Glossary

1. Amazon Bestseller Ranking (BSR)

The Amazon Bestseller Ranking is a tool used to determine how many sales a product has had. As soon as a product has had at least one sale, it’s awarded with a number called the Amazon Bestseller Ranking or BSR. The lower the BSR on a product, the better its sales. 

2. Amazon Pay-Per-Click (PPC)

PPC, or Pay-Per-Click, is an advertisement tool on Amazon that sellers use to ensure their products are ranked the highest in ads. The sellers bid on a keyword, and whoever has the highest bid gets their ad shown first to potential buyers who search for that keyword. The sellers then pay Amazon an advertisement fee every time a possible buyer clicks on that ad. 

3. Amazon Search Engine Optimization

Amazon SEO refers to several strategies, such as images and keywords, that optimize search engines and increase organic traffic to the product’s web page. 

4. Amazon Standard Identification Number (ASIN)

The Amazon Standard Identification Number (ASIN) is a ten-character code with numbers and letters for each product created on the Amazon catalog. It helps identify products more easily since each product has a unique ASIN.

5. Average Order Value

Average Order Value, or AOV, helps you calculate the average money a customer spends on your website. This enables you to determine the bigger spenders and know your target market. You can calculate it by dividing the total revenue by the number of orders placed. 

6. Average Transaction Value

Unlike AOV, which measures long-term customer loyalty, Average Transaction Value helps determine how much a customer spends on a single transaction. You can calculate this by dividing your total revenue for a specific period by the total number of transactions during that time.

7. Brand Loyalty

Brand Loyalty is the tendency of customers to return to the same brand to purchase goods each time, even though competitors might offer the same goods.

8. Bundling

The act of selling two or more goods together as a bundle package, typically to increase average order value. 

9. Buy Box

The buy box is the white box on the right-hand side of the Amazon product details page. Customers use it as their first interaction with the product when they buy it and begin their checkout process. 

10. Buy Now, Pay Later

Buy Now, Pay Later is an affordable way for customers to pay for their products using credit. They can make the payments after a set date with no interest or choose to pay for the product in installments. 

11. Buy Online, Pick up In-Store

BOPIS allows customers to purchase online and pick up the product at the physical outlet. This way, customers can buy from the comfort of their homes and feel satisfied when they pick it up on their own accord.

12. Buyer Persona

A Buyer Persona is an in-depth description of customers likely to purchase from your store. It involves data and analytics relating to demographics, characteristics, and customer behavior. 

13. Cart Abandonment or Cart Abandonment Rate

This is calculated by dividing the total number of purchases made by the total number of carts created. Cart Abandonment or Cart Abandonment Rate refers to the number of carts made but abandoned before the checkout process. 

14. Chatbot

Chatbot is a computer-generated assistant that helps with customer satisfaction and loyalty by answering any questions that potential buyers may have quickly and efficiently. 

15. Consumer Behavior

Consumer behavior is noticing customers' actions and behaviors when they decide to buy something and proceed with the checkout process. This can help you figure out potential buyers' emotions and preferences. 

16. Consumer (or customer) Journey Tracking

Customer or consumer journey tracking involves analyzing data from different sources to understand customer behavior and gain insights into how they act so that businesses can identify their weak spots and determine what they need to do to optimize their website. 

17. Conversion Funnel

The conversion funnel is a journey a customer goes through when they first discover your brand to the point where they either abandon their process or checkout. The traditional marketing funnel involves awareness, consideration, preference, intent, and purchase.

18. Cross-Selling

Cross-selling is the act of recommending customers' products that match the ones that they’re already buying. 

19. Customer Acquisition Cost (CAC)

CAC helps measure how much a business spends on average to acquire new customers. 

20. Customer Lifetime Value (CLV)

Customer lifetime value is based on how satisfied a customer is with a business and how important they are to said business, not just a one-on-one purchase but overall. 

21. Cross-Shopping

When a customer considers multiple different stores when making a purchase.

22. Customer Loyalty

Customer loyalty is a process that involves the customer constantly coming back to a business and making a purchase. It requires repeat purchases and increased customer engagement. 

