Amazon PPC Glossary

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A

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A+ Content (formerly EBC)A Brand Registry feature letting sellers add rich images, comparison charts, and modules to product listings. Replaces the legacy term Enhanced Brand Content (EBC). Premium A+ adds video and interactive modules.

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A/B TestingComparing two or more versions of a listing, ad creative, or feature to see which drives better click-through rate (CTR), conversion rate, or sales. Also called split testing.

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Account Health Rating (AHR)A score measuring your compliance with Amazon's seller policies. Higher AHR = stronger account standing. Falling AHR can trigger listing suspensions or account review.

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Ad GroupA way to organize ads inside a campaign with shared targeting, strategy, and creative. Ad groups make it easier to track performance and adjust bids at a clean level.

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Ad ImpressionsThe number of times your sponsored ad is shown to Amazon shoppers. Impressions track reach, not engagement.

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Ad OrdersOrders attributed to an ad click. Used to calculate ad-driven revenue and Advertising Cost of Sales (ACoS).

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Ad SpendThe total budget you spent on Amazon Ads over a defined period. Pairs with ACoS, ROAS, and CPA to measure efficiency.

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Ad TargetingThe process of choosing who sees your ads. Options include keyword targeting, product targeting, category targeting, and audience targeting.

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Ad StatusThe current state of an ad: active, paused, under review, or rejected. Status changes affect delivery and spend pacing.

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Advanced Shipment Notification (ASN)A document sent to Amazon ahead of an inbound shipment. Lists contents, quantities, and packaging details so the fulfillment center can plan receiving.

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Advertising Cost of Sale (ACoS)The percentage of ad revenue spent on ads. Formula: (Ad Spend ÷ Ad Revenue) × 100. Lower ACoS = more efficient ad spend. Calculate ACoS.

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Affiliate MarketingA program where content creators earn commissions by linking to Amazon products. Commissions are paid when a shopper buys through the affiliate link.

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Amazon A10The current Amazon search ranking algorithm. Ranks products based on conversion rate, sales velocity, click-through rate (CTR), keyword relevance, reviews, and external traffic signals.

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Amazon Ads (AA)Amazon's pay-per-click (PPC) advertising platform. Includes Sponsored Products, Sponsored Brands, Sponsored Display, Sponsored TV, and video formats. Previously called Amazon Advertising. Accessed via the Amazon Ads Console at advertising.amazon.com.

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Amazon AdvantageA sales program for publishers, authors, and creators. Lets them list books, music, films, and other media directly with Amazon for global distribution.

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Amazon AggregatorCompanies that acquire and scale Amazon brands. Aggregators use capital and operational expertise to grow revenue and exit at higher multiples.

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Amazon Global Store (AGS)A program that lets sellers list products across 16+ Amazon marketplaces (US, UK, Germany, Japan, and others). Built for cross-border selling with localized shopper experience.

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Amazon Marketing Cloud (AMC)Amazon's cloud-based analytics and audience platform. Combines Amazon Ads, Demand Side Platform (DSP), and first-party signals for cross-channel attribution, custom audience building, and lift studies. Self-serve tier launched in 2023.

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Amazon Marketing StreamA near-real-time data feed from Amazon Ads Console. Streams hourly campaign performance (impressions, clicks, spend, sales) to your data warehouse via API. Built for intra-day bid adjustments and anomaly detection.

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Amazon Retail Analytics Basic (ARA Basic)Legacy Vendor Central reporting tool covering inventory, catalog, and sales metrics. Largely deprecated in favor of Brand Analytics (for Brand Registry sellers) and Vendor Insights. See: Brand Analytics.

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Amazon Retail Analytics Premium (ARA Premium)Legacy advanced Vendor Central reporting suite covering customer behavior, geographic sales, and market trends. Largely deprecated. Modern replacements: Brand Analytics, Amazon Marketing Cloud (AMC), Search Query Performance (SQP).

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Amazon Standard Identification Number (ASIN)A unique 10-character alphanumeric code Amazon assigns to every product. ASINs identify products across the catalog and power search, listing, and inventory tracking.

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Amazon Vendor Services (AVS)A premium paid service for Vendor Central accounts. Provides a dedicated account manager, strategic guidance, and operational support.

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Amazon Web Services (AWS)Amazon's cloud-computing platform. Offers scalable services (compute, storage, databases, AI/ML) used by individuals, businesses, and governments worldwide.

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Amazon's ChoiceA badge Amazon awards to products with strong reviews, competitive pricing, fast shipping, and high conversion. The badge builds shopper trust and lifts click-through rate.

