A

A+ Content

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Enhanced product listings enriched with visually appealing media like high-resolution images, engaging videos, and comparison charts to boost shopper interaction and conversion rates.

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A/B Testing

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Often referred to as split testing, A/B Testing involves comparing two or more variations of product listings, ad creatives, or key features to assess which version drives better performance metrics including click-through rates (CTR), conversions, and total sales.

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Account Health Rating (AHR)

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A critical score assessing a seller's compliance with Amazon’s established policies, helping maintain a positive seller reputation and account standing.

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Ad Group

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A method to structure your advertising campaigns by grouping ads with a unified targeting approach, strategy, and creative assets. This enables smoother campaign tracking and performance management.

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Ad Impressions

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A measure of how frequently your sponsored advertisement is displayed in front of Amazon shoppers.

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Ad Orders

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Transactions triggered when a shopper engages with your sponsored ad and subsequently purchases the promoted product.

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Ad Spend

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A key advertising metric showcasing the total budget used for Amazon ads within a defined timeframe, often analyzed to determine advertising effectiveness.

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Ad Targeting

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The process of strategically selecting audience groups or search behaviors to display your ads to, employing tools like keyword targeting, category targeting, or product interest targeting.

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Ad Status

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Displays the current activity level of your ads, identifying whether they are active, paused, under review, or flagged due to policy issues.

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Advanced Shipment Notification (ASN)

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A detailed document that provides vital information about upcoming shipments. It notifies the recipient when the shipment has been dispatched and includes specifics such as the shipment's contents, quantities, and physical characteristics. This helps buyers streamline their preparation for receiving deliveries.

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Advertising Cost of Sale (ACoS)

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A crucial performance metric that measures the percentage of sales revenue spent on sponsored ads. It is calculated using the formula (Ad Spend ÷ Total Sales) × 100%. This indicator helps sellers optimize their ad budgets for better ROI while monitoring campaign efficiency.

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Affiliate Marketing

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A monetization strategy designed for content creators, allowing them to earn commissions by sharing unique affiliate links. These links redirect traffic to Amazon products, and referral commissions are awarded when a purchase is made through those links.

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Amazon A10

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The advanced Amazon search engine algorithm that prioritizes factors like front-end and backend keywords, customer reviews, sales velocity, conversion rates, and click-through rates (CTR) to rank products higher in search results.

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Amazon Advantage

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A sales-enablement platform tailored for publishers, authors, filmmakers, and other creative professionals. This program enables them to directly list and distribute their media products to a global Amazon audience, increasing visibility and sales opportunities.

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Amazon Advertising (AA)

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A comprehensive pay-per-click (PPC) advertising ecosystem providing sellers with various formats such as Sponsored Products, Sponsored Brands, Sponsored Display, and video ads. This helps businesses effectively drive traffic and increase product visibility across Amazon's platform.

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Amazon Aggregator

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Companies or investment groups specializing in acquiring Amazon brands and scaling them for higher profitability. These aggregators leverage significant capital and operational expertise to boost revenue and deliver solid returns for investors.

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Amazon Global Store (AGS)

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An enhanced program fostering international trade by enabling sellers to seamlessly list their products on Amazon's 16 global marketplaces, including the United States, Japan, Germany, and the UK. It provides features tailored for cross-border selling and streamlined customer experiences.

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Amazon Retail Analytics Basic (ARA Basic)

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A foundational reporting tool accessible to Amazon vendors, providing them with insights through detailed dashboards such as inventory analysis, catalog reports, and sales performance metrics.

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Amazon Retail Analytics Premium (ARA Premium)

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An advanced vendor reporting suite offering deeper insights into customer behavior, geographic sales data, operational metrics, and market trends. ARA Premium helps vendors tailor strategies based on actionable intelligence.

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Amazon Standard Identification Number (ASIN)

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A unique 10-character alphanumeric code assigned to every product listed within Amazon’s catalog. ASINs allow for efficient identification and tracking of products globally.

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Amazon Vendor Services (AVS)

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A premium service offering customized guidance and support for vendors to optimize their operations and achieve higher performance on Amazon. Services include business strategy advice, account troubleshooting, and advanced coaching led by dedicated success managers.

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Amazon Web Services (AWS)

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A versatile cloud-computing platform provided by Amazon. AWS offers scalable solutions like data storage, virtual servers, and on-demand digital tools tailored for individual users, businesses, and government entities.

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Amazon’s Choice

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A designation awarded to products known for superior performance metrics such as high customer ratings, competitive pricing, and strong shipping reliability. This badge encourages more customer trust and sales.

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Annual Vendor Negotiation (AVN)

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An annual strategic alignment process during which Amazon collaborates with its vendors to finalize key terms, including pricing structures, marketing plans, promotional budgets, and performance goals for the next fiscal year.

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Automatic Targeting

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A smart advertising tool where Amazon algorithms handle keyword targeting for sponsored products, ensuring your ads match customer search queries without manual keyword input.

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Average Selling Price (ASP)

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A financial metric showing the average price earned for each sold product unit. It is calculated as ASP = Total Revenue ÷ Total Units Sold.

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B

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B2B (Business-to-Business)

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Refers to transactions where businesses sell products directly to other businesses on Amazon. This includes bulk purchasing and specialized tools designed to meet organizational needs.

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B2C (Business-to-Consumer)

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Describes the direct sale of products from businesses to individual consumers via Amazon’s marketplace, focusing on personal use rather than commercial resale.

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Best Deal (BD)

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A promotional campaign available for a limited time, featuring discounted products prominently displayed in Amazon Deals to attract more visibility and boost sales.

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Best Seller Rank (BSR)

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A dynamic metric displayed on product detail pages, ranking items based on their sales performance relative to similar products within the same category on Amazon.

