P&L

 In the Amazon ecosystem, the P&L (Profit and Loss) statement is a crucial tool for both Amazon Retail teams and vendors/sellers to assess financial performance at the ASIN, brand, category, or account level.

The P&L includes:

• Revenue (Ordered/Shipped Sales)
• Cost of Goods Sold (COGS) - what Amazon or the seller paid for the inventory
• Contra-COGS - vendor-funded offsets (e.g. co-op, MDF, freight allowances)
• Operating expenses - fulfillment, storage, returns, marketing, chargebacks
• Net Profit or Loss - the final result after all costs and adjustments

Amazon-specific uses of P&L:

• In Vendor Central, Amazon Retail teams build ASIN- or category-level P&Ls to evaluate profitability
• Vendors are often shown Net PPM or Net PPU derived from the P&L
• Amazon may discontinue or de-prioritize products that negatively impact their P&L (e.g., CRaP items)

Why P&L matters:

• Helps assess true financial performance
• Guides product lifecycle decisions, pricing strategies, and negotiations
• Identifies unprofitable SKUs or categories
• Used in Joint Business Planning (JBP) between Amazon and vendors
• Impacts whether Amazon replenishes or retires an ASIN

💡 Example: A vendor’s P&L for a seasonal kitchen product shows strong revenue but negative margin due to high return rates and chargebacks - leading to a review during AVN.

In short:
P&L (Profit and Loss) is a financial report showing how much profit (or loss) is made after all sales, costs, and deductions - essential for evaluating product performance and making business decisions on Amazon.