Amazon is the most popular online ecommerce marketplace in the world with millions of shoppers on the platform every day. Many people view this as a great opportunity with millions of sellers now on Amazon.
If you’re looking to get started on Amazon or are already selling products on the platform there are many terms that you should familiarize yourself with. Here we have a list of these terms broken down into different sections with their definitions.
Amazon SEO Terms & Definitions
SEO, otherwise known as search engine optimization, is the process of optimizing product pages, blog posts and other web pages to rank higher on google and other search engines.
Amazon SEO is a huge part of selling on Amazon and it is the difference between barely any monthly sales and skyrocketing your sales through the roof. So here are some terms relating to Amazon SEO that all sellers should know:
Keyword: Keywords are the specific words or phrases that shoppers search for on Amazon. Including these throughout your listing helps you rank higher in the search results.
Long-Tail Keywords: Shoppers search for many different keywords on Amazon. Long-Tail keywords are the more specific keywords. For example, “Grey gym t-shirt for men” is a long-tail keyword of “t-shirt”.
Short-Tail Keywords: These are brief search phrases typically consisting of one or two words. They often have high search volume but are also highly competitive.
Backend Search Terms: When creating a listing on Amazon, there are many fields to fill in, such as title, bullets, description, etc. Backend search terms allow you to fill in keywords that your product will rank for without displaying them on the listing page on Amazon.
Keyword Research: Keyword research is the process of finding keywords that people are searching for, determining which ones are relevant to your product and analyzing data to decide how to include them in your listing.
Keyword Density: This is the percentage of times a specific keyword or phrase appears within a piece of content compared to the total number of words on the page. It helps determine relevance to search engines.
Search Terms: Search terms are simply just the keywords that shoppers are searching for on Amazon.
Alt Text: Alt text is a brief description added to an A+ content image. It provides information about the image for visually impaired users using screen readers and appears in place of the image if it fails to load. Using alt text on Amazon can help your SEO.
Canonical URL: A canonical URL for Amazon is a structured link that includes the first five keywords from your product title, used to improve search engine visibility and indexing for better product ranking and traffic.
Organic Ranking: This refers to the position of a product or listing in search engine results pages (SERPs) based on relevance to the search query, without paying for placement.
Search Volume: This indicates how many times a particular keyword or phrase is searched for within a specific timeframe, helping to gauge potential interest or demand.
Keyword Ranking: This shows the position of a product or listing in search results for a specific keyword or phrase, indicating its visibility and competitiveness in Amazon's search algorithm.
Indexing: Indexing on Amazon is the process by which a product listing is recognized and included in search results for specific keywords, making it discoverable by customers.
Review: Customer feedback on Amazon that impacts product credibility, ranking, and sales by providing insights into product quality and performance.
Amazon Advertising Terms & Definitions
Advertising on Amazon is the best way to generate a higher volume of sales in a shorter time period. It is essential to always be running ads for your products but can especially help when you’re just starting out to gain initial visibility and start making sales. Here are terms that you should know relating to Amazon Advertising:
PPC: Pay-Per Click. You only pay when a shopper clicks on your ad. This is the main form of advertising on Amazon.
DSP: Demand-Side Platform: A system that allows advertisers to buy ad placements programmatically across various Amazon and third-party websites.
Negative Keywords: A specific word or phrase that you can set to specifically not show your ad for. Amazon will show your ad to related search queries and this allows you to exclude some irrelevant search terms to eliminate underperforming keywords.
Sponsored Products: Ads that promote individual product listings on Amazon, appearing in search results and on product pages to increase visibility and sales.
Sponsored Brands: Ads featuring a brand logo, a custom headline, and multiple products, appearing in search results to drive brand awareness and sales.
Sponsored Display: A type of Amazon ad that targets audiences both on and off Amazon with display ads, allowing you to reach customers wherever they spend their time, across the Amazon store and thousands of other apps and websites.
Video Ads: Ads that use video content to engage customers, typically displayed within Amazon search results, on product pages, and across the Amazon network.
Match Types (Broad, Phrase, Exact):
Broad Match: Ads are shown for searches containing the keywords in any order, including variations.