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Bill of Lading (BOL)

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A legally binding document issued by a shipping carrier to a seller or supplier that outlines the type, quantity, and destination of goods being shipped. It serves as a shipment receipt upon delivery to the buyer.

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Brand Analytics (BA)

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An exclusive analytics tool for brands enrolled in Brand Registry, providing insights into consumer behavior. Features include dashboards for tracking search term performance, purchase patterns, demographics, and repeat behavior analysis.

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Backend Keywords

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Hidden keywords added in the backend of Amazon product listings. These enhance product discoverability without displaying the terms prominently on the product page, ensuring cleaner, keyword-optimized listings.

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Brand Registry

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A free program allowing sellers to protect their intellectual property (IP) and authenticate their brand. Participants gain access to tools that safeguard trademarks and help enforce brand policies.

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Brand Store

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A customizable Amazon storefront where brands can showcase their exclusive range of products through visually rich pages, high-resolution images, and themed layouts.

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Break-even ACoS

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The Advertising Cost of Sale (ACoS) percentage at which your profit margin is zero. It is calculated after deducting all fees, advertising costs, and other expenses related to a product's sale.

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Browse Node IDs

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Unique numerical identifiers used to categorize and group similar products on Amazon. These help shoppers quickly locate specific categories for refined searches.

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Bullet Points

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Short, impactful phrases that highlight the key features, specifications, or benefits of a product. Located under the product’s title and pricing, they make it easier for customers to understand the advantages of a purchase.

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Bundle

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A product listing that combines multiple individual items (each with its own ASIN or UPC) into a single package sold at a consolidated price. Bundles provide added convenience and value for shoppers.

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Buy Box (BB)

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A highly visible section located on Amazon product detail pages that contains the “Buy Now” and “Add to Cart” buttons. Winning the Buy Box maximizes sales potential for sellers.

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Buy with Prime (BWP)

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An exclusive feature for Prime members, allowing seamless online shopping with benefits like fast, free shipping, secure checkout, and simple returns at participating stores.

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Buy One Get One (BOGO)

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A popular promotional offer where shoppers receive one item free or at a significant discount when they purchase another qualifying item.

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C

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Can’t Realize a Profit (CRaP)

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Refers to items that are unprofitable for Amazon due to low margins, high shipping costs, or poor demand. Such products are often deprioritized in marketing efforts.

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Case Pack Quantity (CPQ)

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Indicates the standard number of units packaged together per case, used for efficient inventory and order management on Amazon.

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Catalog Application Programming Interface (API)

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A digital service enabling seamless management of listings, updates, and operations for products within AWS Marketplace, optimizing operational workflows.

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Category Page

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A dedicated Amazon page showcasing products grouped by their shared characteristics or intended use, helping shoppers locate items easily.

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Category Type Item (CTI)

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A system that links ASINs to specific product types, enhancing search accuracy and categorization within Amazon's platform.

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Chargeback

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Occurs when a buyer disputes a transaction made on Amazon, involving a cancellation or reversal of the payment processed through their bank or credit account.

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Child ASIN

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Refers to individual product variations within a parent ASIN listing, varying in attributes such as size, color, or style to offer more options to buyers without cluttering search results.

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Chime

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Amazon’s proprietary video conferencing and online meeting system designed for seamless collaboration among teams and businesses.

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Click-Through Rate (CTR)

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A key metric that tracks the percentage of times an ad was clicked after being displayed to shoppers.

Formula: CTR = (Clicks ÷ Impressions) × 100

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Climate Pledge Friendly

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A specialized designation identifying products that meet Amazon’s environmental sustainability certifications, reflecting the company’s commitment to reducing ecological impact.

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Compound Annual Growth Rate (CAGR)

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Represents the annual growth rate of an investment over time, considering any compounding effects on revenue, sales, or key operational figures.

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Concessions

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A system through which Amazon issues partial or full refunds, compensates for shipping fees, or provides additional reprieve to ensure customer satisfaction on approved orders.

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Confirmation Rate (CR)

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Measures the percentage of purchase orders confirmed by vendors, indicating shipment reliability.

Formula: CR = (Confirmed Orders ÷ Total Submitted Orders) × 100

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Contribution Margin (CM)

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A profitability metric assessing how much revenue remains after subtracting variable costs, leaving room for covering fixed expenses like advertising or operations.

Formula: CM = Sales Revenue – Variable Costs
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Cooperative Marketing (Amazon Co-op or Contra CoGS)

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Joint promotional partnerships where Amazon collaborates with vendors to drive targeted traffic to product listings, increasing visibility and brand recognition.

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Cost Price Increase (CPI)

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Refers to a hike in product prices due to heightened production costs, logistics, or raw material price shifts, impacting overall profitability and sales.

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Cost per Click (CPC)

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A fundamental PPC metric tracking how much advertisers pay each time a shopper clicks on their ad.

Formula: CPC = Total Advertising Cost ÷ Number of Clicks

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Costs of Goods Sold (COGS)

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The total expenses incurred for producing or acquiring goods listed for sale, including raw materials, labor, and storage fees.

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Canonical URL

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A unique URL generated for an Amazon listing, often derived from the first keywords in the title and the product's ASIN. This boosts SEO optimization by making listings more accessible.

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Coupon

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A marketing tool used to attract shopper attention by offering discounts. Products featuring a digital coupon display a green badge that signals savings opportunities.

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Critical Pull Time (CPT)

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Defines the narrow timeframe by which orders must be picked, packed, and shipped to meet customer delivery expectations without delays.

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Customer Experience (CE)

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A holistic evaluation of a shopper’s journey while interacting with Amazon, covering areas like product search, checkout simplicity, and post-purchase services.

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Customer Service (CS)

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Dedicated support offered by Amazon to ensure customer satisfaction with their shopping and delivery experiences.

