Complete Amazon Glossary (A-Z): 142+ Terms and Acronyms You Need to Know

Amazon Glossary Article Cover

This Amazon Glossary includes over 140 terms and abbreviations you need to know when selling on Amazon.

Whether you’re doing business as a vendor or seller: This A-Z Amazon dictionary will help you navigate all the jargon, abbreviations, and technical terminology you are likely to come across when selling on the world’s largest marketplace.

Make sure to bookmark this page and come back whenever you need to lookup any term in the future. I keep this Amazon glossary updated weekly.

ABCDEF
GHIJKL
MNOPQR
STUVWX
YZ

#

  • 1P – First Party, describes Amazon’s direct relationship with manufacturer brands and distributors that receive purchase orders from the retailer.
  • 3P – Third-Party, describes sellers trading goods on Amazon’s marketplace without selling these items to Amazon first.
  • 3PL – Third-Party Logistics
  • 3PS – Third-Party Seller

A

  • A+ Content – Product page with enhanced content features on Amazon, e.g., feature comparison tables, enhanced imagery, etc.
  • AA – Amazon Advertising
  • ACoSAdvertising Cost of Sale. Describes the ratio of your ad budget to your ad revenue. ACoS = total ad spend ÷ total ad revenue.
  • AGS – Amazon Global Store
  • AMS – Amazon Marketing Services, now known as Amazon Advertising.
  • AMG – Amazon Media Group
  • AMZ or AZ – Amazon
  • AMZL – Amazon Logistics
  • Andon Cord – If customers report a product as dangerous or as repeatedly delivered damaged, customer service representatives will remove a product’s listing from the website until the cause is identified and resolved.
  • ARA – Amazon Retail Analytics, often referred to as ARA basic. A reporting section in Vendor Central that brands can access to analyse their sales and inventory with Amazon.
  • ARAP – Amazon Retail Analytics Premium. The advanced reporting section for vendors to analyse customer behaviour and traffic on their product pages.
  • ASIN – Amazon Standard Identification Number. A unique 10-character alphanumeric identifier for a product on Amazon (for example B07ZB5C3ZM). It is linked to a unique SKU/EAN/ISBN code and is used as a reference to manage catalogue attributes, prices and inventory of a product.
  • ASN – Advanced Shipment Notification. A document that notifies Amazon about the time and characteristics of a pending shipment.
  • ASPAverage Selling Price. Calculated by net sales ÷ volume sold.
  • AVN – Annual Vendor Negotiation. Describes the yearly alignment of terms between Amazon and its 1P suppliers.
  • AVS – Amazon Vendor Service, formerly known as Strategic Vendor Service (SVS). It’s a paid programme that gives vendors access to a dedicated contact to assist with operational matters such as ordering and catalogue.
  • AWS – Amazon Web Services

B

  • B2B – Business to Business
  • B2C – Business to Consumer
  • BA – Brand Analytics. Dashboard for brand owners registered with Amazon’s Brand Registry to understand the performance of their brand (not account’s) on the Amazon marketplace.
  • BB – Buy Box. Refers to the Amazon product detail page area where customers can choose to add products to their shopping cart.
  • BD – Best Deal. A type of price discount on Amazon that runs several days or weeks.
  • BISS – Business Industrial & Scientific Supplies. A category on Amazon that targets sales to industrial and scientific customers.
  • BOGO – Buy One Get One. A promotion type for sellers.
  • Brand Analytics – Dashboard for brand owners registered with Amazon’s Brand Registry to understand the performance of their brand (not account’s) on the Amazon marketplace.
  • Brand Registry – Programme for brands to verify their brand to access enhanced analytics and brand protection features.
  • Brand Store – Part of Amazon Advertising. Brands can create a free store, showcasing their products with customisable images, logos and content.
  • Browse Node – A numerical code to identify an Amazon product category.
  • BTS – Back to School
  • BSR – Best Seller Rank
  • Bundle – Multiple single items that can be identified with different EAN/ASIN codes sold together as a single offering.
  • Buy Box – Refers to the area on the Amazon product detail page where customers can choose to add products to their shopping cart.

