Welcome to the ultimate resource for navigating the complex world of Amazon! Whether you’re a seasoned seller or just starting out, understanding the vast array of terms and jargon associated with Amazon’s ecosystem can be overwhelming.

That’s why I, Rohan Ahmed, founder of Algoclan, have created this comprehensive glossary to demystify the key terms and definitions you need to know to succeed on this platform.

As the founder of Algoclan, I’ve spent years helping businesses thrive on Amazon.

In this guide, I’ll share insights and explanations that will make you feel confident and informed, no matter what stage you’re at in your Amazon journey.

From basic terminology to more advanced concepts, this glossary will serve as your go-to reference, ensuring you have a clear understanding of the language that drives one of the world’s largest e-commerce platforms.

So, let’s dive in and start decoding the essentials of Amazon, one term at a time!

Amazon Glossary: Key Terms and Definitions

 

3P (Third-Party Seller)

Definition: An independent business selling products on Amazon that they didn’t manufacture themselves. They act as retailers, using Seller Central to manage their business.

Example: A small business owner selling handmade jewelry on Amazon.

3PL (Third-Party Logistics)

Definition: Companies that provide outsourced logistics services like warehousing, fulfillment, and shipping, allowing sellers to focus on other aspects of their business.

Example: A company that stores and ships products for multiple Amazon sellers.

7-Day Deal

Definition: A week-long promotion featured on Amazon’s Best Deals page, boosting product visibility and sales.

Example: A limited-time discount on a popular electronic gadget.

A+ Content

Definition: Enhanced product descriptions with images, charts, and comparison tables to improve customer engagement and conversions.

Example: A detailed product page for a kitchen appliance with multiple images and usage instructions.

ACoS (Advertising Cost of Sale)

Definition: The percentage of attributed sales spent on advertising. It’s a crucial metric for evaluating ad campaign effectiveness.

Example: If you spend $100 on advertising and generate $500 in sales, your ACoS is 20%.

ASIN (Amazon Standard Identification Number)

Definition: A unique 10-character alphanumeric code assigned to every product listed on Amazon.

Example: B07XYZ1234 (a hypothetical ASIN for a book).

BB (Buy Box)

Definition: The prominent box on a product detail page where customers can add an item to their cart or buy it with one click. Winning the Buy Box is essential for driving sales.

Example: The “Add to Cart” button on a product page.

Brand Registry

Definition: A program allowing brands to verify and protect their intellectual property on Amazon, gain access to enhanced brand tools, and improve brand representation.

Example: Nike registering its brand on Amazon to prevent counterfeit sales.

Browse Node

Definition: A numerical code representing a specific product category or subcategory on Amazon.

Example: The browse node for “Women’s Running Shoes” is 7147441011.

AA (Amazon Associate)

Definition: An entry-level position in Amazon fulfillment centers, responsible for picking, packing, and stowing inventory.

AAP (Amazon Advertising Platform)

Definition: Now known as Amazon DSP (Demand-Side Platform), this program allows advertisers to programmatically buy display and video ads across Amazon’s properties and partner sites.

ACS (Amazon Creative Services)

Definition: A team of experts offering design and content creation services to help sellers enhance their product listings and advertising materials.

AGS (Amazon Global Selling)

Definition: A program designed to assist sellers in expanding their businesses internationally by reaching customers in different countries.

AM (Area Manager)

Definition: A mid-level management position in Amazon fulfillment centers, overseeing operations and teams in specific areas of the warehouse.

AMZ (Amazon)

Definition: A common abbreviation used to refer to Amazon, particularly in online forums and discussions.

AMZL (Amazon Logistics)

Definition: Amazon’s own delivery network, responsible for last-mile delivery of packages to customers.

Andon/Andon Cord

Definition: A system allowing Amazon support agents to immediately pause sales of a product if a significant issue arises, especially safety or quality concerns.

API (Application Program Interface)

Definition: A set of rules and specifications allowing different software applications to communicate and interact with each other.

AR (Amazon Robotics)

Definition: The division of Amazon focused on developing and implementing robotics technology in its fulfillment centers.

ARA (Amazon Retail Analytics)

Definition: A suite of reports providing vendors with insights into sales, traffic, inventory, and customer behavior.

ARAP (Amazon Retail Analytics Premium)

Definition: An upgraded version of ARA with more detailed and comprehensive reports, available for a fee.

