When you start selling on Amazon you quickly realize there are a lot of strange acronyms and terminology used by sellers. All this jargon can be confusing so we have compiled a full list of the all the acronyms you are likely to come across.
The list is arranged alphabetically to help you find what you are looking for.
3PL – Third-party Logistics – A provider of outsourced logistics services which can include shipments, storage and fulfillment.
A-to-Z Guarantee – An Amazon program which guarantees the condition and timely delivery of third-party products. Amazon customers may make claims against sellers under the a-to-z guarantee. This can be very damaging to your seller account so do what you can to keep the customers happy.
ACoS – Advertising Cost of Sales – The percentage of attributed sales spent on advertising. This is calculated by dividing your total ad spend by your total sales.
ASIN – Amazon Standard Identification Number – The unique identification code Amazon assigns to a listing.
B2B – Business to Business – you selling to a business customer.
Barcode – It is the umbrella term for UPCs and EANs and is usually a numerical code between 12 and 14 digits.
BB – Buy Box – This is the main spot on Amazon where a buyer can do a “one-click” purchase. The Buy Box seller which get a large percentage of the sales of that product. There are many factors involved in getting the Buy Box including price, sales history, account age, metrics etc. Full guide to winning the Buy Box here: How to win the Amazon Buy Box: Ultimate Guide 2018
Brand Registry – An Amazon program that helps you protect your brand from other sellers jumping on your listing. You need a trademark to get Brand Registered. You will also be able to use Enhanced Brand Content.
BSR – Best Seller Rank – This is the Amazon category rank for a product based on how well it sells. This can be found on the listings. The lower the number the better the rank and therefore the more it sells. We have BSR and rank charts for the US, UK, Germany, Italy, Spain and France here – Amazon Product Rank and BSR Charts for the US, UK and Europe
COGS – Cost of Goods Sold – how much you paid for your products – this is used for accounting.
CTR – Click Through Rate – The percent of shoppers who see your ad and click on it. This is calculated by dividing total clicks by total impressions.
EAN – European Article Number – this is a unique barcode that identifies the product and is the European version on the UPC.
EBC – Enhanced Brand Content – Allows sellers to create more detailed product descriptions with additional images, videos and text.
EXW – Ex Works – International trade term that describes an agreement in which the seller is required to make goods ready for pickup at his or her own place of business. All other transportation costs and risks are assumed by the buyer. For Amazon sellers, this would mean that they have to cover the costs of shipment starting from the Factory or Wholesaler.
FBA – Fulfillment By Amazon – this is when you send you products in bulk to Amazon warehouses and Amazon then fulfil the orders and deal with customers.
FBM – Fulfillment By Merchant – this is when the seller picks and packs the orders to the customer and deals with customer service too.
FC – Fulfillment Center – A fulfillment centre is where you send your products when doing FBA. They are stored and then prepped and shipped once they are sold.
FOB – Freight On Board – This is the last location that the Seller of an item will cover shipping costs. For Sellers, if they see a term sheet with the term “FOB Port of Hong Kong”, this means that the factory will cover the shipping costs up until the Port of Hong Kong, after that point, it is the Buyer (Amazon Seller) who assumes control over the goods.
Gated Brand – Individual brands can also be restricted and you need to apply to sell. This normally involves getting invoices and written permission from the brand. More info on getting ungated here – How to get Ungated in Amazon restricted categories
PPC – Pay Per Click – Advertising model where an advertiser pays for the ad placement only when the Ad is clicked.
RA – Retail Arbitrage – Buying from physical stores to resell on Amazon.
Referral Fee – A percentage based cost for selling products on Amazon. Usually, 7-15% based on final selling price.
ROI – Return on Investment – percentage profit compared with purchase price
SC – Seller Central – The main portal for managing your Amazon seller account
Seller Feedback – A rating awarded to Amazon’s third-party sellers from customers who have purchased from the seller which ranges from 1 to 5 stars. This is different from a Product Review which is only linked to the actual product and not the individual seller. Negative feedback can be very damaging to your account and if you get too much you will eventually be suspended.
SFP – Seller Fulfilled Prime – this is where you store the products in your warehouse but offer express Prime shipping using Amazons approved carriers.
SKU – Stock Keeping Unit – the manufacturer of the product will allocate a unique SKU to each of their products. If you are doing Private Label you will choose this code.
SS – Seller Support – Amazon’s support team for resolving Sellers’ issues and questions.
Unverified Reviews – When a customer leaves a product review without first purchasing the product on Amazon. Unverified reviews carry less weight when Amazon averages a given product’s reviews and Amazon are now starting to remove Unverified Reviews.