Amazon Important Glossary

A

A+ Content

A programme for Amazon sellers that enables you to maximise Amazon Seller Central by writing more extensive product descriptions with more photographs, video, and text.

A9

An Amazon company that creates search engine and search advertising technologies. Organic ranking is crucial, and A9 drives Amazon’s and other e-commerce companies’ product search sites.

A/B Testing

Sometimes referred to as “split testing,” this is a way of comparing and contrasting sales metrics, mainly conversion rates, between two distinct websites or product listings. A/B testing may raise revenues by up to 25%, so begin split-testing and begin earning more on Amazon.

Account Health

Refers to the performance standards and criteria that all Amazon sellers must comply to in order to continue selling. Customer service performance, product policy compliance, and shipment performance are account health measures. You want to obtain positive feedback without jeopardising your account’s health.

Advertising Cost of Sale (ACoS)

The proportion of revenue attributable to advertising. This is determined by dividing total advertising expenditure by total sales. With Sales Analytics, you can assess your revenues on Amazon fast and effortlessly.

Ad Daily Budget

The average daily amount you are willing to pay on a certain ad group for your keywords.

Ad Impressions

The number of consumers who view your product’s advertisement.

Ad Orders

The quantity of orders placed by consumers who clicked on your product’s sponsored ad.

Ad Sales

The total number of product sales generated in the week after a click on your product’s sponsored ad.

Ad Spend

Total advertising expenditures for a campaign sponsored by Amazon (in the selected time period).

Ad Status

The status of your ad group at the moment. The status might be active, halted, terminated, archived, planned, unfinished, over budget, or payment failure.

Ad Targeting

This option affects whether you choose the keywords for an ad campaign or Amazon chooses the keywords automatically.

Affiliate Marketing

A marketing agreement in which an online shop pays a commission to a third-party website for referral-generated traffic or purchases. Using Amazon’s Affiliate Program, many individuals develop companies.

Alibaba

A Chinese corporation specialising in e-commerce, retail, and technology. This website provides as a third-party platform between private label businesses and worldwide suppliers, distributors, and manufacturers for Amazon FBA selling reasons.
Alibaba is the world’s largest online retailer based on total sales.

Alibaba Assessed Supplier

This accreditation assists merchants in connecting with approved suppliers. It signifies a manufacturer, supplier, or wholesaler on Alibaba that has been approved by a recognised third-party inspection firm.

Alibaba Gold Supplier

Alibaba-approved manufacturer, distributor, or wholesaler. This is another technique to assess Alibaba vendors.

Alibaba Trade Insurance

Alibaba’s free service that protects customers and sellers from the moment of payment until the moment of delivery.

AMZ

American e-commerce and cloud computing startup with headquarters in Seattle, Washington. Amazon is the world’s largest online retailer based on revenue and market capitalization

API (Application Programming Interface)

A code that enables two platforms/software applications to connect.

Amazon Standard Identification Number (ASIN)

A string of 10 characters that uniquely identifies goods on Amazon.

Automatic Targeted Ads

Amazon-targeted advertisements which are targeted to specified search terms and that do not need you to enter particular keywords.

B

Business-to-business (B2B)

Companies conducting business with one another. You may be eligible to sell items directly to companies in addition to consumers as an Amazon seller.

Bid+

As a seller, you want to get the top keyword ranking in your niche in less than 60 days. The Bid+ button can assist you with manually focused Amazon advertising campaigns. It permits you to increase bids in a campaign by up to 50 percent over the default offer when advertisements are eligible to appear at the top of search results.

BOGO

Promotions, like BOGOs, are one of the finest methods to debut and rapidly rank new goods on Amazon. Referring to a “Buy one, get one” deal, BOGOs allow you to provide two things for the price of one in order to promote a new product or encourage existing clients to purchase differently.

Brand

A product category created by a certain firm under a specific brand name. Brand development necessitates mastering advanced product research methodologies.

Brand Registry

An Amazon initiative that enables you to safeguard your registered trademarks on Amazon and provide customers with a trustworthy experience. In addition, Amazon’s Brand Registry navigation provides you access to additional brand content possibilities.

