Amazon Terminology Guide: Navigating Amazon Acronyms and Abbreviations

For newcomers to the Amazon marketplace, familiarizing yourself with the terminology is essential for successful business operations. To aid your understanding, we’ve compiled this comprehensive Amazon glossary, which encompasses both Amazon acronyms and abbreviations, offering invaluable assistance as you delve into Amazon sales.

A

A++

Amazon offers a program for sellers to enhance product descriptions with additional images, videos, and text, providing more comprehensive details.

A9:

An algorithm Amazon utilizes to determine product search result rankings based on various factors such as titles, images, videos, copy, inventory, etc.

A/B testing:

A method involving the comparison of two different listings to assess their performance.

Account health:

A section within Seller Central overviews a seller account’s adherence to performance targets and policies.

ACoS (Advertising Cost of Sale):

The ratio of advertising spend to advertising revenue.

Ad daily budget:

The average daily amount allocated for advertising expenditure.

Ad impressions:

The number of times an advertisement is displayed to users.

Ad orders:

Users who clicked on the product’s advertisement generated the number of orders.

Ad sales:

The total product sales resulting from users clicking on the product’s advertisement within a week.

Ad spend:

The total expenditure on click charges for an Amazon ad campaign.

Ad status:

The current state of an ad group.

Ad targeting:

A feature allowing Amazon to select keywords for an ad campaign or automatic keyword selection.

Affiliate marketing:

An arrangement where an online retailer pays commissions to external websites for traffic or referral sales.

Alibaba:

An e-commerce platform facilitating connections between private label businesses and global suppliers, wholesalers, and manufacturers.

Amazon 1P:

Involves selling directly to Amazon as the retailer, with Amazon controlling product pricing after order fulfillment.

Amazon 2P:

Involves selling products as a second-party seller, with products stored in Amazon warehouses and orders fulfilled by Amazon.

Amazon 3P:

Involves selling products directly to consumers from the Amazon marketplace as a third-party seller, with control over inventory, pricing, and shipping operations.

Amazon 3PL:

Third-party logistics services allow businesses to utilize Amazon’s infrastructure for order fulfillment and e-commerce operations outsourcing.

Amazon 3PS:

Third-party sellers offer products on Amazon’s marketplace, excluding Amazon itself, retailers, and manufacturers who sell at wholesale cost.

Amazon advertising:

Comprises all advertising services provided by Amazon.

Amazon's Choice:

Amazon recommends highly rated, competitively priced products ready for shipping.

Amazon Live:

A live streaming service enabling brands and influencers to debut products, engage with customers and provide real-time expert advice.

AMZ (Amazon):

A multinational e-commerce and cloud computing company, the largest Internet retailer globally by revenue and market capitalization.

Amazon marketing:

The process of utilizing promotional strategies to increase visibility and sales of products on Amazon, including improving search result rankings and creating relevant ads.

API (Application Programming Interface):

A code facilitates communication between two platforms or software programs.

Amazon sales rank:

A metric indicating a product’s sales performance within its category on Amazon, with lower ranks indicating higher sales.

ASIN (Amazon Standard Identification Number):

A unique 10-character string identifying products on Amazon.

A-to-Z Amazon Guarantee:

Amazon’s program guarantees the condition of third-party products and timely delivery.

Automatic targeted ads:

Ads are automatically targeted by Amazon to relevant search terms.

B

B2B (Business-to-business):

Refers to commerce between companies rather than between a company and individual consumers.

B2C Amazon marketing:

The practice of marketing products from a business directly to consumers on Amazon’s platform, leveraging its vast user base to reach potential customers.

Bid+:

This feature enables advertisers to increase their bid by up to 50% in campaigns eligible for top-of-search placement.

BOGO:

The abbreviation for “Buy One Get One” is a promotional offer allowing customers to receive two products for the price of one.

Brand:

A distinct product type is associated with a specific company and marketed under a particular name.

Brand Registry:

An Amazon initiative that empowers brand owners to manage their intellectual property rights and prevent unauthorized use of their brand on the platform.

Brand store:

A dedicated section on Amazon where sellers can create an immersive shopping experience tailored to their brand.

Brand voice:

The unique personality and tone of communication reflect a brand’s identity and values.

BSR (Best Sellers Rank):

Amazon assigns products an indicator based on their sales performance relative to others in the same category.

Buy Box:

A prominent feature on product pages that allows customers to purchase items directly from a specific seller.

C

Category:

A grouping of products based on common characteristics or intended uses.

CCC (CamelCamelCamel):

An online tool that provides Amazon products’ historical pricing and rank data.

Child listing (child ASIN/ASIN):

A product variation linked to a parent listing, allowing it to be displayed alongside other variations on a single product detail page.

COGS (Cost of Goods Sold):

The total expenses incurred to produce or acquire the goods sold.

Conversion rate:

The percentage of website visitors who complete a desired action, such as purchasing.

