Shipped Revenue

 Shipped Revenue is one of Amazon’s core financial and performance metrics used in retail reporting and vendor analytics.
It reflects the gross sales value of products that have actually been shipped to customers, not just ordered or invoiced, providing a more accurate representation of realised sales over a selected period.

Unlike Ordered Revenue (based on POs created by Amazon) or Received Revenue (based on goods received into Amazon’s fulfilment centres), Shipped Revenue only includes units that have left Amazon’s fulfilment centres (FCs) and reached customers - making it the definitive metric for measuring sell-through and demand realisation.

Formula:

Shipped Revenue=Average Selling Price (ASP)×Volume Shipped

Example Calculation:

• ASP (average selling price): $50
• Volume shipped: 2,000 units

Shipped Revenue=50×2,000=$100,000

Key Components:

1. ASP (Average Selling Price):
   • Reflects the real selling price to end customers at the moment of shipment.
   • Includes price fluctuations due to deals, discounts (SD), or dynamic pricing.
2. Volume Shipped:
   • Total number of customer-facing units dispatched from fulfilment centres during the reporting window.

Where It’s Used:

• Found in Amazon Retail Analytics (ARA / ARA Premium) and RRA (Rapid Retail Analytics) reports.
• Used in WBR (Weekly Business Review), QBR (Quarterly Business Review), and RGM (Revenue Growth Management) dashboards.
• Key driver for metrics like PPM (Pure Profit Margin), ROAS (Return on Ad Spend), and Sell-Through Rate.

Relationship to Other Metrics:

Metric Description Stage
| Ordered Revenue  | Based on PO value issued to vendor  | Before fulfilment
| Received Revenue  | Based on goods received into FCs  | Inventory stage
| Shipped Revenue  | Based on units shipped to customers  | Post-sale (realised)

Benefits for Amazon:

• Performance accuracy: Measures real customer demand rather than procurement activity.
• Forecast validation: Compares actual shipments against planned sales.
• Profitability tracking: Supports margin analysis when combined with Shipped COGS.

Benefits for Vendors:

• True sales insight: Reveals what was actually sold and shipped, not just ordered.
• Trend analysis: Enables accurate sell-out and replenishment planning.
• Negotiation support: Provides a factual base for margin and investment discussions.

Challenges:

• Timing misalignment: There can be a lag between ordering, shipping, and reporting periods.
• Price volatility: ASP fluctuates due to deals and automated repricing.
• Data reconciliation: Differences between Shipped Revenue and Amazon payments can arise due to returns or promotions.

Why It Matters:
Shipped Revenue is the most accurate reflection of true market demand and realised sales value on Amazon.
It provides a clear view of how products perform with customers, helping both Amazon and vendors optimise pricing, promotions, and inventory flow.

Example:
A small appliance vendor’s Shipped Revenue for Q2 is $2.4M, based on an ASP of $60 and 40,000 units shipped.
By comparing it with Shipped COGS ($1.5M), the vendor calculates a gross margin of 37.5%, which informs next quarter’s pricing and promotional strategy.

In short:
Shipped Revenue is the total sales value of units shipped to customers, calculated as ASP × Volume Shipped.
It reflects actual customer demand and serves as a key metric for profitability, performance tracking, and forecasting in Amazon’s retail ecosystem.