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Annual Vendor Negotiation (AVN)The yearly negotiation between Amazon and its vendors. Covers pricing, co-op marketing budgets, promotional plans, and performance goals for the year ahead. Also called Joint Business Plan (JBP).

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Automatic TargetingA Sponsored Products campaign type where Amazon's algorithm picks the keywords and products to target. Useful for keyword discovery; pair with manual campaigns for harvesting.

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Average Selling Price (ASP)The average revenue per unit sold. Formula: Total Revenue ÷ Total Units Sold.

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B

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B2B (Business-to-Business)Sales from one business to another on Amazon. Covers bulk pricing, quantity discounts, and Amazon Business buyer accounts.

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B2C (Business-to-Consumer)Sales from a business directly to individual shoppers. The default Amazon marketplace model.

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Backend KeywordsHidden keywords in the listing backend that help products surface in search but don't appear on the product page. Used to expand discoverability without cluttering visible copy.

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Best Deal (BD)A limited-time promotional deal featured in Amazon Deals. Runs longer than a Lightning Deal but shorter than a standing price cut.

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Best Seller Rank (BSR)A ranking shown on product detail pages based on sales velocity within a category. Lower BSR = higher sales rank.

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Bill of Lading (BOL)A legal shipping document issued by a carrier. Specifies the type, quantity, and destination of goods being shipped. Acts as a delivery receipt.

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Brand Analytics (BA)A Brand Registry analytics tool. Reports cover search term performance, repeat purchase behavior, demographics, and competitive market basket data.

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Brand RegistryA free Amazon program that protects registered trademarks and gives brands access to A+ Content, Brand Analytics, Sponsored Brands ads, and Project Zero.

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Brand StoreA custom Amazon storefront for Brand Registry sellers. Lets you showcase a curated product range across rich visual pages free of competitor ads.

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Break-even ACoSThe ACoS at which your profit margin is zero after Amazon fees, COGS, and other costs. Formula: ((Sale Price − Total Cost) ÷ Sale Price) × 100. Above break-even ACoS, ad spend eats profit. Calculate Break-Even ACoS.

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Browse Node IDsUnique numerical IDs that group similar products on Amazon. Browse nodes power category navigation and refinement filters.

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Bullet PointsShort, scannable phrases under the product title. Highlight key features and benefits. Often the first thing shoppers read after the title and image.

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BundleA single listing that combines multiple individual items (each with its own ASIN or UPC) at one price. Bundles add value and lift average order size.

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Buy Box (BB)The "Buy Now" and "Add to Cart" panel on a product detail page. Winning the Buy Box drives the vast majority of sales on a shared listing.

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Buy One Get One (BOGO)A promotion where buying one qualifying item gets a second free or discounted. Common in launch and clearance campaigns.

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Buy with Prime (BWP)A Prime-member checkout option on participating non-Amazon sites. Brings Prime shipping speed and trust to direct-to-consumer storefronts.

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C

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Can't Realize a Profit (CRaP)An internal Amazon label for products that lose money under Amazon's fee and margin structure. CRaP items get deprioritized in marketing and merchandising.

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Canonical URLA single, preferred URL for a product or page. Tells search engines which version to index when duplicate URLs exist.

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Case Pack Quantity (CPQ)The standard number of units per shipping case. Used for inbound shipment planning and FBA receiving.

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Catalog Application Programming Interface (API)An API that lets sellers and partners manage Amazon catalog listings, attributes, and updates programmatically.

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Category PageAn Amazon page that groups products by category. Helps shoppers browse and filter within a topic.

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Category Type Item (CTI)An internal Amazon classification that maps ASINs to specific product types for catalog accuracy and search refinement.

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ChargebackA transaction dispute where a buyer reverses a payment through their bank or card issuer. Excessive chargebacks hurt seller account health.

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Child ASINA product variation (size, color, style) under a parent ASIN. Child ASINs sit on the same listing and roll up to parent-level reviews and rank.

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ChimeAmazon's business communications service. Covers video meetings, chat, and calling.

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Click-Through Rate (CTR)The percentage of ad impressions that result in a click. Formula: (Clicks ÷ Impressions) × 100. Higher CTR signals stronger ad relevance and creative. Calculate CTR.

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Climate Pledge FriendlyA badge for products that meet recognized environmental sustainability certifications. Surfaces in search filters and on product pages.

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Compound Annual Growth Rate (CAGR)The annualized growth rate of a metric over time, accounting for compounding. Used for revenue, sales, and investment performance.

