If you are dealing with Amazon, you probably realise that this platform has its own language. What’s ODR, ASIN? What is Amazon Brand Store? What is the difference between seller and vendor? Find out from our Amazon Glossary – What is Amazon FBA? and much more.
Is it the beginning of your journey on Amazon, or maybe you already sell on this platform but these acronyms, indicators, all the terminology are not so clear to you? Maybe you introduce new people to your business and don’t want to explain everything from the scratch?
You are in the right place! In today’s article, you will get familiar with the most useful terms and acronyms from the world of Amazon.
General – Amazon Glossary
Seller Central – the platform through which the seller can manage sales processes, logistics or prices. With the help of the platform, you will start your store and add products that will be sold. You can also manage the advertising and promotion of your products to increase their sales.
Vendor Central – a platform used by manufacturers and distributors who sell their products to Amazon in bulk (central suppliers). Only sellers who have been invited to this program can use this platform.
Seller Central vs Vendor Central – The main differences between the two platforms include the method of joining (Seller Central – available to everyone, Vendor – only by invitation), sale (Seller Central – selling directly to customers, Vendor – selling to Amazon), greater advertising opportunities on Vendor, as well as a method of controlling prices (Seller Central – brand or the seller controls the prices, Vendor – Amazon as the price controller).
FBA (Fulfilled by Amazon) – facilitates access to top-class logistics solutions. This method also helps to increase the sales of your products in various markets. Thanks to FBA, products can be shipped to customers from Amazon’s warehouses, and shipping is fast and free. Amazon also offers local language customer support and handles returns.
FBM (Fulfillment by Merchant) – is a form of order fulfillment in which Amazon only provides its platform and the seller is responsible for shipping the goods. After sending the parcel, the seller must enter its number into the system, and is also obliged to carry out any returns. Thanks to this solution, the seller has full control over logistic processes.
FBA vs FBM – Each of the above-mentioned forms of order fulfilment has its pros and cons. Fulfilment by Amazon (FBA) means access to top-class logistics solutions. Thanks to FBA, it will be easier to find your products on the platform. This allows you to increase your sales in various markets. The products can get the Amazon Prime option, and therefore will be delivered to the customers quickly and free of charge. Amazon will also take over customer support in the local language, handle returns, and answer questions about orders. In this model, the seller can also save time by only sending the products to Amazon’s warehouse. Of course, the FBA service can also have disadvantages. For goods that weigh more, this solution may be less favourable. So let’s calculate the FBA costs in advance and consider the option of sending products to customers on our own. Another downside for some may be the lack of control. This also applies to returns and complaints, which are usually considered in favour of the customer. You can receive the advertised products back. You can also request to destroy the product, but both solutions involve additional costs.
The second order fulfilment option is Fulfilment by Merchant (FBM). Amazon provides its platform, while the seller takes care of shipping. Thanks to this, the seller has full control over each order, carries out returns and resolves complaints himself. Therefore, you do not have to incur additional costs related to the orders processing provided by Amazon. The seller gains more freedom and is not dependent on changes to Amazon’s policy. Fulfilling orders yourself also means less documentation. However, FBM means more other obligations for the seller, e.g. purchasing packaging, tapes or bubble wrap. Another disadvantage is that your products will be displayed in lower positions on the Amazon platform, so their visibility decreases at the same time.
Seller Fulfilled Prime – this is a way for Sellers to have the prime badge on their listings whilst maintaining full control over inventory as the stock is kept and despatched from their warehouses.
ASIN (Amazon Standard Identification Number) is a 10-character number (letters and/or numbers) used to identify products on the Amazon platform. ASIN is created when a product is added to the catalogue. It identifies the model, colour and size of the product.
SKU (Stock Keeping Unit) code is used to identify the products in stock. All products added by Amazon must have their own SKU, which you can create yourself. Otherwise, Amazon will assign a string of random letters or numbers to your products, creating an SKU code.
FNSKU (Fulfillment Network Stock Keeping Unit) is a code that you can generate in your sales panel. This number is assigned to the products of a given seller. Like the SKU code, it consists of 10 characters (letters and/or numbers). The FNSKU number enables the products in Amazon’s warehouse to be identified as being specific seller’s products.
GTIN (Global Trade Item Number) is a barcode assigned to products by the manufacturer. Thanks to this, it is possible to quickly determine who is the producer of a given product. In addition, the GTIN code identifies the country of origin and sometimes the weight of the product. GTIN codes confirm the legality of the products. The regional equivalent of the GTIN code is EAN (European Commodity Code).
AAP– Amazon advertising platform
A+ – allows brand owners to customize and improve product descriptions. This feature allows you to add content with rich images and descriptions to your products. With many modules, you can make your listings look even more attractive to your potential customers while providing creative content to optimize your product page conversion.
A++ (premium a+) – An exclusive tool that goes beyond basic A+ content, enabling brands to showcase the most important features and benefits of their products in a modern, visually appealing structure. With Premium A+ content, brands can communicate visually using images and videos, and rely on much less text due to tighter character restrictions on product descriptions.
ACOS (advertising cost of sale) – means advertising costs for Sponsored Listings. This is a measure of the performance of an ad campaign on Amazon. ACoS, therefore, shows the ratio of sponsored products advertising spend to the revenue generated by that advertising.
AMG (amazon media group) –This is the primary part of Amazon that oversees all advertising options.
AVA (amazon video ads) – allow advertisers to reach Amazon customers with targeted video.
BID – the maximum rate that we are able to pay for a given keyword.
CPC (cost per click) – is one of the methods of buying advertising on the Internet. Most often in the form of an auction, the advertiser sets a cost-per-click bid, which means that each click on the ad is paid. The cost is charged when the user clicks on the ad or link and is redirected to the advertiser’s website.
CTA (call to action) – an ad element that causes an immediate action, for example, a “buy now” button.
DSP (demand-side platform) – formerly AAP (Amazon advertising platform)
EBC (enhanced brand content) – extended product description for owners of registered brands on Amazon. Thanks to the graphic elements in combination with the appropriate sales text, it allows you to communicate the value of your products much more effectively, and thus significantly increase your conversion.
KEYWORDS – to ensure a listing is found, it needs to contain keywords; these are the search terms consumers use to find products
PDAs – product display ads
ROAS (return on advertising spend) – A marketing record that allows you to determine how much the company has earned in comparison to the money invested in advertising. ROAS is calculated by dividing income by expenses.
SB (sponsored brands) – Sponsored Brand Ads (SBA) are ads that appear next to or above search results. They are labelled “Sponsored by the brand …”. Here you select a cover image that usually shows the brand logo, a convincing title and 3 products. It is possible to post a link to your own store.
STOREFRONT– a mini website/store that can be created within Amazon for your products, built the way you want. This only applies to brands registered in Brand Registry.
SBV (sponsored brand video)– video ads that are a part of the sponsored
Brand Registry – a program offered by Amazon for sellers who manufacture their own brand of products. Brand Registry gives the Seller a greater control of listings.
Buy Box – the product listing page that a shopper will see. Numerous sellers can sell the same product, but only one can win the Buy Box. If a customer clicks to buy or add to basket and you are winning the Buy Box, then it will be your item that is sold, not another Seller’s product.
Lightning Deals – these are promotions in which Sellers/Vendors can offer large discounts on their chosen products. These offers only last a few hours.
ODR (Order Defect Rate) – Defective order indicator. It is a key measure of your ability to provide a positive shopping experience to your customers. It takes into account all orders with at least one defect expressed as a percentage of all orders completed in a given 60-day period.
Is there anything missing? Do you need help in understanding these terms? Contact us!