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D

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Damage Allowance (DA)

An agreement where Amazon charges suppliers 1–2% of net receipts or the total product value instead of returning damaged goods. This arrangement minimizes logistics costs and streamlines inventory management.

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Deal OPS

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Refers to revenue generated from promotional deals and campaigns run in collaboration with Amazon. It plays a critical role in driving sales and increasing product visibility.

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Deal of the Day (Top Deal or Spotlight Deal)

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A 24-hour promotional event offering substantial discounts on high-demand products. This time-sensitive deal boosts traffic and encourages quick purchasing decisions.

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Delivery Duty Paid (DDP)

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A shipping arrangement where the seller assumes all costs and risks, including shipping fees, duties, and taxes, ensuring the product reaches the customer’s location with no additional expenses.

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Delivery Service Partner (DSP)

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A program launched by Amazon to empower entrepreneurs to establish and manage their own delivery businesses in partnership with Amazon, facilitating local logistics solutions.

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Demand Side Platform (DSP)

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An automated platform for purchasing programmatic digital advertisements. It allows for real-time audience targeting, campaign analytics, and optimizing ad performance based on measurable results.

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Detail Page (DP)

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A dedicated product information page detailing essential aspects like product title, price, images, brand, ASIN, specifications, and customer reviews. This page provides shoppers with comprehensive information to make informed purchase decisions.

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Detail Page Views (DPV)

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A performance metric indicating the number of times a product detail page is viewed. This typically occurs after a shopper clicks on a targeted ad or product link, reflecting customer interest.

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Direct Fulfillment (DF)

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A logistics model where sellers or vendors ship products directly to Amazon customers on behalf of Amazon. This approach ensures faster delivery times without maintaining extensive inventory.

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Direct Import (DI)

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A streamlined business model facilitating direct purchases from international suppliers. This eliminates intermediaries, cuts costs, improves efficiency, and enhances profit margins for sellers.

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Dropshipping

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A business model where sellers list products on Amazon without holding inventory. Instead, third-party suppliers fulfill orders by shipping directly to customers when a sale occurs. Dropshipping minimizes overhead costs and inventory risks.

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E

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Electronic Data Interchange (EDI)

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A standardized, automated process enabling the secure exchange of business documents, such as invoices and purchase orders, between organizations to streamline operations.

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End of Day (EOD)

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A term commonly used to signify the close of a business day, often as the deadline for task completion or shipment processing.

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Enhanced Brand Content (EBC or A+ Content)

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A program available for Brand Registry sellers that allows them to elevate product listings using high-quality images, rich text, and visually engaging layouts instead of traditional product descriptions. This helps brands stand out from competitors.

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Estimated Cargo Delivery Date (ECDD)

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An approximate date indicating when a shipment of goods is expected to arrive at its designated delivery port or destination.

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Estimated Delivery Date (EDD)

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The projected date on which customers can expect to receive their products, typically displayed at checkout or on the order confirmation page.

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European Article Number (EAN)

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A globally recognized barcode standard featuring either a 12- or 13-digit code. It uniquely identifies a product's manufacturer, attributes, and details, often printed on product labels or packaging for inventory and sales tracking.

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European Fulfillment Network (EFN)

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An Amazon logistics solution allows EU-based sellers to store inventory in a single country’s fulfillment center while shipping to customers across multiple European countries, ensuring cost-effective and efficient cross-border delivery.

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Ex Works (EXW)

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A global trade term indicating that the buyer assumes responsibility for all costs and logistics from the point of origin, such as the factory, to the product's final destination.

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Exact Match Type

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A keyword targeting method in Amazon ads where your ad is triggered only if a shopper’s search query exactly matches the specific keyword, ensuring precise and relevant ad visibility.

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Expected Ship Date (EXSD)

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The date when a seller anticipates shipping an order, often based on processing times and inventory availability, to meet delivery promises.

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F

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Forward-Looking Order Workflow (FLOW)

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A strategic inventory management program where Amazon pre-schedules purchase orders for best-selling items. These orders include a specific shipping timeframe for the upcoming week, ensuring steady stock availability and reducing inventory gaps.

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Free Cash Flow (FCF)

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The cash remaining after a business covers its operating expenses, capital expenditures, and other costs during a given period. This metric measures financial health and potential for reinvestment or shareholder returns.

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Free Onboard (FOB)

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A trade term categorized as follows:
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• FOB Origin: The buyer assumes responsibility for shipping costs and risks from the seller’s warehouse to the destination.
• FOB Delivered: The seller covers all transportation costs and risks to deliver goods to the buyer’s location.

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Free to Carrier (FCA)

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A shipping term where sellers are responsible for delivering goods, cleared for export, to the buyer’s designated carrier at a specified location. Once delivered, all costs and risks transfer to the buyer.

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Frustration-Free Packaging (FFP)

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An Amazon packaging innovation designed for easy product access without excess materials. This eco-friendly approach reduces packaging waste while enhancing customer satisfaction with hassle-free unboxing experiences.

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Fulfillment By Amazon (FBA)

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A comprehensive service where sellers send inventory to Amazon’s fulfillment centers. Amazon then manages product storage, packaging, shipping, and even customer service for orders, streamlining logistics.

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Fulfillment By Merchant (FBM)

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A direct-selling method where sellers retain full control over inventory, packaging, and shipping processes. This approach allows sellers to manage logistics independently without relying on Amazon facilities.

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Full Truckload Shipping (FTL)

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A cost-effective shipping method where a single shipment utilizes an entire truck’s space. This ensures faster delivery with fewer stops compared to less-than-truckload (LTL) shipping, making it ideal for large quantities.

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Fulfillment Network Stock Keeping Unit (FNSKU)

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A unique barcode assigned to products handled through the Fulfillment by Amazon program. The FNSKU helps identify each seller’s inventory in Amazon’s system, ensuring precise tracking and order fulfillment.