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ConcessionsRefunds, shipping reimbursements, or credits Amazon issues to satisfy a customer claim. Frequent concessions can hurt seller metrics.

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Confirmation Rate (CR)The share of vendor purchase orders confirmed on time. Formula: (Confirmed Units ÷ Submitted Units) × 100. Low CR signals supply or operational issues.

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Contribution Margin (CM)Revenue minus variable costs. The dollars left to cover fixed costs and profit. Formula: Sales Revenue − Variable Costs.

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Conversion Rate (CVR)The percentage of clicks or visits that result in a purchase. Formula: (Conversions ÷ Clicks or Visits) × 100. Higher CVR lowers ACoS at the same ad spend. Calculate CVR.

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Cooperative Marketing (Amazon Co-op or Contra COGS)Joint promotional spend between Amazon and vendors. Funds in-Amazon traffic drivers, deals, and merchandising slots.

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Cost Per Action (CPA)Ad spend divided by acquired customers or completed actions. Formula: Ad Spend ÷ Conversions. Tracks acquisition efficiency. Calculate CPA.

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Cost Per Click (CPC)The amount you pay per click on a sponsored ad. Formula: Ad Spend ÷ Clicks. Bid strategy and competition drive CPC. Calculate CPC.

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Cost Per Mille (CPM)The cost per thousand ad impressions. Used in awareness-stage formats like Sponsored Display and Sponsored Brands video. Calculate CPM.

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Cost Price Increase (CPI)A rise in product cost driven by raw materials, freight, or labor. Often triggers list-price reviews.

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Costs of Goods Sold (COGS)The direct cost of producing or buying a product. Includes materials, labor, and inbound freight. Excludes ad spend and overhead.

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CouponA digital discount that displays a green badge on the product. Drives click-through rate and conversion lift.

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Critical Pull Time (CPT)The latest time a fulfillment center can pick and pack an order to meet its promised delivery date.

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Customer Experience (CE)The shopper's full journey on Amazon: search, browse, checkout, delivery, returns, and support.

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Customer Service (CS)The team and tools that handle shopper questions, refunds, and complaints. On FBA, Amazon handles CS; on FBM, the seller does.

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D

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Damage Allowance (DA)A vendor agreement letting Amazon deduct 1-2% from invoiced revenue in lieu of returning damaged goods. Lowers reverse logistics cost.

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Deal of the Day (Top Deal / Spotlight Deal)A 24-hour discount featured on Amazon's Today's Deals page. Drives high traffic and time-bound urgency.

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Deal OPSRevenue from promotional deals run with Amazon. Reported separately for performance review.

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Delivery Duty Paid (DDP)A shipping term where the seller covers all costs and duties to the buyer's destination. Buyer pays nothing on receipt.

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Delivery Service Partner (DSP)An Amazon program where entrepreneurs run independent local delivery businesses for Amazon packages. Note: "DSP" can also mean Demand Side Platform

(programmatic ad buying). See: Demand Side Platform.

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Demand Side Platform (DSP)A programmatic advertising platform for buying display, video, and audio ads at scale. Amazon DSP runs on and off Amazon. Note: "DSP" can also mean Delivery Service Partner. See: Delivery Service Partner.

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Detail Page (DP)The full product page on Amazon. Includes title, price, images, bullets, description, reviews, and Buy Box.

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Detail Page Views (DPV)The number of times shoppers viewed a product detail page. Tracks interest and traffic upstream of conversion.

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Direct Fulfillment (DF)A model where the vendor ships orders directly to customers on Amazon's behalf. Used when products are too large or specialized for FBA.

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Direct Import (DI)Buying directly from overseas suppliers without intermediaries. Lowers cost but adds compliance and logistics overhead.

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DropshippingA model where the seller lists products but a third-party supplier ships them. Low overhead, lower margin, and tighter Amazon policy scrutiny.

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E

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Electronic Data Interchange (EDI)A standard for exchanging business documents (purchase orders, invoices, shipping notices) between trading partners automatically.

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End of Day (EOD)A deadline marker meaning before close of business on the stated day.

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Estimated Cargo Delivery Date (ECDD)The expected arrival date of a shipment at its destination port or warehouse.

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Estimated Delivery Date (EDD)The shipping date Amazon shows shoppers at checkout. Drives buy decisions; missing EDD hurts seller metrics.

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European Article Number (EAN)A 12 or 13-digit barcode used internationally to identify products. Used alongside or instead of UPC in Europe.

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European Fulfillment Network (EFN)An FBA option that stores inventory in one EU country and ships across the EU. Slower than Pan-European FBA but lower upfront cost.

