NTS

Net Sales (NTS) is a foundational financial metric used by Amazon and vendors to measure the actual income earned from product sales during a given period. Unlike gross sales, Net Sales reflect the realized revenue after accounting for all transactional adjustments.

NTS is calculated as:

Net Sales=Gross Sales − Returns − Promotional Discounts − Allowances − Chargebacks

Common deductions that affect NTS:

• Customer returns
• Coupons or promo codes
• Co-op or MDF deductions
• Late shipment or non-compliance chargebacks
• Retailer incentives or rebates

Why NTS matters:

• Reflects the true financial performance of a product or brand
• Used in profitability calculations like Net PPM and Net PPU
• Forms the basis for business reviews, P&Ls, and AVN planning
• Helps vendors and sellers measure the impact of promotions, returns, and margin erosion

💡 Example: A vendor’s product generates $100,000 in gross sales in Q2, but after $10,000 in returns and $5,000 in discounts, the Net Sales (NTS) equals $85,000.

In short:
NTS (Net Sales) is the actual revenue received from product sales after subtracting all discounts, returns, and allowances - a key metric for evaluating Amazon business performance.