Amazon Glossary

Everything you need to know about Amazon, how it works and its terminology.

Highlighted Terms

ASIN

A unique identification number that Amazon assigns to each product on its platform. It is important to identify and list products accurately.

ACOS

Metric used in Amazon's advertising campaigns to measure the effectiveness of advertising investment. It is calculated by dividing the advertising expenditure by the sales generated through that advertising. A low ACOS indicates a more profitable advertising campaign.

FBA

An Amazon service that allows sellers to ship their products to Amazon's distribution center, where the company handles the storage, packaging and shipping of the products to the end customer.

Buy Box

A box on an Amazon product page where customers can add the product to their shopping cart. Winning the Buy Box is crucial for sales, as most customers make purchases through it, and it is linked to the turnover of sellers on the platform.

Amazon Glossary:

3P | Third-Party Sellers

Sellers that are not directly Amazon, but individuals or outside companies that use Amazon’s platform to list and sell their products on the site. These sellers can use options such as Fulfilled by Amazon (FBA) or ship products themselves.

A+ | A+ content

Feature that allows sellers to highlight products with visual and descriptive content on Amazon product detail pages, improving the shopping experience and sales conversion.

A9 | Algorithm A9

Amazon’s product search and ranking algorithm that determines how search results are displayed on the platform, influencing the visibility and position of products in search listings.

ACOS | Advertising Cost of Sales

Metric used in Amazon’s advertising campaigns to measure the effectiveness of advertising investment. It is calculated by dividing the advertising expenditure by the sales generated through that advertising. A low ACOS indicates a more profitable advertising campaign.

Amazon Choice

A badge that Amazon awards to certain products on its platform, indicating that they are recommended and popular products among shoppers. This designation can influence customers’ purchasing decisions by suggesting quality and reliability.

Amazon Marketplace Web Services

A set of APIs (Application Programming Interfaces) provided by Amazon that allow sellers and developers to integrate their applications and systems with Amazon’s platform to manage inventory, list products and perform other operations related to selling online on Amazon.

Amazon Seller

An Amazon account that allows individuals or businesses to sell products on the platform. Through a seller account, you can list products, manage inventory, set prices and manage your Amazon sales operations. Sellers can access their accounts through Amazon Seller Central.

Amazon Seller Central

Amazon’s online platform that allows sellers to manage their Seller accounts, list products, manage inventory and track sales.

Amazon Vendor

An account used by manufacturers and wholesalers who sell their products directly to Amazon. Amazon buys products in bulk from suppliers for sale on the platform. These sellers have access to Amazon Vendor Central to manage their business relationships with Amazon.

Amazon Vendor Central

A platform provided by Amazon for manufacturers and wholesalers that allows them to sell products directly to Amazon in large quantities. Sellers use AVC to manage their business relationships with Amazon.

BSR | Best Seller Rank

The ranking of a product on Amazon based on its recent sales in a specific category, which affects its visibility and position in search listings, helping shoppers identify popular products.

Brand store

A customized online store within Amazon that allows sellers and brands to present their products in an exclusive way. Brand Stores allow retailers to highlight their brand, showcase a variety of products and provide a personalized shopping experience to customers.

Brand stories

Visual and narrative content that brands can use in their Amazon stores to tell their brand story and connect with customers. These stories often include images, videos and text to convey brand identity, values and product quality.

B2B | Business-to-Business

Business-to-business commercial transactions on Amazon, where companies purchase products or services for their own use or resale.

B2C | Business-to-Consumer

Commercial transactions between a business and an end consumer on Amazon, where products are sold directly to buyers.

BB | Buy Box

A box on an Amazon product page where customers can add the product to their shopping cart. Winning the Buy Box is crucial for sales, as most customers make purchases through it, and it is linked to the turnover of sellers on the platform.

Chargebacks

Process where a customer disputes a charge on their credit or debit card, often related to unsatisfactory purchases on Amazon.

COGS | Cost of Good Soldiers

The cost of production or acquisition of the products that a seller has sold on Amazon. This cost includes the purchase price of the products, shipping costs and other direct costs associated with obtaining the products sold. Calculate the profit margin by subtracting COGS from the selling price.