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Ex Works (EXW)A shipping term where the buyer assumes all costs and risk from the seller's factory or warehouse onward.

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Exact Match TypeA keyword targeting setting that triggers an ad only when the search exactly matches the keyword. Tightest control, lowest impression volume.

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Expected Ship Date (EXSD)The date the seller expects to dispatch an order. Drives buyer-side delivery promises.

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F

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Forward-Looking Order Workflow (FLOW)A Vendor Central planning system. Amazon shares forecasted purchase orders for best sellers ahead of time so vendors can plan production and shipping.

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Free Cash Flow (FCF)Cash left after operating expenses and capital expenditures. Measures liquidity available for reinvestment, debt repayment, or distributions.

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Free Onboard (FOB)A shipping term defining who bears cost and risk at the point of loading. FOB Origin transfers risk at the seller's site. FOB Destination transfers risk on arrival.

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Free to Carrier (FCA)A shipping term where the seller delivers export-cleared goods to the buyer's chosen carrier at a named place. Risk transfers on handoff.

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Freight Progressive Number (PRO)A tracking number assigned by a freight carrier. Used to follow shipments in transit.

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Frustration-Free Packaging (FFP)Amazon-certified packaging that opens easily and uses minimal materials. Lowers returns, waste, and shipping cost.

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Fulfillment by Amazon (FBA)A service where sellers send inventory to Amazon. Amazon handles storage, picking, packing, shipping, and customer service.

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Fulfillment by Merchant (FBM)A model where sellers store and ship their own inventory. Used when FBA fees do not pencil out or for oversized products.

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Fulfillment Center (FC)An Amazon warehouse that receives, stores, picks, packs, and ships inventory for FBA sellers and Amazon retail.

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Fulfillment Network Stock Keeping Unit (FNSKU)A unique barcode Amazon assigns to each FBA product per seller. Used to track inventory inside the fulfillment network.

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Full Truckload Shipping (FTL)A freight option using an entire truck for one shipment. Faster and cheaper per unit at high volume than Less Than Truckload (LTL).

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G

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Gated CategoryA product category that requires Amazon approval before you can list. Categories are gated to protect shoppers from quality and authenticity risks.

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Gated ProductA specific product or brand that needs approval to list, often inside a gated category.

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Glance Views (GV)The number of times shoppers viewed a product detail page. Vendor Central's equivalent of seller-side Detail Page Views.

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Global Data Synchronization Network (GDSN)A network for sharing standardized product data between trading partners. Improves data accuracy across retailers.

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Global SKUA shared inventory pool that spans multiple marketplaces (US, Canada, Mexico). All marketplaces see the same stock level.

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Global Trade Item Number (GTIN)A 14-digit standard product identifier used worldwide for catalog and supply-chain tracking.

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Gross Merchandise Value (GMV)The total value of all products sold on Amazon, including third-party (Seller Central and FBA) and Amazon's own retail.

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H

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First Half of the Year (H1)January through June. Used in business reporting and planning cycles.

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Second Half of the Year (H2)July through December. Includes Q4 peak season (Prime Day, Black Friday, holiday).

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Hazardous Materials (Hazmat)Products classified as dangerous (flammable, corrosive, toxic, pressurized). Require special storage, packaging, and shipping compliance.

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Headline Search AdsLegacy name for Sponsored Brands ads. The format itself is still active; the name was retired.

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Heavy Bulky (HB)Products large or heavy enough to need special FBA handling. Stored and shipped through a separate fulfillment workflow with different fees.

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HijackingWhen an unauthorized seller lists a counterfeit or duplicate on your branded ASIN. Erodes Buy Box share and brand trust. Brand Registry and Project Zero help fight it.

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I

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ImpressionsThe number of times an ad is shown. Tracks reach. Pair with click-through rate to measure relevance.

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Index SuppressedA status where Amazon removes a listing from search results due to a policy or quality issue. Common causes: missing data, low compliance score, IP complaint.

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Intellectual Property (IP)Trademarks, patents, copyrights, and trade secrets. Brand Registry protects registered IP on Amazon.

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International Standard Book Number (ISBN)A 13-digit identifier for books and publications. Encodes edition, publisher, and format details.

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Item Data Quality Score (IDQ)A 0-100 score measuring how complete and useful a product detail page is. Higher IDQ correlates with better visibility and conversion.

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Item Type Keywords (ITKs)Internal Amazon keywords that map an ASIN to a precise product type. Drives search accuracy and category placement.

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J

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Japanese Article Number (JAN)The Japanese version of the EAN barcode standard. Used to identify products in Japan and recognized internationally.

