In Amazon's platform, there are various terms that are like the unique language code of this vast ecosystem. For new sellers, understanding these terms is key to smoothly participating in Amazon transactions. Today, let's delve into these common Amazon terms together, which are very suitable for beginners.
1、 Basic concepts
（1） Product identification category
SKU（Stock Keeping Unit）
Definition: The unit of measurement for inventory inflow and outflow. Simply put, if a product has multiple colors or other different attributes, each combination will correspond to a SKU. For example, if a T-shirt has three colors: red, blue, and black, and each color has three sizes: S, M, and L, then this T-shirt will have 9 SKUs.
Function and suggestion: For sellers, SKU is an important basis for managing inventory. Through SKUs, sellers can accurately identify and track the inventory quantity, sales situation, and other details of each specific product. It is recommended that sellers write their own SKUs and maintain a certain degree of regularity, which facilitates quick identification and classification when managing inventory and improves work efficiency.
ASIN（Amazon Standard Identification Number）
Definition: Amazon Standard Mark is a combination of letters and numbers randomly generated by Amazon. It is like the "ID number" of goods on the Amazon platform, with uniqueness.
Characteristics and relationships: One ASIN can correspond to multiple SKUs, especially in the case of co selling. This means that the same product sold by different sellers (as long as it appears the same to Amazon) may share the same ASIN, but their respective products may have different SKUs due to differences in packaging, shipping methods, and other aspects.
UPC（Universal Product Code）
Definition: Universal product number is a common barcode for goods. Commonly used in regions such as the United States and Canada, it typically consists of a 12 digit code.
Usage requirement: For non brand sellers, UPC is one of the required information when uploading products. It is mainly used to identify product categories, manufacturers, and specific product information, helping Amazon's system accurately classify and manage products.
GCID（Global Catalog Identifier）
Definition: The brand identification code automatically generated internally by Amazon. After the seller completes the brand registration, the Amazon backend will automatically generate a GCID for their product.
Advantages: GCID can replace UPC. For brand sellers, using GCID can better protect their brand rights and has certain convenience in product management and promotion. For example, in brand promotion activities, Amazon can more accurately identify the products of brand sellers and provide more targeted support.
（2） Product display category
Listing
Product images: visually display the appearance, color, details, etc. of the product. High quality images can attract buyers' attention and enhance the attractiveness of the product. Generally, clear images are required to showcase product features from multiple angles and comply with Amazon's image standards.
Title: Summarize the product name, brand, key features, and other information in a concise and clear manner. A good title can help buyers quickly understand the basic information of the product and make it easier to identify in search results. For example, "[brand name] smartwatch - high-definition screen, long battery life, multifunctional sports monitoring".
Price: Display the selling price of the product, and the seller needs to set a reasonable price based on market conditions, costs, and other factors. The reasonableness of prices directly affects the competitiveness and sales situation of products.
Delivery method and cost: Inform the buyer of the delivery options for the product (such as express delivery, standard delivery, etc.) and the corresponding costs. Different delivery methods and costs can affect buyers' purchasing decisions. Sellers need to choose suitable delivery partners based on the actual situation and set reasonable delivery costs.
Five elements selling points: also known as product description points, use concise language to highlight the core advantages and characteristics of the product, generally within a certain number of words, and clearly explain the unique features of the product. For example, "Waterproof design, can be used normally underwater at 30 meters" "Ultra high definition screen, delicate and realistic display effect" and so on.
Q&A: buyer's questions and seller's answers. Buyers can raise various questions about the product here, and sellers need to provide timely and accurate answers, which helps to eliminate buyers' doubts and improve purchase conversion rates. At the same time, other buyers can also see these Q&A contents, which are helpful for them to understand the product.
Product information: Detailed introduction of product specifications, materials, usage methods, applicable scenarios, and more comprehensive information, allowing buyers to have a deeper understanding of the product.
Consumer Q&A: Similar to Q&A, but the questions and answers here are provided by consumers who have purchased the product, which is more informative.
