Below you will find key terms and terminology related to conducting sales on the Amazon platform. Our dictionary will help you understand the complex processes, procedures, and abbreviations used on Amazon. Use it to better navigate the platform and optimize your sales efforts.
All the most important concepts at a glance
A+ Content is a tool offered by Amazon that allows sellers to enhance their product listings with additional visual and textual content to improve product presentation. With A+ Content, sellers can add detailed descriptions, images, graphics, comparison tables, and other elements to their product pages, helping to showcase product features more effectively. The goal of A+ Content is to make listings more attractive, improve conversion rates and sales, and increase customer engagement. A+ Content is available only to sellers with a Professional account and a registered brand – it is especially useful for premium products or those requiring additional explanation of their features and benefits.
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.
ACoS (Advertising Cost of Sales) is a key performance metric for advertising campaigns on Amazon. It represents the ratio of advertising costs to the revenue generated by that advertisement and is expressed as a percentage. A lower ACoS indicates a more efficient campaign, as it means the ad is generating higher revenue relative to its cost.
The method of advertising to use. Sponsored Products, Sponsored Brands, and Product Displays are typical formats.
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.
The platform on which the ad is shown. For example on amazon.de, third‐party websites or on various Amazon devices.
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.
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 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.
The offer will be adjusted by Amazon automatically to enable the best possible performance for your product.
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.
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.
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) is a document provided by Amazon that contains detailed information about product classification within Amazon’s catalog. BTG helps sellers assign the appropriate categories to their listings, enabling customers to find products more quickly and accurately. By correctly categorizing products according to BTG, sellers can increase the visibility of their listings and enhance the shopping experience for customers.
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.
B2B Pricing refers to special prices and discounts available exclusively to business customers on the Amazon Business platform. Since B2B customers typically purchase in larger quantities and make fewer returns, they often expect more favorable pricing conditions.
Quantity discounts are visible to business customers on the product page and can be offered in two forms: a fixed discount amount or percentage‐based discounts. Sellers can adjust B2B pricing to enhance their competitiveness and encourage businesses to make bulk purchases.
The Buy Box is a section displayed in the top right corner of a product page. With a single click, the selected product is added to the shopping cart. If a product (often a private label item) is sold by only one seller, that seller automatically receives the Buy Box. However, if the same product is offered by multiple sellers, they compete for the Buy Box.
The Buy Box is awarded to the seller who best meets a set of both disclosed and undisclosed Amazon criteria. The majority of buyers (around 90%) use the Buy Box to make their purchases and do not check other sellers’ listings. As a result, most sales go to the seller who holds the Buy Box.
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).
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.
The cost of your ad, which you pay on average for 1000 impressions.
CPC (Cost Per Click) is a billing model in online advertising where the advertiser pays for each click on their ad. It is one of the most commonly used ad purchasing methods, especially in auction‐based systems such as Google Ads, Facebook Ads, and Amazon Ads.
In the CPC model, the advertiser sets the maximum bid per click, and payment is only made when a user clicks on the ad – not for simply displaying it.
CTR (Click‐Through Rate) is a metric that measures the effectiveness of an advertisement or interactive element online. It represents the ratio of the number of clicks on an ad to the number of times it is displayed, expressed as a percentage.
This metric is crucial for evaluating the success of an advertising campaign, as it indicates how often users engage with an ad after seeing it. CTR helps analyze the effectiveness of ads, keywords, headlines, and graphics, providing insights into which elements perform best and where optimizations can be made.
Coupons are digital discount vouchers that allow customers to receive a price reduction on a specific product or product category. Coupons can be offered at the level of individual products or entire product lines, with their value displayed next to the product price.
Coupons are an effective way to increase product interest, attract new customers, and boost conversion rates. Sellers can create coupons that are valid for a specific period, for selected products, or entire categories to drive sales and improve the visibility of their listings on the Amazon platform.
The maximum amount that you want to spend per day on the respective advertising campaigns.
Daily Deals are time‐limited promotions on selected products, typically lasting 24 hours. These offers allow customers to purchase products at attractive prices while helping sellers boost sales and increase the visibility of their listings.
New promotions are featured every day, with availability limited by both time and stock. Daily Deals are a popular marketing tool that encourages customers to make quick purchasing decisions and helps sellers accelerate inventory turnover.
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.
