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Glossary of Amazon Terms
Third-party Logistics – A provider of outsourced logistics services which can include shipments, storage and fulfillment.
Sometimes called “split testing”, this is a method of trying out two different website/product listings to compare and contrast sales metrics, typically conversion rates.
A subsidiary of Amazon that develops search engine and search advertising technology. A9 powers Amazon's product search pages in addition to other eCommerce retailers.
Performance targets and policies which all sellers must adhere to in order to continue selling on Amazon. Account health metrics include customer service performance, product policy compliance, and shipping performance.
Advertising Cost of Sales – The percentage of attributed sales spent on advertising. This is calculated by dividing your total ad spend by your total sales.
The number of times ads in a selected group are clicked using Amazon advertising
The average daily amount you are willing to spend on a selected ad group with Amazon advertising
The number of shoppers who see your product's ad on Amazon
The number of individual orders made by shoppers who clicked on your product's sponsored ad.
The total product sales generated within one week of clicking on your product's sponsored ad.
The total click charges for an Amazon sponsored campaign in the selected time period.
The current status of your ad group on Amazon. The status may be running, paused, ended, archived, scheduled, incomplete, out of budget, or payment failure.
This option determines whether you select the keywords for an ad campaign or Amazon automatically selects keywords for an ad campaign.
A marketing arrangement by which an online retailer pays a commission to an external website for traffic or sales generated from its referrals.
A Chinese eCommerce, retail, and technology conglomerate. For Amazon FBA selling purposes, this is a website which acts as a third party platform between private label businesses and global suppliers, wholesalers, and manufacturers. Alibaba is the largest internet retailer in the world measured by total sales.
A manufacturer, supplier, or wholesaler on Alibaba which has been qualified by an accredited third party inspection company
A manufacturer, supplier, or wholesaler that has been pre-qualified by Alibaba.
A free service provided by Alibaba that protects buyers and sellers on their orders from the moment of payment to delivery
A grading system regulated by Amazon to ensure uniform quality between new, used, and collectible products.
A paid membership for Amazon customers that enables them to have faster, cheaper delivery options, while having access to to Prime video, music and more. The are many other perks to being a Prime member.
This is a badge awarded to listings based on product ratings, price, and availability to ship. Receiving this badge will definitely increase sales.
Amazon Marketing Services, which was also called Advertising Console, and is a way for vendors to stand out and drive traffic to their listings.
Abbreviations for Amazon.
Application Programming Interface – It is essentially how two different programs or systems talk to each other, allowing them to share data.
Amazon Standard Identification Number – The unique identification code Amazon assigns to a listing. It”s similar to a UPC product code, but is exclusive to Amazon.
Average Selling Price – Refers to the average price that a seller on Amazon sells their items for. It is calculated by taking the total sales for a time period divided by the number of items for the time period. You will find this in your business reports.
At Time of Posting – This is often used when information is subject to change and may be accurate at the time it is posted. It could be related to a sale or a new piece of information that comes out.
An Amazon program which guarantees the condition and timely delivery of third party products. Amazon customers may make claims against sellers under the a-to-z guarantee umbrella.
Advertisements which are targeted to relevant search terms by Amazon and do not require you to input specific keywords.
Business-to-Business (B2B) – Business that is conducted between companies. As an Amazon seller, you may qualify to sell products directly to businesses in addition to consumers.
It is the umbrella term for UPCs and EANs and is usually a numerical code between 12 and 14 digits that differentiates products. Think of it as a part number.
Buy Box is the top right section on a product page where customers can directly add items to their shopping carts. Winning the Amazon Buy Box simply means that you were the chosen seller at that particular time. The Buy Box rotates through the sellers for that item and there are many variables to being the chosen seller.
For manually targeted Amazon advertising campaigns, the Bid+ button allows you to raise bids in a campaign up to 50% more than your default bid when ads are eligible to show at the top of search results.
Business, Industrial, and Scientific Supplies. This is one of the many categories on Amazon, but not a very popular one.
Brick and Mortar – This refers to having a physical store with retail products for sale.
Buy One Get One – As the name implies, buy one item and get one free. It is also an Amazon promotion template which allows you to offer two products for the price of one to spotlight a new product or to get your current customers to buy differently.
Be On the Lookout – Typically this is used for an item that is profitable that you might be able to find in stores near you.
A type of product manufactured by a particular company under a particular name, such as Nike.
An Amazon program that helps you protect your brand from other sellers jumping on your listing. You need a trademark to get Brand Registered. You will also be able to use Enhanced Brand Content.
Best-Seller Ranking – An Amazon calculation based on sales and updated hourly to reflect recent and historical sales of every item sold on Amazon . Sellers use this to gauge how well an item sells over time, but the BSR can be deceiving.