Comment: The buyer's evaluation of the product after purchasing, including feedback on product quality, user experience, seller service, and other aspects. Positive reviews can attract more buyers to purchase, while negative reviews may affect product sales. Therefore, sellers need to pay attention to product quality and customer service, and actively handle negative reviews.
Other product advertisements: In the listing page, advertisements for other related products recommended by Amazon may appear, which is a marketing strategy of Amazon and provides buyers with more choices.
component:
Variation
Definition: A group of products that are interrelated. They usually differ in certain attributes, such as color, size, style, etc. For example, a sports shoe may have different color variations such as black, white, blue, or different size variations.
Function: The setting of variants allows buyers to conveniently choose suitable attributes based on their needs when browsing products, without having to search through numerous different listings. Meanwhile, for sellers, setting up variants reasonably can increase product exposure opportunities and improve overall sales performance. Because when buyers search for keywords related to a certain variant, other variants may also appear in the search results.
2、 Logistics services
1） FBA service
definition
FBA (Fulfillment by Amazon) is an official logistics service provided by Amazon. Amazon has opened up its logistics network and services to third-party sellers, who store their goods in Amazon warehouses. When there is an order, Amazon is responsible for a series of logistics operations such as picking, packaging, and terminal delivery to deliver the goods to customers.
FBA first leg
Express delivery: Fast speed, but relatively high cost. Suitable for goods with high value and strong requirements for timeliness. For example, in order to quickly launch and sell new electronic products, sellers may choose to send the goods to Amazon warehouses via express delivery.
Air freight: Moderate speed and relatively reasonable cost. For some seasonal goods or goods with certain time requirements, air freight is a good choice. For example, clothing products need to be transported to the warehouse in a timely manner before the season changes, so that they can be supplied in a timely manner during the peak sales season.
Sea freight: The cost is lower, but the transportation time is longer. Suitable for goods with large quantities and less stringent requirements for timeliness, such as household items. Shipping by sea can reduce logistics costs, but it is necessary to plan the transportation time in advance to ensure that the goods can arrive at the warehouse on time without affecting sales.
Meaning: The transportation process of goods from domestic shipments to Amazon warehouses abroad. This process involves multiple stages, including transportation of goods, customs declaration, clearance, and prepaid customs duties services.
type of shipping:
Costs and Responsibilities
Sellers need to pay certain fees to Amazon, including storage fees, delivery fees, processing fees, etc. These fees will be calculated based on factors such as the size, weight, and storage time of the goods. Although sellers need to bear these costs, FBA services can bring many benefits to sellers, such as improving customer satisfaction (because Amazon's logistics services usually have high timeliness and reliability), and allowing sellers to focus more on core businesses such as product research and development, sales, and promotion. At the same time, Amazon will bear the responsibility for the process of delivering goods from the warehouse to the customer's hands, including loss, damage, and other situations (under certain conditions), providing sellers with certain protection.
（2） FBM service
definition
FBM (Fulfillment by Merchant) refers to self shipping. Unlike FBA, sellers are responsible for the shipment and distribution of goods themselves. This means that sellers need to handle a series of logistics processes such as picking, packaging, transportation, and tracking of orders on their own.
Characteristics and advantages/disadvantages
Features: High flexibility, sellers can choose suitable logistics partners and delivery methods according to their actual situation. For example, for some products with special shapes or sizes, sellers may be able to find more suitable logistics channels for delivery.
Advantage: Sellers have greater control over the logistics process and can provide personalized services based on customer needs, such as customized packaging, adding gifts, etc. Meanwhile, for sales in certain local markets or specific regions, self shipping may provide faster delivery services.
Disadvantage: Sellers need to bear more logistics risks and responsibilities. For example, if there is a delay, loss, or damage in logistics, the seller needs to communicate with the customer to resolve it on their own, which may affect the customer experience and the reputation of the store. Moreover, compared to FBA, self shipping may have relatively weaker logistics efficiency and customer trust, as Amazon's FBA service has a higher level of recognition in the minds of consumers.
