Glossary of Amazon’s terms

All the most important concepts at a glance

Amazon lexicon

A+ content:

Under this term, you find additional content on Amazon, which expands the product presentation. This option allows you to expand your descriptions by adding photos and other media to advertise your product. It is only available to sellers who have registered their brand on Amazon.

Account health check:

With an account health check, you can check certain key figures of the Amazon account weekly. This method includes the inventory, which consists of products sold through FBA/FBM. It allows us to look at which products are active or inactive and the cause of their inactiveness. One can check which products are in stock and which are not. Furthermore, the weekly check of the sales volume ensures the account selling is active and prevents loss of money. In the case of drastic increases and decreases in sales, we naturally want to know the reason behind it. Next up are the account's campaigns. Here, the ACOS is examined primarily. It is a good indicator of the success of the advertising campaigns. Of course, it is only one of several key figures in the campaign manager but it is enough for a small insight and you can estimate whether adjustments should be done or not. You can apply minor changes directly during the Account Health Check, but creating new campaigns is treated separately. Finally, we come to the shipping services and customer satisfaction. For shipping services, the late delivery rate, pre-fulfilment cancellation rate, and valid tracking number rate are checked. These are important indicators for Amazon and also affect the profit of the Buy Box. Customer Satisfaction covers reviews and buyer feedback. These show how well the product performs with the customer and the feedback is used to further develop the products and/or the product page.

Advertising Cost of Sales (ACoS)

ACoS (Advertising Cost of Sales) means advertising costs for sponsored offers. It is a performance measurement of the PPC campaign on Amazon. ACoS therefore shows the ratio of the expenditure for advertising for sponsored products to the income that advertising can potentially generate.

Advertising format

The method of advertising to use. Sponsored Products, Sponsored Brands, and Product Displays are typical formats.

Advertising goal

Your intention, which you have in mind with your advertising. Possible goals would be, for example, that your product will be bought, achieve a certain brand loyalty or increase brand awareness.

Advertising placement

The platform on which the ad is shown. For example on amazon.de, third-party websites or on various Amazon devices.

AFFILIATE LINKS

Affiliate links enable you to earn commissions by advertising products of other people or companies on websites and blogs. The customer is forwarded to the Amazon’s offer via a unique link and URL. If the customer decides to buy the product, the partner who places the link receives a commission for the sale. This helps customers to shop quickly and safely.

Affiliate Program

The Amazon Affiliate Program is a free Amazon platform program that took its first steps back in 1996. It gives the opportunity to earn extra income for bloggers and websites owners. Due to the huge range, almost every topic of the blog will find matching products. Only one click will direct the interested party to the selected product. Each entry of a potential customer through the affiliate link is a refund of advertising costs for purchases made by the visitor within 24 hours. The refund is from 1 to 12% depending on the product. Amazon is a brand known all over the world, which inspires trust among customers and thus encourages them to shop securely online.

Amazon Business

Amazon Business is a good solution for companies that want to shop through the Amazon platform. While browsing, the net prices are displayed and they can also select offers from companies that issue VAT invoices. Another advantage of this solution is the free shipping of products over 29 euros. In addition, Amazon offers special discounts for companies as well as flexible payment methods.

Automatic offers:

The offer will be adjusted by Amazon automatically to enable the best possible performance for your product.

Bids

The amount of money one pays as soon as someone clicks on the advertisement. You can specify the amount for every advertising campaign individually. There is a differentiation between automatic and manual bids.

Brand enhancement

Considering how the advertisement changes or influences the buyer's perception or behavior in relation to the brand. This can be calculated after customer contact using success statistics, such as the likelihood of purchase and brand awareness.

Brand Story:

A brand story is a module, which allows you to tell customers the story of your brand. Here you can point out features that make your brand unique and convey how your products improve the lives of your customers. The purpose of your brand story is to encourage potential customers to choose your brand. The brand story is placed between bullet points, product description, and A+ content.

