In this article, I will explain some terms you need to know when selling on Amazon. The words I'm going to define are general terms which you can see on Amazon Seller Page. All the terms are useful for the people who are interest in selling online or wonder about international trade. I will try to write more terms and informations about E-Commerce and International trade. Please follow us and subscribe on InterKis Blog for more.
FBA (Fulfillment by Amazon)
FBA, also known as Fulfillment by Amazon, is a service that helps Amazon sellers outsource shipping to Amazon. With this fulfillment option, Amazon stores, picks, packs, ships, and delivers the products to customers.
This system, developed by Amazon. After sending the products you produce or purchased Amazon warehouses, Amazon performs all the tedious and time-consuming processes such as storing, packaging, shipping, after-sales support and returning your products for a certain period of time.
FBM (Fulfillment by Merchant)
Fulfilled by Merchant (FBM) refers to a method of selling where a seller lists products on Amazon but manages storage, shipping, fulfillment, and customer support independently.
ASIN (Amazon Standard Identification Number)
ASIN (Amazon Standard Identification Number) is one of the unique product identifiers used for managing the Amazon product catalog. In a technical sense, it's a 10-digit code made up of numbers and letters.
The combination creates a unique ID for each product sold through the Amazon platform. Every product page on Amazon has its own ASIN. No two products will have the same ASIN.
BSR (Best Seller Ranking)
The Amazon Best Sellers Rank (BSR), also known as the “Amazon Sales Rank” is a score that Amazon assigns a specific product based on historical sales data. It fluctuates hourly.
The ranking itself depends on a number of factors.
relies on. The lower a product's sales rank, the better it will sell compared to other products in the same category. Also, like every category, each subcategory on Amazon has its own bestseller ranking system.
The Buy Box refers to the white box on the right side of the Amazon product detail page, where customers can add items for purchase to their cart. Not all sellers are eligible to win the Buy Box. If you are the owner of the Buy Box, the buyer will automatically buy your product when they click the add to cart button. As such, owning a Buy-Box gives you a great advantage.
The Best Sellers badge is a label that appears on the product detail page and indicates that the product is the best selling product in the category. If yours is the best seller in a subcategory, Amazon will give you the badge.
This badge is awarded to the best selling product instead of the category. As in the example below, the leftmost product in the Gift Wrap Bag category is the best selling product. The item with the Amazon's Choice badge on the far right is the best seller in the word "handle bags."
The term Ranking on Amazon actually means that your products appear on the first pages in the words you specify.
Listings are Amazon product pages viewed by customers. It consists of a lot of information such as the title, photos, descriptions and price of your products and is the most important element that will convince the customer to buy.
When you send your products to Amazon for the first time, no one can see your product, so there will be no sale. Making your products visible on the first pages with various tactics and strategies is called product launch.
By using the monthly search volumes of these words, you can both create your product list and make product launches and advertisements. If you use keywords well, your sales will increase significantly.
Giveaway method we use the most among the product launch strategies. In this method, we distribute as many products as our competitors sell in that word, free of charge or at full price, in order to be on the first page of a word. Most of the time, the people we deal with buy the products at full price, and we pay them.
PPC (Pay Per Click)
Amazon PPC, or pay-per-click, is an auction-style system where advertisers bid on keywords. When an Amazon customer performs a search for a product, the sellers with the highest bids on relevant keywords win the auction, and their product ads get listed in their chosen placement.
With PPC campaigns, there is a cost when a customer clicks on your ad, so even if your ad is on the first page, if no one clicks on your ad, no cost will be incurred.
ACoS, Advertising Cost of Sales, is how much you spend on advertising per dollar of revenue you make. You can also think of ACoS as the ratio of ad spend in contrast with the target sales. Calculate your ACoS with this formula: ACoS = Total Ad Spend / Total Sales.
The conversion rate is basically just the total number of visits divided by the number of sales transactions.
The average conversion rate for Amazon listings is 10 to 15 percent. The rate for Prime members is even higher, at about 74%. This is because a lot of people who visit Amazon are already set on buying something—if not that day, then in the near future.
Amazon Brand Registry gives you access to tools that enable you to more accurately represent your brand, find and report violations, and share information that can help us proactively prevent infringement.
Delivered duty paid (DDP) shipping is a type of delivery where the seller takes responsibility for all risk and fees of shipping goods until they reach their destination. Mainly used for international shipping, DDP is a common shipping method developed by the International Chamber of Commerce which helps to standardize shipping options throughout the world.
EX WORKS (EXW)
EXW means the seller has fulfilled its obligation when the goods are made available to the buyer, usually at the seller's location. The seller should package the goods appropriately or as specified in the agreement between both parties.
EAN — (EUROPEAN ITEM NUMBER)
European Article Number (EAN): EANs are a barcode standard with a 12 or 13-digit product identification code. Each EAN identifies the product, the manufacturer and the product's attributes and is usually printed on the label or packaging.Number, although the abbreviation has not changed. Since the UPC system is mostly used in America and Canada, EAN can be preferred more in international markets.
UPC — (UNIVERSAL PRODUCT CODE)
UPC (Universal Product Code) codes for Amazon are one of the types of Product IDs that they require when listing an item to sell. Universal product codes, more commonly known as UPC barcodes feature strips of black bars, white spaces and 12 numbers.
FNSKU barcodes may be referred to as Amazon's own "UPC barcodes." It is a barcode that Amazon uses to identify your products. If your product has a scannable UPC barcode, you must affix the FNSKU barcode label on top of the UPC barcode for full coverage. FNSKU is unique to you as a seller and will always remain the same for a given ASIN. When sending products to Amazon, you must paste these barcodes on the packaging of each product and send it.
GTIN — (Global Trade Identification Number )
The numbers are universally used to find product information in databases.
they are decisive. The main purpose of the barcode exemption request is to enable Amazon to assist you by stating that your products will not have international barcodes.
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