Phrase Match: Ads are shown for searches containing the exact phrase or close variations, in the exact order specified.
Exact Match: Ads are shown only for searches matching the exact keyword or close variations.
Ad Groups: Collections of ads within a campaign that share the same set of keywords and targeting criteria, used to organize and manage ad campaigns more efficiently.
Campaign: A campaign is a collection of ad groups managed together, organized by goals or products, to track and optimize ad performance on Amazon.
Ad Spend: The total amount of money spent on advertising within a specific period.
Bid: The maximum amount an advertiser is willing to pay for a click on their ad. You can set up your ad in a way that will automatically adjust your bid for when you’re more likely to win the conversion.
Bidding Types:
Dynamic Up & Down: Adjusts bids in real-time, increasing or decreasing based on the likelihood of a conversion.
Dynamic Down Only: Decreases bids when a conversion is less likely, but does not increase them.
Fixed Bids: Uses the exact bid amount set by the advertiser without automatic adjustments.
Budget: The total amount of money an advertiser is willing to spend on a campaign over a specified period.
Wasted Ad Spend: Money spent on ads that do not generate a return on investment, often due to poor targeting or irrelevant keywords.
Placement/Ad Placement: Ad placement refers to where an ad appears on Amazon, such as in search results or on product detail pages. Proper placement affects an ad’s visibility and click-through rate.
Keyword Targeting: Keyword targeting involves choosing specific keywords so that ads appear in search results when users search for those terms, reaching a targeted audience.
Automatic Targeting: Automatic targeting uses Amazon’s algorithms to match ads to relevant search terms and products, requiring minimal setup from advertisers.
Manual Targeting: Manual targeting allows advertisers to select specific keywords or products to control ad placements, providing a more customized approach.
Amazon Listing Terms & Definitions
The following list of terms are related to Amazon product listing pages:
A+ Content/Enhanced Brand Content: Enhanced product descriptions available to brand owners, including detailed images, comparison charts, and rich text, designed to improve customer experience and increase sales.
Brand Story: A dedicated section on Amazon product pages where brand owners can share their brand’s history, values, and mission, helping to build brand identity and trust with customers.
Lifestyle Images: Photos that show the product in use within a real-life context, highlighting the product’s benefits and features in a relatable setting, aiming to enhance visual appeal and customer connection.
Infographics: Infographics are visual tools that combine images, charts, and text to simplify and present complex information quickly and clearly.
Buy Box: The prominent box on a product page where customers can begin the purchasing process by adding items to their cart, typically featuring the offer from the seller with the best performance metrics.
Product Badges: Amazon Product Badges are icons on product listings that highlight special attributes like "Best Seller," "Amazon’s Choice," or "New Arrival," helping customers identify noteworthy products easily.
Amazon's Choice: A label given to products that are highly rated, well-priced, and available to ship immediately, aimed at helping customers quickly identify top-rated products.
Amazon Listing/Product Page: The web page dedicated to a specific product, containing detailed information, images, customer reviews, and purchasing options.
Amazon Category/Subcategory: The hierarchical structure used to organize products on Amazon, with broad categories divided into more specific subcategories to help customers easily find products.
Amazon Marketing Terms & Definitions
Marketing and selling your products on Amazon can significantly boost sales and increase brand awareness, but to do so effectively you need good marketing. Here are terms related to marketing on Amazon:
A/B Testing: A method of comparing two versions of a of your product listing to determine which one performs better, used to optimize content and improve conversion rates. You can A/B test main images, titles, descriptions and bullet points.
ICAP Marketing Funnel: A model representing the stages customers go through from awareness to purchase: Impressions, Clicks, Add-to-Carts, Purchases, guiding marketing strategies to move customers through the funnel.
Competitor Analysis: Evaluating competitors' strategies, products, pricing, and market position to gain insights for improving one's own business strategy and positioning on Amazon.
Market Research: Gathering and analyzing data on customer preferences, trends, and demographics within specific product categories on Amazon to inform business decisions.