ARS (Amazon Robotics Sortable)

Definition: A type of Amazon fulfillment center where robots play a major role in sorting and moving inventory, increasing efficiency and speed.

ARSAW (Amazon Robotics Semi-Automatic Workstation)

Definition: A workstation in Amazon fulfillment centers where robots and humans work together to pick and pack items, combining automation with human dexterity.

ASC (Associate Safety Committee)

Definition: A committee formed within Amazon fulfillment centers to address safety concerns and promote a safe working environment for employees.

ASN (Advanced Shipment Notification)

Definition: An electronic document sent to Amazon before a shipment arrives, providing details about the shipment contents and tracking information.

ASP (Average Selling Price)

Definition: The average price at which a product is sold over a specific period, calculated by dividing total sales revenue by the number of units sold.

AVN (Amazon Vendor Negotiations)

Definition: The process through which Amazon and its vendors negotiate terms and conditions for their business relationship, including pricing, promotions, and payment terms.

AWS (Amazon Web Services)

Definition: Amazon’s comprehensive cloud computing platform, offering a wide range of services like storage, databases, analytics, and machine learning.

AZ (Amazon)

Definition: Yet another abbreviation for Amazon, often used in casual conversations or shorthand communication.

B2B (Business to Business)

Definition: The type of e-commerce where businesses sell products or services to other businesses, rather than individual consumers.

B2C (Business to Customer)

Definition: The traditional model of e-commerce where businesses sell products or services directly to individual consumers.

Best Deal

Definition: A type of time-limited promotion on Amazon similar to the 7-Day Deal, typically offered to vendors and featuring significant discounts.

BISS (Business Industrial & Scientific Supplies)

Definition: A specific category on Amazon catering to businesses and professionals, offering a wide range of industrial, scientific, and commercial products.

Blue Badge

Definition: A badge worn by full-time Amazon employees to distinguish them from temporary or contract workers.

BOGO (Buy One Get One)

Definition: A popular type of sales promotion where customers receive a free or discounted item with the purchase of another item.

Brand Analytics

Definition: A suite of tools and reports available to brands enrolled in Amazon Brand Registry, providing insights into their brand performance, customer demographics, and search terms.

BSR (Best Seller Rank)

Definition: A numerical ranking indicating a product’s sales performance within its category on Amazon. A lower BSR indicates higher sales.

Example: A product with a BSR of #1 in “Electronics” is the top-selling electronic item on Amazon.

Bundle

Definition: A group of related products sold together as a single unit with one unique ASIN.

Example: A camera bundle might include a camera body, lens, memory card, and bag.

CA

Definition: The abbreviation for Amazon’s Canadian marketplace, where products are sold and shipped within Canada.

CAGR (Compound Annual Growth Rate)

Definition: The average annual growth rate of an investment over a specified period, taking into account the effect of compounding.

Example: If an investment grows from $1000 to $2000 over five years, its CAGR is approximately 14.9%.

Category Page

Definition: A page on Amazon that displays a collection of products belonging to a specific category or subcategory.

Example: The “Electronics” category page on Amazon.

CCR (Counterfeit Complaint Rate)

Definition: The percentage of product listings that receive complaints about potentially being counterfeit or inauthentic.

CD (Continuous Deployment)

Definition: A software development practice where code changes are automatically tested and released to production frequently, ensuring faster updates and improvements.

Child ASIN

Definition: A product variation within a parent ASIN, representing different options like size, color, or flavor.

Example: A blue t-shirt (child ASIN) under a parent ASIN for a t-shirt available in multiple colors.

Climate Pledge Friendly

Definition: A label on Amazon products that meet specific sustainability certifications, helping customers identify eco-friendly options.

CM (Change Management)

Definition: The structured approach to transitioning individuals, teams, and organizations from a current state to a desired future state.

CMBR (Change Management Bar Raiser)

Definition: A role or process ensuring high standards for change management within Amazon, often involving experienced employees who review and approve proposed changes.

COGS (Cost of Goods Sold)

Definition: The direct costs of producing or sourcing a product, including materials, labor, and manufacturing expenses.

Contra COGS

Definition: An internal Amazon term encompassing all backend costs associated with a product, such as Vine fees, ARAP subscriptions, and other indirect expenses.

Concessions

Definition: Refunds or discounts offered to customers to resolve issues with orders or products, aiming to maintain customer satisfaction.

