Amazon FBA Glossary

Enhanced product descriptions for brand-registered sellers featuring rich images, comparison charts, and formatted text layouts.

Advertising Cost of Sales. The percentage of ad-attributed revenue spent on advertising, calculated as ad spend divided by ad revenue.

The featured seller offer on a product detail page from which customers can directly add items to their cart.

Fulfillment by Amazon. A service where Amazon stores, picks, packs, ships, and handles customer service for third-party seller products.

Amazon's pay-per-click advertising platform that includes Sponsored Products, Sponsored Brands, and Sponsored Display ad types.

The web-based dashboard where third-party sellers manage all aspects of their Amazon selling business.

Amazon Standard Identification Number. A unique 10-character identifier assigned to every product in Amazon's catalog.

Hidden keywords entered in a product listing's backend that help Amazon's algorithm index the product for relevant searches.

An Amazon program for trademark owners providing IP protection, enhanced listing tools, brand analytics, and additional advertising options.

Best Sellers Rank. A numerical ranking indicating how well a product sells relative to others in its Amazon category.

Fulfilled by Merchant. A fulfillment method where the seller handles their own storage, packing, shipping, and customer service.

Fulfillment Network Stock Keeping Unit. A unique barcode Amazon assigns to link FBA inventory to a specific seller's account.

A per-unit fee Amazon charges FBA sellers for picking, packing, and shipping each order to the customer.

A product category on Amazon that requires seller approval before listing, such as Grocery, Jewelry, or certain Clothing subcategories.

Inventory Performance Index. A metric (0-1000) measuring how efficiently a seller manages FBA inventory levels.

When Amazon's algorithm recognizes and associates specific search terms with a product listing, making it discoverable for those searches.

When unauthorized sellers attach their offer to an existing product listing, often selling counterfeit or inferior versions of the product.

An additional fee Amazon charges on FBA inventory stored for more than 365 days to encourage efficient inventory turnover.

A selling strategy of purchasing discounted products from online retail websites and reselling them at a profit on Amazon.

A business model where sellers source products from manufacturers and sell them under their own custom brand name.

A percentage of each sale Amazon charges as a commission for using the marketplace, typically 8-15% depending on category.

Purchasing discounted or clearance products from physical retail stores for resale at a higher price on Amazon.

Amazon's evaluation of a seller's performance based on order defect rate, late shipment rate, cancellation rate, and policy compliance.

Amazon's most common PPC ad type where individual product listings appear in sponsored placements within search results.

Total Advertising Cost of Sales. Ad spend divided by total revenue (organic plus ad-attributed), measuring overall advertising efficiency.