Browse Tree Guide (BTG)

Browse Tree Guide (BTG) is a list of product classifications that enables potential customers to find your items more quickly. By searching the offers, customers can narrow down their search to find the right product as quickly as possible. The list contains numbers and keywords associated with a particular search path. Thanks to the list, customers can find products in the right category.

Bullet Points

Bullet Points are concise points that accurately describe a specific product.They have a significant impact on the purchase decisions of potential clients. Bullet points present the most important features of your product and inform potential customers about what distinguishes the product. In addition to pictures and meaningful titles, they help customers to choose a specific product.

Business to business-prices (B2B):

B2B prices are additional discounts for business partners. Amazon business customers tend to buy more and return less, which is why low prices are expected often. For business customers, volume discounts are shown on the product page. When offering such discounts, you can determine a fixed amount of discount or percentage discount of the original price.

Buy Box

The Buy Box is displayed in the top right corner of a product's page. With a click, the respective product is added to the shopping cart. If a product (often a specific brand) is sold only by one seller, it automatically receives the shopping cart. If the same product is sold by several sellers, they compete for the buy box. The Buy Box is assigned to a top seller who has to meet a number of known and unknown criteria. The majority of buyers (approx. 90%) use the Buy Box to shop and do not further check the offers of other sellers in the listing. The majority of the sales go to the seller who has the Buy Box.

Codes: ASIN, SKU, FNSKU, EAN, GTIN

ASIN (Amazon Standard Identification Number) is an existing number consisting of 10 characters (letters and/or digits) to identify products on the Amazon platform. The ASIN is created when a product is loaded into the directory of Amazon. The ASIN code identifies the model, the color, and the size of the product.
SKU (Stock Keeping Unit) is for identifying products in stock. All products, added by Amazon, have to own an SKU number. You can add the SKU number by yourself. Otherwise, Amazon will assign an order of random letters and digits to your product.
FNSKU (Fulfillment Network Stock Keeping Unit) is a code, which you can generate in your sales panel. The number will be assigned to the products of a certain seller. Like the SKU code, the code consists of 10 characters (letters and/or digits). This number allows identifying products inside the warehouse of Amazon as a product of one single seller.
GTIN (Global Trade Item Number) is a barcode assigned by the manufacturer to the product. Primarily, it is for determining the manufacturer of the product. The GTIN code also identifies the country of origin and sometimes the weight of the product as well. The GTIN codes confirm the legality of your products. The regional equivalent to GTIN codes is the EAN (European Article Number).

Conversion

The customer performs a specific action. Examples would be buying products, the registration of events/conversations, or simply adding a product into your shopping cart.

Cost per 1,000 impressions (CPM)

The cost of your ad, which you pay on average for 1000 impressions.

CPC

CPC (Cost-per-Click) is a one of the method used for buying advertisements on the Internet. The advertiser usually sets the cost-per-click rate in the form of an auction. This means that he is charged with every click on the ad. The moment the user clicks on the ad or link and is directed to the advertiser's website is the moment the advertiser is charged.

CTR

The abbreviation CTR stands for click-through rate and means the ratio of clicks on the advertisement to the total number of advertisements displayed. The parameter can be helpful to estimate the effectiveness of the advertising / keywords. Which advertising / keywords have a good effect and where there is still a need for action. CTR is given in % and the click rate must always be assessed individually, depending on the advertising campaign.

Coupons

Coupons are digital discount vouchers that can positively influence a purchase decision. The coupons can be offered for individual products as well as for the entire series. The voucher value is displayed next to the product price. The coupon is very easy to use for the customers. They only have to tick a corresponding box to redeem the discount voucher. So the customer can save money when buying, and you can increase the sale of your products.

Daily Budget

The maximum amount that you want to spend per day on the respective advertising campaigns.

Daily deals

Daily deals are affordable deals that change daily. The customer has the opportunity to buy the dream product at the best price. Each offer lasts 24 hours and changes periodically. This process helps promote products to retailers and customers to buy an item at a special price.