CPT (Critical Pull Time)

Definition: The deadline by which an order must be picked and packed in an Amazon fulfillment center to meet its estimated delivery date.

Example: If an order has a CPT of 3:00 PM and isn’t processed by then, it may not be shipped on time.

CPS (Costs Per Shipment)

Definition: The total expenses incurred for shipping a single order, including packaging, carrier fees, and any additional handling charges.

Example: If shipping an order costs $5 for packaging, $10 for postage, and $2 for handling, the CPS is $17.

CPU (Contacts Per Unit)

Definition: The average number of customer service interactions (emails, calls, chats) per unit of product sold.

Example: A product with a CPU of 0.05 means that for every 100 units sold, there are 5 customer service contacts.

CRAP (Can’t Realize a Profit)

Definition: An informal term for products that are difficult or impossible to sell profitably on Amazon due to factors like high fees, low margins, or intense competition.

CTI (Category Type Item)

Definition: A classification system used by Amazon to categorize products based on their type, features, and intended use.

CTR (Click-Through Rate)

Definition: The percentage of users who click on a specific link or advertisement after seeing it.

Example: If 100 people see an ad and 5 click on it, the CTR is 5%.

CS (Customer Service)

Definition: The department or team responsible for assisting customers with inquiries, issues, returns, and other needs related to their purchases.

CWGR (Compound Weekly Growth Rate)

Definition: The average weekly growth rate of an investment over a defined period, considering the effect of compounding.

CX (Customer Experience)

Definition: The overall perception and feelings a customer has about a brand or product based on their interactions throughout the buying journey.

DEA (Dynamic eCommerce Ads)

Definition: A type of ad in Amazon DSP that dynamically displays product information, such as price and reviews, to potential customers.

DEA (Delivery Estimate Accuracy)

Definition: A metric measuring how accurately Amazon predicts the delivery date of customer orders.

DOTD (Deal of the Day)

Definition: A daily promotion on Amazon featuring a significant discount on a single product or a group of related products.

DNR (Delivered Not Received)

Definition: An order status indicating that a package was marked as delivered by the carrier but the customer claims not to have received it.

DMG (Damaged)

Definition: An order status indicating that a product was damaged during shipping or fulfillment.

Dropship

Definition: A retail fulfillment method where the seller doesn’t hold inventory but instead forwards customer orders and shipment details to a supplier, who then ships the product directly to the customer.

DP (Detail Page)

Definition: The individual product page on Amazon where customers can find information, images, reviews, and purchase options for a specific product.

DPMO (Defects Per Million Opportunities)

Definition: A statistical measure used to quantify the number of defects in a process per million opportunities. A lower DPMO indicates a higher level of quality.

Example: A DPMO of 100 means there are 100 defects for every million opportunities in a process.

DPV (Detail Page Views)

Definition: The total number of times a specific product detail page on Amazon is viewed by customers.

Example: If a product’s detail page is viewed 500 times in a day, its DPV for that day is 500.

DPVR (Detail Page View Rate)

Definition: The percentage of product detail page views out of the total number of times the product is shown in search results or other placements.

Example: If a product appears in search results 1,000 times and its detail page is viewed 100 times, its DPVR is 10%.

DSP (Demand Side Platform)

Definition: Amazon’s advertising platform enabling advertisers to programmatically buy display, video, and audio ads across Amazon’s websites, apps, and devices, as well as third-party sites and apps.

DSP (Delivery Service Provider)

Definition: A company responsible for delivering packages to customers on behalf of Amazon or other retailers.

EAN (European Article Number)

Definition: A 13-digit barcode standard used internationally to identify products, similar to the UPC (Universal Product Code) used in North America.

Early Reviewer Program

Definition: A program by Amazon that incentivizes customers to leave reviews for new products, helping to build initial product credibility and social proof.

EBC (Enhanced Brand Content)

Definition: Now known as A+ Content, this feature allows brand owners to enhance their product descriptions with rich media like images, comparison charts, and videos.

ECR (Executive Customer Relations)

Definition: A specialized customer service team at Amazon that handles escalated customer complaints and complex issues.

EDD (Estimated Delivery Date)

Definition: The approximate date range when a customer can expect to receive their order, based on shipping method and destination.

