At Arthia, we aim to empower Amazon sellers with comprehensive knowledge and industry-leading expertise. To help you navigate the complex world of Amazon, we have compiled a comprehensive FAQ addressing key terminology. This resource will not only enhance your understanding but also position Arthia as a thought leader in the industry. Let’s dive in!
ACoS stands for Advertising Cost of Sales. It is a metric used to measure the performance of your Amazon advertising campaigns. ACoS calculates the ratio of your advertising spend to the revenue generated from those ads, giving you insights into the profitability of your advertising efforts.
The Buy Box refers to the prominent “Add to Cart” or “Buy Now” button on a product detail page. It is where customers can directly add items to their shopping carts and complete the purchase. Winning the Buy Box is crucial as it significantly increases the visibility and sales potential for a product.
FBA stands for Fulfillment by Amazon. It is a service offered by Amazon where sellers can store their products in Amazon’s fulfillment centers. Amazon takes care of inventory management, order fulfillment, and customer service, allowing sellers to focus on their business while leveraging Amazon’s logistics capabilities.
PPC stands for Pay-Per-Click advertising. It is a model where advertisers pay a fee each time their ad is clicked. On Amazon, PPC campaigns are a popular way to drive targeted traffic to product listings and increase visibility. Effective PPC strategies can boost sales and improve product ranking.
SKU stands for Stock Keeping Unit. It is a unique identifier for each product variant you sell. SKUs help you keep track of inventory, manage listings, and analyze sales performance.
Brand Registry is a program offered by Amazon that helps brand owners protect their intellectual property and gain more control over their product listings. It provides additional tools and benefits, such as enhanced brand content, brand-specific storefronts, and greater authority over product listings.
ODR stands for Order Defect Rate. It is a performance metric that measures the percentage of orders with defects such as negative feedback, A-to-Z Guarantee claims, and chargebacks. Maintaining a low ODR is crucial for maintaining a good seller reputation on Amazon.
ASIN stands for Amazon Standard Identification Number. It is a unique identifier assigned by Amazon to each product listing on their marketplace. ASINs help Amazon and sellers to track and manage product information.
Enhanced Brand Content is a feature that allows brand owners to create more engaging product descriptions by utilizing enhanced visuals, additional text, and multimedia content. EBC can help improve conversion rates by providing a richer shopping experience for customers.
The Vine Program is an invitation-only initiative by Amazon where trusted reviewers receive free products from participating sellers in exchange for unbiased and honest reviews. This program helps sellers generate early reviews and build credibility for new product launches.
FBM stands for Fulfillment by Merchant. Unlike FBA, where Amazon handles the order fulfillment process, FBM means that sellers are responsible for storing, packing, and shipping their products to customers directly.
SFP stands for Seller Fulfilled Prime. It is a program that allows eligible sellers to display the Prime badge on their listings, indicating that they can fulfill orders with the same fast shipping options as Amazon’s own fulfillment centers.
BSR stands for Best Sellers Rank. It is a ranking assigned to products in specific categories based on their sales performance. BSR helps sellers understand the relative popularity and competitiveness of their products.
FNSKU stands for Fulfillment Network Stock Keeping Unit. It is a unique identifier assigned to each product in Amazon’s fulfillment network. FNSKUs are used to track and manage inventory within Amazon’s fulfillment centers.
Long-tail keywords are specific, longer search phrases that buyers use to find products. Unlike generic keywords, long-tail keywords typically have lower search volumes but higher conversion rates, as they target more specific customer needs.
Listing optimization involves optimizing product listings with relevant keywords, compelling product descriptions, high-quality images, and other elements to increase visibility, click-through rates, and conversions.
Inventory health refers to the overall state of your inventory, including factors such as stock levels, replenishment timing, and sell-through rates. Monitoring and maintaining good inventory health is crucial to avoid stockouts and maximize sales.
The Amazon A9 algorithm is the proprietary algorithm used by Amazon to determine the ranking and relevance of product listings in search results. Understanding and optimizing for the A9 algorithm can improve product visibility and organic traffic.
Sponsored Brands is an advertising format on Amazon that allows brand owners to showcase their brand logo, customized headline, and a selection of products. It appears at the top or bottom of search results and drives brand awareness and consideration.
Brand Analytics is a suite of data and insights provided by Amazon to brand-registered sellers. It offers valuable information such as search terms, customer demographics, and market trends, enabling sellers to make data-driven decisions and optimize their strategies.
A+ Content, also known as Enhanced Brand Content (EBC) for vendors, allows sellers to create rich product descriptions with enhanced visuals, detailed text, and additional modules. A+ Content enhances the overall shopping experience and can lead to increased conversions.
IPI stands for Inventory Performance Index. It is a metric that measures how efficiently sellers manage their inventory. Amazon calculates the IPI based on factors such as excess inventory, sell-through rates, and stranded inventory. Maintaining a high IPI helps improve storage limits and reduces storage fees.
Brand gating is a program that enables brand owners to protect their products from unauthorized sellers. By enrolling in Brand Gating, sellers must obtain approval from the brand owner to sell restricted products, ensuring brand integrity and preventing counterfeit sales.
ASIN hijacking occurs when unauthorized sellers list their products on an existing ASIN, effectively “hijacking” the listing. This can lead to price wars, counterfeit products, and damage to the legitimate seller’s reputation. Vigilance and proactive monitoring are essential to combat ASIN hijacking.
An FBA removal order is a request to have your inventory returned from Amazon’s fulfillment centers. Sellers may initiate removal orders to manage excess inventory, inspect products, or fulfill orders through alternative channels.
MAP stands for Minimum Advertised Price. It refers to the lowest price at which a brand allows its products to be advertised by sellers. MAP policies help maintain price integrity and prevent price erosion in the marketplace.
SFP Trial is a program that allows sellers to test Seller Fulfilled Prime eligibility for a limited period. Sellers can evaluate their ability to meet Amazon’s stringent Prime fulfillment standards before committing to the full SFP program.
PPC keyword match types determine how closely a customer’s search query must match your targeted keywords to trigger your ad. Common match types include broad, phrase, and exact match, each with its own level of targeting and control.
A/B testing, also known as split testing, involves creating two or more variations of a listing or ad and comparing their performance. By testing different elements such as titles, images, or pricing, sellers can identify the most effective strategies to optimize conversions.
Product bundling involves combining multiple products into a single offering. Bundling can increase perceived value, differentiate your listings, and potentially lead to higher sales and profits.
By familiarizing yourself with these key terms, you can gain a competitive edge on Amazon. At Arthia, we leverage our expertise in these areas to provide comprehensive strategies and solutions that drive success for Amazon sellers.
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