Back to School – This is usually in July, August and September and is a good time to be selling notebooks and pencils.
A sales and marketing funnel tactic to increase the total of a sale, typically during the check out stage, by offering something extra for a reduced price.
Buy Box is the top right section on a product page where customers can directly add items to their shopping carts. Winning the Amazon Buy Box simply means that you were chosen seller at that particular time. The Buy Box rotates through the sellers for that item and there are many variables to being the chosen seller.
The percentage of page views where the Buy Box featured you as the primary seller.
Amazon's product division based on shared characteristics and uses. Products may have both a broad category placement (also called departments) and one or more sub-category placements.
Cashback – You can shop through portals like Ebates and receive a percent of what you spend at a store back in cash. This is very helpful for sellers who get their products through arbitrage.
Credit Card – sometimes you will see this term as a means of payment.
camelcamelcamel.com – this is a website that tracks price and sales rank history of products on Amazon.
Cost of Goods Sold – The accumulated total of all costs used to create a product or service, which has been sold. For an Amazon private label product, this may include the cost of materials, packaging, shipping, duty taxes, etc.
The percentage of page visitors who actually make a purchase. A high rate tells Amazon you have a great product, which will place you higher in the searches and ranks. Calculated by dividing the total number of page visitors by the number of transactions.
A discount/saving program for Amazon shoppers. As an Amazon seller, you may use the coupon program to offer discounts on your products.
Cost-Per-Click – An advertising method that refers to the actual price you pay each time a customer clicks on your ad.
Cost-Per-Mil(Thousand)/Impression – An advertising method that refers to the price you pay each time 1,000 people view your ad.
Click Through-Rate – The percent of shoppers who see your ad and click on it. This is calculated by dividing total clicks by total impressions.
The act of passing goods through the official department that administers and collects the duties levied by a government on imported goods.
Drop Shipping – The act of shipping a product direct from a supplier to the end customer.
Amazon DSP is a demand-side platform that enables advertisers to programmatically buy display, video, and audio ads both on and off Amazon.
A tax levied by a government on imported and exported goods and services.
European Article Number – This is a unique bar code that identifies a product and is the European version of the UPC. It is like a part number.
An Amazon program which encourages shoppers who have already purchased a product to leave authentic feedback of their experience regardless of whether it's a 1 or 5-star review.
Enhanced Brand Content – Allows sellers to create more detailed product descriptions with additional images, videos and text. This is for brand owners only.
Employer Identification Number – This is a unique number given to you by the IRS to for your business entity so it can be easily identified. It can be used for reporting taxes and may also be asked for if you look to open wholesale or trade accounts.
Allows sellers to create more detailed product descriptions with additional images, videos and text. This is for brand owners.
The process of sending goods or services to another country for sale.
Fulfillment By Amazon – This is when you send your products in bulk to Amazon warehouses and Amazon then fulfills the orders and deals with the customers.
The Small and Light program is a cost-cutting program that reduces fulfillment costs for sellers and allows you to pass the savings onto your customers. It’s basically the best way to be profitable if you’re selling small, cheap, and fast-moving products.
Fulfilled by Merchant – Also known as MF (Merchant fulfilled), this refers to shipping products directly to the end customer yourself once they are sold on Amazon.
Fulfillment Center – Refers to one of Amazon's many fulfillment warehouses or centers.
Feedback – This pertains to customer feedback on your Amazon storefront and you as a seller. If it is on a product, like a private label item, it is called a review.
Fulfillment Network Stock Keeping Unit – This is Amazon unique code assigned to each seller on a product. It remains the same for you and the asin combination so you can print and label your products in advance.
Freight On Board – This is the last location that the Seller of an item will cover shipping costs. For Sellers, if they see a term sheet with the term “FOB Port of Los Angeles”, this means that the factory will cover the shipping costs up until the Port of Los Angeles, after that point, it is the Amazon Seller who assumes control over the goods.
An Amazon promotion template which allows you to offer a limited-time, free shipping offer for a subset of your catalog.
Financial Statement – This is a document that showcases the business activities and financial performance of a company.
The cost Amazon charges to pick, pack, and ship your product through its FBA service.
Individual brands are sometimes restricted and you need to apply to sell. This normally involves getting invoices and written permission from the brand.
A division of restricted products unavailable to sellers without prior approval from Amazon to sell products in that category.
Gift Card(s) – Gift cards are often used by those in the arbitrage community to increase the ROI (return on investment) and leverage their purchasing power by buying gift cards at a discount.
An Amazon promotion template which allows you to offer your products for free to generate buzz or build a social media following.
Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.
Global Trade Identification Number – Includes UPC, ISBN and EAN. It is always 14 digits, so zeroes are added to UPC codes and others to make them equal 14.