Coupons:

Promotional tools are used to offer discounts on products sold through Amazon’s marketing services.

CPC (Cost-per-click):

The amount spent on advertising divided by the number of clicks received.

CPM/CPI (Cost-per-mil/thousand/impression):

The cost advertisers pay for every 1000 impressions of their ad.

Creative Asset Library:

A feature within Amazon’s A+ content builder that facilitates the management and optimization of multimedia content.

Crowdfunding:

A method of financing a project or venture is raising small amounts of money from many people, typically via online platforms.

CTR (Click-through-rate):

The ratio of clicks to impressions is expressed as a percentage.

D

DDP (Delivered Duty Paid):

An international trade term indicating that the seller is responsible for delivering the goods to the buyer at the specified location, including covering import duties and taxes.

Deals of the Day:

Special promotions offering discounted prices on specific items or sets of related products for a limited time.

Display ads:

Visual advertisements served on and off Amazon’s platform through its demand-side platform.

DS (Dropshipping):

A business model where a retailer fulfills customer orders by directly shipping products from a supplier, eliminating the need for inventory storage.

Drip campaign:

A marketing strategy involves sending targeted messages to prospects or customers over time.

Duty tax:

A type of tax imposed on imported goods by the customs authority of a country.

E

EAN (European Article Number):

A unique 13-digit identifier used internationally to identify products.

Early Reviewer Program:

An Amazon initiative encouraging customers to leave authentic reviews for newly launched products.

Ecommerce Amazon marketing:

Promoting products and stores on Amazon’s platform or elsewhere on the internet to drive sales and increase brand visibility.

EFN (European Fulfillment Network):

An option available to European third-party sellers that allows them to fulfill orders from multiple Amazon marketplaces using fulfillment centers located in their home country.

Enterprise Amazon marketing:

Marketing strategies tailored for larger businesses aimed at promoting their products and stores on Amazon’s platform to reach a wider audience and drive sales.

Export:

The process of selling goods or services to customers in foreign countries.

EXW (EX Works):

An international trade term indicating that the seller’s responsibility ends once the goods are made available for pickup at a specified location, with the buyer assuming responsibility for transport costs thereafter.

F

Fulfillment by Amazon (FBA):

A service provided by Amazon that allows third-party sellers to store their products in Amazon’s fulfillment centers. Amazon handles picking, packing, shipping, and customer service on behalf of the seller.

Fulfillment by Merchant (FBM):

A method where sellers store, pack, and ship their products directly to customers themselves, without using Amazon’s fulfillment services.

Fulfillment Center (FC):

Warehouses operated by Amazon where products are stored before being shipped to customers.

FCA (Free to Carrier):

An international trade term indicating that the seller is responsible for delivering goods to the carrier at a specified location.

File Feed:

A bulk upload feature in Seller Central used for creating and updating listings.

First-party sellers (1P):

Brands that sell their products directly to Amazon, which then acts as the retailer.

FNSKU (Fulfillment Network Stock Keeping Unit):

A unique identifier used by Amazon to track products stored in its fulfillment centers.

FOB (Free On Board):

An international trade term indicating that the seller’s responsibility ends when the goods are loaded onto the carrier’s vessel.

Free Shipping Promo:

A promotional offer allows sellers to offer free product shipping for a limited time.

Freight Forwarder:

A third-party service provider that handles the shipment of goods from one location to another.

Fulfillment Fee:

The fee Amazon charges for fulfilling customer orders is based on factors like size and weight.

G

Gated Category:

A product category on Amazon that requires approval from Amazon before sellers can list products.

Gateway Placement:

A type of ad placement within a specific category’s landing page on Amazon.

Giveaway Promo:

A promotional template on Amazon that allows sellers to offer free products to customers to generate traffic and increase brand awareness.

Gross Profit:

The total revenue generated from sales minus the cost of goods sold.

GTIN (Global Trade Item Number):

A unique identifier is used to look up product information globally.

I

Import:

The process of bringing goods or services into a country from another for sale or trade.

Incoterms:

Standard terms used in international trade contracts define buyer and seller responsibilities.

Inventory:

The goods or products that a business holds for sale to customers.

IPI (Inventory Performance Index):

A metric used by Amazon to assess a seller’s overall inventory management performance.

ISBN (International Standard Book Number):

A unique identifier is used for books and related products.

K

Keywords:

Words or phrases that describe a product or category and are used by searchers to find products on Amazon.

L

Landed Cost:

The total cost of bringing a product to its destination, including the item’s price, freight, and customs charges.

Launchpad:

An Amazon program that supports entrepreneurs and startups in selling and delivering products.

Lightning Deals:

Limited-time promotional offers featuring discounted products on Amazon’s Deals page.

Live Deals:

Real-time streaming of sales and promotions on Amazon.

Long-Tail Keyword:

A specific and targeted keyword phrase that usually contains three or more words and targets a niche audience.