EDI (Electronic Data Interchange)

Definition: The electronic exchange of business documents, such as purchase orders and invoices, between different computer systems, typically used for automating business processes.

EFN (European Fulfillment Network)

Definition: A fulfillment program allowing sellers to store inventory in Amazon fulfillment centers across Europe, enabling faster delivery to customers in multiple countries.

EOD (End of Day)

Definition: The end of a business day, often used as a deadline for completing tasks or reports.

Existing Customers

Definition: Customers who have previously purchased from a particular brand or seller on Amazon, often targeted for remarketing campaigns.

EXSD (Expected Ship Date)

Definition: The date on which an order is anticipated to be shipped from a fulfillment center or seller’s location.

Example: If an order is placed on Monday with an EXSD of Wednesday, the customer can expect it to ship by Wednesday.

FBA (Fulfillment by Amazon)

Definition: A service where Amazon handles storage, packing, shipping, customer service, and returns for products sold by third-party sellers.

Example: A seller sends their inventory to an Amazon warehouse, and Amazon takes care of fulfilling orders placed by customers.

FBM (Fulfilled by Merchant)

Definition: Also known as Merchant Fulfilled, this refers to sellers who handle storage, packing, shipping, and customer service for their own products sold on Amazon.

FC (Fulfillment Center)

Definition: A large warehouse operated by Amazon where products are stored, picked, packed, and shipped to customers.

FNSKU (Fulfillment Network Stock Keeping Unit)

Definition: A unique barcode assigned by Amazon to products enrolled in FBA, used to identify and track inventory within Amazon’s fulfillment network.

FPY (First Pass Yield)

Definition: A quality metric that measures the percentage of products manufactured correctly the first time, without the need for rework or corrections.

FFP (Frustration-Free Packaging)

Definition: An Amazon program that encourages sellers to use easy-to-open, recyclable packaging that reduces waste and improves the customer experience.

Gated Category

Definition: A product category on Amazon that requires sellers to obtain approval from Amazon before listing products within that category. This is often done to ensure product quality and safety.

Glance Views

Definition: The number of times a product’s detail page is quickly viewed by a customer, often without significant engagement or scrolling.

GLN (Global Location Number)

Definition: A globally unique 13-digit identification number used to identify physical locations, such as warehouses or stores.

Global SKU

Definition: A Stock Keeping Unit (SKU) that is used across multiple marketplaces and countries, allowing sellers to manage inventory more efficiently in a global context.

GL String

Definition: An internal Amazon accounting code used to allocate costs to the correct profit and loss (P&L) account, ensuring accurate financial tracking.

Goldbox

Definition: Amazon’s promotional deals page featuring various limited-time offers like Deal of the Day, Lightning Deals, and other discounts.

GTIN (Global Trade Item Number)

Definition: A unique identifier for trade items, which can be an EAN (European Article Number), UPC (Universal Product Code), or JAN (Japanese Article Number), used for product identification in the global supply chain.

Hazmat (Hazardous Materials)

Definition: Products classified as hazardous due to their flammable, corrosive, or otherwise dangerous properties, requiring special handling and shipping precautions.

Headline Search Ads

Definition: Now known as Sponsored Brands, these ads appear at the top of Amazon search results pages, allowing brands to promote their products and increase visibility.

Hijacking

Definition: A malicious practice where unauthorized sellers list counterfeit or inauthentic products on a legitimate product listing, often at a lower price to steal sales.

IAT (Inbound Andon Tracker)

Definition: An internal Amazon tool used to track and manage inbound shipments that may have issues, such as missing or damaged items.

IB (Inbound)

Definition: Short for “inbound shipment,” this refers to the process of sending inventory from a seller or supplier to an Amazon fulfillment center.

ICQA (Inventory Control Quality Assurance)

Definition: A department within Amazon fulfillment centers responsible for ensuring the accuracy and quality of inventory records and products.

IDQ (Item Data Quality)

Definition: The completeness and accuracy of a product’s information on Amazon, including its title, description, images, bullet points, and other attributes.

Impressions

Definition: In advertising, the number of times an ad is displayed to potential customers, regardless of whether it’s clicked on or not.

IP (Intellectual Property)

Definition: Creations of the mind, such as inventions, literary and artistic works, designs, symbols, names, and images, that are protected by law.

IRDR (Inventory Record Defect Ratio)

Definition: A metric measuring the percentage of inventory records that have discrepancies or errors compared to the actual physical inventory.