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Freight Progressive Number (PRO)

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A unique tracking identifier used by freight carriers to monitor and manage the movement of shipments. The PRO number simplifies tracking during transit and ensures accurate freight management.

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Fulfillment Center (FC)

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Amazon’s dedicated warehouses used to streamline supply chain operations. At these centers, products are received, stored, picked, packed, and shipped to meet customer orders efficiently.

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G

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Gated Category

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A restricted product category on Amazon that requires approval before sellers can list items. Sellers must meet specific criteria and adhere to Amazon's guidelines to gain access.

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Gated Product

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Refers to a product that falls under a restricted or gated category. Only authorized sellers can list and sell these items after obtaining Amazon's approval.

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Glance Views (GV)

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A metric representing the number of times a product detail page has been viewed by shoppers. It serves as an indicator of customer interest and engagement with the product.

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Global Data Synchronization Network (GDSN)

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A collaborative network that connects various data pools, enabling trading partners to exchange accurate, high-quality product data securely and efficiently.

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Global SKU

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A unified inventory management system that shares a single inventory pool across multiple marketplaces, such as the United States, Canada, and Mexico. It ensures consistent inventory visibility, so if 100 units are in stock, all marketplaces show the same availability.

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Global Trade Item Number (GTIN)

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An internationally recognized 14-digit identifier used to uniquely identify products, items, or services across the global supply chain for seamless tracking and cataloging.

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Gross Merchandise Value (GMV)

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The total sales value of all products sold through Amazon’s platforms, including third-party sales via Seller Central and Fulfillment By Amazon (FBA), as well as Amazon’s own retail sales.

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H

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First Half of the Year (H1)

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Refers to the initial six months of the calendar year, spanning January to June. It’s commonly used by businesses to assess biannual performance metrics and trends.

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Second Half of the Year (H2)

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Applies to the latter six months of the calendar year, ranging from July to December. Many organizations use this period to measure end-of-year results and plan strategic activities.

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Hazardous Materials (Hazmat)

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Items classified as dangerous goods, including flammable, corrosive, toxic, or pressurized substances. These materials require special handling and packaging to ensure compliance with safety, health, and environmental regulations.

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Headline Search Ads

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Now referred to as Sponsored Brand Ads, these pay-per-click advertisements are strategically placed at the top of Amazon’s search result pages. They feature a custom headline, brand logo, and up to three highlighted products to enhance brand visibility and drive traffic.

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Heavy Bulky (HB)

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Describes products that are large in size or weight, often requiring special storage, handling, and shipping logistics due to their dimensions and mass.

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Hijacking

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Occurs when an unauthorized seller lists a counterfeit or imitation version of a legitimate product, often at a lower price. This practice undermines brand trust and can negatively impact genuine sellers' market share.

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I

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Impressions

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A vital advertising metric that tracks the number of times an ad is displayed on a user’s screen, regardless of whether the user interacts with it. It is a key indicator of ad visibility and reach.

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Index Suppressed

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Describes a situation where a product listing is removed from Amazon’s search and browse results due to violations of the platform’s quality or compliance guidelines. Common causes include incomplete information or failure to meet customer satisfaction standards.

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Intellectual Property (IP)

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A category of assets, including trademarks, patents, copyrights, and trade secrets, that protects creations, inventions, or symbols from unauthorized use or reproduction.

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International Standard Book Number (ISBN)

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A globally recognized, 13-digit identifier for books and publications. It provides details about the book’s edition, publisher, format, and specific attributes, such as binding type and page count.

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Item Data Quality Score (IDQ)

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A scoring system used to evaluate the completeness and effectiveness of product detail pages. The score, ranging from 0 to 100, reflects how well the page informs and engages customers by presenting essential product information.

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Item Type Keywords (ITKs)

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Keywords used to associate specific ASINs (Amazon Standard Identification Numbers) with precise product categories. This categorization ensures accurate placement in search results and enhances discoverability.

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J

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Japanese Article Number (JAN)

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A standardized barcode system used predominantly in Japan to identify products. Recognized internationally as part of the EAN (European Article Number) family, JAN codes facilitate seamless product tracking, inventory control, and distribution across over 100 countries.

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Joint Business Plan (JBP)

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Also referred to as the Amazon Vendor Negotiations Program (AVN), this is Amazon’s annual collaborative planning process with vendor partners. It focuses on negotiating trade terms, setting sales goals, and aligning strategies for mutual growth in the upcoming year.

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K

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Key Performance Indicator (KPI)

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Quantifiable metrics used to evaluate the success and efficiency of advertising strategies and sales performance on Amazon. These include data points such as revenue, conversion rate, click-through rate (CTR), impressions, Return on Advertising Spend (RoAS), and Advertising Cost of Sales (ACOS).

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Keywords

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Words or phrases that Amazon shoppers enter into the search bar to find the products they want to buy. Keywords play a critical role in product visibility and sales.

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Keyword Research

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The process of discovering and analyzing the search terms, phrases, and words customers use when searching for products. Sellers utilize this data to enhance product listings, improve search rankings, and drive more traffic to their pages.

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Keyword Bidding

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A pivotal aspect of Amazon’s Pay-Per-Click (PPC) advertising, where sellers compete by placing monetary bids on specific keywords relevant to their products. Higher bids paired with relevant product listings often result in better ad placement.

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Keyword Cannibalization

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Occurs when multiple products or campaigns within the same seller’s portfolio target identical or very similar keywords. This overlap can dilute performance and generate competition within the seller’s own campaigns.

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L

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Landed Cost

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Also called the landed price, this refers to the total expense incurred from the production stage to the moment the product reaches the importer. It includes manufacturing, packaging, shipping fees, import duties, taxes, and other handling costs.

