Decoding Amazon: A Comprehensive Glossary for Sellers and Vendors

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1P (First Party): describes the relationship where Amazon has a direct purchasing relationship with manufacturer brands and distributors. In a 1P arrangement, Amazon acts as the retailer, purchasing products wholesale from suppliers. This relationship is managed through Amazon Vendor Central.
3P (Third Party): describes the relationship where sellers trade goods directly on Amazon's marketplace without selling these items to Amazon first. In a 3P arrangement, sellers list their products on the platform, set their own prices, and handle fulfillment. This relationship is managed through Amazon Seller Central.
3PL (Third-Party Logistics): refers to the outsourcing of logistics and fulfillment services to a third-party provider. In the context of Amazon, sellers may use third-party logistics providers to handle aspects such as warehousing, picking, packing, and shipping of their products.‍
3PS (Third-Party Seller): another term used to describe sellers who operate on Amazon's marketplace under the 3P model. These sellers are independent merchants who list, sell, and fulfill orders directly to Amazon customers without selling the items to Amazon first. They manage their business through Amazon Seller Central.

A

A+ Content: A feature on Amazon that allows brand owners to enhance their product detail pages with rich content, such as high-quality images, detailed product descriptions, and comparison charts. It provides an opportunity to create a more engaging and informative shopping experience for customers.
A2Z (A-to-Z Guarantee): A customer protection program offered by Amazon, ensuring customers receive the exact item they purchased in the specified condition. If customers are unsatisfied with their purchase, the A-to-Z Guarantee allows them to file a claim for a refund.
A9 (Algorithms): A reference to the search technology behind Amazon's product search. A9 is the algorithm that powers Amazon's search engine, influencing the placement and ranking of products in search results.
AA (Amazon Advertising): Refers to Amazon's advertising platform, which allows sellers to create and manage ads to promote their products on the platform.
Acapulco (Amazon Pallet Ordering): An informal term referring to Amazon Pallet Ordering, a system that allows vendors to ship pallets of products directly to Amazon fulfillment centers.
ACoS (Advertising Cost of Sale): A metric in Amazon advertising that represents the ratio of ad spend to ad revenue. It is calculated by dividing total ad spend by total ad revenue.
ACU (Average Cost per Unit): The average weighted cost price for which Amazon has ordered a product within a specified time period. It provides insight into the average cost to Amazon for each unit of a product.
AGS (Amazon Global Store): A program that enables international customers to purchase products from Amazon's global marketplace and have them shipped internationally.
AITBB (Anything In The Buy Box): Refers to the products that are currently listed in the Buy Box on a product detail page. Winning the Buy Box is crucial for maximizing sales.
AMC (Amazon Marketing Cloud): Amazon's platform for data analytics and insights related to marketing performance on the platform.
AMS (Amazon Marketing Services): Amazon's advertising platform, which has been rebranded as Sponsored Ads. It allows sellers to create and manage various ad campaigns to promote their products.
AMG (Amazon Media Group): Formerly known as Amazon Ads, AMG encompasses Amazon's advertising services, providing a range of advertising solutions for brands.
AMZ, AMZN, or AZ (Amazon): Abbreviations commonly used to refer to Amazon.
AMZL (Amazon Logistics): Amazon's in-house logistics and delivery service, responsible for delivering packages to customers.
AMZNCC (Amazon Carton Content Code): An external Container ID used to label cartons sent to Amazon. It is generated via Vendor Central and assists in inventory management.
Andon Cord: A metaphorical term for a process where if customers report a product as dangerous or repeatedly delivered damaged, Amazon may temporarily remove the product's listing until the issue is resolved.
AP (Accounts Payable): refers to the money that a business owes to its suppliers or vendors for goods and services received on credit. In the context of Amazon, it involves the financial aspect of managing payments to suppliers for the products they provide to the platform.
API (Application Programming Interface): a set of rules and protocols that allows different software applications to communicate with each other. In the context of Amazon, APIs are commonly used to facilitate seamless data exchange and integration between Amazon's platform and the software systems of its suppliers. This is particularly important for inventory management, order processing, and data analysis.
ARA (Amazon Retail Analytics, also referred to as ARA basic): a data reporting section within Vendor Central. It provides brands with insights into their sales and inventory performance on Amazon. Brands can analyze data related to product sales, customer behavior, and inventory levels to make informed decisions about their Amazon strategy. ARA is a valuable tool for brands to track and optimize their performance on the platform.
ARAP (Amazon Retail Analytics Premium): a reporting section that offered more advanced analytics compared to the basic ARA. It provided vendors with detailed information about customer behavior and traffic on product pages, allowing a deeper understanding of how customers interacted with their products on Amazon. While it was once available, this reporting section is now deprecated.
ARN (Amazon Reference Number): a unique identifier used specifically for Collect (WePay) shipments. It helps track and manage shipments, ensuring the correct products are associated with the proper orders.
ASIN (Amazon Standard Identification Number): A unique 10-character alphanumeric identifier for a product on Amazon (for example, B07ZB5C3ZM). It is linked to a unique SKU/EAN/ISBN code and is used as a reference to manage catalog attributes, prices, and product inventory.
ASN (Advanced Shipment Notification): • a document that notifies Amazon about the impending arrival of a shipment. It includes details about the shipment's time, characteristics, and contents. Providing an ASN helps streamline the receiving process at Amazon fulfillment centers, ensuring efficient processing of incoming inventory.
ASP (Average Selling Price): calculated by dividing the net sales revenue by the volume of products sold. It represents the average price at which a particular product is sold. Monitoring ASP is essential for understanding pricing dynamics and overall revenue generation.
ATC (Add to Cart): refers to the action taken by a customer when they select a product for purchase and add it to their shopping cart on the Amazon platform.
AVN (Annual Vendor Negotiation): Describes the yearly alignment of terms between Amazon and its 1P suppliers.
AVS (Amazon Vendor Service, formerly known as Strategic Vendor Service, SVS): a paid program that provides vendors with direct access to a dedicated contact at Amazon. This contact assists vendors with operational matters, such as order processing and catalog management, ensuring a more personalized and streamlined experience for vendors.
AWS (Amazon Web Services): Amazon's comprehensive cloud computing platform.