ISBN (International Standard Book Number)

Definition: A unique 13-digit number assigned to books to identify them globally.

KPI (Key Performance Indicators)

Definition: Quantifiable measures used to evaluate the success of an individual, team, or organization in meeting specific objectives.

Example: Sales revenue, profit margin, customer satisfaction rating, and return on investment (ROI) are common KPIs.

LBB (Lost Buy Box)

Definition: A situation where a seller is not currently winning the Buy Box for their product, usually due to factors like higher prices, lower seller ratings, or slower shipping times.

Example: A seller’s product loses the Buy Box to a competitor offering the same item for a lower price.

LD (Lightning Deal)

Definition: A short-term promotional offer on Amazon that features a limited number of discounted products for a specific period, usually a few hours.

Example: A Lightning Deal on a popular toy might offer a 20% discount for a limited time.

Less Than Container Load

Definition: A shipping term referring to a shipment that is smaller than a full container load, typically less than 18 cubic meters in volume.

Less Than Truckload

Definition: A shipping term for ground transportation where multiple shipments from different shippers are combined into a single truckload to save on costs.

Listing Optimization

Definition: The process of improving the content and presentation of a product listing on Amazon, including optimizing keywords, images, descriptions, and bullet points, to increase visibility and sales.

Example: A seller might optimize a product listing by adding high-quality images, writing compelling descriptions, and using relevant keywords in the title.

Long-Term Storage Fee

Definition: A fee charged by Amazon to sellers for storing inventory in fulfillment centers for an extended period, typically beyond 365 days.

Marketplace

Definition: A platform where third-party sellers can list and sell their products alongside Amazon’s own inventory. Amazon operates multiple marketplaces in different countries.

Example: Amazon.com is the marketplace for the United States, while Amazon.ca is for Canada.

MAP (Minimum Advertised Price)

Definition: A pricing policy set by manufacturers that restricts retailers from advertising a product below a certain price.

MCF (Multi-Channel Fulfillment)

Definition: An Amazon service allowing sellers to use Amazon’s fulfillment network to fulfill orders from other sales channels, such as their own websites or other online marketplaces.

MF (Merchant Fulfilled)

Definition: An alternative to FBA where the seller is responsible for storing, packing, and shipping their own products sold on Amazon.

MNR (Manifested Not Received)

Definition: An internal Amazon status indicating that a shipment was expected but has not yet been received at the fulfillment center.

MoM (Month Over Month)

Definition: A comparison of performance metrics, such as sales or traffic, from one month to the previous month.

MOQ (Minimum Order Quantity)

Definition: The smallest quantity of a product that a vendor is willing to sell to Amazon.

Example: A manufacturer might have an MOQ of 100 units for a certain product, meaning Amazon must order at least that many.

MTD (Month To Date)

Definition: Refers to the period starting from the first day of the current month up to the present date.

Example: If today is July 15th, MTD refers to the period from July 1st to July 15th.

MSRP (Manufacturer’s Suggested Retail Price)

Definition: The price a manufacturer recommends retailers sell a product for.

Example: A TV might have an MSRP of $500, but retailers might sell it for a lower price.

NAFN (North American Fulfillment Network)

Definition: A network of Amazon fulfillment centers in North America (US, Canada, Mexico) allowing sellers to store and distribute products across these countries.

NDA (Non-Disclosure Agreement)

Definition: A legal contract between parties that prohibits the sharing of confidential information.

NIS (New Item Setup)

Definition: The process of creating a new product listing on Amazon, including defining the product’s attributes, assigning an ASIN, and creating the product detail page.

NP (New Product)

Definition: A product that is newly launched and listed on Amazon.

NR (Non-Replenishable)

Definition: An item that is not intended to be restocked once it is sold out, often due to limited availability or discontinued production.

NTB (New to Brand)

Definition: A metric measuring the percentage of sales from customers who have never purchased from a particular brand on Amazon before.

OA (Online Arbitrage)

Definition: The practice of buying products from online retailers at a lower price and reselling them on another platform, like Amazon, for a profit.

OB (Obsolete)

Definition: Refers to products that are no longer in demand or usable, often due to being outdated or replaced by newer models.

OB (Outbound)

Definition: Refers to the process of shipping products from an Amazon fulfillment center to customers.

