There is no single universal “best” number.
Net PPM (Amazon’s retail profit margin on your products) varies significantly by product category, and Amazon’s expectations differ accordingly. Vendor Managers (VMs) are measured on hitting certain Net PPM targets for their categories, so staying in the right range helps avoid pressure, better terms, and risks like reduced visibility or being flagged as “CRaP” (Can’t Realise a Profit).
Industry benchmarks (based on multiple vendor analytics firms and expert sources in 2024–2026):
- Overall rough average across categories: 30–40% is the most commonly cited range that Vendor Managers aim for.
- Some sources note that benchmarks have been rising slightly in recent years (Amazon pushing for higher profitability).
- In specific cases (e.g., heavier-to-ship items or premium SKUs), targets can go above 45–55%.
How does your portfolio compare? Let’s take one example:
The February 2026 UK report shows an overall average Net PPM of ~38% across 23 ASINs (laundry liquids, fabric conditioners, and one sponge — all consumables category).
- This puts you right in the middle-to-upper end of the typical consumables range (30–42%).
- The top performer (Unscented Laundry Liquid at 56.24%) is excellent — well above most benchmarks.
- The bottom performers (the 4L refills at ~22%) are significantly below the healthy threshold for consumables, which is why fixing them can lift the portfolio average meaningfully.
Quick takeaways:
- Above 40% overall → Generally strong position (less margin pressure from Amazon).
- 35–40% → Solid/acceptable for most consumables businesses.
- Below 30–35% → Often triggers discussions with your Vendor Manager.
- “Best” in practice — Not necessarily the absolute highest number, but a balanced portfolio where most ASINs sit comfortably above category minimums, with no major drags.
The exact target for your account ultimately depends on what your Vendor Manager is measured against — it’s always worth discussing your specific Net PPM goals directly with them during reviews.