23. Cyber Monday

Cyber Monday is the second-biggest shopping day in the United States, coming on the Monday after Thanksgiving. 

24. Direct-to-Consumer (D2C/DTC)

D2C is a business strategy where businesses market, build, and sell their products directly to customers. 

25. Dropshipping

Dropshipping allows you to sell products online without having a business set up. This means you fulfill orders from a third party and then ship them directly to the customers without handling any inventory. 

26. eCommerce

eCommerce is the method of buying and selling goods and products online.

27. Frequent Buyer Programs

These or “loyalty programs" are special programs given to frequent buyers to build up points. 

28. Fulfillment

The act of packaging and shipping orders to consumers. 

29. Fulfillment by Amazon (FBA)

FBA is a service Amazon provides where they pack and ship products to sellers.

30. Fulfillment by Merchant (FBM)

The act of a seller being in control of handling the selling process.

31. Lightning Deals

Lightning deals are time-sensitive deals that can last for mere hours at a time. They typically have a limited quantity, and once they’re sold out, they won’t be restocked, even if there’s time left on the timer. 

32. m-Commerce or mCommerce  (Mobile Commerce)

The act of buying and selling goods through handheld devices like mobile phones. 

33. Marketplaces (online)

Online marketplaces are websites where third parties list products, and people gather to purchase them through information provided by the website or the seller. 

34. Multichannel eCommerce

Multichannel eCommerce is where one brand sells its products on various platforms rather than sticking to one. For instance, if you sell your product on eBay and Amazon, you run a multichannel eCommerce business.

35. Omnichannel

Omnichannel is a business strategy where brands can provide customers with a seamless shopping experience, no matter their channel. 

36. Onsite Search Optimization

Onsite search optimization is how you manage your website to ensure it’s easy for search engines and users to find. This usually involves using keywords, a title, and other practices that increase your website's ranking. 

37. Payment Gateway

Payment Gateway is a network that allows sellers to accept digital payment methods like PayPal, Square, etc. These payment gateways obtain the customers' payment data and use electronic payment methods to transfer money safely. 

38. Point of Sale and Point of Purchase

The point where the customer makes a payment, whether in a physical store or online, is called the POS or POP. At this point, the seller determines how much the customer has to pay, specifies that amount, and then creates an invoice. 

39. Prime Day

Amazon’s annual exclusive deal event that is only available for Prime members. 

40. Private Label

A private Label, also known as a private brand, refers to products manufactured by a third party but sold under a different name. Amazon Basics is an example of a private label.

41. Product Listing Optimization

Product Listing Optimization is boosting your product pages to make them rank higher and improve their click-through rate. 

42. Return on Ad Spend

ROA measures the company's earnings for every dollar it spends on advertisements. 

43. Seller Central

Seller Central is an interface used for selling in the Amazon Marketplace that allows you to list prices, manage inventory, and complete orders.

44. Share of Voice (SOV)

Share of Voice is a tool for measuring your business's performance compared to your competitors. 

45. Sponsored Brands

Sponsored Brands are Amazon's cost-per-click ads that promote products through customized headlines and other means to increase page visitors. 

46. Stock Keeping Unit (SKU)

The printed barcode on the back of the products.

47. Subscribe and Save

Amazon’s Subscribe and Save program offers customers advantages like free shipping or the freedom to schedule their deliveries at a discounted rate. 

48. Third-party

Sellers use third parties to sell their products. They are platforms like a marketplace where people can manage and host online sales. 

49. Universal Product Code

A universal barcode that’s used to track a product in every store. They consist of 12 numbers and a series of black lines that are unique to each product. 

50. Upselling

Upselling is a technique to persuade customers to buy something more expensive or premium. 

51. Vendor Central 

Vendor Central is invite-only software for businesses that sell their products directly to Amazon. It allows you to manage and track Amazon orders.

52. Virtual Product Bundling (VPB)

VPB allows the seller to combine multiple of their products and then sell them together from a single page, typically at a discounted rate.