A9 Algorithm: The original algorithm used by Amazon to rank products in search results, considering factors like relevance, sales performance, and customer satisfaction.
A10 Algorithm: The updated version of Amazon's search algorithm, which places greater emphasis on factors like product relevance, seller authority, and customer satisfaction metrics, aiming to improve the accuracy and usefulness of search results.
Subscribe and Save: A program that offers customers discounts and automatic deliveries on a recurring schedule for eligible products, enhancing convenience and encouraging repeat purchases.
Coupon: A promotional discount offered to customers on Amazon, displayed on product pages and at checkout to incentivize purchases.
Amazon Lightning Deals: Time-limited promotions offering significant discounts on specific products, featured on Amazon’s Deals page to drive quick sales and increase product visibility.
Deal of the Day: A promotional offer available for 24 hours on a specific product or set of products, highlighted on Amazon's homepage to attract significant customer attention and drive high sales volume.
Brand Registry: A program for brand owners to protect their trademarks, access enhanced content features, and gain greater control over their product listings on Amazon.
Amazon Store: An Amazon Store is a customizable online storefront in Amazon where sellers and brands can present their products in a branded environment, allowing for a tailored shopping experience and direct engagement with customers.
Amazon Vine: A program where trusted reviewers receive free products in exchange for honest and unbiased reviews, aimed at providing customers with high-quality feedback on new or pre-release items.
Early Reviewer Program: A now-discontinued program that encouraged customers who have purchased a product to leave reviews in exchange for small rewards, aimed at helping new products gain initial reviews.
Conversion: A conversion occurs when a user clicks on your listing and completes a purchase.
Amazon Posts: Amazon Posts let brands share content like images and captions directly on Amazon, appearing on product pages and feeds to engage customers and drive traffic to listings.
Amazon Inventory Terms & Definitions
Managing inventory is something all Amazon sellers have to deal with. Here are some terms you should know:
SKU: Stock Keeping Unit. A unique identifier used by retailers to track inventory internally, representing specific product variations such as size or color.
FNSKU: Fulfillment Network Stock Keeping Unit. A unique identifier assigned by Amazon to products stored in and fulfilled by Amazon's warehouses, used to track inventory within the Fulfillment by Amazon (FBA) network.
ASIN: Amazon Standard Identification Number. A unique identifier assigned by Amazon to each product listed on its platform, used to manage and locate products in the Amazon catalog.
UPC: Universal Product Code. A barcode symbol used globally to identify products, typically found on retail merchandise to track trade items in stores.
GTIN: Global Trade Item Number. An identifier for trade items developed by GS1, encompassing various standards including UPC, EAN, and others, used to uniquely identify products worldwide.
IPI Score: Inventory Performance Index. A metric used by Amazon to assess how well sellers manage their inventory, including aspects like inventory levels, sales, and excess inventory.
Amazon Bundles: Packages that combine multiple products sold together as a single unit on Amazon, often to enhance value for customers and increase sales.
AOV (Average Order Value): A metric that calculates the average amount spent by customers per order, used to assess sales performance and customer purchasing behavior.
FBA (Fulfillment by Amazon): A service where Amazon stores, picks, packs, and ships products on behalf of sellers, as well as handles customer service and returns.
FBM (Fulfillment by Merchant): A model where the seller is responsible for storing inventory, packing products, and shipping orders directly to customers, as well as handling customer service and returns.
FBA Fees: Charges incurred by sellers using Fulfillment by Amazon, including fees for storage, order fulfillment, and additional services like returns processing.
Removal Fees: Charges incurred when sellers request Amazon to return their inventory from Amazon fulfillment centers to them.
Disposal Fees: Charges incurred when sellers request Amazon to dispose of their unsellable or excess inventory stored in Amazon fulfillment centers.
FBA Reimbursements: Refunds issued by Amazon to sellers for lost or damaged inventory within Amazon's fulfillment network, as well as other eligible claims.
Referral Fees: A percentage of the total sales price that Amazon charges sellers for each item sold, varying by product category.
Storage Fees/Long-Term Storage Fees: Charges for storing inventory in Amazon fulfillment centers, with higher fees applied to items stored for over a specified period (typically more than 365 days).