BSR (Best Sellers Rank)

is an Amazon classification based on an algorithm that measures a product’s historical sales. The BSR may be used to estimate the sales of a product.

Buy Box

The Buy Box is a widget that appears on the majority of Amazon product listing pages and enables shoppers to swiftly purchase the goods they are looking for. If there are many sellers on the ad, only one can win the Buy Box.

C

Category

Amazon’s product category based on common properties and applications. Both a broad category placement (also known as departments) and one or more sub-category placements are possible for products.

COGS (Cost of Goods Sold)

is the sum of all costs incurred in the production of a sold product or service. This may include the cost of materials, packing, shipping, duty taxes, etc. for an Amazon-branded goods. There are tools that can assist you simply calculate the profitability of your product.

Coupons

Utilizing Amazon’s marketing services is essential for launching a new product effectively. You may utilise Amazon’s coupon programme to give discounts on your items as an Amazon merchant.

CPM/CPI (Cost-per-mil / Thousand / Impression)

is a type of advertising that refers to the cost you incur when 1,000 people view your ad.

Crowdfunding

Crowdfunding is the technique of supporting a project or business by collecting numerous modest contributions from a large number of individuals, generally over the Internet.

CTR (Click-through-rate)

is the proportion of shoppers who saw your advertisement and click on it. This is determined by dividing the number of clicks by the number of impressions.

Customs Clearance

Transiting items via the official department that administers and collects the tariffs imposed on imported products by a government.

D

DDP (Delivered Duty Paid)

The supplier is responsible for organising transportation and delivering the products to the designated location with all relevant tariffs and taxes already paid.

DS (Dropshipping)

is a technique of fulfilment in which things are not stored in-house. Instead, when a buyer orders an item, the retailer purchases it from a third-party vendor and ships it straight to the client.

Duty Tax

A government-imposed tax on imported and exported products and services.

E

EAN (European Article Number)

An EAN, also known as an International Article Number, is a 13-digit string used to identify a product involved in international trade. There is also an EAN with eight digits for tiny items, although its use is uncommon.

Early Reviewer Program

A campaign on Amazon that encourages consumers who have previously purchased a product to offer genuine feedback, regardless of whether it is a 1- or 5-star rating.

EFN (European Fulfillment Network)

This option is available to Amazon’s European sellers, allowing them to sell on other Amazon marketplaces while completing orders from their home fulfilment centres.

Export

The sending of commodities or services for sale in a foreign nation.

EXT

Extension is a software-as-a-service application that seamlessly interacts with the Google Chrome web browser. Extension collects data from product listings and generates a spreadsheet with product metrics to validate product concepts.

EXW (Ex-Works)

indicates that the vendor is accountable and liable for the full shipping, from door to door. (This is when you would utilise a freight forwarder.)

F

FBA (Fulfillment by Amazon)

Amazon’s service that enables third-party merchants to store their items in Amazon’s fulfilment centres. Amazon will select, pack, ship, and provide customer care on behalf of the third-party seller when a sale is made on Amazon.

FBM (Fulfillment by Merchant)

FBM merchants store, select, pack, ship, and provide their own customer care for buyers who purchase their goods online from an Amazon shop…while reducing Amazon costs.

FC (Fulfillment Center)

A fulfilment centre is a big warehouse where Amazon and its third-party merchants store, prepare, and ship their items.

FCA (Free to Carrier)

means that the seller is accountable and liable for the cargo once it has been transferred to the carrier, often near the port in the nation of origin.

First-Party Sellers (1P)

A term used to characterise brands that Amazon distributes and sells on its marketplace. Amazon extends an invitation to these 1P merchants to join, and they track their things using Vendor Central, as opposed to Seller Central.

FNSKU (Fulfillment Network Inventory Control Unit)

A 10-character string used by Amazon to identify products that are exclusive to a certain seller that ships and stores their things in Amazon’s warehouses, commonly known as fulfilment centres.