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Less Than Container Load (LCL)

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A shipping method where goods from multiple shippers are combined into a single container. This approach is ideal when a shipper’s cargo doesn’t fill an entire container, reducing costs by sharing space.

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Less Than Truckload (LTL)

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A freight transportation solution where shipments from different shippers share space within the same truck. Companies only pay for the truck capacity their goods occupy, making it a cost-effective option for smaller loads.

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License Plate Receive (LPR)

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A standardized method in warehouse operations to streamline and organize inventory intake. This process minimizes errors, accelerates receiving times, and reduces disputes over fees or incorrect shipments, especially for platforms like Amazon.

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License Plate Number (LPN)

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A unique inventory tracking system widely used in warehousing. Each unit or shipment is assigned a distinct barcode or identifier to enhance accuracy and prevent misplacement, which is critical for platforms like Amazon.

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Lightning Deal (LD)

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A time-sensitive promotional offer featuring deeply discounted and limited-quantity products. These deals usually apply to only one unit of each product unless otherwise specified, creating urgency among buyers.

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Listing Optimization

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The process of refining product pages to improve their ranking, visibility, and conversion rates on Amazon. This involves thorough keyword research, professional product photos, captivating product descriptions, competitive pricing, and strong customer reviews.

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Long-Tail Keywords

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Very specific keyword phrases or multi-word combinations that cater to niche searches. They are less competitive than broad terms but often lead to higher click-through rates and conversion rates due to their targeted nature.

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Lost Buy Box (LBB)

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This situation arises when a seller loses the Buy Box due to factors like pricing disparities, policy violations, or low seller performance metrics. The Buy Box is critical for sales since it’s the default option buyers click to purchase.

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Common Causes:

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1. The product is available at a lower price from a competitor's site.
2. The seller's listed price exceeds the Manufacturer’s Suggested Retail Price (MSRP).
3. The seller’s rating falls due to poor customer feedback or delayed shipments.
4. Fulfillment speed or return policies fall short compared to competitors.

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M

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Machine Learning Algorithm (MLA)

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A subset of artificial intelligence that automates decision-making by learning from data. On Amazon, these algorithms analyze customer behavior, detect fraudulent activities, optimize warehouse operations, and improve logistics processes.

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Manual Targeting

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An Amazon advertising option that gives sellers full control over their campaigns. Sellers can handpick keywords, set bid amounts, and choose specific products or categories to target, ensuring ads reach a relevant audience.

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Manufacturer’s Suggested Retail Price (MSRP)

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The price point recommended by manufacturers to standardize product pricing across retailers. This ensures consistency in pricing and prevents market undercutting.

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Marketplace Web Services (MWS)

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An integrated API for Amazon sellers to exchange data and manage inventories, orders, and reports effortlessly. Core features include inventory tracking, order processing, report generation, inbound shipment creation, and checking shipment statuses.

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Example Features:

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• Inventory management to track stock levels.
• Order tracking for both fulfilled and unfulfilled items.
• Automated shipment status monitoring for inbound logistics.

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Match Type

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Defines how closely a keyword must match a customer’s search term for an ad to participate in the auction. There are three match types in Amazon advertising campaigns:

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1. Broad Match: Ads show up for variations of the keyword, including synonyms and related phrases.
2. Phrase Match: Ads appear when exact keyword phrases or close variants are part of the customer’s search query.
3. Exact Match: Ads are triggered only by the exact phrase or an extremely close variation.

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Merchant Fulfilled Network (MFN)

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A fulfillment model where Amazon sellers handle every aspect of the order process, including storage, packaging, and shipping directly to customers.

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Multi-Channel Fulfillment (MCF)

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An Amazon service that allows sellers to use Amazon’s fulfillment centers for order processing across multiple sales channels, including their own e-commerce websites.

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Minimum Advertised Price (MAP)

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The lowest allowed price a retailer can publicly advertise a product for, as agreed with the manufacturer. This ensures fair pricing and protects brand value.

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Minimum Order Quantity (MOQ)

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The smallest number of units a seller is required to purchase or order to access Amazon FBA (Fulfillment by Amazon) benefits like warehousing and logistics support.

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Month over Month (MoM)

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A key metric comparing performance or growth from one month to the next, helping sellers identify seasonal trends or areas for improvement.

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Month to Date (MTD)

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Refers to sales or performance metrics covering the period from the first day of the current month up until the current date.

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N

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Negative Keywords

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Terms or phrases sellers designate to exclude from their ad campaigns. By preventing ads from appearing in search queries with irrelevant or unprofitable terms, negative keywords improve targeting and reduce wasted ad spend.

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Net Sales (NTS)

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The total revenue generated from sales after accounting for discounts, returns, and allowances.

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Net Profit (Net)

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The amount of money left after subtracting all operating costs, taxes, and expenses from the total revenue. This figure determines a business's overall profitability.

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New Item Setup (NIS)

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The process of creating a new product listing on Amazon, including uploading product details, images, and pricing information. Also known as "adding a product."

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New Product (NP)

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Refers to an item introduced to the market for the first time or newly listed in an e-commerce store.

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New Product Development (NPD)

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The complete process of conceptualizing, designing, manufacturing, and bringing a new product to market.

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New Product Launch (NPL)

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The introduction of a new product to consumers through targeted marketing campaigns, promotions, and partnerships.

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Niche

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A specific and often specialized subcategory within a broader category of products. Targeting niche markets allows sellers to focus on a well-defined audience.

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Non-Disclosure Agreement (NDA)

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A legally binding contract between two parties that ensures confidential information shared between them is not disclosed to others.

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Non-Replenishable (NR)

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A term indicating that a product will not be restocked on Amazon once the existing inventory is sold out. This could happen if the product is discontinued by the manufacturer or deemed unprofitable by Amazon.