Headline Search Ads are located at the very top of the search result page, stretching across the entire page, with only one Headline Search Ad per search result page. To qualify for a headline search ad, you must have a registered brand a minimum of three products available for that brand. These are now called Sponsored Brands.
In My Opinion and In My Humble Opinion – These aren't so much seller acronyms but you might see them in the comments on the site.
The process of bringing goods or services into a country for sale.
These are the products which you have listed and available for sale on Amazon.
Intellectual Property – Usually when referred to in relation to an Amazon seller, it is due to a complaint that a brand owner has made to Amazon that a seller is infringing their intellectual property.
The Inventory Performance Index, or IPI, is a metric to gauge your inventory performance over time. IPI score measures how efficient and productive you are in managing your FBA inventory.
International Standard Book Number – An ISBN is a 13-digit number assigned by standard book numbering agencies to identify individual books. ISBNs used to be 10 digits until the end of 2006. Amazon sometimes uses them instead of an ASIN.
Any packaged unit that is 150 lb. or less with its longest side 108″ or less, and its longest side plus girth 165″ or less.
A promotional offer where a product is featured for several hours on the Amazon Deals page.
The Amazon product page that includes images, product descriptions, item condition, price, shipping methods, customer reviews, part numbers and other product information
A longer and more specific keyword phrase that visitors are more likely to use when they're closer to a point-of-purchase or when they're using voice search.
Long Term Hold – Storing inventory to be sold at a later date. For example, buying Christmas lights on December 28th and waiting to sell them until the following December.
Less Than Truckload – This refers to shipping inventory on pallets that do not take up an entire trucks trailer. You must have at least 150 pounds of inventory and you can choose to use Amazon Partnered Carriers or your own carrier.
Advertisement campaigns where you are able to select the individual keywords you wish to target.
Minimum Advertised Price – This is the minimum price a brand will allow sellers to list their product. It's generally a good thing for sellers as everyone has to sell for the same price.
To find the margin, divide gross profit by the revenue. To make the margin a percentage, multiply the result by 100.
Multi-Channel Fulfillment (MCF) fulfills orders for any of your sales channels at the same delivery speeds as Fulfillment by Amazon (FBA).
Any packaged unit that is 150 lb. or less with its longest side 108″ or less, and its longest side plus girth 130″ or less.
Merchant Fulfilled is when the seller is in control of his entire handling and shipping process. Instead of paying a service fee and shipping inventory to Amazon to handle, the seller uses his or her own resources and sends the items directly to the buyer.
Minimum Gross Proceed – This is the agreed upon minimum price a seller will receive for their product under the Sold By Amazon program.
Minimum Order Quantity – The lowest possible order volume allowed by a manufacturer for a particular product. This is usually negotiable.
MSKU stands for Merchant Stock Keeping Unit. It is the part number an Amazon seller assigns to their product. Each product must have an MSKU, so Amazon knows who the seller is.
Manufacturer's Suggested Retail Price – the standard price the manufacturer recommends for their products. Also known in the UK as RRP – Recommended Retail Price.
Month to Date – Often seen when sharing sales or a certain metric since the beginning of the month.
Marketplace Web Service – This is the integrated web service API that allows software programs to “talk” to Amazon and gather data both about products and even your account. You may often see discussions regarding MWS keys or credentials.
Search terms that you don’t want your listing or ad to appear on when running a pay-per-click advertising campaign
Net profit is your business's revenue after subtracting all operating, interest, and tax expenses, in addition to deducting your COGS.
Online Arbitrage – The process of sourcing products cheaply on one ecommerce platform for sale on another ecommerce platform at a higher price.
Order Defect Rate – The percentage of orders that customers report a significant issue on. Per Amazon, ODR is the percentage of orders that have received a negative feedback, an A-to-Z Guarantee claim or a service credit card charge back. It allows them to measure overall performance with a single metric.
Original Equipment Manufacturer – An organization that makes devices from component parts bought from other organizations.
The process of sourcing products cheaply on one eCommerce platform for sale on another eCommerce platform at a higher price.
Out of Stock – Refers to an item being out of stock in a retail store or Amazon themselves being out of stock on an item.
Profit & Loss – Specifically a profit & loss statement. This is a financial statement that summarizes the revenues, costs and expenses incurred during a specified period, usually a fiscal quarter or year. Also referred to as a financial statement.
Visits to your offer pages over a given time period or session
An Amazon product promotion template which allows you to discount a product in one or more tiered offerings to encourage Amazon shoppers to buy more.
A page in Amazon Seller Central that offers up information on how you are doing with respect to Amazon customer satisfaction.
This is an informal term for multiple sellers selling on the same Amazon listing.
Pack – Pack refers to how many items come in a multi-pack of a product on Amazon. Here is an example of a pack (PK) of 3.
Private Label – Branding a generic product with your own brand to sell on Amazon that is usually imported from China.