3、 Advertising and Sales
Amazon Terminology Guide: A must-have guide for you from novice to expert
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（1） Advertising related
CPC（Cost Per Click）
Definition: Pay per click advertising. This is a common form of Amazon advertising where sellers bid on keywords and pay a corresponding fee when customers click on the ad space. For example, if a seller bids $1 for the keyword "smartwatch", and a customer clicks on the seller's advertising space for "smartwatch" in search results, the seller will be deducted $1 (the actual cost may be affected by various factors such as competition level).
Function: CPC advertising can effectively increase the exposure and browsing volume of listings. By setting reasonable keywords and bids, sellers can make their products more prominent in search results, attract more potential customers to click into the product page, and thus increase sales opportunities.
CTR（Click Through Rate）
Definition: Click through rate, equal to the number of clicks divided by the exposure. For example, if an advertisement has 1000 exposures and 50 clicks, then the CTR is 50 ÷ 1000=5%.
Meaning: CTR is an important indicator for measuring advertising effectiveness. A higher CTR indicates that the advertisement is attractive and can attract customers to click. If the CTR is low, the seller may need to optimize the keywords, images, titles, and other factors of the advertisement to increase its attractiveness and relevance, thereby increasing the click through rate.
Acos（Advertising Cost of Sale）
Definition: The proportion of advertising expenses to advertising sales. The calculation formula is: Acos=advertising expenses ÷ advertising sales x 100%. For example, if a seller spends $100 on advertising and generates $500 in sales through advertising, then Acos is 100 ÷ 500 × 100%=20%.
Importance: Acos is a key indicator for evaluating advertising profitability. If Acos exceeds the gross profit margin of the product, it indicates that the advertisement is losing money in the current situation. Sellers need to adjust their advertising strategies, such as lowering bids, optimizing keywords, improving product quality and price competitiveness, in order to reduce Acos and increase the return on investment of advertising.
Sponsored
Meaning: Advertising label. When a product is displayed through advertising, a "Sponsored" tag will appear above the listing title. This mark indicates to the buyer that the product is an advertisement and also reminds the seller that the product is participating in an advertising promotion. Sellers can use this tag to identify the display of their advertised products in search results and adjust their advertising strategies for related products based on their advertising effectiveness.
key word
Core keywords: words that can accurately describe the essence of a product, usually the product name or the most commonly used title. For a smartphone, "mobile phone" is the core keyword.
Long tail keywords: Specific and lengthy keyword phrases that usually contain more qualifiers, which can more accurately target customers. For example, "red women's long down jacket", "red", "women", and "long" are all qualifiers, making this long tail keyword more accurately targeted at specific customer groups with specific needs.
Definition: Words entered by customers when searching for products on Amazon. Sellers need to research and select appropriate keywords to set up advertisements and optimize listings in order to increase product exposure in search results. For example, for a sports wristband, related keywords may include "sports wristband", "smart wristband", "fitness wristband", "Bluetooth wristband", etc.
Type:
Keyword research tools: Sellers can use the keyword tools provided by Amazon, such as automatic prompts in the Amazon search box, keyword recommendations on the Amazon advertising platform, etc. They can also use third-party keyword research tools, such as Jungle Scout, Helium 10, etc., to find and analyze keywords that are suitable for their products, in order to improve advertising effectiveness and product search rankings.
（2） Sales indicators
Sessions
Definition: Store traffic refers to the number of independent IP visits. Multiple visits to the store by one IP within 24 hours will only be counted as one session. For example, if 1000 different IP addresses visit a store in a day, then the sessions of the store are 1000.
Function: Sessions are an important indicator for measuring store traffic. It reflects the popularity and exposure of the store. Sellers can analyze the changing trends of sessions to understand the traffic situation of their store and determine whether their promotional activities, marketing strategies, etc. are effective. If sessions continue to grow, it indicates that the attractiveness of the store is increasing; If sessions decrease, sellers need to investigate the reasons, such as whether it is a decrease in keyword ranking or an increase in competitors, in order to take corresponding measures to increase traffic.