Pan-European FBA: A program allowing sellers to store inventory in Amazon's European fulfillment centers, enabling faster delivery to customers across multiple European countries with simplified logistics and reduced shipping costs.
North America Remote Fulfillment: A program that enables sellers to store inventory in U.S. fulfillment centers while offering Prime-eligible shipping to customers in Canada and Mexico, expanding reach without needing local inventory.
Prep Center: A third-party service that helps sellers prepare their products according to Amazon’s requirements, including labeling, packaging, and quality checks before sending them to Amazon fulfillment centers.
Fulfillment Center: A warehouse operated by Amazon where products are stored, picked, packed, and shipped to customers as part of the FBA service.
Distribution Center: A facility used for receiving, storing, and redistributing products to fulfillment centers, playing a key role in the supply chain to ensure efficient delivery.
Inbound Shipments: Shipments of inventory sent by sellers to Amazon fulfillment centers, including the process of creating shipping plans, labeling products, and tracking the delivery to Amazon.
Excess Inventory: Excess inventory refers to surplus stock that exceeds anticipated demand, often requiring targeted sales strategies or discounts to clear it from warehouses and free up capital.
Inventory Aging: Inventory aging involves categorizing products based on the duration they've been in stock, helping businesses prioritize sales efforts and manage older stock through promotions or clearance events.
Amazon Metrics Terms & Definitions
This is a list of important metrics that should be tracked on Amazon with their definitions.
Impressions: The number of times an ad or organic listing is displayed to users, regardless of whether it is clicked.
Clicks: The number of times users click on an ad or listing after seeing it.
CTR (Click-Through Rate): The ratio of clicks to impressions, calculated as (Clicks ÷ Impressions) × 100, indicating the effectiveness of an ad or listing in generating interest.
ACoS (Advertising Cost of Sales): The ratio of ad spend to sales generated from ads, calculated as (Ad Spend ÷ Ad Revenue) × 100, measuring the efficiency of advertising campaigns.
TACoS (Total Advertising Cost of Sales): The ratio of ad spend to total sales (including organic sales), calculated as (Ad Spend ÷ Total Sales) × 100, providing insight into overall marketing effectiveness.
Conversion Rate: The percentage of clicks that result in a sale, calculated as (Number of Sales ÷ Number of Clicks) × 100, indicating how effectively clicks are converted into purchases.
Unit Session Percentage: The percentage of units ordered per session, calculated as (Units Ordered ÷ Sessions) × 100, reflecting the effectiveness of sessions in generating sales.
CPC (Cost Per Click): The average amount spent per click on an ad, calculated as (Total Ad Spend ÷ Number of Clicks).
ROAS (Return on Ad Spend): The revenue generated for every dollar spent on advertising, calculated as (Revenue ÷ Ad Spend), measuring the effectiveness of ad spend.
ROI (Return on Investment): The ratio of net profit to the total investment cost, calculated as [(Revenue - Investment) ÷ Investment] × 100, indicating the profitability of ad campaigns.
Buy Box Percentage: The percentage of page views where the seller's offer is featured in the Buy Box, indicating competitiveness in securing the preferred selling position on Amazon.
Order Defect Rate: The percentage of orders with defects, such as negative feedback, A-to-Z Guarantee claims, or chargebacks, calculated as (Defective Orders ÷ Total Orders) × 100.
Late Shipment Rate: The percentage of orders shipped later than the expected ship date, calculated as (Late Shipments ÷ Total Orders) × 100, used to assess shipping performance.
Pre-fulfillment Cancellation Rate: The percentage of orders canceled by the seller before fulfillment, calculated as (Canceled Orders ÷ Total Orders) × 100, indicating inventory management efficiency.
Days Sales Outstanding: The average number of days it takes to collect payment after a sale, calculated as (Average Accounts Receivable ÷ Revenue) × Number of Days.
STR (Sell-Through Rate): The rate at which inventory is sold over a given period, calculated as (Units Sold ÷ Units Available), used to evaluate inventory performance.