Plan of Action – You will need a plan of action if your account gets suspended or you are in other serious trouble with Amazon.
Pay Per Click – Advertising model where an advertiser pays for the ad placement only when the ad is clicked.
Branding a generic product with your own brand to sell on Amazon that is usually imported from China.
Quarter 1 – January – March
Quarter 2 – April – June
Quarter 3 – July – September
Quarter 4 – October – December. Also, the busiest season of the year with huge sums of product selling on Amazon and online in general.
Retail Arbitrage – Buying from physical stores to resell on Amazon.
The percentage of units damaged compared to units returned
A percentage based cost for selling products on Amazon, usually, 7-15% based on final selling price.
Related accounts are when an Amazon seller either has or is falsely accused of having more than one Amazon account without Amazon's blessing. It is not recommended that anyone have more than one Amazon account.
Buying from physical stores to resell on Amazon.
The percentage of units returned compared to units shipped
Income derived from the sale of goods or services.
Request For Quote – An order placed, usually to a wholesaler or manufacturer, to solicit a request for price estimates on wholesale goods.
Return on Investment – It is the measure of the amount of return on a particular investment, relative to the investment's cost. The return on investment formula: ROI = (Net Profit / Cost of Investment) x 100.
Seller Central – Seller Central is the main website on the backend of Amazon where you will manage inventory, reconcile shipments, create PPC campaigns, find business reports, and all things related to your Amazon business.
The number of times a keyword is searched on Amazon by all visitors to the site in one month.
The main website on the back end of Amazon where you will manage inventory, reconcile shipments, create PPC campaigns, find business reports, and all things related to your Amazon business.
A rating awarded to Amazon's third-party sellers from customers who have purchased from the seller which ranges from 1 to 5 stars. This is different from a Product Review which is only linked to the actual product and not the individual seller. Negative feedback can be very damaging to your account.
Search Engine Optimization – Optimizing your listings allows both customers and Amazon's search engine to more easily find your products and gets your listing higher in the search results.
Visits to your Amazon.com product detail pages by a customer within a 24-hour period
Seller Fulfilled Prime – This is where you store the products in your warehouse but offer express Prime shipping using Amazons approved carriers.
Stock Keeping Unit – This is a product identification code that is displayed as a machine-readable bar code that helps you keep track of inventory.
Any packaged unit that is 70 lb. or less with its longest side 60″ or less, its median side 30″ or less, and its longest side plus girth 130 inches or less.
Any packaged item that is 12 oz. or less with its longest side 15″ or less, its shortest side 0.75″ or less, and its median side 12″ or less.
Any packaged unit that exceeds one or more of the following: Over 150 lb. (dimensional weight or unit weight), over 108″ on its longest side, or over 165″ when longest side is added to girth.
Amazon's Solution Provider Network for companies offering software and services to Amazon sellers.
A pay-per-click advertising solution that enables you to promote the products you sell with keyword-targeted ads (manual or automatic) that appear in highly visible placements on Amazon.com.
Formerly known as Headline Search Ads, this Amazon Advertising option is currently only available to sellers enrolled in Amazon Brand Registry. This campaign option allows sellers to promote their brand and products through banner ads at the top, side, and bottom of the search results page.
Seller Support – Amazon's support team for resolving issues and questions for sellers.
A service from Amazon that allows vendors and sellers to create their own brand stores on Amazon and provide their customers with an immersive virtual shopping experience.
Amazon program that allows customers to sign up for regular deliveries of products they use frequently
Thanks in Advance – You might see this in the comment section on posts.
A tab on Amazon's home page that takes customers to see ongoing deals and discounts on one dashboard.
When an Amazon.com user leaves a product review without first purchasing the respective product, it is considered an “unverified review”. Unverified reviews carry less weight when Amazon averages a given product's reviews.
Universal Product Code – A unique 12-digit number assigned to retail merchandise that identifies both the product and the vendor that sells the product.
Virtual Assistant – This is when you hire someone, usually offshore in the Philippines or similar, to do work for you such as sourcing product.
Fixed charges from Amazon on certain products, usually media.
Product variations allow customers to see different colors, sizes and styles of the same product.
Vendor Central – The central portal for managing your Amazon Vendor account.
The central portal for managing your Amazon Vendor account.
Those who sell their products directly to Amazon, as opposed to consumers, will be a vendor and will use Vendor Express and function as Amazon's wholesale distributor of that product.
When an Amazon customer leaves a product review after purchasing the product.
Wholesale – Buying from wholesale distributors or manufacturers and selling for a profit on Amazon. This usually requires volume purchases.
Your mileage may vary – You might see this in the comments when someone is saying you might have a different outcome than they did, even though you are doing the same thing.
Year to Date – Often used when sharing sales numbers or a certain metric since the beginning of the calendar year.