Marketplace — the Amazon country site (DE, UK, FR, IT, ES, etc.).

• Net PPM — current value, with PP Trend (vs. the immediately preceding period) and YoY Trend (vs. the same period one year ago).

• Amazon Margin — current value with PP trend column.

• Company Margin — current value with PP trend column.

Drill-down: Clicking a period in the table opens an ASIN-level drill-down for that period, letting you see which products are driving the margin movement.

Section: Inline Definitions Panel

A reference panel on the dashboard summarising what each margin metric means and where the underlying data comes from. Useful for stakeholders new to the dashboard who need to interpret the numbers without external documentation.

Available Filters

Filter interaction notes

• Subcategory depends on Category. Selecting one or more Categories narrows the Subcategory list to only the sub-categories that belong to those Categories.

• Reporting Range and Period work together. Switching Reporting Range (e.g. Monthly → Quarterly) will reload the available values in the Period dropdown.

• Net PPM data source switches with filters. When no ASIN, category, subcategory, or tag filter is active, Net PPM is taken directly from Amazon's SP-API. As soon as any of those filters is applied, Net PPM is recalculated from your internal cost data in the Vendor Central Catalog. Small differences between the two are expected — see Limitations below.

• Tag vs ASIN Auto Tag are independent filters that can be combined. Tag = your manually maintained labels; ASIN Auto Tag = system-generated.

Use Cases

1 — Quarterly margin review for leadership

You need to show leadership how margin has evolved over the year.

• Set Reporting Range = Quarterly and Period to cover the year.

• Read the Trend Chart to see Net PPM, Amazon Margin, and Company Margin moving together — diverging lines tell a story (e.g. Net PPM stable but Company Margin falling = your cost base is rising relative to Amazon's view).

• Drop into the Detailed Trend Table and read the YoY Trend column on Net PPM to give the headline year-over-year delta.

2 — Identify which marketplaces are hurting margin

You suspect one country is dragging your global Company Margin down.

• Leave Marketplace unfiltered (so all are visible) and set Reporting Range = Monthly.

• Use the Detailed Trend Table — one row per marketplace per period — and scan the Company Margin and Amazon Margin columns by country.

• Apply the Marketplace filter to the worst performer and re-read the trend chart to see whether the decline is recent or chronic.

3 — Find ASIN-level margin drains

A specific month shows a sharp margin drop and you need to find the cause.

• In the Detailed Trend Table, click on the period where the drop occurred.

• The drill-down opens with the same metrics broken out at ASIN level for that period — sort by the worst margin contributors and shortlist for cost-price renegotiation or assortment review.

4 — Monitor margin impact of a Vendor Negotiation Agreement (VNA)

After an annual VNA renegotiation, you need to verify the new terms are showing up in actual margin.

• Set Reporting Range = Weekly and Period to cover the weeks before and after the VNA effective date.

• Watch Net PPM in the trend chart for a step change.

• Use the Detailed Trend Table's PP Trend column on Net PPM to confirm the magnitude of the shift period over period.

5 — Category-level profitability prioritisation

You want to decide which categories to invest behind next quarter.

• Filter Category to one segment at a time and read Company Margin in the trend chart.

• Compare across categories by running the dashboard with one category selected at a time, or by reviewing the detailed table when no category filter is applied (all categories aggregated).

• Categories with high and improving Company Margin are the strongest investment candidates.

Limitations & Notes

• Cost data must be maintained in the Vendor Central Catalog. Amazon Margin requires Cost Price per ASIN; Company Margin requires Fixed Costs per ASIN and Additional Cost Ratio. Missing or stale cost data will silently produce misleading margins — Company Margin defaults to 100% when no cost data is configured.

• Two different Net PPM sources. When no ASIN/category/subcategory/tag filter is active, Net PPM comes directly from Amazon's SP-API. As soon as any of those filters is applied, Net PPM is recalculated internally from your cost data. Small numerical differences between the two views are expected — they are not bugs, but reflect Amazon's blended reporting versus a precise ASIN-level rebuild.

• Net PPM availability. Net PPM is only populated where Amazon reports it. For very new ASINs, recently launched marketplaces, or the most recent periods, the value may be blank or partial.

• Reporting horizon is fixed. The trend chart and detailed table cover up to 12 months, 12 weeks, or 6 quarters depending on Reporting Range. For longer historical analysis, use the Vendor Business Summary or a year-over-year comparison via the Net PPM Prior Year series.

• Company Margin reflects sell-in, not sell-out. Company Margin is calculated on Net Received Revenue (what Amazon paid you for units it received). Amazon Margin is calculated on Shipped Revenue (what Amazon sold to end customers). The two metrics intentionally use different bases — comparing them directly without context can be misleading.

• Vendor Central only. This dashboard covers vendor (1P) data. Seller Central (3P) margin is not included.

• PP vs YoY trend columns. PP Trend compares to the immediately preceding period at the chosen granularity; YoY Trend (on Net PPM only) compares to the same period one year ago. Both are expressed as ratios.

Data Refresh

Data updates daily (every 24 hours).