C

  • CAGR – Compound Annual Growth Rate
  • Category Page – A landing page for product groups within the Amazon store. Examples include: Home & Furniture, Grocery, Beauty, etc.
  • Chargeback – Describes a penalty that Amazon charges for non-compliance of standardised processes or late/inaccurate product deliveries.
  • Child ASIN – Describes a product listed under a parent ASIN (e.g., chocolate bar). The child ASINs are the variations under this parent ASIN (e.g., dark/white/milk flavour).
  • Chime – Amazon’s instant messenger that lets employees and brands meet, chat, and place business calls inside and outside their organisation.
  • Climate Pledge Friendly – Amazon’s programme to visibly mark eco-friendly and sustainable products on its marketplace.
  • CM – Contribution Margin. The formula: (Average Selling Price – Average Cost per Unit + Contra-COGS – Var. Costs) ÷ Average Selling Price.
  • COGS – Costs of Goods Sold. The value of goods sold during a selected time period.
  • Contra COGS – The money vendors spend with Amazon to offset COGS. Calculated based on the cost price (list price) at which a product is sold to Amazon.
  • Concessions – The dollar amount Amazon has refunded to customers.
  • Coupon (also: Vendor Powered Coupon, or VPC)– A type of discount vendors and sellers can offer to customers. Customers redeem the coupons on the product detail page.
  • CP – Contribution Profit. The dollar value of the Contribution Margin.
  • CPC – Cost per Click. Measures the dollar amount Amazon Advertising charges vendors and sellers when a customer clicks on their ads.
  • CRAPCannot Realise Any Profit. Products that got delisted because they are unprofitable to Amazon.
  • CTR – Click-through Rate. Calculated as the number of clicks ÷ number of impressions.
  • CS – Customer Service
  • CX – Customer Experience

D

  • DOTD – Deal of the Day. A type of promotion for vendors to discount a product for up to 24 hours during key deal events (e.g., Prime Day, Black Friday, Cyber Monday, etc.)
  • DP – Detail Page. The product page for an ASIN on Amazon.
  • DPV – Detail Page Views. The number of impressions of a detail page in a selected time period.
  • DSP – Demand Side Platform. Amazon’s display advertising programme.

E

  • EAN – The International Article Number is a standard describing a barcode symbology and numbering system used in global trade to identify a specific retail product type, in a specific packaging configuration, from a specific manufacturer.
  • EBC – Enhanced Brand Content. The equivalent of A+ Content available for Amazon vendors.
  • EDD – Estimated Delivery Date
  • EDI – Electronic Data Interchange. A method to send digital information between companies, mainly used to receive and process purchasing orders.
  • EOD – End of Day
  • EFN – European Fulfilment Network. Enables brands to sell across European marketplaces while only delivering to Amazon in their home country.

F

  • FBA – Fulfilment by Amazon. Programme for 3P sellers who let Amazon handle and ship their products to end customers.
  • FBM – Fulfiled by Merchant. Refers to 3P sellers shipping products directly to the end customer.
  • FC – Fulfilment Center. Describes Amazon’s warehouses.
  • FNSKU – Fulfillment Network Stock Keeping Unit. Identifies products fulfilled by Amazon.
  • FFP – Frustration-Free Packaging. An Amazon programme aimed at eliminating excessive and difficult-to-open packaging.

G

  • Gated Product – Refers to products that are blocked for sale by 3P sellers on the Amazon marketplace.
  • GL – General Ledger. Describes the P&L of the main product category (e.g. Home, Consumer Electronics, Beauty, etc.)
  • Glance Views – Equivalent to the number of impressions of a product detail page.
  • Goldbox – Refers to Amazon’s deals & promotions page.
  • GTIN – Global Trade Item Number (GTIN). A 14-digit code that uniquely identifies products, items and services.

H

  • Hazmat – Hazardous materials. Refers highly flammable, toxic or pressurised items that must therefore be handled with special care to protect the health of employees and customers.

