Most Important Terms Every Amazon Seller Must Know

Most Important Terms Every Amazon Seller Must Know

Navigating the vast and dynamic ecosystem of Amazon requires sellers to be well-versed in a plethora of terms and jargon.

Understanding these terms is crucial for optimizing your business operations, improving sales, and staying compliant with Amazon's policies. This comprehensive guide will walk you through the most important terms every Amazon seller must know.

Key Selling Terms

1. Listing
A listing on Amazon is akin to a product page that includes all necessary details about the product, such as title, description, images, price, and shipping options. Creating an effective listing is crucial as it directly impacts the visibility and sales of your product.

2. ASIN (Amazon Standard Identification Number)
An ASIN is a unique 10-digit alphanumeric code assigned to each product listed on Amazon. It helps in identifying and cataloging products within Amazon's vast inventory.

3. SKU (Stock Keeping Unit)
An SKU is a unique identifier for each product and variation that you sell. It helps in tracking inventory and managing stock levels.

4. Buy Box
The Buy Box is the white box on the right side of the product detail page where customers can add items to their cart or make a purchase. Winning the Buy Box is crucial as it significantly increases the chances of making a sale.

5. FBA (Fulfillment by Amazon)
FBA is a service where Amazon handles storage, packaging, and shipping of products on behalf of sellers. It also provides customer service and handles returns, making it a popular choice among sellers for its convenience and efficiency.

6. FBM (Fulfilled by Merchant)
In contrast to FBA, FBM means that the seller is responsible for storing, packaging, and shipping products directly to customers. This option gives sellers more control over their inventory and fulfillment process.

7. Seller Central
Seller Central is the online dashboard used by third-party sellers to manage their Amazon sales. It includes tools for listing products, managing inventory, tracking sales, and handling advertising and customer service.

8. Vendor Central
Vendor Central is the platform used by first-party vendors who sell products directly to Amazon. Amazon buys products at wholesale prices and resells them to customers.

9. A-to-Z Guarantee
This program ensures that customers receive their products in good condition and in a timely manner. If not, they can file a claim, which can impact the seller's account health.

10. Brand Registry
The Brand Registry program helps brand owners protect their intellectual property and product content. It also provides access to additional tools for improving discoverability and customer loyalty.

Advertising and Marketing Terms

11. Sponsored Products
Sponsored Products are pay-per-click ads that promote individual product listings on Amazon's search results and product detail pages. These ads help increase product visibility and drive sales.

12. Sponsored Brands
Sponsored Brands are customizable ads that feature a brand logo, custom headline, and multiple products. These ads appear in shopping results and help in building brand awareness.

13. A+ Content
A+ Content allows brand owners to enhance their product descriptions with additional images and text. This feature helps in making product pages more visually appealing and informative, which can lead to higher conversion rates.

14. Brand Analytics
Brand Analytics provides valuable insights to brand owners about their product portfolio, marketing activities, and customer behavior. It helps in making informed strategic decisions.

15. Return on Ad Spend (RoAS)
RoAS measures the revenue earned for every dollar spent on advertising. It is calculated as (Revenue – Cost) / Cost and helps in assessing the effectiveness of advertising campaigns.

Inventory and Fulfillment Terms

16. Inventory Performance Index (IPI)
The IPI score measures how well you manage your FBA inventory. A higher score indicates efficient inventory management, which can lead to better storage limits and lower fees.

17. Multi-Channel Fulfillment (MCF)
MCF allows sellers to use Amazon's fulfillment network to store and ship inventory for orders from other sales channels, such as their own website or other marketplaces.

18. Capacity Manager
Capacity Manager helps sellers manage their FBA inventory capacity by providing insights and tools to optimize storage space and reduce overstocking.

19. Seller Fulfilled Prime (SFP)
SFP allows sellers to fulfill orders directly from their own warehouse while still offering Prime benefits such as free two-day shipping. This program helps in maintaining control over inventory while leveraging the Prime badge.

20. Lightning Deals
Lightning Deals are limited-time promotions that offer discounts on products. These deals help in increasing product visibility and driving sales during the promotion period.

Customer Service and Feedback Terms

21. Seller Feedback
Seller Feedback consists of ratings and reviews left by customers regarding their experience with a seller. Positive feedback helps in building a good reputation and maintaining account health.

22. Customer Questions & Answers
This section on the product detail page allows customers to ask questions about the product. Sellers and previous customers can provide answers, which helps in addressing potential buyers' concerns and improving conversion rates.

23. Account Health
The Account Health dashboard provides metrics and insights on a seller's performance, policy compliance, and customer satisfaction. Maintaining good account health is crucial for staying in good standing with Amazon.

