News & Insights
The Glossary of Acronyms and Terms Every Amazon Business Needs
Before you can begin to understand all the tools and strategies that lead to success on Amazon, a language lesson could be the most important first step. At Amify, we have the expertise to guide you through every challenge the platform puts in your path. But we also know communication between our team and our clients is critical. That’s why we put together this Amazon glossary to ensure we’re all on the same page when it comes to the technical jargon and acronyms that can be tough to navigate. Spend some time getting up to speed on the vocabulary, and then reach out to start a conversation about how we can help your Amazon business reach its full potential.
Shorthand for the First-party Amazon Vendor Central Model where a brand sells its product directly to Amazon at wholesale prices. Amazon then lists the product for sale as Amazon and sells it to the end consumer.
Shorthand for the Third-party Amazon Seller Central Model where a business uses Amazon to sell their product, or to be a retailer for another brand and sells directly to consumers via the marketplace. This can also include Amazon FBA sellers.
Shorthand for Third-party logistics or companies that provide storage and fulfillment services for e-commerce companies.
This is enhanced brand content for Amazon product pages that can take many forms, including high-quality images, comparison charts, video content, FAQs, and more.
Advertising Cost of Sale. The percentage of sales spent on advertising. The formula for this is total ad spend divided by sales attributed to that advertising effort.
A referral program designed to drive traffic and sales to Amazon via third-party sites or influencers, such as blogs, news sites or social media.
Aged Inventory Surchage
Previously known as a long term storage fee, this fee is charged on inventory that is stored by Amazon for a seller for more than 271 days, and increases after 365 days.
Amazon Global Selling, a program that allows sellers to list products on Amazon marketplaces beyond their own borders.
The stock symbol for Amazon.
The abbreviation for Amazon Logistics.
Application Program Interface is a technology that simplifies the process of communication between different software applications.
Amazon Standard Identification Number. A unique 10-character alphanumeric identifier that is used specifically on Amazon.
Advanced Shipment Notification. It provides notice to Amazon when a company is shipping a product to one of its fulfillment warehouses, and is typically required for the shipment to be accepted.
Average Selling Price. Calculated by net sales divided by the number of products sold.
Amazon Web Services is a cloud computing platform that is among the most comprehensive in the world.
Business to Business, or e-commerce between two businesses.
Business to Customer, or e-commerce between a business and a customer.
Comprehensive data reporting and analysis made available to brands enrolled in the Amazon via Seller Central.
Amazon’s free program for brands to use to protect intellectual property, manage listings, and grow.
Best Seller Rank. An Amazon Best Sellers calculation is given to each product based on Amazon sales, and is updated hourly to reflect recent and historical sales of every item sold on Amazon.
Each item sold on Amazon has only one Buy Box regardless of how many sellers have that item in their inventory. Amazon’s algorithm determines which seller receives the Amazon Buy Box and therefore becomes the default seller for the item when customers add a product to their cart. Since more than 80% of all Amazon sales happen through the Buy Box, it’s extremely valuable territory that brands seek to win. The best methods for success are strong sales, excellent customer service, and a stellar Star Rating
The landing page for a specific group of products listed on the Amazon website, such as books or electronics.
Counterfeit Complaint Rate tracks customer claims that an item they purchased was inauthentic.
An ASIN that requires shoppers to select additional options, such as size or color, to purchase.
Cost of Goods Sold. The value of goods sold during a certain period of time.
This is the term Amazon uses to refer to the company’s refunds and returns to customers.
Cost Per Click. A digital advertising term that describes the cost for each user that clicked on a display ad. It is calculated by dividing the ad spend by the number of click throughs and common way to pay for an Amazon ad.
Costs Per Shipment.
Contacts Per Unit. This is a metric used to calculate the fee for Customer Service by Amazon that tracks the number of customer contacts Amazon completed during the fulfillment of a unit.
Customer Service by Amazon. A paid service that provides customer service from Amazon for self-fulfilled products.
Click Through Rate. A metric that measures the number of clicks per impression of an advertisement.
Deal of the Day. A single item or small set of closely related items that are discounted for a period of one day only. Learn more about Amazon deal and promotion types.
Delivered Not Received, a term used in Amazon warehousing for shipments that have not been checked into the inventory.
Dropshipping is a fulfillment method used when retailers don’t physically have or ship the item. Instead, the product is shipped directly to the customer by a third-party.
Detail Page Views. A metric showing the number of impressions of a single detail page.
Demand Side Platform. Amazon DSP is the company’s display advertising program.
Can also refer to Delivery Service Provider, a participant in Amazon’s delivery network program.
Direct to Consumer.
Estimated Delivery Date.
Expected Ship Date.