ODR (Order Defect Rate)

Definition: The percentage of orders that have a negative customer experience, such as negative feedback, an A-to-Z Guarantee claim, or a chargeback.

OLR (Organization and Leadership Review)

Definition: An internal review process at Amazon to evaluate the performance and development of employees and managers.

OM (Operations Manager)

Definition: A management position in Amazon fulfillment centers responsible for overseeing daily operations, including receiving, storing, picking, packing, and shipping products.

OOS (Out Of Stock)

Definition: Indicates that a product is currently unavailable for purchase due to insufficient inventory.

OP (Order Picker)

Definition: A warehouse worker responsible for picking items from shelves to fulfill customer orders.

Ops (Operations)

Definition: Short for “operations,” this term refers to the various activities involved in running a business, such as logistics, production, and customer service.

ORDT (On Road Dynamic Transfer)

Definition: An internal Amazon system used to manage and optimize the delivery of packages to customers.

PCOGS (Product Cost of Goods Sold)

Definition: The direct cost of producing or sourcing the products that a seller has sold, calculated as the number of shipped units multiplied by the cost price per unit.

Example: If a seller ships 100 units of a product with a cost price of $10 each, the PCOGS is $1,000.

PED (Prime Exclusive Discount)

Definition: A promotional discount offered exclusively to Amazon Prime members on specific products.

PDA (Product Display Ads)

Definition: A type of display advertising on Amazon where product ads are shown on category and product detail pages, targeted to specific customer interests.

PMV (Process Map Visuals)

Definition: Visual representations of the steps and workflows involved in various processes within Amazon’s operations, used for training, analysis, and improvement.

PNOV (Preliminary Notice of Violation)

Definition: A notification sent by Amazon to sellers or vendors indicating a potential violation of Amazon’s policies or agreements.

POD (Proof of Delivery)

Definition: Documentation confirming that a package has been successfully delivered to the intended recipient. This can be a signature, photo, or GPS location data.

POPS (Proactive Outbound Problem Solve)

Definition: A process within Amazon fulfillment centers aimed at proactively identifying and resolving potential issues with outbound shipments, such as damaged or missing items.

PPC (Pay Per Click)

Definition: An advertising model where advertisers pay a fee each time their ad is clicked on by a user. Amazon Advertising uses this model for Sponsored Products, Sponsored Brands, and Sponsored Display ads.

PPE (Personal Protective Equipment)

Definition: Safety gear worn by employees in Amazon fulfillment centers to protect themselves from hazards, such as hard hats, safety glasses, and gloves.

PPM (Pure Product Margin)

Definition: A profitability metric calculated as (Revenue – PCOGS) / Revenue, indicating the percentage of revenue that remains after deducting the direct cost of goods sold.

PPQA (Process Path Quality Assurance)

Definition: A system within Amazon focused on ensuring the quality and efficiency of various process paths within its operations.

PPV (Product Price Variance)

Definition: The difference between the price at which a product was invoiced to Amazon and the actual price at which Amazon has listed the product in its system.

PQV (Product Quantity Variance)

Definition: The difference between the quantity of a product shipped by a vendor and the quantity actually received by Amazon.

PR (Planned Replenishment)

Definition: A system used by Amazon to automatically reorder inventory based on sales forecasts and inventory levels.

Prime (Amazon Prime)

Definition: A paid subscription service offered by Amazon that provides benefits like free and fast shipping, access to Prime Video and Prime Music, and exclusive deals.

Private Label

Definition: Products manufactured by a third party but sold under a retailer’s own brand name. Amazon has numerous private-label brands in various categories.

Professional Seller

Definition: A type of seller account on Amazon that requires a monthly subscription fee but does not charge per-item fees, offering access to additional selling features and tools.

Project Zero

Definition: An Amazon program designed to help brands protect their intellectual property and combat counterfeit products through self-service tools and automated protections.

Q1 (First Quarter)

Definition: The first three-month period of a company’s financial year, typically January through March.

Q2 (Second Quarter)

Definition: The second three-month period of a company’s financial year, typically April through June.

Q3 (Third Quarter)

Definition: The third three-month period of a company’s financial year, typically July through September.

Q4 (Fourth Quarter)

Definition: The final three-month period of a company’s financial year, typically October through December, and a crucial period for retail due to the holiday shopping season.

QA (Quality Assurance)

Definition: The systematic process of ensuring that products or services meet specified requirements and standards of quality.