B

B2B (Business to Business): commerce between businesses on Amazon's platform.
B2C (Business to Consumer): commerce between a business and individual consumers on Amazon.
Brand Analytics: a dashboard provided by Amazon for brand owners registered with Amazon’s Brand Registry. It allows brand owners to analyze and understand the wider performance of their brand (not just their account) on the Amazon marketplace. The dashboard provides valuable insights into customer behavior, popular search terms, and competitor data.
BB (Buy Box): refers to the Amazon product detail page area where customers can choose to add products to their shopping cart. Winning the Buy Box is highly competitive and significantly impacts a seller's visibility and sales.
BD (Best Deal): refers to a type of price discount on Amazon that runs for several days or weeks. Sellers can use Best Deals to attract customers with special offers and promotions.
Brand Analytics: dashboard for brand owners registered with Amazon’s Brand Registry to understand the wider performance of their brand (not account) on the Amazon marketplace.
Brand Owner : the entity or individual who owns the rights to a particular brand.
Brand Registry: a program allowing brand owners to protect their trademarks and enhance brand control on Amazon.
Brand Store: is part of Amazon Advertising, where brands can create a free store to showcase their products. It allows customization with images, logos, and content, providing customers a branded and immersive shopping experience.
Browse Node: a numerical code used to identify an Amazon product category. It helps organize and classify products within specific categories on the Amazon platform.
BSR (Best Sellers Rank): a ranking system on Amazon that indicates a product's sales performance within specific categories. A lower BSR generally reflects higher sales volume and popularity.
Bundle: refers to multiple single items that are identified with different EAN/ASIN codes but are sold together as a single offering. Bundling allows sellers to create value for customers by offering complementary products as a package deal.
BWP (Buy with Prime): a service that allows brands to sell through their online shop using Amazon’s order processing for end customers.

C

CAGR (Compound Annual Growth Rate): a measure of an investment's mean annual growth rate over a specified period, usually longer than one year. It provides a smoothed rate of return, assuming that the investment grows steadily each year.
CARP (Carrier Appointment Request Portal): a portal that allows carriers to request appointments to deliver goods to Amazon fulfillment centers. It helps manage and coordinate the flow of shipments to ensure efficient processing.
Category Page: a landing page for product groups within the Amazon store. Examples include Home & Furniture, Grocery, Beauty, etc. It serves as a centralized location where customers can explore various products within a specific category.
Chargeback: a penalty charged to sellers for non-compliance with standardized processes or late/inaccurate product deliveries. It is a financial consequence for not meeting Amazon's performance expectations.
Child ASIN: refers to a product listed under a parent ASIN. For example, a specific cream could be the parent ASIN, and the various sizes (30cl, 50cl, 70cl) would be the Child ASINs. Child ASINs represent variations under a single-parent product.
Chime: Amazon’s instant messenger designed for employees and brands. It facilitates communication, meetings, and business calls within and outside the organization. Chime is a collaboration tool that supports internal communication and coordination.
Climate Pledge Friendly: Amazon’s program to visibly mark eco-friendly and sustainable products on its marketplace. It helps customers identify and choose products that meet specific sustainability criteria.
CM (Contribution Margin): a financial metric representing the revenue percentage that exceeds the variable costs associated with producing goods or services. The formula is (Average Selling Price – Average Cost per Unit + Contra-COGS – Variable Costs) ÷ Average Selling Price.
Co-op or Coop (cooperative marketing): refers to a marketing strategy where brands and retailers collaborate on advertising and promotional efforts. It can also be referred to as Automated Marketing on Amazon, where the platform facilitates automated marketing activities.
COGS (Costs of Goods Sold): represents the direct costs associated with producing the goods a company sells during a selected period. It includes costs such as raw materials, labor, and manufacturing overhead. Calculating COGS is crucial for determining a product's profitability.
Contra COGS: refers to the money vendors spend with Amazon to offset COGS (Costs of Goods Sold). It is calculated based on the cost price (list price) at which a product is sold to Amazon. This is a way for vendors to recover some of the costs associated with selling products on the platform.
Concessions: refer to the dollar amount that Amazon has refunded to customers. This could include refunds for returns, defective products, or other issues. Concessions impact a seller's financial metrics and are an essential aspect of customer satisfaction.
Coupon (also: Vendor Powered Coupon, or VPC): a type of discount that vendors and sellers can offer to customers. Customers can redeem these coupons on the product detail page, providing an incentive for purchasing. VPCs are a promotional tool to attract and engage customers.
CP (Contribution Profit): the dollar value of the Contribution Margin. It represents the total contribution to covering fixed costs and generating profit. The formula for Contribution Profit is (Average Selling Price – Average Cost per Unit + Contra-COGS – Variable Costs) ÷ Average Selling Price.
CPC (Cost per Click): measures the dollar amount that Amazon Advertising charges vendors and sellers when customers click on their ads. It is a key metric in assessing the cost-effectiveness of advertising campaigns. A lower CPC is generally more favorable for advertisers.
CPQ (Case Pack Quantity): the quantity of products packaged together in a case. It is relevant for inventory and shipping management, providing information on how products are bundled or grouped for shipment.
CR (Confirmation Rate): a metric that measures the percentage of confirmed orders out of the total number of orders placed. It is particularly relevant in assessing the accuracy and reliability of order processing. A higher confirmation rate indicates efficient order fulfillment.
CRAP (Cannot Realise Any Profit): products that got delisted because they are unprofitable to Amazon.
CSA (Cost Support Agreement): may involve an agreement between Amazon and a seller or vendor to support certain costs related to products or services. It could include financial assistance or cooperation in managing specific expenses.
CTR (Click-through Rate): calculated as the number of clicks on an ad divided by the number of impressions. It measures the effectiveness of an advertisement in generating clicks from viewers. A higher CTR often indicates more engaging and relevant ads.
CS (Customer Service): on Amazon, involves customer support and assistance regarding their orders, inquiries, and issues.
CX (Customer Experience): encompasses the overall interaction and satisfaction a customer has with a brand or platform. It includes every touchpoint, from browsing products to post-purchase support, and significantly influences brand loyalty. Providing a positive CX is crucial for retaining customers and fostering brand advocacy.