24. A-to-Z Guarantee Claims
Claims filed by customers when they are not satisfied with the delivery time or condition of their items. These claims can impact the seller's account health and may result in financial penalties.

25. Amazon Transparency
Amazon Transparency is a program that provides product authentication and supply chain transparency through unique codes on product packaging. It helps in combating counterfeiting and ensuring product authenticity.

SEO and Search Terms

26. Keyword
Keywords are specific words or phrases that shoppers search for on Amazon. Including relevant keywords throughout your listing helps in ranking higher in search results.

27. Long-Tail Keywords
Long-tail keywords are more specific search phrases with lower search volume but higher conversion rates. For example, "grey gym t-shirt for men" is a long-tail keyword of "t-shirt".

28. Backend Search Terms
These are keywords that you can include in your listing's backend fields to help your product rank for those terms without displaying them on the listing page.

29. Keyword Research
The process of finding relevant keywords that people are searching for, analyzing data, and deciding how to include them in your listing to improve visibility and sales.

30. Keyword Density
The percentage of times a specific keyword appears within a piece of content compared to the total number of words. It helps in determining relevance to search engines.

Financial and Pricing Terms

31. Cost of Goods Sold (COGS)
COGS is the total cost incurred in creating a product, including materials, packaging, shipping, and taxes. It is essential for calculating profit margins and pricing strategies.

32. Minimum Advertised Price (MAP)
MAP is the minimum price that a brand allows sellers to show when listing their product. It helps in maintaining price consistency across different sellers and platforms.

33. Average Unit Retail (AUR)
AUR is the average selling price of an item. It is calculated as total revenue divided by the number of items sold and helps in assessing pricing strategies.

34. Margin
Margin is the difference between the selling price and the cost of goods sold. It is a crucial metric for determining profitability.

35. Profit
Profit is the financial gain obtained after deducting all expenses from the total revenue. It is the ultimate goal of any business and a key indicator of success.

Logistics and Shipping Terms

36. Fulfillment Center (FC)
A Fulfillment Center is an Amazon warehouse where products are stored, packed, and shipped to customers. Efficient management of FC operations is crucial for timely deliveries and customer satisfaction.

37. Prep Center
A Prep Center is a third-party service provider that helps sellers prepare their products for FBA by handling tasks such as labeling, packaging, and quality checks.

38. EXW (Ex Works)
EXW is an international trade term where the seller is responsible for preparing the goods for collection at their own place of business, while the buyer bears the transportation costs and risks.

39. Distributor
A distributor is a third party that buys goods in bulk from manufacturers and resells them to consumers or retail outlets. Distributors own the products they sell and are responsible for getting them to the stores.

40. 3PL (Third-Party Logistics)
3PL refers to outsourced logistics services providers that handle shipments, storage, and fulfillment on behalf of sellers. It helps in streamlining supply chain operations.

Miscellaneous Terms

41. Amazon Prime
Amazon Prime is a subscription service that offers members benefits like free two-day shipping, access to streaming services, and exclusive deals. It enhances customer loyalty and increases sales.

42. Amazon’s Choice
This badge is awarded to listings based on product ratings, price, and availability to ship. Receiving this badge can significantly boost sales.

43. Best Seller Rank (BSR)
BSR is a ranking assigned to products based on their sales performance within their category and subcategory. It is updated hourly to reflect current sales trends.

44. Private Label
Private Label refers to products that are manufactured by a third party but sold under a retailer's brand name. It allows sellers to create their own branded products and differentiate themselves from competitors.

45. Seasonal Sales
Seasonal sales refer to fluctuations in consumer buying habits driven by specific seasons or holidays. Sellers need to adjust promotions and inventory to optimize sales during these periods.

46. Amazon Handmade
Amazon Handmade is a marketplace within Amazon for artisans to sell handcrafted products. It provides a platform for unique, handmade items and connects artisans with customers worldwide.

47. Amazon Launchpad
Amazon Launchpad is a platform for startups and emerging brands to launch and promote new products on Amazon. It offers marketing support, brand development resources, and access to Amazon's customer base.

48. Amazon Global Selling
This program enables sellers to list and sell products on Amazon marketplaces in different countries, expanding their reach to international customers.

49. Amazon Small and Light
A program designed for small, lightweight, low-cost items, offering reduced fulfillment fees and free shipping to Prime customers. It enhances profitability and sales volume for eligible products.

50. Amazon Transparency
An Amazon program that provides product authentication and supply chain transparency through unique codes on product packaging. It helps in combating counterfeiting and ensuring product authenticity.

Conclusion

Understanding these essential Amazon terms is crucial for any seller looking to succeed on the platform. Whether you're a new seller just starting out or an experienced seller looking to optimize your business, familiarizing yourself with these terms will help you navigate the complexities of Amazon's ecosystem and make informed decisions to grow your business.