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O

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One-Time Password (OTP)

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A unique six-digit security code sent to the customer’s registered email when their package is out for delivery. The OTP remains valid only for the delivery day and is used to verify package receipt.

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Operational Excellence (OpEx)

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A business strategy focused on consistently improving efficiency and processes to enhance customer satisfaction. For Amazon sellers, this could include optimizing order fulfillment, reducing shipment times, and improving product quality.

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Order Defect Rate (ODR)

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A performance metric that evaluates a seller's ability to fulfill and ship orders accurately. A high ODR indicates poor service, such as frequent returns, late deliveries, or negative feedback, while a low ODR reflects customer satisfaction and effective operations.

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Order Inventory Health (OIH)

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A report generated by Amazon that gives sellers insights into their current inventory status. This includes stock levels, competitive pricing, and key metrics related to product availability within Amazon’s Fulfillment Centers.

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Order to Cash (O2C)

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The end-to-end process of receiving customer orders, managing them, and collecting revenue. This workflow covers everything from order placement to collecting payment and recording revenue.

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Ordered Product Sales (OPS)

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The total value of sales generated from ordered items, regardless of whether they’ve been shipped. This metric helps sellers track revenue trends and evaluate performance over a set period.

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Ordered Revenue

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The anticipated earnings calculated by multiplying the number of ordered units by their average sales price. This metric reflects potential revenue from items ordered but not yet shipped.

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Ordered Volume

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Represents the total quantity of units ordered, helping sellers analyze demand trends for specific products.

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Out of Stock (OOS)

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The status of a product when its inventory level hits zero, making it unavailable for purchase. Running out of stock can affect customer satisfaction and sales rankings on Amazon.

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P

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Pan-European FBA

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A fulfillment option provided by Amazon that allows sellers to store and distribute inventory across a network of fulfillment centers in Europe. This centralized system enhances delivery efficiency, reduces shipping costs, and broadens customer reach.

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Parent ASIN

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The main, non-purchasable product listing that connects related child ASINs. Child listings vary by attributes like color, size, or material, while the parent ASIN helps organize them in Amazon’s search results.

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Pay Per Click (PPC)

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An advertising model in which advertisers pay a fee every time their ad is clicked. This system helps sellers evaluate the cost-effectiveness of marketing efforts and optimize campaigns for better ROI.

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Perfect Inbound (PIB)

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Refers to the seamless receipt and storage of inventory at Amazon’s fulfillment centers. A perfect inbound shipment adheres to all guidelines, reducing errors and processing delays.

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Perfect Inbound Defect Rate (PIBDR)

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A metric used to measure the accuracy of inventory shipments received at Amazon warehouses. A low PIBDR indicates high compliance with inbound guidelines, while a high PIBDR may result in penalties.

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Phrase Match

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A keyword targeting option where ads are triggered if the search query includes the specified key phrase in the correct order, with extra words allowed before or after.

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Planned Replenishment (PR)

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An automated system where Amazon replenishes a seller's inventory based on demand forecasts to avoid stock shortages.

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Price Protection Agreement (PPA)

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A policy that applies discounts equally across all current stock, incoming shipments, and open purchase orders when a seller lowers a product’s price.

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Prime

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Amazon’s membership program offers exclusive benefits for an annual fee of $139 or $14.99 monthly. Perks include free one- or two-day shipping, streaming services, and members-only discounts.

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Private Labeling (PL)

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A business model where sellers curate existing products and rebrand them under their custom labels, creating unique branded listings.

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Product Costs of Goods Sold (PCOGS)

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The total cost associated with producing or purchasing a product, including raw materials, labor, and overhead expenses, making it ready for sale.

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Product Price Variation (PPV)

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The fluctuations in product pricing based on factors like demand, competition, seasonality, or sales promotions.

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Product Quantity Variation (PQV)

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Changes in the number of units available for sale due to variations in stock supply or order fulfillment rates.

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Professional Seller

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A subscription-based selling plan on Amazon costing $39.99 per month. It offers advanced tools, such as bulk listing and reporting features, designed for larger-scale sellers.

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Profit and Loss (P&L)

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A financial report summarizing a business’s income, costs, and expenses over a specific period, providing insights into profitability.

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Project Zero

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An Amazon initiative that empowers brands to combat counterfeiting by leveraging AI tools and independent control over product listings. Available in over 20 countries, it promotes better brand protection.

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Proof of Delivery (POD)

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A document or confirmation that verifies the successful delivery of a package to the customer.

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Premium A+ Content

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An upgraded version of standard A+ Content that incorporates advanced interactive features like videos, image carousels, and 360-degree product views. This improved content boosts customer engagement and brand storytelling.

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Q

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Q1 – First Quarter (Jan-Mar)

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The first three months of the calendar year, running from January to March. This period often includes post-holiday sales and early-year promotions.

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Q2 – Second Quarter (Apr-Jun)

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The second quarter of the year, covering April through June, marked by spring shopping trends and Mother’s Day promotions.

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Q3 – Third Quarter (Jul-Sep)

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This quarter spans July to September, often associated with back-to-school shopping and late-summer sales.

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Q4 – Fourth Quarter (Oct-Dec)

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The last quarter of the year, from October through December, is known for peak shopping seasons, including Black Friday, Cyber Monday, and the holiday rush.

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Q5 – Fifth Quarter

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Though not formally recognized, this term is sometimes used to describe an extended sales period, often related to post-holiday clearance sales or specific fiscal planning scenarios.

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QA – Quality Assurance

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A systematic approach to ensuring products meet specified standards by performing checks and identifying defects during production.

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QBR – Quarterly Business Review

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A strategic assessment conducted every three months to evaluate performance, set goals, and plan for the next quarter.

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QD – Quantity Discount

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A pricing strategy offering discounts to buyers who purchase products in bulk, incentivizing larger orders.