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Joint Business Plan (JBP)The annual planning agreement between Amazon and a vendor. Covers pricing, marketing investment, sales targets, and operational commitments. Also called Annual Vendor Negotiation (AVN).

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K

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Key Performance Indicator (KPI)A measurable metric used to track campaign or business performance. On Amazon Ads: ACoS, ROAS, CTR, CVR, impressions, and revenue.

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Keyword BiddingSetting bid amounts for specific keywords in PPC campaigns. Higher bids paired with relevant listings win more auctions.

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Keyword CannibalizationWhen multiple campaigns target the same keyword and bid against each other. Inflates CPC and wastes budget.

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Keyword ResearchThe process of finding the search terms shoppers use. Drives listing optimization and PPC targeting.

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KeywordsWords and phrases shoppers type into Amazon search. Power both organic ranking and PPC targeting.

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L

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Landed CostThe full cost of a product delivered to its destination. Includes manufacturing, packaging, freight, duties, taxes, and handling.

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Less Than Container Load (LCL)A shipping option where multiple shippers share one ocean container. Cheaper than Full Container Load for small volumes.

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Less Than Truckload (LTL)A freight option where multiple shippers share one truck. You pay only for the space you use.

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License Plate Number (LPN)A unique inventory tracking ID used in Amazon warehouses. Prevents lost units and supports accurate receiving.

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License Plate Receive (LPR)A receiving process at FBA that uses barcoded labels to confirm inbound shipment contents. Reduces disputes over missing or incorrect units.

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Lightning Deal (LD)A short, high-discount deal (usually limited-quantity) featured on Today's Deals. Creates urgency and drives traffic spikes.

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Listing OptimizationImproving a product page (title, bullets, description, images, A+ Content, keywords) to lift ranking, click-through rate, and conversion.

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Long-Tail KeywordsMulti-word, specific search phrases with lower volume and lower competition. Convert better than broad head terms.

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Lost Buy Box (LBB)When a seller loses the Buy Box on a shared listing. Common causes: price, performance metrics, fulfillment speed, return policy.

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M

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Machine Learning Algorithm (MLA)A pattern-learning algorithm used to automate decisions. Amazon uses MLAs across search, fraud detection, ranking, and logistics.

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Manual TargetingA Sponsored Products campaign type where the seller picks the keywords or products to target. Used for harvesting and tight control.

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Manufacturer's Suggested Retail Price (MSRP)The price the manufacturer recommends retailers charge. Standardizes pricing across channels.

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Marketplace Web Services (MWS)Amazon's legacy API for sellers. Largely replaced by Selling Partner API (SP-API). Still in use for some integrations.

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Match TypeA keyword targeting setting that controls how closely a search must match the keyword. Three positive types: Broad, Phrase, and Exact. Plus negatives.

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Maximize New-to-BrandAn Amazon Ads bid strategy that lifts bids on customers buying from your brand for the first time. Pairs with the NTB metric. Built for new-customer acquisition.

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Merchant Fulfilled Network (MFN)A model where the seller stores and ships orders directly to customers. Same as FBM.

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Minimum Advertised Price (MAP)The lowest price a retailer can publicly advertise a product for. Set by the manufacturer to protect brand value.

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Minimum Order Quantity (MOQ)The smallest order a supplier or fulfillment partner accepts. Often tied to per-unit pricing and FBA storage planning.

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Month over Month (MoM)A performance comparison between consecutive months. Useful for spotting trends and seasonality.

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Month to Date (MTD)Performance from the first day of the current month through today.

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Multi-Channel Fulfillment (MCF)An Amazon service that fulfills orders from your other sales channels (Shopify, eBay, your website) using FBA inventory.

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N

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Negative KeywordsSearch terms you tell Amazon to exclude from your ads. Cut wasted spend on irrelevant queries.

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Net ProfitRevenue left after all operating costs, taxes, and expenses. The bottom-line profit.

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Net Sales (NTS)Total revenue minus discounts, returns, and allowances.

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New Item Setup (NIS)The process of creating a new listing on Amazon. Includes title, attributes, images, and pricing.

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New Product (NP)A product newly listed on Amazon or newly introduced to market.

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New Product Development (NPD)The full process of designing, building, and bringing a new product to market.

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New Product Launch (NPL)The market introduction of a new product. Often paired with launch promotions and PPC support.

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New-to-Brand (NTB)The share of orders from customers who haven't bought from your brand in the prior 12 months. Reported in Sponsored Brands, Sponsored Display, and Sponsored TV. Higher NTB % signals stronger new-customer pipeline.