D

DA (Damage Allowance): an agreed-upon amount or percentage that accounts for potential damage to products during the shipping and handling process. It allows vendors to receive compensation for damaged goods without the need for extensive claims processes.
Deal OPS: refers to the revenue generated by deals and promotions run with Amazon. It encompasses the financial results of various promotional activities and special offers conducted in collaboration with the platform.
DF (Direct Fulfillment): a model where Amazon vendors fulfill customer orders directly without storing products in Amazon fulfillment centers. Vendors manage their own inventory and shipping processes.
DI (Direct Import): a model where vendors are responsible for transporting goods from the manufacturer to Amazon's fulfillment center. Vendors manage the logistics and costs until the goods are received at Amazon's designated location.
DOTD (Deal of the Day): a type of promotion for vendors to discount a product for up to 24 hours during key deal events (e.g., Prime Day, Black Friday, Cyber Monday, etc.). It is an opportunity for vendors to attract customers with limited-time offers. Nowadays, it is also known as "Top Deal."
DP (Detail Page): the product page for an ASIN on Amazon. It provides comprehensive information about a product, including images, descriptions, specifications, reviews, and pricing. The Detail Page is crucial for showcasing and selling products effectively.
DSP (Demand Side Platform): a platform that enables brands to buy display and video ads programmatically. Advertisers can target specific audiences and optimize ad placements across various digital channels.
DPV (Detail Page Views): represents the number of impressions of a detail page in a selected period. It indicates how often a product's detail page is viewed by customers, providing insights into its visibility and popularity.
DSP (Demand Side Platform): Amazon’s display advertising programme.

E

EAN (International Article Number): a standard describing a barcode symbology and numbering system used in global trade to identify a specific retail product type in a particular packaging configuration from a specific manufacturer.
EBC (Enhanced Brand Content): the seller equivalent of A+ Content that is available to Amazon vendors. It allows brands to create visually rich and engaging content on their product detail pages, enhancing the overall customer experience.
ECDD (Estimated Cargo Delivery Date): represents the anticipated date for the delivery of cargo shipments. This information is crucial for planning and logistics.
EDD (Estimated Delivery Date): represents the estimated date when a customer can expect to receive their order. It is calculated based on factors like shipping time and order processing.
EDI (Electronic Data Interchange): a method to send digital information between companies. It is mainly used to receive and process purchase orders, streamlining communication and transactions between trading partners.
EOD (End of Day): enables brands to sell across European marketplaces while only delivering to Amazon in their home country. It streamlines fulfillment processes for cross-border sales within Europe.
EFN (European Fulfilment Network): Enables brands to sell across European marketplaces while only delivering to Amazon in their home country.
Exclusivity: the state of being the sole seller or distributor of a particular brand on Amazon.