Impression
Definition: Exposure refers to the number of times a product is displayed on the Amazon platform. The number of times customers see a product on search pages, product category pages, etc. is counted as exposure. But exposure can only be viewed through tools such as advertising reports. In the relevant data reports in the seller's backend, sellers can understand the product's exposure situation.
Relationship with sales: Exposure is the foundation of sales. Only when a product has sufficient exposure can it be clicked and purchased by customers. If the exposure is low, even if the product quality is good and the price is reasonable, it is difficult to obtain sales opportunities. Therefore, sellers need to increase product exposure by optimizing keywords, improving product rankings, and participating in advertising campaigns.
Click
Definition: The number of times a customer clicks on a product. When customers are interested in the product and click to enter the product details page after seeing the product display (exposure), a click will occur. For example, if a product receives 100 exposures and 10 clicks in a day, then the number of clicks is 10.
The relationship between click through rate and sales: Click through rate (CTR=Click ÷ Impression) is an important indicator for measuring product attractiveness. A higher click through rate indicates that factors such as product images, titles, prices, etc. are attractive to customers and can encourage them to further understand the product. Products with high click through rates often have higher potential for sales conversion rates because customers show stronger interest in the product. Sellers can increase click through rates and sales opportunities by optimizing product display content and advertising settings.
CVR（Conversion Rate）
Definition: Conversion rate, equal to the number of orders divided by sessions (store visits). For example, if a store has 100 sessions and generates 5 orders in a day, the conversion rate is 5 ÷ 100 × 100%=5%.
Importance: Conversion rate is a key indicator for measuring the sales efficiency of a store. It reflects the store's ability to convert visitors into buyers. A high conversion rate means that the store's products and page design can effectively attract customers to purchase, while a low conversion rate requires sellers to analyze the reasons, such as unclear product descriptions, high prices, and obvious competitive advantages. Sellers need to optimize these issues to improve conversion rates and sales performance.
Coupon
Definition: Coupon is a promotional method set by sellers in the background. Customers can collect coupons at Amazon's dedicated entrance and enjoy discounts when purchasing corresponding products. For example, if a seller sets up a discount coupon of "$10 off for orders over $50", the system will automatically deduct $10 when customers purchase eligible products during checkout.
Function: Coupons can attract customers to purchase and increase product sales. At the same time, it can also increase the exposure of products, as products with coupon logos will be more prominent in search results, attracting customers' attention. Sellers can reasonably set the amount and usage conditions of coupons based on factors such as product profit margins and sales targets to achieve the best promotional effect.
Hot new releases
Definition: A new product list is an hourly update by Amazon based on the sales of newly created listings. The list displays new products that have experienced rapid sales growth during a specific period of time (usually recently). For example, a newly launched smart speaker with rapidly increasing sales due to its unique features and good market response may enter the hot new releases list.
Meaning: For sellers, entering the new product list can greatly increase the exposure and popularity of the product, attracting more customers' attention and purchases. At the same time, this is also a recognition of the competitiveness of the product market, which can enhance the confidence and promotion motivation of sellers. Sellers can optimize their product launch strategies, promotional activities, and other means to strive for their new products to enter the new product list, thereby gaining more sales opportunities.
Amazon choice
Definition: High quality product identification selected by Amazon. When customers search for specific keywords, products with the Amazon choice logo will be prominently displayed in search results, usually with a special tag (such as a black tag). This logo is determined by Amazon based on multiple factors such as product popularity, price, ranking, and customer reviews.
Advantage: Products that receive the Amazon Choice logo are more likely to be trusted and chosen by customers, as it represents Amazon's recognition of product quality and performance. This can significantly increase the click through rate and conversion rate of the product, and increase sales opportunities. At the same time, for sellers, this is also a manifestation of brand honor and market competitiveness, which helps to enhance brand image and product market position. Sellers can strive to obtain the Amazon choice logo by continuously optimizing product quality, customer service, pricing strategies, and other aspects.
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