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NicheA specific subcategory of products targeting a defined audience. Niche selection drives long-term seller success.

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Non-Disclosure Agreement (NDA)A legal contract that protects confidential information shared between parties.

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Non-Replenishable (NR)A status meaning Amazon will not restock a product. Triggered when an item is discontinued or unprofitable.

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O

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One-Time Password (OTP)A 6-digit verification code used for secure delivery confirmation. Valid only on the delivery day.

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Operational Excellence (OpEx)A discipline of continuous process improvement to lift efficiency and customer satisfaction.

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Order Defect Rate (ODR)The percentage of orders that have a negative feedback, A-to-Z claim, or chargeback. Amazon requires ODR under 1% for account standing.

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Order Inventory Health (OIH)A Seller Central report showing inventory status, competitive pricing, and stock metrics for active SKUs.

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Order to Cash (O2C)The full process from order placement to payment collection and revenue recognition.

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Ordered Product Sales (OPS)The total value of products ordered (whether or not shipped). Used for revenue trend tracking.

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Ordered RevenueProjected revenue from ordered units. Formula: Units Ordered × Average Sale Price.

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Ordered VolumeTotal units ordered in a period. Used for demand planning.

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Out of Stock (OOS)A product status when inventory hits zero. OOS hurts sales rank, search visibility, and shopper trust.

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P

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Pan-European FBAAn FBA option that distributes inventory across European fulfillment centers. Lowers cross-border shipping cost and improves Prime eligibility.

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Parent ASINA non-purchasable listing that groups related child ASINs (variations by size, color, style). Centralizes reviews and search rank.

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Pay Per Click (PPC)An advertising model where you pay for each click on your ad. Powers Amazon Sponsored Products, Sponsored Brands, and Sponsored Display. PPC management service.

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Perfect Inbound (PIB)An inbound shipment that meets all Amazon receiving requirements. Reduces fees, defects, and processing delays.

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Perfect Inbound Defect Rate (PIBDR)A metric measuring how often inbound shipments fail receiving requirements. Lower PIBDR = cleaner operations.

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Phrase MatchA keyword targeting setting that triggers an ad when the search contains the keyword phrase in order. Broader than Exact, tighter than Broad.

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Planned Replenishment (PR)An automated system where Amazon restocks vendor inventory based on demand forecasts.

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Premium A+ ContentAn upgraded A+ Content tier with video, comparison modules, and interactive elements. Available to Brand Registry sellers meeting certain criteria.

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Price Protection Agreement (PPA)A policy that applies a price reduction to existing inventory and open purchase orders when a vendor lowers a product's list price.

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PrimeAmazon's paid membership. Includes free fast shipping, Prime Video, exclusive deals, and Prime-only features.

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Private Labeling (PL)A model where sellers manufacture or source products and sell them under their own brand. Differentiates from generic resale.

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Product Costs of Goods Sold (PCOGS)The direct cost of the product itself. Includes materials, labor, and inbound freight. Subset of COGS.

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Product Price Variation (PPV)Price changes driven by demand, competition, season, or promotion.

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Product Quantity Variation (PQV)Stock-level changes driven by supply, fulfillment, or order volume.

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Professional SellerAn Amazon seller plan at $39.99 per month. Unlocks bulk listing, reporting, advertising, and other features. Built for sellers above 40 orders per month.

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Profit and Loss (P&L)A financial statement summarizing revenue, costs, and profit over a period.

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Profit MarginNet profit as a percentage of revenue. Formula: (Net Profit ÷ Revenue) × 100. Pairs with break-even ACoS for ad spend ceiling decisions. Calculate Profit Margin + Break-Even ACoS.

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Project ZeroAn Amazon program for brands to take down counterfeit listings without filing case-by-case complaints. Uses AI plus brand-controlled tools.

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Proof of Delivery (POD)A confirmation document or receipt verifying a package was delivered.

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Q

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Q1 (First Quarter)January through March. Post-holiday recovery and new-year planning.

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Q2 (Second Quarter)April through June. Spring shopping and Mother's Day promotions.

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Q3 (Third Quarter)July through September. Prime Day and back-to-school.

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Q4 (Fourth Quarter)October through December. Peak season: Black Friday, Cyber Monday, holiday.

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Q5 (Fifth Quarter)An informal term for the post-holiday return-and-clearance window. Often January or early Q1.

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QA (Quality Assurance)The discipline of confirming products meet quality standards through testing and inspection.

