Amazon Glossary for eCommmerce | Updated for 2022


Amazon Acronyms and Terms to Know

"Hey Alexa! What does FBA mean?"

In the video below, Daasity CEO, Dan LeBlanc, explains the following acronyms: 
     -FBA (Fulfilled by Amazon)
     -AFN (Amazon fulfillment network)
     -FBM (Fulfilled by Merchant)
     -MFN (Merchant Fulfillment Network)
     -ASIN (Amazon Standard Identification Number)
     -FNSKU (Fulfillment Network Stock Keeping Unit).

For a full Amazon glossary of terms, keep reading.

Amazon Glossary of Terms

A10 (Amazon A10 Algorithm): The latest version of Amazon's internal search algorithm. Among other improvements, this update is intended to combat the number of fake product reviews and improve the user experience by giving more weight to customers' searches (for accuracy).

AFN (Amazon Fulfillment Network): Amazon's vast supply chain that includes distribution/fulfillment centers, storage facilities (including cold storage), Prime Now hubs, delivery stations for smaller packages, delivery stations for large packages, returns centers, airport hubs, and home delivery logistics.

Amazon Referral Fee: Amazon's commission per sale. The commission varies by product category, unit price, delivery charges (whether Amazon or you deliver it), and whether the item was gift wrapped.

ASIN (Amazon Standard Identification Number): A 10-character alphanumeric SKU that Amazon provides for organization. For books, the ISBN (International Standard Book Number) and ASIN are the same.

A-to-z Guarantee: Amazon's A-to-z Guarantee is its refund policy. Customers are entitled to refunds for a variety of reasons, such as for damaged products, late deliveries (3-days after the latest estimated delivery date), and more.

Average Sales Rank: A metric that shows, on average, how well a product sells compared to competition within the same product category.

Brand Analytics: Formerly ARA (Amazon Retail Analytics), this is Amazon Vendor Central data reporting center.

Display ads: A type of Amazon ad that may appear on or off Amazon. They can appear on any other site that supports Amazon ads.

Excess inventory percentage: Items with over an estimated 90 days of inventory are considered to be excess by Amazon. The percentage is how much of your inventory is counted as excess.

FBA (Fulfilled by Amazon): Shipping of orders is done by Amazon (via the AFN, or Amazon Fulfillment network. See above.)

FBM (Fulfilled by Merchant) or MFN (Merchant Fulfillment Network): Shipping of orders is done by the merchant (either by itself or by a 3PL).

FNSKU (Fulfillment Network Stock Keeping Unit): An Amazon-specific barcode that allows Amazon to pair an item with a seller. These are used because multiple sellers often sell the same product(s).

IPI (Inventory Performance Index): Measures how efficient you are at managing your inventory, based on a performance bar and ratings of poor, fair, good, and excellent. Amazon has four recommendations to improve your IPI score: 
      1) Avoid excess or old inventory
      2) Improve your 90-day sell-through
      3) Make sure that your inventory can actually be purchased and is not stranded (inventory without       an active offer associated with it)
      4) Increase sales by maintaining stock of your bestsellers.

LTSF (Long-Term Storage Fees): Amazon charges extra for items that have been in storage for more than 1 year. FBA does monthly inventory checks (usually between the 18th and 22nd). The LTSFs are "$6.90 per cubic foot or $0.15 per unit, whichever is greater."

Seller Central: The launchpad for selling through Amazon, and the main UI and dashboard when you log into your Amazon Seller account.

Stranded inventory percentage: The percentage of your inventory that does not have offers associated with them and cannot be purchased.

Vendor Central: Launchpad, dashboard, and interface for first-party sellers.

Long-Form Daasity Amazon Content

Daasity specializes in Amazon data, and we've put together a number of comprehensive guides for brands to navigate and understand Amazon better: check out our Amazon Blog Content.

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