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QUID – Quantitative Ingredient Declaration

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A regulation requiring clear labeling of ingredient percentages in products, primarily for food and beverage items.

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Example: To comply with QUID, a food seller lists that their granola contains 50% rolled oats, providing transparency to consumers.

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R

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Referral Fee

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A commission charged by Amazon on every product sold through its platform. This fee is calculated as a percentage of the total sales price and varies from 8% to 45%, depending on the product category.

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Return Rate

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The proportion of purchased items returned by customers, reflecting product satisfaction and seller performance. A high return rate can indicate product issues, inaccurate descriptions, or unmet customer expectations.

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Reverse ASIN Lookup

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A research tactic where sellers analyze competitors’ product ASINs to uncover the keywords driving their ad campaigns. This method helps sellers refine their keyword strategy and enhance their PPC advertising performance.

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Return on Ad Spend (RoAS)

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A performance metric that calculates the revenue earned for every dollar spent on advertising. It’s a key indicator of the efficiency of ad campaigns.

Formula: RoAS = Revenue from Ad Spend ÷ Cost of Ad Spend

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Return on Investment (ROI)

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A profitability metric that measures the return generated on an investment. For sellers, ROI evaluates net profits in relation to product costs.

Formula: ROI = (Net Profit ÷ Product Cost) × 100%

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Recommended Retail Price (RRP)

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The price point suggested by manufacturers that retailers should charge for products. The RRP is designed to maintain consistency across sales channels and ensure standardized pricing.

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S

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Sales Rank

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Indicates how well a product performs within its category based on sales velocity. This ranking is visible under “Amazon Best Sellers Rank” on product detail pages, with lower ranks signifying higher sales.

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Sales Dashboard Report

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An interactive dashboard that provides a comprehensive overview of key sales metrics, such as top-performing products, average delivery times, and revenue trends.

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Sample

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A Prime membership benefit where customers can purchase trial-sized versions of products at a lower cost. Prime Samples allow members to test items before 

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Search Engine Optimization (SEO)

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The practice of optimizing product listings and enhancing brand visibility in Amazon search results. This involves strategies like keyword research, detailed descriptions, compelling titles, and including A+ content.

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Search Frequency Rank

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A metric that measures how often a product appears in customer search results for a specific keyword. A lower search frequency rank number indicates greater search popularity.

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Search Volume

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Refers to the average number of times a specific keyword is searched on Amazon each month, highlighting its popularity.

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Sell-Through Rate (STR)

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The percentage of inventory sold over a given period, reflecting sales efficiency. It’s calculated as (Total Units Sold ÷ Total Units Available for Sale) × 100.

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Seller Central (SC)

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Amazon’s management platform for sellers to list and manage products, track inventory, create advertising campaigns, monitor performance, and resolve support queries.

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Seller Fulfilled Prime (SFP)

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A program enabling sellers to ship products directly from their warehouses to Prime customers while meeting Amazon’s fast shipping standards, like one- or two-day delivery.

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Serial Shipping Container Code (SSCC)

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An 18-digit identifier assigned to packages, cases, or pallets for easy identification and tracking during transportation.

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Service Level Agreement (SLA)

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An agreement outlining the specific services expected between two parties, including deadlines, response times, and quality standards.

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Service Provider Network (SPN)

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A certified network of third-party providers offering assistance with tasks like product imaging, advertising optimization, cataloging, and compliance for Amazon sellers.

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Session

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A defined period of customer activity on Amazon’s platform that ends after 30 minutes of inactivity, used to measure traffic and engagement.

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Ship Window (SW)

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The specific timeframe during which a seller must ship an order to meet Amazon’s delivery deadlines and avoid delays.

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Shipped COGS

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A metric that calculates the total revenue generated by shipped products, determined by multiplying the number of shipped units by their average wholesale price.

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Ships in Product Packaging (SIPP)

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A qualification program that allows sellers to ship products in their custom-branded packaging without additional materials added by Amazon.

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Small Parcel Delivery (SPD)

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A shipping method under the Amazon Carrier Partner Program that involves sending individual boxes or packages to fulfillment centers, typically limited to 200 items per shipment.

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Sponsored Brands (SB)

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An advertising format designed to showcase brand identity with a logo, custom headline, and featured products. Sponsored Brands appear prominently at the top of search result pages.

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Sponsored Display (SD)

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An ad format that targets customers beyond Amazon’s platform, displaying ads on third-party websites and apps to expand reach and visibility.

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Sponsored Products (SP)

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Product-specific ads that aim to boost product discoverability and drive sales by appearing within search results and on product detail pages.

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Stock Keeping Unit (SKU)

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A unique alphanumeric code assigned to a specific product variant for streamlined tracking and inventory management.

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Storefront

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A personalized landing page for registered brands on Amazon, allowing them to showcase their products without competitor interference.

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Subscribe and Save (SnS)

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A subscription service offering recurring shipments of eligible products at scheduled intervals, often with discounts for customers.

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T

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Third-Party Seller

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Refers to independent individuals or companies that list and sell their products directly on Amazon’s marketplace. These sellers use Amazon’s platform to reach its wide customer base and pay fees for services like marketplace access, fulfillment, and advertising.

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Trailing Twelve Months (TTM)

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A financial metric that provides an analysis of a company’s performance over the past 12 consecutive months. TTM allows for up-to-date evaluation, excluding the limitations of quarterly or annual reports. It’s particularly useful for identifying trends in sales, revenue growth, and profitability.

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U

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Ultra Fast Track (UFT)

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A designation for Amazon products marked with the Prime badge, ensuring their eligibility for free two-day delivery. These items meet shipping speed standards and provide customers with faster access to their purchases.