FBA vs. FBM

FBA vs. FBM: Advantages and disadvantages of the respective fulfillment solutions: Each of the above forms of order processing has its advantages and disadvantages. With Fulfillment by Amazon you have access to first-class logistics solutions. Your products are easier to find on the Amazon platform. This allows you to increase sales on different markets. The products can be provided with the Amazon Prime option and are therefore delivered to customers quickly and free of charge. Amazon will also handle customer support in the local language, handle returns and answer questions about orders. With this model, a seller can also save time by only sending products to Amazon's warehouse. Of course, the FBA service have also got disadvantages. For goods that weigh more, this solution can be less lucrative. It is therefore worthwhile to calculate the FBA costs in advance and to consider whether we should not send products to customers ourselves. Another disadvantage could be the lack of control. This also applies to returns and complaints, which are usually processed for the benefit of the customer. You can of course get the claimed product back or request the product to be destroyed, but both options come at an additional cost. The second option of orders processing is Fulfillment by Merchant (FBM - dispatch by dealer). Amazon makes its platform available to your offers, while shipping is your responsibility. This gives the seller full control over every order. He makes returns and complaints himself. There are no additional costs associated with processing orders at Amazon. The seller gains more freedom and is not dependent on changes in the Amazon policy. This form also means less documentation. However, FBM has other obligations for the seller, e.g. B. Purchase of packaging, tapes or bubble wrap. Another disadvantage is that your products are displayed lower on the Amazon platform, so their visibility decreases.

Fulfillment by Amazon (FBA)

Fulfillment by Amazon (FBA) facilitates access to first-class logistics solutions. This approach also helps to increase the sales of your products on different markets. Thanks to FBA, your products can be shipped from the Amazon warehouses to customers, so that shipping is quick and free of charge. Amazon also offers customer support in the local language and processes returns.

Fulfillment by Merchant (FBM)

FBM (Fulfillment by Merchant) jest formą realizacji zamówienia, w której Amazon udostępnia jedynie swoją platformę, a sprzedający jest odpowiedzialny za wysyłkę towaru. Po wysłaniu przesyłki musi on wprowadzić do systemu jej numer, a także zobowiązany jest do przeprowadzania ewentualnych zwrotów. Dzięki takiemu rozwiązaniu sprzedawca ma pełną kontrolę nad procesami logistycznymi.

Impressions

The number of visual contacts. It shows how often an advertising campaign was seen in total.

Negative Keywords

“Negative Keywords Phrase” prevents your ad from being displayed in search queries if the selected group of words occurs in the specified order. Additional keywords can appear beforehand or after as well as common spelling mistakes or plural forms. When it comes to “Negative Keywords Exact” the search term must match the chosen keywords perfectly for the ad to be not displayed. Plural and common spelling mistakes are also considered. However, the ad is still visible as soon as additional terms outside the group of words are entered before or after.

PAN EU

With Amazon Pan-European, goods can only be shipped to one Amazon warehouse. It is a good solution for companies that want to sell their products on other European markets (France, Italy, Great Britain, Spain, Germany). The seller sends his products to one warehouse, and Amazon distributes them further. Articles are delivered by Amazon to other warehouses, thanks to which the customer receives the goods faster, and the seller does not have to worry about logistics and the cost of delivering the goods to all warehouses.

Range

The number of individuals who saw the ad. Each person is only counted once here, no matter how many times they click on the ad or see it.

ROAS (Return on ad spend)

A marketing metric used to determine how much a company has made in relation to the money invested in advertising. ROAS is calculated by dividing income by expenses.

SBA

"Sponsored Brands Ads" (SBA) are advertisements that can be found next to or above the search results. These will be labeled as "Sponsored by Brand...". Here, you can select a cover image, which usually represents the brand logo, a meaningful title, and 3 products. A link to your own store is possible as well.

Seller Central

Seller Central is a platform through which the trader can manage sales processes, logistics or prices. You start your shop via the platform and add the products that you want to sell. You can also manage advertising and promotion of your products to increase sales.