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QBR (Quarterly Business Review)A quarterly performance review meeting. Covers results, learnings, and goals for the next quarter.

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QD (Quantity Discount)A pricing structure that rewards larger orders with per-unit discounts.

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QUID (Quantitative Ingredient Declaration)A regulation requiring product labels to disclose ingredient percentages. Mainly applies to food and beverage.

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R

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Recommended Retail Price (RRP)The manufacturer's suggested selling price. Used to keep pricing consistent across retailers.

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Referral FeeThe commission Amazon charges per sale. Ranges from 8% to 45% depending on category. Usually 15% for most categories.

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Return on Ad Spend (RoAS)Ad revenue divided by ad spend. Formula: Ad Revenue ÷ Ad Spend. Higher RoAS = more efficient ads. Calculate ROAS.

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Return on Investment (ROI)Net profit relative to investment cost. Formula: (Net Profit ÷ Cost) × 100.

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Return RateThe percentage of orders returned by shoppers. High return rate signals product, listing, or expectation issues.

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Reverse ASIN LookupA research method where sellers pull competitor ASINs to surface the keywords driving their PPC. Used for keyword harvesting.

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Rule-Based BiddingAn Amazon Ads bid strategy that adjusts bids to hit a target ACoS or ROAS. Replaces fixed bids with goal-driven optimization. Available for Sponsored Products and Sponsored Brands.

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S

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Sales Dashboard ReportA Seller Central report showing top products, average delivery times, and revenue trends.

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Sales RankA product's rank within its category based on sales velocity. Lower number = higher rank. Shown on the product detail page.

SampleA Prime member benefit offering trial-sized product purchases at low cost.

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Search Engine Optimization (SEO)The practice of optimizing listings to rank higher in Amazon search. Covers keywords, titles, bullets, A+ Content, and conversion signals.

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Search Frequency RankA metric showing how often a product appears in search results for a keyword. Lower rank = higher search popularity.

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Search Query Performance (SQP)A Brand Analytics report (Brand Registry only) breaking down query-level performance: impressions, clicks, cart adds, purchases, and your brand's share of each. Built for keyword harvesting and competitive query share tracking.

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Search VolumeThe average monthly search count for a keyword. Used in keyword research to prioritize targeting.

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Sell-Through Rate (STR)The percentage of inventory sold in a period. Formula: (Units Sold ÷ Units Available) × 100.

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Seller Central (SC)Amazon's seller dashboard. Used to list products, manage inventory, run ads, monitor performance, and resolve cases.

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Seller Fulfilled Prime (SFP)A program where sellers ship Prime orders from their own warehouse while meeting Amazon's 1-2 day delivery promise.

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Serial Shipping Container Code (SSCC)An 18-digit barcode for cases, pallets, or packages. Used for shipment tracking across carriers.

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Service Level Agreement (SLA)A contract defining service expectations: response time, uptime, quality, and remedies.

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Service Provider Network (SPN)Amazon's directory of certified third-party providers offering imaging, advertising, cataloging, and compliance services.

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SessionA defined window of shopper activity on Amazon. Ends after 30 minutes of inactivity. Used in traffic and conversion reporting.

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Ship Window (SW)The time window within which a seller must ship an order to meet Amazon's delivery promise.

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Shipped COGSRevenue from shipped units. Formula: Shipped Units × Average Wholesale Price.

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Ships in Product Packaging (SIPP)A program letting sellers ship FBA products in their own branded packaging without an extra Amazon box.

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Small Parcel Delivery (SPD)An inbound shipping option that sends individual boxes to fulfillment centers. Capped at 200 units per shipment.

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Sponsored Brands (SB)A PPC ad format with a custom headline, brand logo, and up to three featured products. Appears at the top of search results. Sponsored Brands management service.

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Sponsored Display (SD)A PPC and CPM ad format targeting shoppers on and off Amazon. Used for retargeting, audience targeting, and category competition. Sponsored Display management service.

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Sponsored Products (SP)The core PPC ad format on Amazon. Promotes individual products in search results and on product pages. Sponsored Products management service.

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Sponsored TVAmazon's self-serve streaming TV ad format. Launched in 2023. Runs on Prime Video, Freevee, Fire TV, and Twitch. Uses viewable CPM (vCPM) billing.

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Stock Keeping Unit (SKU)A unique code per product variant. Used for inventory tracking inside a seller's catalog.

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StorefrontA custom Amazon brand page for Brand Registry sellers. Showcases products without competitor ads.

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Subscribe and Save (SnS)A subscription program where shoppers receive recurring shipments of eligible products at a discount. Drives repeat revenue and retention.