Fulfillment by Amazon. A fee-based service, Amazon FBA is when Amazon manages the packing and shipping of products sold on the site, on behalf of a third-party seller. Orders are shipped to customers from an Amazon Fulfillment Center.
Fulfilled by Merchant. This refers to self-fulfillment by Amazon sellers and can also be called Merchant Fulfilled.
Fulfillment Center also known as an Amazon warehouse.
Fulfillment Network Stock Keeping Unit. This is an Amazon-specific identifier for products that are fulfilled by Amazon.
Frustration-Free Packaging is an Amazon program that eliminates excessive packing and by shipping products in easy-to-open packaging that does not require additional Amazon boxing.
These are product or brand categories that Amazon considers high-risk due to counterfeiting or other concerns. Sellers need prior approval to list products in these categories.
A SKU that is part of a shared inventory pool and is available to be sold and shipped in multiple marketplaces. Learn more about the pros and cons of international ASINs..
This is the industry term for Amazon’s main landing page.
Hazardous materials, such as items that are flammable or otherwise dangerous and require special precautions and regulations to transport or store.
The number of views that a digital ad receives.
Typically a low-volume Amazon seller that pays a per-item fee for each item sold on the platform, and does not have access to the advertising tools or data that professional sellers do.
International Standard Book Number. A 13-digit identity number assigned to individual books.
Key Performance Indicators. Measurable values that are selected to monitor how well a business is performing against predetermined objectives.
Less Than Container Load, is a term used in ocean shipping to indicate a shipment is less than 18 cubic meters.
Less Than Truckload, is a term used in ground transport to indicate a shipment is smaller than what would fill a typical semi-trailer.
A temporary sale or promotion on Amazon that is limited in time, inventory and purchase per customer.
The process of improving an Amazon detail page and product information, including titles, bullet points, features, description, and images.
The collection of products available for purchase on Amazon, often differentiated by country, such as in a reference to the U.S. Amazon Marketplace.
Minimum Advertised Price is the lowest sales price that a brand will allow to be publicly promoted for a particular product.
Multi-Channel Fulfillment gives sellers the option to pay for fulfillment services from Amazon for products that are sold on e-commerce sites other than Amazon.
Month Over Month.
Minimum Order Quantity. The minimum amount Amazon must order from vendors
Month To Date.
Manufacturer’s Suggested Retail Price is the amount a manufacturer recommends that their product should be sold for. It’s sometimes referred to as the “list price.” As with MAP, brands need to monitor their MSRP carefully on Amazon. And just like MAP, Amazon does not commit to honoring MSRP with their Vendor Central partners.
North American Fulfillment Network is Amazon’s warehouses and shipping partners across Canada, the U.S. and Mexico.
The North America Remote Fulfillment program allows sellers to display their U.S. inventory on Amazon’s country-specific sites for Canada and Mexico. Shoppers on these sites are shown the available inventory at your price, plus a premium for import duties. To qualify, sellers must participate in FBA.
Non Disclosure Agreement.
Non Replenishable. An item that is no longer available.
New to Brand. A relatively new advertising metric that indicates a purchase that resulted from an ad was made by an existing customer or one that had not purchased that product in the prior year.
Order Defect Rate. The percentage of a seller’s orders that receive negative feedback, an A-to-Z Guarantee claim, or a service credit card chargeback. It is a primary measure of an account’s health.
Out Of Stock.
Profit and Loss.
The main product ASIN that has Child ASIN such as color, size or flavor variants underneath its product detail page.
Product Cost of Goods Sold. The formula is shipped units multiplied by cost.
Small packaged products that can’t be shipped in their own containers, but are easy to open and not require extra prep by Amazon. They are shipped in Amazon boxes.
Prime Exclusive Discount
This is a price discount available to Prime members. Product offers with a Prime Exclusive Discount will show a discounted price with the regular price crossed out.
Product Display Ads
A type of display advertising where a product’s ad appears throughout Amazon on category and product pages.
Proof of Delivery.
Pay Per Click. A term used in digital advertising for ads that result in a fee to the advertisers each time the ad is clicked. Amazon PPC is common for advertisers on the platform.
Amazon Prime. A paid subscription service that provides free, fast delivery on millions of items, and includes streaming entertainment such as Prime Video. Only certain items sold on Amazon are prime eligible.
Products sold by a retailer or supplier under their own brand name, but made by other manufacturers. Amazon offers a large selection of private label products such as its AmazonBasics line.
A paid selling account on Amazon where a business pays a monthly fee rather than a few per item sold. These sellers have a wider range of services at their disposal to support their selling on Amazon, compared to individual sellers.
Project Zero uses the power of Amazon technology combined with brand insights to detect and remove counterfeits and protect sellers in the Brand Registry program.
First quarter or January – March of any year.
Second quarter or April – June of any year.