FOB (Free On Board)

This indicates that the supplier is responsible for transporting your items from the manufacturer to the port.

Freight Forwarder

A third-party shipping service that will manage all of the delivery specifics with your supplier. Whether you send your Amazon items by air or by sea, a freight forwarder may assist you.

Fulfillment Fee

Amazon’s fee for picking, packing, and shipping your product via their FBA service.

G

Gated Category

A category of restricted items that are inaccessible to vendors without Amazon’s prior permission.

Giveaway Promo

A promotional template for Amazon that allows you to give away your items to generate buzz or establish a social media following.

Gross Profit

Gross profit is the profit a business realises after subtracting the expenses associated with producing and selling its products or delivering its services.

GTIN (Global Trade Item Number)

GTINs are identifiers used to get product-related information.

I

Import

The act of bringing commodities or services for sale into a country.

Incoterms

These are the phrases used in international shipping contracts. They specify who is accountable (and liable) for transporting your goods from A to B.

Inventory

These are the items you have posted for sale on Amazon and other e-commerce sites. With inventory management, vendors must be able to safeguard their items.

ISBN (International Standard Book Number)

These ten- or thirteen-digit strings identify a particular book, edition of a book, or book-like object (think audio- book or ebook).

K

KB (Knowledge Base)

Amazon’s free public help desk that provides answers to frequently asked issues.

Kickstarter

A popular platform for crowdfunding.

L

Landed Cost

This is the sum of the unit cost (cost per unit) plus freight and customs fees.

Landing Page

The area of a website that is accessible by clicking on a hyperlink, often the homepage.

Long Tail Keywords 

Long tail keywords are phrases with two or more words that are used to target a specialised niche.

M

Manually Targeted Ads

Advertising campaigns in which you manually pick the terms you desire to target.

MAP (Minimum Advertised Price)

This may arise while working with distributors or purchasing straight from the manufacturer.

Marketing Funnel

A buy funnel, also known as a sales funnel or purchase funnel, is a consumer-focused marketing model that depicts the hypothetical customer path towards the purchase of a product or service.

MOQ (Minimum Order Quantity)

is the lowest order quantity permitted by a manufacturer for a certain product.

MSRP (Manufacturer’s Suggested Retail Price)

is the price at which the manufacturer recommends selling their items. This is shown above the selling price on Amazon when the price of the product is lower than the MSRP.

MCI (Multi-Country Inventory)

is an Amazon fulfilment option that enables FBA merchants to select the countries to which they wish to ship their inventory and have orders for their Amazon store fulfilled by the local fulfilment centre.

MWS

This refers to Amazon’s Marketplace Web Services and is where you may access your API/MWS keys.

N

Net

Actual profit after working expenditures not included in gross profit calculation have been paid.

O

OA (Online Arbitrage)

is the process of purchasing things cheaply on one e-commerce platform and reselling them at a greater price on another e-commerce site.

OEM (Original Equipment Manufacturer)

refers to a firm that creates components and equipment that another manufacturer may market.

Opt-In

In terms of marketing, an opt-in provides a potential consumer the option to engage with the website or get anything from it.

P

Pan Eu

If a merchant is actively selling on Amazon’s European marketplaces, PAN EU enables them to ship their items to a single fulfilment centre. Then, Amazon transports the merchandise to its fulfilment facilities located around the continent.

Performance Notifications 

A page in seller central that provides information on your Amazon customer satisfaction performance.

PL (Private Label)

A product made or packaged for sale under the retailer’s name as opposed to the manufacturer’s. If you choose this path, there are several resources that teach how to generate product ideas.

PPC (Pay-per-click)

Also known as cost-per-click (CPC), this method of advertising costs the product seller each time one of their advertisements is clicked. It is simple to locate a free, thorough, step-by-step guide on Amazon PPC optimization due to its significance.

Price

The sum of money necessary to acquire a commodity. Part of being successful in e-commerce is understanding how to locate the greatest pricing for your goods.

Promotions

A set of discount and giveaway alternatives made available to Amazon merchants in order to increase sales and social media expansion.