I

  • IDQ – Item Data Quality. Used to spot product listings with missing titles, bullet points or other content features that need improvement.
  • Impressions – Describes the number of views of a product page.
  • IP – Intellectual Property
  • ISBN – International Standard Book Number. A 13-digit number assigned to identify products in a catalogue. Similar to EAN/SKU.

J

  • Joint Business Plan – Collaboration between a Amazon and 1P vendors to review their performance and create a plan for growing their business together over a set period of time.

Related: How to Negotiate Vendor Terms with Amazon

K

  • KPIKey Performance Indicator. A measurable value that shows you how effective you are at achieving your business objectives.

L

  • LBB – Lost Buy Box
  • LD – Lightning Deal. A type of discount on Amazon that is limited to 4-6 hours of running time.
  • Listing Optimisation – Refers to the process of improving the content of a listing to improve its organic ranking in the Amazon search results.

M

  • Marketplace – The locale or domain in which Amazon is active. Examples are Amazon.co.uk, Amazon.de, etc.
  • MAP – Minimum Advertised Price. Used by brands to ensure a product is not sold under a minimum set price (only applicable in the US).
  • MCF – Multi-Channel Fulfillment. A service that allows brands to use Amazon warehouses to store and ship products sold outside of Amazon.
  • MF – Merchant Fulfilled. Refers to sellers shipping products directly to the end customer.
  • MoM – Month over Month
  • MOQ – Minimum Order Quantity. Describes the minimum amount Amazon needs to order.
  • MTD – Month to Date
  • MSRP – Manufacturer’s Suggested Retail Price.

N

  • NDA – Non-Disclosure Agreement
  • Net PPM – The ratio between your average selling price and cost price, which also considers any accruals and C-COGS a vendor has with Amazon. Calculated as (Average Selling Price – Average Cost per Unit + Contra-COGS) ÷ Average Selling Price.
  • Net Receipts – Expresses the volume received by Amazon multiplied by the vendor’s cost price.
  • NIS – New Item Setup. Describes the listing process of a product.
  • NP – New product. Refers to a newly listed item.
  • NR – Non Replenishable. An item that cannot be restocked.

O

  • OB – Obsolete
  • Ordered Revenue – Refers to the orders placed by end customers that have not yet shipped by Amazon. It’s based on the average selling price at the time of the order. Calculated as: ASP * Volume Ordered.
  • Ordered Volume – Equals Ordered Revenue ÷ ASP.
  • OOS – Out of Stock
  • OPS – Operations

P

  • P&L – Profit and Loss
  • Parent ASIN – Describes the ASIN under which the variants of a product are grouped together. The parent ASIN could be a chocolate bar, while the child ASINs are the flavour variations (e.g., dark/white/milk flavour).
  • PCOGS – Product Costs of Goods Sold. Expresses the quantity sold multiplied by the cost price of a vendor.
  • POD – Proof of Delivery
  • PPC –Pay Per Click. Type of Amazon Advertising where a brand pays when an ad gets clicked.
  • PPM – Pure Profit Margin. Describes the ratio between the average selling price and cost price. In other words, it is the amount of money Amazon makes from the sale of a product before costs. Calculated as (Average Selling Price – Average Cost per Unit) ÷ Average Selling Price.
  • PPV – Purchase Price Variation. When the cost price of a vendor invoice does not match the cost price of the Amazon purchase order.
  • PQV – Purchase Quantity Variation. When the product quantity of a vendor invoice does not match the number of received items at the Amazon warehouse.
  • PR – Planned Replenishment
  • Prime – Amazon’s subscription service for free delivery, which also entails services like Amazon Music and Video.
  • PL – Private Label. Describes products sold by Amazon under their own brand name but made by other manufacturers.

Q

  • Q1 – First Quarter (Jan-Mar)
  • Q2 – Second Quarter (Apr-Jun)
  • Q3 – Third Quarter (Jul-Sep)
  • Q4 – Fourth Quarter (Oct-Dec)
  • Q5 – Fifth Quarter. Refers to a hectic first quarter right after the Christmas period (colloq.).
  • QA – Quality Assurance
  • QBR – Quarterly Business Review

R

  • ROASReturn on Ad Spend. Describes how much revenue a brand gets in return for their advertising budget. Calculated as ROAS = 100 * total ad revenue ÷ total ad spend.
  • ROI – Return on Investment
  • RRP – Recommended Retail Price. It’s set by the manufacturing brand.

