Optimizing Amazon Vendor Agreements and Pricing
Transcription
Guaranteed minimum margin or GMM agreements are used to ensure that a group of transactions meet and agreed upon profit margin within a given billing period transactions may be grouped at the vendor product category, subcategory or ASIN level. The term is set out in the GMM agreement. GMMs may use either a pure profit margin, PPM or net pure profit margin, net PPM calculation to measure profitability for more information about defined terms in your GMM agreement, go to the resource center under your support center on vendor central.
show moreAnd download the agreement definitions document in the vendor central resource center under the legal heading pure product margin or PPM is a measure of profitability based on pure product profit, pure product profit is equal to product revenue, less product cost of good sold, or in other words, a products offer price minus its vendor cost.
Net pure product margin or net PPM is a measure of profitability, similar to pure product margin or PPM, but where the additional terms of vendor funded contract cost of good sold, or VFCC or vendor funded campaigns and sales discounts are also factored into the calculation.