Common Amazon Seller Terms: A Guide
The Amazon marketplace is a huge place, with nearly everything imaginable to buy. It's also home to thousands of sellers who want your business. If you're new to selling on amazon or are considering becoming an amazon seller, it can be difficult knowing what all the terms mean and why they matter. In this guide, we'll break down some of the most common amazon terminology so that you can make more informed decisions when buying and selling on amazon!
3P - third party, usually referring to third party sellers
3PL - third party logistics. A warehouse-for-hire that helps you prep, store, and ship products.
A-Z Guarantee - amazon guarantees your purchase, if you receive an item not as described or defective
AMS - Amazon Marketing Services
ASIN - Amazon Standard Identification Number for the product you are selling. This is a unique identifier specific to Amazon for that particular product.
BSR - Best Sellers Rank, which shows amazon's top sellers
Buy box - amazon's way of showing the default seller for a particular product
COD - Cash On Delivery. A payment plan that is only available in the amazon marketplace
COGS - Cost of Goods Sold
CTR - Click-Through Rate. The ratio of people who click on your amazon ad or sponsored product
DS - Dropshipping
EAN - European Article Number. It is used for amazon's European market and amazon also uses it as an identifier
FBA - Fulfilled by Amazon, amazon's fulfillment service for sellers who want amazon to store and ship their products
FBM - Fulfilled by Merchant. A seller who fulfills amazon orders themselves
FC - Fulfillment Center
FNSKU - A unique identifier used by Amazon's FBA service to track your products inside of Amazon's fulfillment centers
Fulfillment Fee - Amazon charges this fee to pick, pack, and ship your products
Gated - either a brand or product level restriction, preventing unauthorized sellers from selling that brand or product.
HSA - Headline search ads
ISBN - International Standard Book Number. A standard used for book identification
MAP - Minimum Advertised Price. A minimum price that some brand owner's enforce. You are not allowed to sell a product below it's MAP price.
Margin - the ratio of the profit of the product compared to it's sale price. Calculated by dividing the profit by the sale price (so a product with a profit of $10 and a sale price of $20 would have a margin of 50%)
MWS - Marketplace Web Service
OA - Online Arbitrage
PL - Private label.
PPC - Pay-Per-Click. A marketing strategy that pays for every click on your ad or sponsored product
Prime- Prime is amazon's premium membership that provides free two day shipping
Profit Margin - amazon's profit margin is 30%.
RA - Retail Arbitrage
Referral Fee - A fee amazon charges to sellers. Usually a percentage (most commonly 15%) of the price the customer pays, but varies between categories.
ROI - Return on Investment
SC - Seller Central
SEO - Search Engine Optimization. The process of increasing amazon ranking
SFP - Seller Fulfilled Prime. Amazon's program for sellers who want to offer Prime shipping through their own warehouses
SKU - stock keeping unit. A unique identifier (usually consisting of letters and numbers) for a product
SRP - Search results page
UPC - Universal Product Code. A barcode that amazon uses to identify products