QBR (Quarterly Business Review)

Definition: A formal meeting between a vendor or seller and Amazon to review their business performance, discuss strategies, and set goals for the upcoming quarter.

RA (Retail Arbitrage)

Definition: The practice of buying products from retail stores at a lower price and reselling them on Amazon for a profit.

RoAS (Return On Ad Spend)

Definition: A metric that measures the revenue generated for every dollar spent on advertising campaigns.

Example: If an ad campaign costs $100 and generates $500 in sales, the RoAS is 5:1.

ROI (Return on Investment)

Definition: A performance measure used to evaluate the efficiency and profitability of an investment.

Example: If an investment of $1,000 generates a profit of $200, the ROI is 20%.

RRP (Recommended Retail Price)

Definition: The price at which the manufacturer suggests a product should be sold by retailers. It’s often the same as the MSRP (Manufacturer’s Suggested Retail Price).

RSP (Robotics Service Platform)

Definition: The software and hardware infrastructure that powers Amazon’s robotic systems in fulfillment centers.

RSR (Reserve Stow Racks)

Definition: Storage racks in Amazon fulfillment centers used to store products that are not frequently ordered or have lower demand.

Sales Rank

Definition: Amazon’s internal ranking system for products based on their recent sales performance within a specific category. A lower sales rank indicates higher sales.

SB (Sponsored Brands)

Definition: A type of Amazon ad that appears at the top of search results, featuring a brand logo, custom headline, and multiple products.

SBC (Simple Bin Count)

Definition: A basic inventory counting method used in Amazon fulfillment centers where items are counted in storage bins.

SEO (Search Engine Optimization)

Definition: The practice of optimizing website content and structure to improve its visibility and ranking in search engine results pages (SERPs).

Session

Definition: A period of time a user spends on a website, often measured by the time between the first and last page view or click.

SFP (Seller Fulfilled Prime)

Definition: A program allowing sellers to fulfill orders for Prime members from their own warehouses while still offering Prime benefits like free two-day shipping.

SIOC (Ships in Own Container)

Definition: A packaging option where products are shipped in their original manufacturer’s packaging without additional Amazon packaging.

SKU (Stock Keeping Unit)

Definition: A unique alphanumeric code assigned to a product by a seller to identify and track inventory.

Example: A seller might use the SKU “SHOE-RED-8” for a red shoe in size 8.

SLA (Service Level Agreement)

Definition: A contract between a service provider (like Amazon) and a customer (seller or vendor) that outlines the level of service expected, including performance metrics and remedies for non-compliance.

Example: An SLA might specify that Amazon will maintain a 99.9% uptime for its servers.

SLAM (Shipping Label Auto Manifest)

Definition: An automated system used in Amazon fulfillment centers to generate and print shipping labels for outgoing orders, streamlining the shipping process.

SnS (Subscribe and Save)

Definition: An Amazon program that allows customers to subscribe to regular deliveries of certain products at a discounted price.

Small and Light

Definition: An Amazon fulfillment program designed for small and lightweight items, offering reduced fulfillment fees to sellers.

Sponsored Brands

Definition: A type of Amazon advertising that allows brands to promote their products and storefront with custom headlines and multiple product images in search results.

SP (Sponsored Products)

Definition: A type of Amazon advertising that promotes individual product listings within search results and on product detail pages.

SPN (Service Provider Network)

Definition: A directory of third-party companies offering various services to Amazon sellers, such as product photography, listing optimization, and accounting.

SPOO/SP00 (Shipping Package #)

Definition: A unique identifier assigned to each package shipped from an Amazon fulfillment center.

SRC (Simple Record Count)

Definition: A basic inventory counting method used in Amazon fulfillment centers, involving manual counting of items.

SRP (Suggested Retail Price)

Definition: Another term for MSRP (Manufacturer’s Suggested Retail Price), the price a manufacturer recommends retailers sell a product for.

Storefront

Definition: A dedicated brand page on Amazon where brand-registered sellers can showcase their products in a curated and branded way.

Third-Party Seller

Definition: An independent business that sells products on Amazon, not directly employed or owned by Amazon.

TOS (Terms of Service)

Definition: A legal agreement between a service provider (like Amazon) and a user that outlines the rules and conditions for using the service.

