We took a Net PPM report for a brand we serve on Amazon UK in February. Two products stand out for all the wrong reasons.
These two delivered the lowest margins in the entire portfolio:
- Refill x : 21.81% Net PPM
- Refill y : 22.29% Net PPM
For context, the overall portfolio averaged a respectable ~38%, which sits comfortably in the healthy range for consumables (typically 30–42%). Yet these two large-format refills are pulling the average down significantly and sit well below typical benchmarks for the category.
Large refills often suffer from heavier shipping weight, deeper discounting to drive volume, or higher return/chargeback rates — all of which compress Net PPM.
What should you do about your worst-performing products?
Here are the most effective, practical steps vendors take in this situation:
- Review pricing and promotions. Check if these refills are being heavily discounted or price-matched too aggressively. A modest price increase (where competitive positioning allows) or tighter control on deal frequency can quickly improve margins without killing volume.
- Attack the cost side. Look for opportunities to reduce Cost of Goods Sold (COGS) — better supplier negotiations, lighter packaging, or more efficient manufacturing. Even small cost savings on high-volume refills have an outsized impact on Net PPM.
- Shift the sales mix. Actively promote your higher-margin winners (especially the product A at 56.24%) through sponsored ads, bundles, or off-Amazon traffic. Driving more sales toward profitable SKUs naturally lifts the overall portfolio average.
- Consider SKU rationalisation If fixes don’t move the needle after 1–2 months, evaluate whether to reduce shipment quantities to Amazon, reformulate the offering, or even delist one of the underperformers. Removing persistent drags helps avoid long-term pressure from your Vendor Manager and reduces the risk of “CRaP” flags (Can’t Realize a Profit).
- Monitor and negotiate Track these ASINs closely in the next report. Use the data in your next Vendor Central review to demonstrate proactive improvements — Amazon rewards vendors who manage profitability thoughtfully.
At our Amazon Vendor Agency, we regularly help brands identify and fix these low-margin drags before they impact vendor scorecards or trigger difficult conversations with Amazon. A targeted fix on just these two refills could lift your entire account’s Net PPM in a meaningful way.
Would you like help analysing your Net PPM reports and improving your SKU performance? Contact our Amazon Vendor Agency.