FBA (Fulfillment by Amazon) is a logistics service offered by Amazon that allows sellers to use Amazon’s network of warehouses and logistics solutions for storing, packing, and shipping products to customers.
When a customer makes a purchase, Amazon handles packaging, shipping, returns, and customer service in the local language. Additionally, with FBA, products qualify for free Amazon Prime shipping, which helps boost sales and enhance the shopping experience.
FBM (Fulfillment by Merchant) is an order fulfillment model in which the seller is responsible for the entire logistics process, including storage, packaging, shipping of products, and handling returns.
With FBM, after shipping the order, the seller must enter the tracking number into Amazon’s system so the customer can monitor the delivery status. Additionally, the seller is responsible for handling returns, customer communication, and inventory management.
The number of visual contacts. It shows how often an advertising campaign was seen in total.
“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.
Amazon Pan‐European is a program that allows sellers to send their goods to a single Amazon warehouse, which then distributes the products to other warehouses across Europe. This means that sellers do not have to worry about logistics and shipping to multiple countries.
The program is particularly beneficial for businesses looking to sell their products in multiple European markets, such as France, Italy, the United Kingdom, Spain, and Germany. Products sent to one Amazon warehouse are later distributed to other warehouses across Europe, enabling faster delivery to customers in different markets.
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.
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.
Sponsored Brand Ads are advertisements displayed alongside or above search results on Amazon. These ads are labeled “Sponsored by Brand” and allow sellers to showcase their brand logo, a compelling headline, and three featured products. They also provide the option to include a link to the brand’s store on Amazon. The primary goal of these ads is to increase brand awareness and encourage users to explore other products from the same brand.
Seller Central is an online platform that enables sellers to manage sales, logistics, pricing, and other processes related to running a store on Amazon. Through this platform, sellers can create and manage their listings, add products, set prices, and monitor inventory.
Seller Central also allows sellers to manage advertising campaigns (e.g., Sponsored Products) and run promotions to increase product visibility and sales. Additionally, the platform provides tools for analyzing sales performance, tracking customer ratings and reviews, and handling returns and customer service.
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 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 (Search Engine Optimization) is the process of optimizing product listings on Amazon to improve their ranking in search results. The goal of SEO optimization is to increase product visibility so that potential customers can find them more easily.
To ensure that your products appear higher in Amazon search results, it is crucial to optimize your listing content (e.g., title, descriptions, keywords, and bullet points) according to Amazon’s search algorithm. A well‐optimized listing increases search visibility, leading to more clicks and higher sales. The more visible your listings are in search results, the greater the chances of driving traffic and boosting sales performance.
Small & Light is a program offered by Amazon that allows sellers to offer small, lightweight, and fast‐moving products at reduced fulfillment fees (FBA). To qualify for the program, a product must meet specific size and weight criteria, which vary by country. For example, in Germany, products must not exceed dimensions of 16 cm x 9 cm x 4 cm, weigh up to 140 grams, and have a price of no more than €11 (including VAT). Products that meet these requirements benefit from lower fulfillment fees, making them more attractive to both sellers and customers. Amazon Prime customers can receive these shipments within 3–5 business days.
Sponsored Product Ads (SPA) are sponsored product advertisements that appear on search results pages or product pages on Amazon. These ads are labeled as “sponsored” and can be targeted based on specific keywords or product categories. The goal of Sponsored Product Ads is to promote individual products in response to user queries, increasing their visibility and chances of being sold. This type of advertising allows sellers to reach customers who are actively searching for similar products or are interested in a specific category.
Storefront is a dedicated section on Amazon that allows small and medium‐sized businesses to sell their products in a way that makes them stand out from other offers. It is a space where sellers can create a unique presentation of their brand and products.
The Storefront offers various promotional features, such as Curated Collections, Storefront of the Week, and Meet the Business Owner. Curated Collections are selections of products from different categories that showcase unique items available on the platform. Storefront of the Week is a weekly promotion highlighting selected stores. Meet the Business Owner is a section that allows customers to learn more about the history and mission of the businesses offering their products.
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 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.
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) is the process of collecting and analyzing customer feedback, expectations, and experiences related to products, services, or a company. VOC is a marketing and management tool that helps businesses better understand customer needs and preferences. Feedback gathered through various channels (such as surveys, reviews, and customer service interactions) enables companies to improve their products, tailor them to market expectations, and enhance service quality.