Amazon Glossary

Three-dimensional product visualizations on Amazon. Replace discontinued 360-degree images since January 2025. Support View in 3D, View in Your Room, and Virtual Try-on. Products with 3D assets show 20% lower return rate.

Enhanced product descriptions with images, comparison tables, and brand storytelling. Available to brand-registered sellers and vendors through the A+ Content Manager in Seller Central.

Advertising Cost of Sales. Shows what percentage of ad revenue is spent on advertising. Formula: Ad Spend / Ad Revenue x 100. An ACOS of 20% means 20 cents in ad costs per euro of ad revenue.

Amazon's search and ranking algorithm. Determines product order in search results based on conversion rate, sales velocity, relevance, and seller authority.

Amazon's measurement tool for external traffic. Tracks conversions from non-Amazon channels (Google, social media, influencers) with a 14-day attribution window.

Demand-Side Platform for programmatic display and video advertising. Enables targeting across Amazon-owned properties (Fire TV, Twitch, IMDb) and external websites using Amazon audience data.

Amazon's official product testing program. Sellers provide products for free and receive verified reviews from selected top reviewers. Essential for building reviews during product launches.

Amazon Standard Identification Number. A unique 10-character alphanumeric identifier for every product in the Amazon catalog. Each product variation (color, size) receives its own ASIN.

Hidden search terms in the Seller Central backend that are not visible to customers. Up to 250 bytes for additional relevant keywords, synonyms, and spelling variations not included in the visible listing.

Analytics tool for brand-registered sellers. Includes Search Frequency Rank, demographics, market basket analysis, and repeat purchases. Brand Registry required.

Amazon's brand protection program. Prerequisite for A+ Content, Sponsored Brands, Brand Analytics, and enhanced brand protection. Requires a registered trademark with active status.

Free, customizable brand page on Amazon. The only ad-free space on the marketplace. Serves as a landing page for Sponsored Brands campaigns and as a brand showcase.

Best Seller Rank. Amazon's sales ranking metric, updated hourly. The lower the number, the more sales. BSR 1 means the best-selling product in the respective category.

The shopping cart box on the product detail page with the Buy button. Over 80% of all sales go through the Buy Box. Factors: price, shipping speed, seller performance, and inventory.

Cost per Click. The amount an advertiser pays for each click on an ad. Amazon PPC uses a second-price auction model: you pay $0.01 more than the next highest bid.

Click-Through Rate. Ratio of clicks to impressions as a percentage. A high CTR signals relevant ads and appealing product images. Benchmark for Sponsored Products: 0.3-0.5%.

Conversion Rate. Percentage of visitors who actually purchase after clicking. Formula: Orders / Clicks x 100. Typical Amazon CVR is 10-15%, significantly higher than traditional e-commerce.

Time-based bid adjustment in Amazon PPC. Conversion rates swing up to 300% between peak and off-peak hours. Amazon's native tools only allow bid increases.

European Fulfilment Network. Amazon program where inventory is stored in one EU country and shipped to other EU countries from there. Easier entry than Pan-EU but with longer delivery times.

Required under GPSR (EU Regulation 2023/988) since December 2024. Must be EU-based: manufacturer, importer, or authorized representative with full contact address.

Fulfilment by Amazon. Amazon handles storage, packing, shipping, and customer service. Products receive the Prime badge. Fees consist of fulfillment fees (size/weight-based) and storage fees.

Fulfilment by Merchant. The seller stores, packs, and ships independently. Full control over logistics and packaging, but no automatic Prime badge. Useful for oversized items or brands with special packaging.

Fulfilment Network Stock Keeping Unit. Amazon's internal barcode identifier for FBA products. Every product in FBA warehouses must have an FNSKU label that uniquely assigns the item to the seller.

Free on Board. International trade term (Incoterm) that defines when the buyer assumes transport and risk costs. Under FOB, risk transfers to the buyer at the port of shipment.

Mandatory trade registration for commercial activity in Germany. Filed at the local trade office (Gewerbeamt). Required for Amazon seller accounts in Germany.

General Product Safety Regulation. EU regulation on general product safety, effective since 2024. Requires sellers to provide an EU-based responsible person on Amazon listings.

Inserts in product packaging. Allowed: neutral review requests, care instructions, QR codes to social media. Prohibited: requests for positive reviews, discounts for reviews.

Inventory Performance Index. Amazon's rating of inventory efficiency (scale 0-1000). A low IPI score leads to storage limits and higher fees. Target value: above 500.

