Wholesale Inspector | Common Amazon Seller Terms: A Guide

Common Amazon Seller Terms: A Guide

Tom Myers

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

Tom Myers
Tom is one of the cofounders of Wholesale Inspector, leading the product, engineering, customer success, and marketing teams. When not at his desk, you can usually find him rock climbing somewhere in the world.
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