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Universal Product Code (UPC)

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A 12-digit barcode system widely used in the U.S. for product identification. On Amazon, the UPC helps sellers and warehouses track and organize inventory efficiently while simplifying product listings.

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Units Per Hour (UPH)

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A performance metric used to measure operational efficiency, specifically reflecting how many units are processed per hour in a fulfillment or production setting.

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Unable to Access (UTA)

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Indicates scenarios where delivery personnel are unable to access the customer’s location, often due to issues like locked gates or incorrect delivery instructions.

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Unable to Locate (UTL)

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Refers to cases where an item or package cannot be found within the expected shipping facility or delivery route, often due to inventory mismanagement or logistical errors.

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User Experience (UX)

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Describes the overall experience a customer has when interacting with an online platform or product, emphasizing ease of use, navigation, and visual appeal. Positive UX is critical to improving customer satisfaction and conversion rates.

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Ungated Products

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A category of products that sellers can list and sell without obtaining special permissions or undergoing approval processes. Amazon offers over 20 open categories, including books, clothing, and home goods, which are easier for new sellers to enter.

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Unverified Review

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A review submitted by a customer whose purchase cannot be confirmed through Amazon’s system. These reviews are less reliable than verified reviews, as they may not reflect genuine buyer experiences.

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V

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Value Added Tax (VAT)

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A consumption tax levied on most goods and services sold by Amazon sellers in regions like the UK and EU. Sellers are responsible for calculating and collecting VAT from buyers.

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Value Market Share (VMS)

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A metric that indicates the percentage of total market sales value that a specific brand or product captures within a given category.

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Variation

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Different options or versions of the same product, differentiated by features such as color, size, or material. Variations are typically displayed under a single product listing to improve customer navigation.

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Vendor

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A supplier, such as a manufacturer or distributor, that provides products to Amazon at a wholesale rate. Amazon subsequently sells these products directly to end customers.

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Vendor Central (VC)

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An exclusive, invite-only platform for manufacturers and distributors who sell products to Amazon. Through Vendor Central, vendors can manage listings, track orders, and coordinate marketing efforts.

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Vendor Confirmation Rate (VCR)

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A performance metric used to measure the efficiency of vendor order confirmations, calculated as the ratio of confirmed orders to total submitted orders.

Formula: Vendor Confirmation Rate = (Confirmed Quantity ÷ Submitted Quantity) × 100

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Vendor Flex Model (VF / VFlex)

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A supply chain solution that designates Amazon-managed operations within a vendor’s warehouse to fulfill Amazon orders. It enhances fulfillment during peak demand periods by optimizing storage and logistics.

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Vendor Improvement Plan (VIP)

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A structured plan implemented to help vendors address and resolve issues related to operational or performance gaps, improving their collaboration with Amazon.

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Vendor Lead Time (VLT)

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The time taken by a vendor to fulfill and ship an order after the purchase order (PO) is placed by Amazon. Shorter VLTs contribute to faster delivery and better performance metrics.

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Vendor Services (VS)

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Paid support programs designed to assist vendors by simplifying Vendor Central processes and offering dedicated account management. Premium plans often include AVS (Amazon Vendor Services) for personalized strategies and assistance.

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Verified Review

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A review marked with a badge that confirms the reviewer purchased the product on Amazon. Verified reviews are more trustworthy and influential for customer decisions.

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Video in Search (VIS)

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A video advertising feature enabling sellers to showcase video content directly on search result pages to better engage shoppers and boost conversion rates.

Example: A fitness equipment brand uses VIS to display a video demo of their product, capturing customer interest right at the search stage.

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Vine

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A program where select reviewers, referred to as "Vine Voices," receive free products in exchange for providing detailed, unbiased reviews. These reviews help shoppers make informed purchase decisions.

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Volume Incentive Rebate (VIR)

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A financial incentive offered to sellers who achieve a specific sales volume. This rebate motivates sellers to drive higher sales.

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Voucher

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A prepaid credit mechanism or digital coupon that customers can use to purchase physical items on Amazon. Usually valid for up to 12 months, vouchers often include terms and conditions.

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W

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Warehouse Deal

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Refers to a section on Amazon offering significant discounts on items that are returned, slightly damaged during handling, used, or refurbished. While these products are no longer classified as "new," they are inspected to ensure they remain in good, functional condition.

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Warehousing & Distribution (AWD)

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A third-party logistics solution leveraging Amazon’s network to provide storage and shipping services for products. These services can support businesses managing inventory not limited to Amazon marketplace sales, ensuring streamlined warehousing and faster delivery.

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Week over Week (WoW)

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A performance metric that compares data changes, such as sales, revenue, or traffic, from one week to the next. It helps track trends and measure short-term growth or decline.

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Work in Progress (WIP)

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Refers to partially completed goods that are still in the production process, awaiting completion before being listed or sold.

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X

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X-Channel Management

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A strategic approach to coordinating and optimizing customer interactions across multiple sales and communication channels. This includes synchronizing processes like inventory management, marketing campaigns, and customer support to ensure a seamless and consistent experience, regardless of whether the customer interacts via online marketplaces, social media, physical stores, or other platforms.

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Y

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Year to Date (YTD)

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A financial metric that summarizes performance, such as revenue, profit, or expenses, from the beginning of the calendar or fiscal year up to the current date. YTD helps businesses and individuals monitor progress over time and identify trends within the current year.

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Year over Year (YoY)

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A comparative performance analysis that measures changes in key metrics, such as revenue or traffic, between the same period in two consecutive years. YoY is commonly used to detect seasonal trends and evaluate long-term growth.

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Z

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Zero Inventories

A lean inventory management strategy where businesses maintain minimal or no stock on hand, relying instead on just-in-time (JIT) production or rapid restocking from suppliers. This approach reduces storage costs and minimizes excess inventory, ensuring resources are aligned strictly with demand.

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