F

FBA (Fulfilment by Amazon): a program for third-party (3P) sellers who let Amazon handle and ship their products to end customers. Sellers send their inventory to Amazon's fulfillment centers, and Amazon takes care of order fulfillment, shipping, and customer service.FBM (Fulfilled by Merchant):
FBM (Fulfiled by Merchant): a program for third-party (3P) sellers who ship products directly to the end customer without using Amazon's fulfillment services. Sellers manage their own inventory and shipping processes.
FC (Fulfilment Center): describes Amazon’s warehouses where products are stored, processed, and shipped to customers. Amazon's vast network of fulfillment centers ensures efficient order fulfillment.
FFP (Frustration-Free Packaging): an Amazon program aimed at eliminating excessive and difficult-to-open packaging. It focuses on providing customers with easy-to-open, recyclable packaging to enhance the overall shopping experience.
FLOW (Forward-Looking Order Workflow): involves Amazon purchase orders with a shipping window for a future week, mainly for best-selling products.
FNSKU (Fulfillment Network Stock Keeping Unit): a unique identifier assigned by Amazon to products enrolled in the Fulfillment by Amazon (FBA) program. It distinguishes individual units of a product within Amazon's fulfillment network. FNSKU labels are used to track and manage inventory, ensuring accurate and efficient order fulfillment.
FOB (Free on Board): in the Direct Import model with Amazon, vendors are responsible for all costs associated with transporting goods until the products are on board the vessel at the designated port. Once the goods are on board, the responsibility for transportation shifts from the vendor to the buyer (Amazon in this case). The term specifies the point at which ownership and risk transfer from the seller to the buyer in the shipping process.

G

Gated Product: items restricted or blocked for sale by third-party (3P) sellers on the Amazon marketplace. These restrictions are often imposed due to specific requirements, such as brand authorization, safety concerns, or intellectual property considerations.
GDSN (Global Data Synchronization Network): a tool that facilitates the synchronization of product catalog data globally. It allows for seamless updates and sharing of product information between trading partners, including Amazon. GDSN helps maintain accurate and consistent product details across various platforms.
GL (General Ledger): refers to the profit and loss (P&L) statement of the main product category, such as Home, Consumer Electronics, Beauty, etc. It provides a comprehensive overview of the financial performance of a specific product category on Amazon.
Glance Views: equivalent to the number of impressions of a product detail page. It represents the total instances in which customers have viewed the details of a product, indicating its visibility and potential for engagement.
Goldbox: Refers to Amazon’s deals & promotions page. It showcases special deals, discounts, and time-limited promotions. Customers can find a variety of products on sale, often with significant discounts.
GTIN (Global Trade Item Number): a 14-digit code that uniquely identifies products, items, and services. It includes variations like UPC, EAN, and ISBN. GTIN is essential for accurate product identification and is often used in barcodes.

H

Hazmat (Hazardous materials): refers to highly flammable, toxic, or pressurized items. These materials require special handling and shipping precautions to ensure the safety of employees and customers.

I

IDQ (Item Data Quality): a measure used to spot product listings with missing titles, bullet points, or other content features that need improvement. Maintaining high item data quality is crucial for a positive customer experience.
Incoterms (International Commercial Terms): a standardized set of international trade terms that define the responsibilities of sellers and buyers in the shipping process. They specify who is responsible for various costs and risks associated with the transportation of goods.
Impressions: describe the number of views of a product page. It represents how often a product's details are displayed to customers, indicating its visibility on the Amazon platform.
Infringement Report: a complaint filed with Amazon regarding suspected intellectual property infringement.
Infringement Takedown: the removal of listings that violate intellectual property rights.
IP (Intellectual Property): on Amazon, it refers to trademarks, patents, copyrights, and other forms of intellectual property protection. Sellers and brands need to protect their IP to prevent unauthorized use or infringement.
IP Accelerator: a program by Amazon that helps sellers obtain intellectual property rights more quickly.
IP Rights Owner: an entity with legal ownership of intellectual property rights.
IOR (Importer of Record): the entity or individual responsible for ensuring that imported goods comply with the destination country's laws and regulations. On Amazon, understanding IOR is crucial for international sellers.
IPCP (Inbound Preferred Carrier Programme): a program that allows Amazon sellers and vendors to use preferred carriers for inbound shipments. It streamlines the shipping process and may offer cost benefits.
ISA (Inbound Shipment Appointment): refers to the scheduling of appointments for the delivery of inbound shipments to Amazon fulfillment centers. It helps manage the flow of goods and ensures efficient processing.
ISBN (International Standard Book Number): a 13-digit number assigned to identify products in a catalog, particularly books. It is similar to EAN/SKU and serves as a unique identifier for books, facilitating inventory management and sales tracking.
IXD (Inbound Crossdock): represents an Amazon warehouse that accepts freight from vendors and sellers and ships products to various fulfillment centers. IXDs play a role in the distribution network but do not directly ship customer orders.

J

JBP (Joint Business Plan): describes the commercial alignment between Amazon and first-party (1P) vendors. It involves reviewing performance metrics and creating a plan for growing their business together over a set period. Joint Business Plans are collaborative strategies to achieve mutual success.

K

KPI (Key Performance Indicator): a measurable value that shows how effectively a business is achieving its objectives. On Amazon, KPIs could include metrics related to sales, advertising performance, customer satisfaction, and more.
KVI (Key Value Item): refers to specific products that are important in a retailer's assortment. These items are often best-sellers or strategic products contributing significantly to overall sales and profitability.