VAT exemption under Section 19 UStG. 2025 thresholds: EUR 25,000 previous year / EUR 100,000 current year. Status expires immediately if exceeded.

The complete product page on Amazon consisting of title, bullet points, product description, images, A+ Content, and backend keywords. An optimized listing is the foundation for organic visibility and conversion.

Packaging register by Stiftung Zentrale Stelle. Mandatory for all sellers of packaged goods in Germany. Amazon delists products without valid LUCID number. Fines up to EUR 200,000.

The main image of an Amazon listing. Must show the product on a pure white background, be at least 1000x1000 pixels, and fill at least 85% of the image frame. Critical for CTR.

Multi-Channel Fulfillment. Use Amazon's FBA warehouses for orders from non-Amazon channels (Shopify, eBay, own website). MCF fees are 30-50% higher than standard FBA.

Minimum Order Quantity. The minimum number of units a manufacturer or supplier requires per order. Relevant when sourcing and calculating unit costs for Amazon products.

Search terms excluded from PPC campaigns. Only Phrase Match and Exact Match available (no Broad). Critical for ACOS optimization and budget efficiency.

Order Defect Rate. Must stay below 1%. Composed of negative feedback, A-to-Z Guarantee claims, and chargebacks. Exceeding 1% leads to Buy Box loss for up to 60 days.

One-Stop-Shop. EU-wide procedure for simplified VAT reporting for cross-border B2C sales. Sellers can report VAT for all EU countries through a single point of contact in their home country.

Pan-European FBA program. Amazon automatically distributes inventory across warehouses in multiple EU countries for faster delivery. Requires VAT registrations in the respective countries.

Product structure where multiple variants (e.g., colors, sizes) are grouped under a parent listing. Consolidates reviews and sales history and improves discoverability.

Bid adjustment by ad position in Amazon PPC. Top-of-Search ads deliver 2-3x higher CTR. Bid multipliers from 0-900% available for Sponsored Products.

Pay per Click. Umbrella term for Amazon's ad formats where you only pay when a user actually clicks. Includes Sponsored Products, Sponsored Brands, and Sponsored Display.

Label for Prime-eligible products. Guarantees fast, free shipping for Prime members. Available via FBA or Seller Fulfilled Prime (SFP).

Amazon's selling commission per item sold. Ranges from 8-15% of the selling price depending on category. Clothing 5-15% tiered, electronics 15%.

Return on Ad Spend. Shows how much revenue is generated per advertising euro invested. Formula: Ad Revenue / Ad Spend. A ROAS of 5 means 5 euros in revenue per 1 euro in ad spend. Inverse of ACOS.

Amazon's AI-powered shopping assistant that provides product recommendations directly in search. Rufus analyzes listing content, reviews, and Q&A sections to generate conversational answers.

Metric in Brand Analytics showing search term popularity. Rank 1 = most searched term. Available in daily, weekly, and monthly reports.

Amazon PPC report showing which search terms triggered impressions, clicks, and conversions. Foundation for keyword harvesting and negative keyword optimization.

The management interface for Amazon Marketplace sellers. Used to create listings, manage orders, run ad campaigns, and analyze performance data. Sellers sell directly to end customers.

Seller Fulfilled Prime. Program where sellers ship themselves but still receive the Prime badge. Requires strict delivery time requirements (1-2 days) and high seller performance.

Ad format featuring brand logo, custom headline, and up to three products. Appears prominently at the top of search results. Only for brand-registered sellers. Links to Brand Store or product pages.

Audience- and product-based ad format for retargeting and conquest strategies. Ads appear on product detail pages, in search results, and on external websites in the Amazon network.

Amazon's most-used ad format. Keyword- and product-based ads that appear in search results and on product detail pages. Available to all sellers, even without brand registration.

Total Advertising Cost of Sales. Compares ad spend to total revenue (advertising + organic). Formula: Ad Spend / Total Revenue x 100. The better KPI for strategic budget decisions.

VAT Identification Number (Umsatzsteuer-ID). Required for intra-community trade in the EU and for selling on Amazon across different EU countries. Must be registered in Seller Central.

Amazon's purchasing platform for suppliers (1P model). Amazon buys products and sells them under its own name. Offers access to A+ Premium Content and Amazon Vine, but less control over pricing and availability.

AI-powered dashboard in Seller Central. Integrates returns, refunds, and buyer messages into one experience score. Replaced the Customer Reviews dashboard on September 30, 2025.

Waste Electrical and Electronic Equipment. Registration required at Stiftung EAR for sellers of electrical equipment in Germany. Fines up to EUR 100,000 for non-compliance.