Dropshipping

Business model where the seller lists products on Amazon without having a physical inventory and buys products only when a sale is made, shipping them directly from the supplier to the customer.

EAN | European Article Number

International bar code used to uniquely identify products. On Amazon, it is required when listing products for accurate identification and search.

FBA | Fulfillment by Amazon

An Amazon service that allows sellers to ship their products to Amazon’s distribution center, where the company handles the storage, packaging and shipping of the products to the end customer.

FBM | Fullfillment by Merchant

A method of fulfillment in which the Amazon seller is responsible for warehousing, packing and shipping products directly to customers, rather than using Amazon’s fulfillment services (FBA).

Fullfillment Center

An Amazon operations center where products sold on the platform are stored, prepared and shipped. Amazon handles warehousing, packing and shipping of products for sellers using the Fulfillment by Amazon (FBA) service. This makes it easier for vendors to manage their inventories and deliver orders to customers quickly.

GMV | Gross Merchandise Volume

Gross Merchandise Volume (GMV) refers to the total value of products sold on a platform or marketplace during a specific period, before deducting any fees, returns or cancellations. GMV is a key metric for measuring economic activity in an online marketplace like Amazon.

ASIN | International Standard Book Number

A unique number that Amazon assigns to each product on its platform. It is important to identify and list products accurately.

IPI | Inventory Performance Index

Metric that evaluates the efficiency of a seller’s inventory management on the platform, which affects storage capacity in Amazon’s fulfillment centers. This metric ranges from 0 to 1000.

KR | Amazon Keyword Research

Researching specific keywords that shoppers typically use when searching for products on Amazon. This research is essential to optimize product listings and improve their visibility.

Landed Cost

The total cost of a product that includes not only its purchase price, but also all expenses associated with its transportation, importation, duties, taxes and other additional costs necessary to bring the product to its final destination.

Listing

An individual page on the Amazon platform that presents a specific product for sale. Each product on Amazon has its own listing that includes details such as title, description, price and purchase options.

LQS | Listing Quality Score on Amazon

Metric that evaluates the quality of product listings on Amazon (based on their images, descriptions…), influencing the visibility of products on the platform.

ODR | Order Defect Rate

The order defect rate, which measures the proportion of orders that have problems such as shipping delays, cancellations or complaints from dissatisfied customers. Maintaining a low ODR is crucial to maintaining a good reputation as a seller on Amazon.

Picking

The process of picking or selecting specific products from inventory to fulfill an outstanding order. Automated workers or systems perform picking, removing products from the designated storage location before packing and shipping them to the customer.

Prime

Amazon membership program that offers advantages such as fast and free shipping, access to video and music streaming content, among other benefits. Prime members enjoy premium services on Amazon’s platform.

PRPV | Product Review Per Visit

Metric that calculates the average number of product reviews received per visit to a product page on Amazon. This metric is used to evaluate the number of comments or reviews generated in relation to the amount of traffic or visits to a product page.

POD | Proof of Delivery

A document or record that demonstrates that a shipment or delivery has been successfully completed, and usually includes the recipient’s signature or other evidence confirming that the package has been properly received. This proof is important to verify the delivery of products, especially in online commerce.

PO | Purchase Order

A document issued by a buyer to a supplier detailing the quantity, price and other terms and conditions of goods or services to be purchased. In the context of Amazon, it may refer to purchase orders issued by Amazon to its suppliers to stock its inventory.

SKU | Stock Keeping Unit

Code used by Amazon sellers to track and manage products in their inventory. Each variant of a product (such as different colors or sizes) can have its own SKU for accurate tracking.

TACoS | Total Advertising Cost of Sales

A metric used in Amazon advertising that calculates the total cost of advertising in relation to sales generated. Helps marketers evaluate the effectiveness of their advertising campaigns in terms of ROI.

Repricing

The strategy of automatically adjusting product prices on Amazon to stay competitive in real time, using repricing software or tools.

SC | Shortage Claims

Claims filed by Amazon Vendor when they believe they have not received the proper quantity of products from a supplier, which may result in shipping and delivery disputes and settlements.

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