L

LBB (Lost Buy Box): occurs when a seller or vendor is not currently winning the Buy Box for a particular product listing. Losing the Buy Box can impact sales, as the majority of customer purchases go through the Buy Box winner.
LD (Lightning Deal): a type of discount on Amazon that is limited to a short duration, typically 4-6 hours. Sellers can offer these time-sensitive promotions to increase visibility and drive sales within a specific timeframe.
LFO (Lost Featured Offer): a metric in Amazon analytics dashboards that indicates when a seller loses the opportunity to be a featured offer on a product listing. It may replace the Lost Buy Box metric in the future.
Listing Optimisation: the process of enhancing the content of a product listing to improve its organic ranking in Amazon search results. This involves optimizing product titles, bullet points, descriptions, images, and other elements to attract customers.
Listing Hijacking: unauthorized individuals taking control of an existing product listing.
LPR (Licence Plate Receive): a receive process where items are received by scanning a barcode (SSCC / AMZNCC) on the outside of the package. This eliminates the need to scan each item and streamlines the receiving process.
LSPL (Large Scale Product Launch): a vendor-specific program where Amazon increases inventory coverage for new items. This program may have no return policy, but vendors are required to make advertising investments.
LTL (Less than Truck Load): a shipping term that refers to a shipment that does not require a full truck. It involves combining multiple smaller shipments from different vendors to optimize freight costs.

M

Marketplace: refers to the locale or domain in which Amazon is active. Examples include Amazon.co.uk, Amazon.de, etc. Each marketplace has its own set of customers, sellers, and product offerings.
MAP (Minimum Advertised Price): a pricing strategy brands use to ensure that a product is not advertised or sold below a specified minimum price. This strategy helps maintain brand value and profitability.
MCF (Multi-Channel Fulfillment): a service allowing brands to use Amazon warehouses to store and ship products sold outside the Amazon platform. It extends Amazon's fulfillment capabilities to orders from other sales channels.
MCP (Matching Compensation): refers to Amazon’s request for sellers to support low-margin products with additional investments to keep them listed in the catalog. This may include financial support or advertising investments.
MDF (Marketing Discretionary Funding, or Market Development Funding): a trade term offered by Vendor Managers during annual negotiations. It represents funding allocated by Amazon to assist vendors in marketing and promoting their products on the platform.
MF (Merchant Fulfilled): refers to sellers who handle the fulfillment process themselves. In this model, sellers are responsible for storing, packing, and shipping products directly to end customers.
MoM (Month over Month): is a comparison metric that evaluates changes in performance or metrics from one month to the next. It is commonly used to assess growth or decline over a specific period.
MOQ (Minimum Order Quantity): describes the minimum amount that Amazon needs to order from a vendor. It is an important consideration in negotiations between vendors and Amazon.
MTD (Month to Date): a reporting metric that covers the period from the beginning of the current month to the present date. It provides a snapshot of performance or metrics within the current month.
MSRP (Manufacturer’s Suggested Retail Price): represents the price that a manufacturer recommends for the retail sale of a product. It serves as a reference point for pricing strategies.
MWS (Marketplace Web Services): an API (Application Programming Interface) that allows developers to integrate their applications with the Amazon platform. It enables automated data exchange and management of seller accounts and product listings.

N

NARF (North American Remote Fulfilment): refers to North American Remote Fulfillment, a program that allows sellers to store inventory in remote fulfillment centers in North America. This program enables quicker order processing and delivery for remote locations.
NAFN (North American Fulfillment Network): stands for North American Fulfillment Network. It represents Amazon's fulfillment infrastructure in North America, including warehouses and distribution centers. Sellers leverage the NAFN for storing and shipping products to customers.
NASP (North American Selection Policy): outlines the criteria and guidelines for product selection on the Amazon North American marketplace. It helps determine which products are eligible for listing and sale.
NDA (Non-Disclosure Agreement): a legal contract that establishes confidentiality between parties. In the context of Amazon, it may be used when sharing sensitive information during negotiations or partnerships
Net PPM (Net Pay Per Mille): is the ratio between the average selling price and cost price, considering any accruals and Contra-COGS (Contribution to Cost of Goods Sold) a vendor has with Amazon. The formula is (Average Selling Price – Average Cost per Unit + Contra-COGS) ÷ Average Selling Price.
Net Receipts: express the volume received by Amazon multiplied by the vendor’s cost price. It reflects the revenue generated for the vendor after deducting costs associated with selling on the Amazon platform.
NIS (New Item Setup): describes the process of listing a new product on Amazon. It involves providing all necessary information, such as product details, images, and pricing, to create a new listing.
NP (New product): refers to a product that is newly listed on Amazon. It could be a completely new offering or a new variation of an existing product.
NR (Non-Replenishable): describes an item that cannot be restocked. It may be a limited edition or a product with a one-time availability.
NTB (New-to-brand): reflects whether an ad-attributed purchase was made by an existing customer or a new customer. It helps evaluate the effectiveness of advertising campaigns in acquiring new customers.

O

OB (Obsolete): refers to products that are no longer viable or relevant in the marketplace. These items may be discontinued or outdated.
OIH (Order Inventory Health): a metric that assesses the health of inventory in terms of orders. It provides insights into the performance of inventory in fulfilling customer orders.
Ordered Revenue: refers to the orders placed by end customers that have not yet shipped by Amazon. It's based on the average selling price at the time of the order and is calculated as ASP * Volume Ordered.
Ordered Volume: equals Ordered Revenue divided by ASP. It represents the volume of products ordered by customers that have yet to be shipped.
OMOQ (Offer Minimum Order Quantity): the minimum quantity a seller or vendor requires customers to purchase when ordering a particular product or offer.
OOS (Out of Stock): occurs when a product is no longer available for purchase because the inventory has been depleted. Sellers need to manage inventory levels to avoid OOS situations.
OPS (Ordered Product Sales): equivalent to Ordered Revenue. It represents the sales generated from products for which orders have been placed but not yet shipped.
OTC (Over the Counter): refers to products that can be purchased directly by consumers without a prescription. In the context of Amazon, it may include various consumer goods.
O2C (Order to Cash): describes the end-to-end process of handling the sale to Amazon. This process includes shipping goods to Amazon, creating invoices, receiving payments, and reporting on the entire order-to-cash process.