LTSF (Long Term Storage Fees):

Fees are charged by Amazon for inventory that has been stored in its fulfillment centers for an extended period.

M

Manually Targeted Ads:

Advertisement campaigns on Amazon where sellers select the keywords they wish to target.

Marketing Funnel:

A model that represents a customer’s stages before making a purchase, from awareness to conversion.

MOQ (Minimum Order Quantity):

The lowest quantity of a product a seller is willing to sell at once.

MSRP (Manufacturer’s Suggested Retail Price):

The price at which the manufacturer recommends selling a product to consumers.

MCI (Multi-Country Inventory):

An Amazon program that allows sellers to store inventory in multiple countries to streamline international sales.

MWS (Marketplace Web Services):

The platform where sellers can access API/MWS keys to integrate their systems with Amazon’s marketplace.

N

Net:

The profit remaining after all expenses have been deducted from total revenue.

O

OEM (Original Equipment Manufacturer):

A company that produces parts or equipment used to create another company’s final product.

Onsite Associates:

An extension of Amazon’s Associate’s Program that displays product-related content from third-party sources on Amazon’s website.

P

Pan Eu:

An Amazon program that allows sellers to send their products to one fulfillment center and has Amazon handle distribution to fulfillment centers across Europe.

Parent Listing (Parent ASIN/PASIN):

A product listing on Amazon that aggregates multiple variations of the same product.

PDP (Product Detail Page):

The webpage on Amazon where customers can view detailed information about a specific product.

Performance Notifications:

Updates provided in Seller Central regarding a seller’s performance metrics and compliance with Amazon’s policies.

PL (Private Label):

A product manufactured by one company and sold under another company’s brand name.

Posts:

A feature on Amazon that allows brands to create and share content related to their products.

PPC (Pay-per-click):

An advertising model where advertisers pay a fee each time their ad is clicked.

Prime:

Amazon’s membership program offers subscribers free shipping, streaming services, and exclusive deals.

Product Tracker:

A tool sellers use to monitor and improve the performance of their products on Amazon.

Promotions:

Special offers and discounts provided by sellers to attract customers and drive sales.

R

Referral Fee:

A fee charged by Amazon to sellers for each sale made through the platform.

Return Rate:

The percentage of products sold that customers return.

ROI (Return on Investment):

A measure of an investment’s profitability calculated as the ratio of the net profit to the cost of the investment.

RoAS (Return on Ad Spend):

A metric used to evaluate the effectiveness of advertising campaigns by comparing the revenue generated to the cost of advertising.

S

Sales Page:

A webpage designed to persuade visitors to make a purchase.

Sample:

A single product provided to a buyer to demonstrate the quality and features of a manufacturer’s products.

SC (Seller Central):

The web interface sellers use to manage their Amazon seller accounts.

Seller Feedback:

Ratings and customer reviews about a seller’s performance and products.

SEO (Search Engine Optimization):

Optimizing a website or product listing to improve its visibility and ranking in search engine results.

SFP (Seller Fulfilled Prime):

A program allowing sellers to display the Prime badge on their listings while fulfilling orders.

SKU (Stock Keeping Unit):

Each product’s unique identifier is assigned to track inventory and sales.

SMB Amazon Marketing:

The marketing strategies used by small and medium-sized businesses to promote their products on Amazon’s platform.

SOV (Share of Voice):

The proportion of advertising space or time a brand occupies compared to its competitors.

Sponsored Ad:

An advertisement on Amazon’s platform that a seller pays for to promote their products.

Squeeze Page:

A landing page designed to capture visitors’ contact information, usually through an email opt-in form.

Storefront:

A section on Amazon where sellers can create a dedicated page to showcase their brand and products.

Subscribe & Save:

A program on Amazon that allows customers to subscribe to regular deliveries of products they use frequently

T

Third-party Sellers (3P):

Independent merchants who sell their products on Amazon’s platform.

U

Unverified Reviews:

Amazon product reviews were left by users who had not purchased the product.

UPC (Universal Product Code):

A barcode identifies a product and tracks its inventory.

Upsell:

A sales technique where a seller persuades a customer to purchase a more expensive or upgraded product version.

V

VA (Virtual Assistant):

A remote worker who provides administrative support to businesses.

Variable Closing Fee:

A fee charged by Amazon on specific product categories in addition to other selling fees.

Variation Theme:

How are different variations of the same product group on Amazon’s platform?

VC (Vendor Central):

The interface used by vendors who sell products directly to Amazon.

Verified Reviews:

Product reviews on Amazon that are confirmed to be from customers who have purchased the product.

Vine:

An Amazon program that encourages reviewers to provide honest product feedback.

VPN (Virtual Private Network):

VPN is a technology that creates a secure connection over a less secure network, allowing users to browse the Internet privately and securely.

W

WS (Wholesale):

The sale of products in large quantities and at low prices, usually to retailers or other businesses.