Third quarter. July – September of any year.
Fourth quarter. October – December of any year.
Return on Ad Spend is a Key Performance Indicator that is used to determine media effectiveness. It is the retail sales return on the ad dollars you spend on Amazon.
Return on Investment. A fundamental performance metric for businesses that compares the amount spent to the results to determine the success of an investment.
Recommended Retail Price.
Amazon’s internal ranking of products in search and browse.
Search Engine Optimization is the act of increasing traffic and visibility to an online property via a search engine through keyword placement, content and other efforts other than paying for placement.
A Search Engine Results Page is exactly what it sounds like: the page of results that appears after conducting a search on Amazon.
Ships in Own Container. A category of Amazon’s Frustration Free Packaging initiative.
Stock Keeping Unit. A unique code used to identify products
Subscribe and Save is Amazon’s subscription service that offers automatic ordering and delivery as well as discounted pricing for customers interested in recurring purchases.
Small and Light
An Amazon fulfillment program that offers reduced shipping costs to sellers for qualified smaller items.
These ads are intended to support brand building by featuring multiple products from a single company. Appearing above search results, Sponsored Brand ads display a custom headline, logo and up to three products. Clicking on this type of ad typically sends shoppers to an Amazon Storefront or custom Amazon landing page. A video version of Sponsored Brand ads is also available to promote a product detail page.
An Amazon Ad product that promotes items by placing display ads both on and off the platform and that can be targeted to a variety of audiences.
Similar to Google Adwords, A Sponsored Product ad is targeted using keywords and (ASIN) to reach Amazon shoppers. They allow advertisers to promote specific products within Amazon’s search results and product detail pages. They are the most popular form of advertising on Amazon.
The higher the average number of stars your products earn, the more likely your brand is likely to sell. More stars also increase your products’ odds of finding their way into the coveted Buy Box. And your products’ star ratings are not simply an average; Amazon also considers the age of reviews and whether they are Verified or Unverified Reviews
Sometimes referred to as an Amazon Brand Store, and limited to brands that have completed the Brand Registry process, an Amazon Storefront is a customized experience for shoppers that features all of a brand’s products on Amazon in one branded interface.
A Third-party Seller uses Amazon to sell their product, or to be a retailer for another brand and sells directly to consumers via the marketplace.
Every time a shopper reads a review, they are asked if they found it helpful. Those reviewers who receive the most “yes” votes for writing informative, useful reviews earn a Top Reviewer badge (e.g., “Top 1000 Reviewer,” “Top 50 Reviewer,” etc.) These reviewers’ opinions carry extra weight with shoppers and can increase or hinder your sales.
Terms of Service.
Manufacturers and brands need to be diligent about monitoring unauthorized sellers on Amazon, particularly those selling below your MAP or MSRP (see above). Don’t expect Amazon to be of much help here (they see lower prices as a good thing for their consumers), but there are some steps you can take. If you encounter unauthorized sellers who are peddling defective or expired products, Amazon will help you resolve the matter.
Universal Product Code. The 12-digit number displayed with a barcode on most retail products.
These are reviews written by people whose accounts suggest that they did not purchase the product in question on Amazon, or who bought it at a discounted price. Most shoppers are at least a tad skeptical about the reliability of these reviews.
This applies to products that are available in multiple sizes, flavors or colors. They can be listed as a main Parent ASIN, with each variation available as a different child ASIN.
Value Added Tax is a consumption tax added to the cost of products that is common in the UK and EU.
A review from a shopper that Amazon confirms as a purchase of the product in question.
Vendors, using Vendor Central, sell products to Amazon as a wholesaler.
Amazon Vine is an invitation-only program which selects the most insightful reviewers in the Amazon store to serve as Vine Voices. Vine Voices have the unique opportunity to order items free of charge and share their product experiences with Amazon customers to help them make informed buying decisions.
A promotional deal on Amazon where a vendor or seller offers a limited-time discount.
These are discounted items sold by Amazon Warehouse. They are typically items that were returned or have minor cosmetic or packaging damage.
Week Over Week (when comparing metrics).
Year Over Year (when comparing metrics).
Year Over Year (when comparing metrics).
More Resources And Articles
Four Areas to Focus Amazon Demand Planning Efforts
Create a Winning Amazon Pricing Strategy
Understanding and Implementing Amazon Inventory Forecasting Strategies
Put Amazon Sponsored Display Audiences to Work for Your Brand
Build Better Amazon Listings with A/B Testing
Optimize Your Amazon Listings for Growth
6 Ways to Reduce Amazon PPC Costs
An Amazon Seller’s Guide to Rebranding
Learn more about how we can help your Amazon business succeed!
- 700 West Pete Rose Way, Suite 540, Cincinnati, OH 45203