P

P&L (Profit and Loss): a financial statement that summarizes the revenues, costs, and expenses incurred during a specific period, usually a fiscal quarter or year. It provides insights into the profitability of a business.
Parent ASIN: the primary identifier for a group of related product variations on Amazon. For example, a specific cream could be the parent ASIN, and the various sizes (30cl, 50cl, 70cl) would be the Child ASINs.
PBS (Predictive Buying System): a tool or system that utilizes data and algorithms to predict and optimize purchasing decisions. In Amazon's context, it may refer to a system that forecasts customer demand and suggests inventory levels.
PCOGS (Product Costs of Goods Sold): expresses the quantity sold multiplied by the cost price of a vendor. It measures the cost of producing or acquiring the goods sold on Amazon.
PDP (Product Detail Page): the webpage that a shopper views when browsing a specific item on Amazon. It contains detailed information about the product, including images, descriptions, and customer reviews.
PFR (Provisions for Receivables): describes an accounting tactic where Amazon prioritizes its cash flow. In this approach, Amazon may delay payments to vendors until outstanding amounts from trade terms, chargebacks, and financial disputes are reconciled.
PIB (Perfect Inbound): describes the number of shipments that Amazon fulfillment centers can process quickly without delays or issues. It reflects the efficiency of the inbound logistics process.
PIBDR (Perfect Inbound Defect Rate): measures the number of inbound defects as a percentage of all received units at Amazon fulfillment centers. It assesses the quality of products arriving at Amazon warehouses.
PICS (Pan European Inbound Consolidation Service): a logistics program that helps vendors reduce the number of fulfillment centers they need to supply. It involves consolidating shipments for efficient distribution across European markets.
PLT (Procurement Lead Time): represents the time it takes for a vendor to procure or acquire goods after placing an order. It is an essential metric in supply chain management.
PO (Purchase Order): a document issued by a buyer to a seller indicating the types, quantities, and agreed prices for products or services. In the context of Amazon, it outlines the specifics of the products a vendor must deliver.
POC (Point of Contact): refers to an individual or department designated as the primary contact for communication or coordination. In business relationships, it's the person responsible for liaising between parties.
POD (Proof of Delivery): a document or system that confirms the successful delivery of goods to the recipient. It serves as evidence that the items were received as expected.
PPA (Price Protection Agreement): protects Amazon against a reduction in the value of units currently on hand and in transit. It may involve agreements to adjust pricing based on market conditions.
PPC (Pay Per Click): a type of Amazon Advertising where a brand pays a fee each time a user clicks on their ad. It is a performance-based advertising model.
PPM (Pure Profit Margin): the ratio between the average selling and cost prices. It represents the amount of money Amazon makes from selling a product before considering costs. Calculated as (Average Selling Price – Average Cost per Unit) ÷ Average Selling Price.
PPOOS (Procurable Product Out of Stock): describes the out-of-stock (OOS) rate on all procurable products. It assesses the availability of products that can be sourced.
PPV (Product Price Variation): occurs when the cost price of a vendor invoice does not match the cost price of the Amazon purchase order. It highlights discrepancies in pricing.
PQV (Product Quantity Variation): occurs when the product quantity of a vendor invoice does not match the number of received items at the Amazon warehouse. It identifies discrepancies in product quantities.
PR (Planned Replenishment): refers to a systematic approach to restocking inventory based on forecasts and demand patterns. It helps maintain optimal inventory levels.
Prime: Amazon’s subscription service that offers benefits such as free and expedited shipping, access to Prime Video, Prime Music, and other exclusive perks. It is designed to enhance the overall customer experience.
PRO (Progressive Number): a tracking number issued by a carrier for its freight. It serves as a unique identifier for tracking and managing shipments.
PL (Private Label): describes products sold by Amazon under their brand name but made by other manufacturers. These products are exclusive to Amazon and carry the Amazon brand.

Q

QA (Quality Assurance): a systematic process that ensures products or services meet specified quality standards. In the context of Amazon, QA may involve measures to guarantee the quality and reliability of products sold on the platform.
QBR (Quarterly Business Review): a structured assessment and review of business performance conducted quarterly. It typically involves analyzing key metrics, setting goals, and discussing strategies for improvement.
QUID (Quantitative Ingredient Declaration): a requirement for providing detailed information about the quantity of ingredients in a product. It is important for transparency and compliance with regulations.

R

ROO (Removal of Offer): refers to the removal of a product's listing from the Buy Box on Amazon. Despite the removal, active Subscribe and Save customers may continue to receive orders for the product.
ROAS (Return on Ad Spend): a metric that measures how much revenue a brand generates in return for its advertising budget. It is calculated as ROAS = (Total Ad Revenue / Total Ad Spend) * 100. It helps assess the effectiveness of advertising campaigns.
ROI (Return on Investment): a performance metric that evaluates the profitability of an investment. It is calculated as ROI = (Net Profit / Cost of Investment) * 100. A positive ROI indicates a profitable investment.
RRA (Rapid Retail Analytics): may refer to a system or tool that provides quick and efficient analysis of retail-related data. It could include insights into sales, inventory, and customer behavior.
RRP (Recommended Retail Price): the suggested selling price for a product as the manufacturer or brand recommends. It is a guideline for retailers and sellers, but the selling price may vary.
Right Owners: an entity or individual with legal ownership of intellectual property rights.

