Hold onto your keyboard folks, you’re about to take a riveting journey into the Amazon jungle…the jungle of terms, conditions, explanations, and acronyms involved in selling products through Amazon FBA.

But seriously, this is important stuff.

Imagine the shame of being out-negotiated by an overseas supplier with a limited English vocabulary because you didn’t know the meaning of FNSKU.

So bookmark this page for future reference, here’s a quick run-down of Amazon FBA-related terms and vocabulary.

3PS

Third-party sellers, aka you and I.

3PL

Third-party logistics. These companies help transport your products from an overseas supplier to an Amazon Warehouse.

A+ Content

A+ Content is an option given to brand-registered products that allow for additional images and graphics on your Amazon listing.

It’s effectively a website for your listing that helps increase conversions by giving it a more professional and polished look.

A/B Testing

This data-testing method examines listing elements to gain insight into the best-performing aspects.

It’s also great to test marketing materials like ads, YouTube thumbnails, and hooks for social media.

Amazon Product Verification

Product verification is when an Amazon product idea is statistically determined to be a safe investment.

My AWA mentorship specializes in determining if a product is a sound investment or not.

ACOS

Average Cost of Sale. This metric is used in Pay-Per-Click (PPC) campaigns to determine the campaign’s cost-effectiveness. The lower the ACOS, the better.

Alibaba.com

Alibaba.com is a Chinese online marketplace in which most Amazon FBA sellers source and purchase bulk goods to re-sell on Amazon. Sellers use Alibaba to purchase large quantities of products at rock-bottom prices to re-sell on Amazon.

Learn the best practices for sourcing from Alibaba here.

AliExpress.com

A sister website of Alibaba.com, AliExpress.com caters to sellers purchasing smaller quantities of products.

ASIN

Amazon Standard Identification Number:

A barcode with ten unique numbers is used exclusively for tracking products within Amazon’s ecosystem. ASINS are generated after you list your product, and are used by Amazon to identify individual products and variations.

Attribution Links

Amazon attribution links are special hyperlinks that allow you to track where external traffic to your listing is coming from.

Attribution links help determine the effectiveness of marketing campaigns across platforms, then can be used to optimize conversions and steer future marketing decisions.

Brand Registry

Amazon Brand registry unlocks several Amazon features not available to generic product listings, including

A+ Content
Brand Storefront
Brand Protection
Search Term Reports

+ more

Brand Trademark

A registered brand trademark, or pending application, is required by Amazon before brand registry.

You can acquire a brand trademark through the United States Patent and Trademark Office.

Check out my tutorial here.

Best Sellers Rank (BSR)

Amazon’s ranking of how well a product sells compared to similar products in the same category or niche.

Brand Approval

Amazon requires brand approval for listing a branded product. Put simply, it’s when Amazon approves your pending brand name. According to Amazon:

“Your brand name that has an active registered or pending trademark; the trademark for your brand must appear on your products for packaging and you must provide images that depict this.”

Brand Referral Bonus

Amazon’s brand referral bonus rewards sellers for driving external traffic into a listing.

This means that Amazon subtracts a percentage of fees from your sale if a customer arrives from a website other than Amazon. The brand referral bonus is only available for branded U.S. sellers who use attribution links.

Bullets Points

Amazon allows up to five bullet points on a regular product listing. Bullet points should be concise, easy to read, persuasive, and customer-focused to optimize conversions.

Bundling

Refers to packaging together related items to add value and create unique product combos.

For example, to bundle a flashlight, you could include batteries and a carrying case, thus creating a new product bundle.

External Traffic

External traffic is any traffic to your listing that comes from outside Amazon, including:

Social Media
Email Campaigns
Facebook or YouTube Ads
QR Codes
Word of mouth
Influencer Marketing

Error Code 5665

Error-Code 5665 occurs during Seller Central registration when Amazon requires an extra burden of proof that you own your registered brand; typically images showing proof of brand ownership.

Dropshipping

Dropshipping is an e-commerce method where sellers fulfill orders without keeping physical stock on hand. Sellers typically partner with a manufacturer or supplier that fulfills orders once the drop shipper (seller) confirms an order.

Using this method, sellers typically have less control since the manufacturer technically “owns” the product.”

I break down the difference between Amazon FBA and dropshipping here.

DSP

Delivery Service Provider. These are the kind folks who deliver Amazon packages, dodging crazy neighbors and angry canines day and night in the process.

EIN

Employer identification number. This number is required to set up an LLC in the United States.

Fulfillment Center (FC)

Amazon Fulfillment centers are where you send inventory to be stored until an online order is placed.

Fulfillment by Amazon (FBA)

Using this “hands-off” fulfillment option, sellers use Amazon’s automated delivery system to fulfill orders.

Fulfillment by Merchant (FBM)

Fulfillment method in which sellers (aka you) package and ship products.

FBM typically requires self-managing inventory, either in your home or elsewhere.

FNSKU

Fulfillment Network Stock Keeping Unit. FNSKUs are generated by Amazon when an item is registered and are used to track products and sellers.