Q

Q1

The first three months of the fiscal year, January through March

Q2

The second fiscal quarter, spanning the months of April through June.

Q3

The fiscal year’s third quarter, July to September

Q4

The fourth quarter of the fiscal year, spanning the months of October to December

R

RA (Retail Arbitrage)

Finding underpriced things at a retail store in order to sell them for a profit on Amazon or another e-commerce site.

Referral Fee

A fee based on a percentage for selling things on Amazon.com.

Revenue

Income generated by the selling of products or services

RFQ (Request for Quote)

(Request for Quote) An order placed on Alibaba to get wholesale pricing quotes for items.

ROI (Return on Investment)

This is the loss or gain generated by an investment compared to the amount invested. ROI = (Gain from investment – Cost of investment) / Cost of investment is the conventional ROI calculation.

S

Sales Page

A webpage designed to persuade website visitors to make a purchase.

Sample

The shipment of a single product to a buyer in order to show the quality, service, and expertise of a manufacturer, supplier, or wholesaler.

SC (Seller Central)

is the online interface used by a subset of Amazon marketplace merchants to manage their Amazon Pro or Individual seller accounts. These sellers (including FBA and FBM) are categorised as third-party sellers.

Seller Feedback

A rating given to Amazon’s third-party sellers by customers who have just made a purchase and wish to share their experience with other consumers. The total experience may be rated from 1 to 5 stars. They may also indicate if the merchandise came on time and how they were treated by customer service (if applicable). Lastly, they are required to provide a brief remark explaining their experience.

SEO (Search Engine Optimization)

is the practise of increasing the amount of visits to a website by ensuring that it shows prominently in a search engine’s results page. Knowledge of compelling search engine optimization will increase your sales.

SFP (Seller Fulfilled Prime)

Amazon’s programme enables FBM sellers to show the Prime logo on their listings by following to Amazon’s quick shipment timeframe.

SKU (Stock Keeping Unit)

These machine-readable codes are used to identify a specific product and vary by manufacturer. It serves as an inventory tool.

Sponsored Ad

A pay-per-click advertising system that lets you to market the items you offer with (manual or automatic) keyword-targeted adverts that show in highly prominent locations on Amazon.com.

T

Third-Party Sellers (3P)

Term used to denote merchants unaffiliated with the e-commerce platform’s “owners.” On Amazon, 3P sellers are those that offer FBA or FBM products.

U

Unverified Reviews

When an Amazon.com customer writes a product review without first purchasing the item in question, the review is deemed “unverified.” Because unverified reviews have less weight when Amazon aggregates a product’s ratings, merchants must understand how to acquire product reviews without offering incentives.

UPC (Universal Product Code)

A UPC is a machine-readable code used to identify a specific product, and each company’s UPCs are identical. It is used to track fundamental item information.

Upsell

A sales tactic in which the vendor encourages the buyer to purchase more expensive things, upgrades, or other add-ons in order to increase the sale’s profitability.

V

VA (Virtual Assistant)

A virtual assistant is often a remote worker who offers administrative assistance. VAs are often independent contractors that may perform bookkeeping, data entry, research, and much more.

VC (Vendor Central)

Sellers who are members of Vendor Central are called first-party (1P) sellers. In essence, VC merchants sell their goods in bulk to Amazon, which then acts as the seller’s distributor.

Verified Reviews

When an Amazon.com customer provides a product review after purchasing the product in question, the review is deemed “verified.” Amazon gives more weight to verified reviews when averaging a product’s reviews. You desire reviews that “wow” Amazon shoppers.

VPN (Virtual Private Network)

is an encryption technique that enables the secure transmission of data across a less secure connection.

W

WL (White Label)

Typically, white label and private label are used interchangeably, however white labelling is slightly distinct. White labelling is when a firm removes its logo/brand off one of their goods and agrees to replace it with the logo/brand of another company.

WS (Wholesale)

The practise of selling things in big numbers and at low costs to third parties, who subsequently resell them in brick-and-mortar stores or on websites such as Amazon and eBay.