S

SAS (Strategic Account Services): a program that provides sellers with access to a dedicated Amazon account manager. The purpose is to assist sellers in increasing sales and optimizing their overall business strategy on the platform.
SC (Seller Central): the administrative interface used by sellers to market and sell products directly to Amazon customers. It is a platform that allows sellers to manage their product listings, orders, and other aspects of their business.
SCAC (Standard Carrier Alpha Code): a standardized code issued by the National Motor Freight Traffic Association (NMFTA) to uniquely identify transportation companies. It is often used in shipping and logistics.
SD (Sales Discount): refers to amounts related to promotional activities that Amazon conducts at the customer checkout. It represents discounts applied to the total purchase amount.
SDA (Selective Distribution Agreement): an agreement used by suppliers to control the resale of their products. It involves selling products only to distributors meeting specific criteria.
SDN (Selective Distribution Network): describes the network of distributors that are part of a Selective Distribution Agreement (SDA).
SEO (Search Engine Optimization): the practice of optimizing online content to improve its visibility in search engine results. In the context of Amazon, SEO strategies aim to enhance product visibility within the platform.
SFP (Seller Fulfilled Prime): refers to sellers who fulfill and ship their products from their own warehouses while meeting Amazon's strict Service Level Agreement (SLA) to provide Prime shipping benefits.
Shipped COGS (Costs of Goods Sold): represents the cost of goods sold by a vendor at the time of shipment to end customers. It is calculated as Vendor Cost Price multiplied by the volume shipped.
Shipped Revenue: represents the revenue generated by Amazon when shipping a vendor's products to end customers. It is calculated based on the average selling price multiplied by the sold volume.
Shipped Volume: Shipped Revenue divided by Average Selling Price (ASP). It represents the quantity of items shipped to end customers.
SIA (Sell-in Agreement): involves margin funding provided by Amazon as a percentage or a specified amount per shipped item to Amazon warehouses.
SIOC (Ships in Own Container): describes products that do not require additional packaging and can be shipped without an Amazon overbox.
SKU (Stock Keeping Unit): a unique code assigned to identify a specific product. It is used for inventory tracking and management.
SLA (Service Level Agreement): a contractual agreement that defines the level of service expected between Amazon and sellers. It includes performance metrics and expectations.
SnS (Subscribe and Save): Amazon's loyalty program that encourages customers to make repeat purchases of replenishable products in exchange for a discount.
SnL (Small and Light): a fulfillment program that offers low shipping costs for qualified products that can fit into an envelope.
SOA (Sell-out Agreement): involves margin funding provided by Amazon as a percentage or a specified amount per sold item to end customers.
So-ROOS (Sourceable Replenishment Out of Stock): measures instances when products are shown as unavailable for purchase on the product detail page, even though they can be sourced from a 1P vendor. Factors affecting So-ROOS include temporary sales suppression and inventory issues.
SP-API (Selling Partner API): a suite of REST-based APIs that provides Amazon selling partners programmatic access to their Amazon Seller or Vendor Central account data.
SPN (Service Provider Network): may refer to a network of service providers offering various services related to Amazon selling, such as consulting, logistics, and marketing.
SR (Sales Rank): the ranking of a product within its product category. It reflects the popularity and sales performance of the item relative to others in the same category.
SRP (Suggested Retail Price): the recommended selling price set by the manufacturer or brand for a product. It serves as a suggested guideline for retail pricing.
SSCC (Serial Shipping Container Code): a unique identification code used to label cartons or shipping containers. It serves as an external container ID and can be passed via Electronic Data Interchange (EDI) to facilitate the tracking and management of shipments.
STR (Sell-Through Rate): a metric that measures the effectiveness of inventory management. It is calculated as the number of units shipped compared to the number of units at Amazon at the start of the period, plus any units received during the same time period. The formula for Sell Through Rate is (Shipped units – customer returns) / (On hand units + received units).
Storefront: a Storefront on Amazon refers to a curated brand store within the platform. It is typically a dedicated space where a brand can showcase its products, tell its brand story, and create a customized shopping experience. Storefronts are often paid for by vendors, and they provide an additional way for brands to connect with customers.
SW (Ship Window): the designated date range within which a Purchase Order (PO) needs to be delivered to an Amazon warehouse to avoid chargebacks. Adhering to the Ship Window is crucial for maintaining compliance with Amazon's logistics and fulfillment requirements. It ensures that products are delivered within the specified timeframe to meet customer expectations and minimize disruptions in the supply chain. Chargebacks may be imposed for non-compliance with the Ship Window, highlighting the importance of timely and accurate shipments.

