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Below you’ll find the most important Amazon terms and a brief description of each. Click on a letter to get down to the descriptions.
Amazon customers can file a complaint about a seller under the A-to-Z Guarantee in instances where the seller has failed to live up to the terms of the sale due to the product quality and/or delays. A-to-Z Guarantees only affect sellers who use FBA. A-to-Z Guarantee complaints can result in a 500-point deduction in a seller’s customer satisfaction rating. Sellers can appeal A-to-Z Guarantee complaints.
The collective name of all the performance indicators and rules, you as a seller need to live up to if you want to keep selling on Amazon. “Account Health”-performance indicators include customer service, adherence to product terms, timely order processing and cancellations in case products are out of stock.
ACoS measures the performance of your Sponsored Product Campaigns on Amazon. This key measurement shows the relationship between the cost of the campaign versus sales generated from the campaign. ACoS is calculated as follows:
An example:
If a campaign generates £2000 in sales at the total cost of £60 (within a set timeframe), the ACoS is 60 / 2000 * 100 = 3%. In this example, your marketing expenses constitute 3% of the sales revenue generated via SPC on top of Amazon’s usual commission fee. This cost will be in addition to normal fees for Amazon.
The number of times an ad has been clicked on.
The average daily budget of a marketing campaign.
The number of views an ad has received.
The number of orders generated as a direct result of an ad.
The number of orders generated as a direct result of an ad.
The total cost of all clicks on an ad campaign (within a set timeframe).
The Amazon Standard Identification Number (ASIN) is a unique 10-digit alphanumeric number used to identify products on Amazon.
Products on Amazon are ranked based on sales volume and the popularity of a seller’s full product range. A high BSR increases your chance of ranking high on Amazon’s search engine.
It is possible to protect your brand trademark on Amazon by registering it in Amazon’s system. This allows the brand owner to have more control over his/her range of products and access more marketing opportunities.
A service that allows the seller to create their own brand store on Amazon.com. Here customers can experience the look and feel of a brand through an immersive virtual shopping experience.
The supplier who gets the sale when a customer places an order for a specific product. Multiple sellers can offer the same exact product on Amazon but only one seller is awarded the Buy Box. Winning the Boy Box requires excellent performance on several parameters including price, seller rating, product quality, description and service delivery.
Amazon divides products into categories based on their use. A product is oftentimes placed in one broad category as well as one or more subcategories.
When customers contact their bank or debit/credit card provider to get a refund on a product that is damaged, missing or otherwise not living up to the product description. The customer will get a refund from Amazon which will be passed on to the seller.
The percentage of customers who see your ad campaign and click on it. The CTR indicator is calculated by dividing the total number of clicks by the total number of views an ad campaign has received.
A measure of marketing costs. CPC is the number of clicks divided by the total cost of an ad.
A key indicator measuring the price of your ad campaign for every 1000 people watching it.
A key indicator measuring the relationship between the cost of acquiring new customers and the number of new customers gained in a given period. Here is an example of how CPA is calculated: £100 spent on marketing in a 12-month period has yielded 100 new customers. Therefore, the CPA = £100/100 = £1.
European Article Number. If you are selling in Europe, your products will get a 13-digit identification number. The EAN is sometimes also referred to as the International Article Number (IAN).
FBA is a service provided by Amazon allowing the seller to store their products in one or several Amazon Fulfillment Centers. When a customer places an order through FBA, Amazon will retrieve, package, and ship the product. They will also handle customer support.
The seller is responsible for the full sales process on Amazon including retrieving, packaging, and shipping products. They are also responsible for all customer support.
The FNSKU is a product number used by Amazon to identify products sold on their platform. All products sent to a Fulfillment Center receive a unique FNSKU.
A Fulfillment Center is an Amazon warehouse where products are stored, retrieved, packaged and shipped off, on behalf of Amazon and its third-party sellers.
Amazon charges a small fee to retrieve, package and ship products on behalf of sellers. The fee amount depends on the weight and circumference of each product.
An Amazon ad shown at the top of the search results page. To qualify for a Headline Search Ad, brand owners need to register on Amazon, have a brand store and a minimum of three products for sale.
The number of orders dispatched later than the expected dispatch date is divided by the number of orders in total (within a set timeframe).
Amazon Marketing Services help sellers reach new customers and increase sales on Amazon through targeted cost-per-click marketing campaigns.
Customers can leave a public review of their shopping experience. Sellers should try to limit the amount of Negative Feedback they receive as this affects their feedback score and consequently their chance of winning the Buy Box. Negative Feedback should be addressed as fast as possible.
ODR is the percentage of orders that have received negative feedback, an A-to-Z Guarantee Claim or a return claim from a bank or credit card company.
A notification with a red flag indicating that Amazon has an urgent task that requires your attention.
Amazon Prime is a paid service on Amazon which gives customers free two-day delivery among other benefits through a monthly or yearly subscription plan.
This key indicator shows the relationship between the number of canceled orders before an order confirmation was issued and the total number of orders (within a set timeframe). As a seller, you should aim for 2.5% or less.
Amazon takes a cut of all sales made on their platform in commission.
Return on Advertising Spent (ROAS) – the net profit divided by the cost of investment. The proportion is given in percentages.
The process of improving a website to increase its visibility when people use search engines like Google or Amazon.
The dashboard where sellers on Amazon can list, maintain, and track product performance.
A rating of Amazon sellers from customers who have recently made a purchase. The customer can rate their experience with 1 to 5 stars (from bad to excellent). Star ratings and comments follow the product and are made publicly available to new customers. It is also possible for customers to rate the product. These reviews are also made publicly available. Negative Seller Feedback yield a 500-point deduction in a seller’s customer satisfaction metrics. Sellers can appeal negative Seller Feedback and get it removed.
Stock Keeping Unit (SKU) is a unique identification number for products. A product with 7 different editions or variations will have 7 unique SKUs.
Customer support for sellers on Amazon.
A CPC campaign making it possible for sellers to market their products through search-optimized ads with strategic placements on the Amazon site. The payment model for Sponsored Ads is Cost Per Click.
When an Amazon user leaves a review without having bought a product, the review is considered “unverified”. Unverified reviews have less weight than verified reviews. Verificeret reviews.
Some brands choose to sell their products to Amazon whereby Amazon becomes the product distributor.
When an Amazon user leaves a review after buying a product. Customers can review both the product and the customer experience.
The future is on Amazon
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