TOT (Time Off Task)

Definition: In Amazon fulfillment centers, the amount of time an employee spends away from their assigned task, whether for breaks, training, or other reasons.

TTT (Tote Transition Time)

Definition: The time it takes for a tote (a container used to transport products within a fulfillment center) to move from one stage of the fulfillment process to the next.

Twister

Definition: An Amazon tool that merges product variations (e.g., different sizes or colors) of the same product onto a single product detail page, making it easier for customers to browse and purchase.

Unverified Review

Definition: A product review on Amazon where the reviewer has not been verified as having purchased the product, raising potential concerns about the review’s authenticity.

UPH (Units Per Hour)

Definition: A productivity metric used in Amazon fulfillment centers to measure the number of units an employee or a team can process within an hour.

UPC (Universal Product Code)

Definition: A 12-digit barcode used primarily in North America to uniquely identify products. It’s often required for listing products on Amazon.

UR (Universal Receive)

Definition: The process by which Amazon fulfillment centers receive and check in inbound shipments from sellers and vendors.

URP (Universal Receive Prep)

Definition: The process of preparing received items for storage in Amazon fulfillment centers, including labeling, inspecting, and repackaging if necessary.

URS (Universal Receive Sort)

Definition: The process of sorting received items into their appropriate storage locations within Amazon fulfillment centers.

UTA (Unable to Access)

Definition: An inventory status indicating that an item is currently inaccessible due to factors like damage, misplacement, or being in a restricted area.

UTL (Unable to Locate)

Definition: An inventory status indicating that an item cannot be found within an Amazon fulfillment center.

UX (User Experience)

Definition: The overall experience a user has when interacting with a product, website, or service, encompassing aspects like usability, design, and functionality.

Variation

Definition: A specific version of a product that differs in attributes like size, color, flavor, or style. On Amazon, variations are often grouped together under a parent ASIN.

VAT (Value-Added Tax)

Definition: A type of consumption tax assessed on the value added to goods and services at each stage of production and distribution.

Verified Review

Definition: A product review on Amazon from a customer who has been verified as having purchased the product.

Vendor

Definition: A business that sells products directly to Amazon in bulk, which are then resold by Amazon to customers. Vendors use Vendor Central to manage their relationship with Amazon.

Vine

Definition: An invitation-only Amazon program where trusted reviewers receive free products in exchange for honest and unbiased reviews.

VIR (Volume Incentive Rebate)

Definition: A discount or rebate offered by vendors to Amazon based on the volume of products purchased. It incentivizes larger orders and can lead to cost savings for both parties.

VIS (Video In Search)

Definition: A feature in Amazon Advertising that allows brands to include short videos in their Sponsored Brands ads, appearing in mobile search results to enhance product visibility and engagement.

VNHO (Virtual New Hire Orientation)

Definition: An online orientation program for new Amazon employees, covering company culture, policies, benefits, and essential information to help them get started in their roles.

Voucher/Coupon

Definition: A digital or physical code that customers can use to receive a discount on a specific product or order.

Warehouse Deals

Definition: A section on Amazon where customers can find discounted products that are typically open-box, used, or returned items that have been inspected and certified by Amazon.

WHS (Warehouse Health and Safety)

Definition: The practices and procedures implemented in Amazon fulfillment centers to ensure the health and safety of employees.

WOW (Week Over Week)

Definition: A comparison of performance metrics, such as sales or website traffic, from one week to the previous week.

YOY (Year Over Year)

Definition: A comparison of performance metrics, such as revenue or profit, from one year to the same period in the previous year.

YTD (Year To Date)

Definition: The period starting from the beginning of the current calendar year up to the present date.

Conclusion

Amazon presents both challenges and opportunities that require a solid understanding to navigate effectively. Rohan Ahmed, founder of Algoclan, provides insights into essential terms and concepts—from Seller Central and FBA to key performance indicators and compliance policies. Whether you’re starting out or refining your Amazon business, mastering these elements is crucial.

Stay informed and adapt to Amazon’s evolving ecosystem. Apply insights and tips shared by experts like Rohan to refine strategies, optimize product listings, and enhance customer experiences. Utilize FBA effectively to streamline operations and scale your business while monitoring performance metrics for sustained success.

Understanding and managing the nuances of selling on Amazon empowers you to maximize potential and achieve long-term growth. Keep exploring, stay proactive, and leverage available resources. Happy selling!