T

Third-Party Seller: refers to individuals or businesses that sell their products directly on Amazon's marketplace without first selling these items to Amazon. These sellers manage their own inventory, pricing, and order fulfillment. Third-party sellers are distinct from first-party vendors (1P), who sell directly to Amazon.
TL (Truck Load): refers to a shipping arrangement where a shipment is large enough to fill an entire truck. It is a transportation term indicating that the quantity of goods being shipped is sufficient to occupy the full capacity of a truck.
TOS (Terms of Service): refers to the rules and guidelines that users must adhere to when using a particular service, platform, or website. On Amazon, the Terms of Service outline the terms and conditions governing the relationship between Amazon and its users, including sellers, buyers, and other participants in the Amazon ecosystem.
Trademark: a legally registered symbol, name, or logo representing a company or product.
Trademark Registration Number: the unique identifier assigned to a registered trademark.

U

UFT (Ultra Fast Track): a metric that represents the percentage of time that an ASIN (Amazon Standard Identification Number) can be shipped to the customer from a fulfillment center, compared to the selection Amazon intended to carry. It reflects the speed at which products can be delivered to customers.
UNSPSC (United Nations Standard Product and Services Code): Amazon uses this code to categorize and classify products. It provides a standardized way to identify and organize products based on a hierarchical coding system.
UPC (Universal Product Code): a 12-digit numeric code that is uniquely assigned to a product item for tracking purposes, particularly in retail environments. It is commonly used for inventory and sales tracking.
UX (User Experience): refers to the overall experience and satisfaction that a user has when interacting with a product, service, or system. In the context of Amazon, it encompasses the design, functionality, and ease of use of the platform from the perspective of both buyers and sellers

V

Variation: refers to products that are available in different variations such as colors, sizes, or forms, but are grouped together on a single detail page. Customers can select the specific variation they want to purchase.
VAT (Value Added Tax): a consumption tax assessed on the value added to goods and services at each stage of production and distribution. It is a common tax system in many countries, and Amazon sellers may need to consider VAT implications based on their business operations and locations.
VC (Vendor Central): the administrative interface used by manufacturers and distributors who work directly with Amazon as first-party vendors (1P). It allows vendors to manage their relationship with Amazon, including inventory, pricing, and order processing.
Vendor: in the context of Amazon, a Vendor refers to a brand or manufacturer that sells products directly to Amazon as a first-party vendor (1P). Amazon places the orders, takes care of pricing, and manages the inventory for these vendors.
Vflex (Vendor Flex) a supply chain program through which vendors supply products directly from their warehouse to end customers. It is a part of Amazon's logistics and fulfillment operations.
VFMC (Vendor Funded Managed Coupons): a program created and managed by Amazon's Subscribe and Save team. It involves the use of coupons for promotional activities, with funding provided by the vendor.
Vine: an Amazon program where sellers can register their products to receive reviews from verified product testers. It is designed to help newly launched products gain visibility and credibility through authentic reviews.
VIP (Vendor Improvement Plan): outlines the metrics the AVS (Amazon Vendor Services) Brand Specialist targets to improve with a vendor. It is a plan focused on enhancing the vendor's performance and collaboration with Amazon.
VIR (Volume Incentive Rates): refers to rebates that are granted to vendors based on the volume of products purchased. These rebates may be provided as fixed or tiered percentages and serve as incentives for Amazon to buy additional volume from vendors.
VLT (Vendor Lead Time): represents the time it takes for a vendor to fulfill an order after receiving a purchase order from Amazon. It is a crucial metric in supply chain management.
Voucher (also: Vendor Powered Voucher or VPV): a type of discount that vendors and sellers can offer to customers. Customers can redeem these vouchers on the product detail page during the purchase process.
VRO (Verified Rights Owner): a status granted to brand owners in the Brand Registry program, providing additional tools for intellectual property protection.

W

Warehouse Deals: on Amazon refer to used or returned items that are sold at a discount to Amazon customers. These items are offered as a way to prevent waste and reduce the liquidation of imperfect or returned products. Warehouse Deals are typically labeled as such on the Amazon platform.
WCO (World Customs Organisation): an intergovernmental organization that facilitates international trade by providing a forum for customs administrations to engage in dialogue and cooperation. It develops and maintains the International Harmonized System (HS) used for classifying products for customs purposes.
WEEE (Waste Electronic and Electrical Equipment): refers to a directive in the European Union that addresses the management and disposal of electronic and electrical waste. It aims to reduce the environmental impact of such waste and promote recycling.
WOC (Weeks of Cover): a metric used to measure how many weeks of demand Amazon currently holds in inventory for a specific product. It provides insights into how long the existing inventory is expected to last based on current sales rates.
WoW (Week over Week): a comparison metric used to analyze changes or trends in data from one week to the next. In the context of Amazon, Week over Week analysis can be applied to various performance metrics such as sales, inventory levels, or customer engagement.

X

X-Channel Management: refers to the practice of brands selling their products across multiple Amazon channels. Amazon channels can include various platforms such as Amazon Core (the main retail platform), Fresh (for grocery items), Go (for cashier-less stores), and others. Managing product distribution across these channels allows brands to reach diverse customer segments.

Z

Zero Inventories: refers to an approach where sellers aim to eliminate any waste due to excess or obsolete inventory levels. Sellers following a zero inventories strategy stock only the items they need and intend to sell within a specific time period, reducing carrying costs and minimizing the risk of holding unsold inventory.

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Decoding Amazon: A Comprehensive Glossary for Sellers and Vendors

December 6, 2023

Decoding Amazon: A Comprehensive Glossary for Sellers and Vendors

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