Without an FNSKU, products entering an Amazon Warehouse would not be able to

Freight Forwarder

A company, agency, or individual who coordinates, schedules, and/or performs the transportation of products from point A to B.

Google Trends

Google Trends is a great resource for market validation, niche exploration, and geographical insights into internet and e-commerce trends.

Helium 10

My preferred Amazon product research software. Helium 10 comes packed with features that simplify the process of researching products and analyzing data.

Find discounts to Helium 10 software here.

Inventory Management

Amazon charges hefty fees for storing inventory. Inventory management is optimizing your stock so you meet sales demand while keeping storage/transport fees to a minimum.

Influencer Marketing

Partnering with social media influencers to pitch products and drive traffic to your Amazon listing.

To hire an influencer, you can either reach out directly or use a service like Viral Nation or Ben Labs.com.

Keywords

Customers visit Amazon with the intent to buy, meaning they aren’t randomly visiting the website to window shop.

By honing in on specific keywords, and including those keywords in their listings and PPC ad campaigns, sellers can increase product visibility by driving targeted traffic.

Limited Liability Company (LLC)

Limited Liability Companies are a type of business structure that provides liability and flow-through taxation.

I recommend setting up your Amazon business as an LLC to protect you and your assets from lawsuits and legal trouble. I break down the steps in this easy-to-follow tutorial here.

Minimum Order Quantity (MOQ)

The lowest number of units that a manufacturer will sell at a time.

Online Arbitrage

Online arbitrage is like digital bargain hunting. It’s when one searches online for cheap products, for example, from Wal-Mart.com, or Costco.com, then purchases them so they can relist them on Amazon for higher profits.

Online arbitrage is very risk-heavy and time-consuming, and I don’t recommend it as a result.

Patent

Put in basic terms, a patent gives a product owner exclusive rights. It’s like your product’s bodyguard. It protects from counterfeiters and makes sure no one else can take credit for your invention.

Patents are required before signing up for Amazon Brand Registry.

Pay-Per-Click (PPC)

Pay-per-click (PPC) ads are the “sponsored” ads you see while scrolling through Amazon products. Sellers can use PPC ads to increase product visibility, thus out-competing similar listings. PPC campaigns are a great way for new listings to gain traction.

The cost of a PPC ad campaign varies depending on budget amount, and targeted keywords.

Polybag

A plastic bag used for packaging. Amazon requires certain items to be placed in poly bags.

Private Label

Private labeling is purchasing, and branding generic items to create your private brand. Products are typically sourced cheaply from overseas, and then “branded” to create and fulfill a market niche.

It might sound complicated, but retail superheroes like Wally-World and Target have been doing this since their inception with their in-house brands.

Premium A+ Content

An enhanced version of A+ Content, with added features and capabilities such as increased video modules and more options for size comparisons.

Product Research

Researching, gathering information, analyzing, and evaluating a potential product to sell online.

Product research is one of the more difficult steps of an Amazon FBA business. It’s made easier with the help of product research software.

Profit Margin

The amount of profit left over after you sell your product, including all business expenditures.

I aim for around 30% profit margins on Amazon.

Product Verification

Product verification is when an Amazon product idea is statistically determined to be a safe investment.

Review Count

A robust review count is like striking gold on Amazon. Reviews demonstrate trust, reliability, and customer satisfaction. Conversions are higher with listings with high reviews as a result.

Search Volume

The amount of times customers have searched for a specific keyword in a month’s time.

Seller Central

Amazon Seller Central is the main portal for listing and managing Amazon products and listings.

Learn how to set up your Amazon Seller Central account here:

Seasonal Products

Seasonal products are items whose majority of sales comes during a specific time of year, such as Easter basket, pool floats, or other holiday-related products.

Sales Velocity

Your sales rate. On Amazon, sales velocity is measured by the number of sales and dollar amount at the end of the month.

Shipping Plan

Getting products from point A to B requires a lot of logistics,

Fine-tuning the details of transporting your product is what the business calls a Shipping Plan.

Shopify Integration

Integrating Shopify with Amazon is a great way to expand your brand and decrease dependency on the Amazon platform.

Click here to find an in-depth tutorial on how to integrate the two.

SKU

SKU stands for Stock Keeping Unit. It’s another one of Amazon’s confusing labels.

An SKU is used to track the sale of products and inventory.

Transparency Program

An Amazon anti-counterfeit program that helps confirm a product’s authenticity.

Vine Program

Vine is an invite-only program that provides sellers with first product reviews.

Read and learn more about it here. I highly recommend becoming part of the Amazon Vine program, as it gives a much-needed “boost” to newer listings.

How Do I Get Started Selling an Amazon Product?

My Amazon Winners Academy (AWA) mentorship guides you through the entire Amazon FBA process and provides a community of support with others on the same journey.

You’ll get hands-on support from experienced sellers with your same goals and aspirations.

AWA gives you a much-needed safeguard from costly mistakes, dead ends, and failed product investments to efficiently reach your passive income goals.

So whether it’s solving issues with your Seller Central account, or creative approaches to product research, scaling to new markets and niches, validating product ideas, customer service issues, and more, we’ve got you covered.
Learn more about it here.

3PS

3PL