Amazon Sales Velocity: The rate at which products are sold on Amazon over a specific period, used to gauge sales performance and trends.
Amazon Market Share: The percentage of total sales in a specific category or market segment that a seller captures on Amazon, indicating the seller's competitive position.
Best Seller Rank (BSR): A ranking assigned to products based on their sales performance within their category and subcategory, updated hourly to reflect current sales trends.
Other General Amazon Terms
This is a list of other general terms that every seller should know:
Seller Central: The online dashboard used by third-party sellers to manage their Amazon sales, including listing products, managing inventory, tracking sales, and handling advertising and customer service.
Vendor Central: The platform used by first-party vendors who sell products directly to Amazon, where Amazon buys products at wholesale prices and resells them to customers.
Private Label: A business model where sellers create their own branded products, manufactured by third-party manufacturers, and sold exclusively under their own brand name on Amazon.
Amazon Prime: A membership program offering customers benefits like free two-day shipping, access to streaming services, and exclusive deals, aiming to enhance customer loyalty and increase sales.
Seasonal Sales: Seasonal sales are fluctuations in consumer buying habits driven by specific seasons or holidays, prompting businesses to adjust promotions and discounts to optimize sales and manage seasonal inventory efficiently.
Seller Feedback: Ratings and reviews left by customers regarding their experience with a seller, impacting the seller's reputation and account health on Amazon.
Multi-Channel Fulfillment (MCF): An Amazon service that allows sellers to use Amazon's fulfillment network to store and ship inventory for orders from other sales channels, such as their own website or other marketplaces.
Amazon Global Selling: A program enabling sellers to list and sell products on Amazon marketplaces in different countries, expanding their reach to international customers.
Amazon Account Health: A dashboard providing sellers with metrics and insights on their performance, policy compliance, and customer satisfaction, helping them maintain good standing on the platform.
Amazon Small and Light: A program designed for small, lightweight, low-cost items, offering reduced fulfillment fees and free shipping to Prime customers to enhance profitability and sales volume.
Amazon Handmade: A marketplace within Amazon for artisans to sell handcrafted products, providing a platform for unique, handmade items.
Amazon Transparency: An Amazon program providing product authentication and supply chain transparency through unique codes on product packaging, helping to combat counterfeiting.
Amazon Launchpad: A platform for startups and emerging brands to launch and promote new products on Amazon, offering marketing support, brand development resources, and access to Amazon's customer base.
Amazon Business: A B2B marketplace on Amazon offering business customers special pricing, bulk discounts, and business-specific products and features.
Amazon Listing Hijacking: When unauthorized sellers list counterfeit or unauthorized versions of a product on an established product listing, often leading to issues with quality and customer trust.
Amazon Brand Gating: A program that restricts the sale of certain branded products to authorized sellers only, helping to protect brand integrity and prevent counterfeit sales.
Amazon Renewed: A program for selling certified refurbished products that meet Amazon's quality standards, providing customers with high-quality, like-new products at reduced prices.
Profitability Calculator: A tool provided by Amazon for sellers to estimate potential profits for their products, considering various costs like fulfillment fees, shipping, and advertising.
A-Z Claims: A guarantee offered by Amazon to customers for resolving issues with third-party sellers, covering situations like non-receipt of items or items not as described.
Chargeback: A transaction reversal initiated by a customer's bank, typically due to disputed charges, fraud, or issues with the purchase, requiring the seller to refund the transaction amount.
VAT (Value Added Tax): A consumption tax levied on the value added to goods and services at each stage of production and distribution. It is typically paid by the end consumer but collected and remitted to the government by businesses throughout the supply chain.
Amazon GST: Goods and Services Tax (GST) compliance for sellers operating in countries like India and Australia, ensuring proper tax collection and remittance.
Amazon HS Code: Harmonized System (HS) codes used for classifying products in international trade, essential for customs documentation and determining import duties.
Being familiar with all these terms can help ensure that your journey as an Amazon seller can be kept smooth, erasing confusion by understanding important words and their definitions.
Save this article and come back to it whenever you come across a new term you don’t know the meaning of.
Something we missed? Let us know in the comments!
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