Seller Central vs. Vendor

The main differences between these two platforms are the way of entering the platform (Seller Central - accessible for everyone, Vendor – only via invitation), the way of selling (Seller Central – selling directly to the customer, Vendor – selling to Amazon), more advertising possibilities on Vendor, and the way of controlling prices (Seller Central – brand or seller control process, Vendor – Amazon controls prices)

Seller-fulfilled Prime

Seller-Fulfilled Prime is another way of fulfilling orders on Amazon. With this solution, products are delivered to customers directly from your warehouse. The customer orders a specific product, and then the seller send it through Amazon approved shipping companies. This gives you the ability to control shipping processes and simultaneously use the Prime Service. Thanks to this service, products are delivered to customers quickly and easily. Your offers will be displayed on Amazon with the Prime logo, which will have a positive impact on sales.

SEO Content

SEO Content is a product optimization that is used to position offers on Amazon. In order for your products to be quickly found by customers, it is extremely important to prepare an offer in accordance with SEO principles. This allows you to increase the number of searches and thereby increase sales. Products that appear at the top of Amazon search results have a better chance of increasing sales. The more visible the offers, the more sales.

Small & Light program

Small & Light is a program, which focuses on the shipping of small and light orders. To be qualified the product needs to have specific measurements and weight (dimensions and weight vary from country to country). Prime customers will receive this shipment within 3-5 business days. This program has many benefits, including the reduction of implementation costs, guaranteed product protection from A to Z and, above all, the availability in many countries. In Germany, for the products to be qualified, they need to have measurements of 33,5 cm x 23 cm x 4,6 cm, a maximum weight of 225 g, and the price not exceeding €10 (VAT included) for the Small & Light program.

SPA

The abbreviation SPA means „Sponsored Products Ads“ and refers to ads that are identified and displayed with the word "Sponsored" on the search results page or product detail pages. This kind of advertising can target both keywords and product categories.

Storefront

Storefront enables small and medium-sized companies to sell products directly via the Amazon platform. This is a separate section in which small companies that offer unique products are distinguished. It consists of three promotional services: Curated Collections, Storefront of the week and Meet the Business Owner. Curated Collections includes products from 25 different categories, offering unique products to customers. Storefront of the week and Meet the business owner gives you the opportunity to highlight your company.

Program Transparency

Transparency Program

Transparency Program is a service that identifies products. The main purpose of this program is to prevent counterfeit items from being sold. Thanks to this, customers can safely buy original products, and manufacturers can be sure that their products will not be sold by another company. This increases the confidence of both customers and sellers. Amazon aims to provide better customer service so that it receives the ordered product, not its imitation. The customer can easily notify Amazon of counterfeiting. Each brand that is registered in the Transparency Program receives a bar code. The brand owner is also responsible for placing the code on all products, regardless of whether the products are sold on Amazon or another platform. The codes are unique, assigned to only one product, which helps to identify the brand. Customers can scan codes to verify product authenticity using the Amazon app.

Vendor

Vendor is a platform used by manufacturers and retailers who wholesale their products to Amazon (central suppliers). Only providers who have been invited to this program can use this platform.

Vine Program

The Vine program is meant to provide customers additional information from trusted reviewers. It is very important that review is fair and unaffected. Vine reviewers do not have contact with the seller and do not receive remuneration. Reviews can be positive or negative depending on experience. Reviews must follow the Vine guidelines. Products are submitted by Amazon to Vine members for review. The seller has no influence on which product the reviewer will receive.

Voice of the Customer (VOC)

Customer assessment, often also called Voice of the Customer (VOC) is the expectations, experience and customers impressions of a product or company. It is an information technology in marketing that allows the customer to describe their experience with the product and expectations of it. Feedback is very important in the product development department, mainly to meet expectations and adapt the product to customer requirements. VOC consists primarily of sales, marketing and product development. Customer feedback helps manufacturers understand the needs and wishes of customers.