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T

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TACoS (Total ACoS)Ad spend as a percentage of total revenue (organic plus ad-driven). Formula: (Ad Spend ÷ Total Revenue) × 100. Lower TACoS = stronger organic ranking. Calculate TACoS.

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Third-Party SellerAn independent seller using the Amazon marketplace. Pays Amazon fees in exchange for traffic, fulfillment, and platform access.

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Trailing Twelve Months (TTM)A rolling 12-month window for financial reporting. Smooths out quarterly volatility.

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U

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Ultra Fast Track (UFT)A Prime badge indicating free two-day delivery eligibility. Lifts conversion through delivery speed signal.

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Unable to Access (UTA)A delivery exception where the carrier could not reach the address. Common causes: locked gate, no entry, wrong instructions.

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Unable to Locate (UTL)A logistics exception where an item or package cannot be found in the expected location.

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Ungated ProductsProducts that any seller can list without Amazon approval. Most categories are ungated.

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Universal Product Code (UPC)A 12-digit barcode standard used to identify products in the US. Required for most Amazon listings.

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Units Per Hour (UPH)A warehouse productivity metric. Measures units processed per hour at receiving, picking, or packing stations.

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Unverified ReviewA review where Amazon cannot confirm the reviewer bought the product. Treated as lower-trust than verified reviews.

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User Experience (UX)The shopper's experience using a product, page, or platform. Covers ease of use, clarity, and visual quality.

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V

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Value Added Tax (VAT)A consumption tax on goods and services in the UK, EU, and other regions. Sellers may need to register, collect, and remit VAT.

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Value Market Share (VMS)A brand or product's share of total sales value within its category.

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VariationDifferent versions of the same product (size, color, material) grouped under a parent ASIN. Improves browsing and consolidates reviews.

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vCPM (Viewable CPM)A billing model where you pay only for impressions meeting Amazon's viewability standard. Standard: 50% of pixels in view for 1+ seconds, or 2+ seconds for video. Used on Sponsored Display and Sponsored TV.

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VendorA supplier (manufacturer or distributor) that sells products to Amazon at wholesale. Amazon then resells to shoppers.

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Vendor Central (VC)Amazon's invite-only platform for vendors. Used to manage listings, purchase orders, marketing, and reports.

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Vendor Confirmation Rate (VCR)The percentage of Amazon purchase orders a vendor confirms. Formula: (Confirmed Units ÷ Submitted Units) × 100.

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Vendor Flex Model (VF / VFlex)An arrangement where Amazon runs fulfillment operations inside a vendor's own warehouse. Used for capacity flex and oversized products.

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Vendor Improvement Plan (VIP)A formal plan addressing vendor performance or operational gaps. Used to restore standing or qualify for incentives.

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Vendor Lead Time (VLT)The time a vendor takes to fulfill and ship after Amazon places a purchase order. Shorter VLT = better delivery speed.

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Vendor Services (VS)Paid Vendor Central support programs. Premium tier is Amazon Vendor Services (AVS) with dedicated account managers.

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Verified ReviewA review marked verified because Amazon confirmed the reviewer bought the product. Carries more weight with shoppers.

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Video in Search (VIS)A Sponsored Brands video format that plays directly in search results. Drives higher engagement than static ads.

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VineA program where invited reviewers receive free products in exchange for honest reviews. Builds early review volume on new listings.

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Volume Incentive Rebate (VIR)A rebate paid to sellers or vendors who hit a sales volume target.

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VoucherA digital coupon or prepaid credit that shoppers apply at checkout. Usually time-bound with conditions.

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W

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Warehouse DealA discounted listing for returned, used, refurbished, or slightly damaged items. Inspected before resale.

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Warehousing & Distribution (AWD)Amazon's third-party logistics service. Stores inventory and ships to FBA, other channels, or direct to customers.

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Week over Week (WoW)A comparison of metrics across consecutive weeks. Useful for spotting short-term trends.

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Work in Progress (WIP)Partially completed goods still in production. Tracked for supply chain and accounting.

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X

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X-Channel ManagementA strategy for coordinating customer experience and inventory across multiple sales channels. Keeps stock, promotions, and messaging in sync.

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Y

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Year over Year (YoY)A comparison of metrics across the same period in two consecutive years. Used to spot seasonality and long-term growth.

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Year to Date (YTD)Performance from January 1 of the current year through today.

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Z

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Zero InventoriesA lean inventory strategy where the seller holds minimal or no stock. Relies on just-in-time restocking. Lowers storage cost; raises stock-out risk.

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