S

  • SC – Seller Central
  • SDA – Selective Distribution Agreement. Used by suppliers to maintain control over the resale of its products by only selling to distributors meeting specific criteria.
  • SDN – Selective Distribution Network. Describes the distributors that are part of a SDA.
  • SEO – Search Engine Optimisation
  • SFP – Seller Fulfiled Prime. Refers to sellers that ship products from their own warehouses and comply with Amazon’s strict SLA.
  • Shipped COGS – This metric is based on the cost price of a product at the time of Amazon purchasing it, multiplied by the shipped volume during the selected time period. Expressed as a dollar value and calculated as: Vendor Cost Price * Volume Shipped (to end customers).
  • Shipped Revenue – The revenue Amazon makes with shipping a vendor’s products. It’s based on the average selling price to the end customer at the time of shipment and multiplied by the sold volume during the selected time period. Calculated as: ASP * Volume Shipped (to end customers).
  • Shipped Volume – Equals shipped revenue ÷ ASP.
  • SIOC – Ships in Own Container. Describes products that don’t need an Amazon overbox.
  • SKU – Stock Keeping Unit. A unique code to identify a product.
  • SLA – Service Level Agreement
  • SnS – Subscribe and Save. Amazon’s loyalty programme to ensure that customers make repeat purchases of replenishable products on its marketplace in exchange for a small discount.
  • SnL – Small and Light. Fulfilment programme that results in low shipping costs for qualified products that fit into an envelope.
  • SPN – Service Provider Network
  • SR – Sales Rank. The ranking of an item in a product category.
  • SRP – Suggested Retail Price
  • Storefront – A curated brand store, typically paid for by vendors.

T

  • Third-Party Seller – Describes sellers trading goods on Amazon’s marketplace without selling these items to Amazon first.
  • TOS – Terms of Service

U

  • UPC – Universal Product Code. 12 numeric digits that are uniquely assigned to a product item for tracking it in store.
  • UX –User Experience

V

  • Variation – Products available in different colours, sizes, and forms, grouped on a detail page.
  • VAT – Value Added Tax
  • Vendor – Describes brands that sell directly to Amazon instead of to end customers. Amazon places the orders and takes care of pricing and inventory management.
  • VINE – An Amazon programme where sellers can register their products to receive reviews from verified product testers.
  • VIRVolume Incentive Rates. Refers to rebates that are granted either as a fixed or tiered percentage. They incentivise Amazon to buy additional volume from vendors.
  • Voucher (also: Vendor Powered Voucher, or VPV) – A type of discount vendors and sellers can offer to customers. Customers redeem the vouchers on the product detail page.

W

  • Warehouse Deal – Used or returned items sold at a discount to Amazon customers to prevent waste and reduce the liquidation of imperfect products.
  • WoW – Week over Week

X

  • X-Channel Management – Refers to brands selling their products across multiple Amazon channels (e.g., Amazon Core, Fresh, Go, etc.).

Y

  • YTD – Year to Date
  • YoY – Year over Year

Z

  • Zero Inventories – Refers to an inventory control mechanism that eliminates any waste due to built-up inventory levels. Sellers stock only the items they need and intend to sell within a certain time period.

Still having questions?

I hope this glossary has helped you understand some of the most common Amazon terms that you’ll come across as a vendor or seller.

Spotted any term or abbreviation that I haven’t covered here? Then let me know in the comments!

Get my best content straight into your inbox.

By subscribing, you acknowledge to have read & agreed to my Privacy Policy.

About Martin Heubel

Hi, I'm Martin Heubel – founder of Consulterce and ecommerce strategy consultant, based in London, UK. I'm on a mission to help 1P Vendors raise their profit margins with Amazon.

Follow me on LinkedIn or get in touch!

Leave a Reply

Your email address will not be published. Required fields are marked *