2026-08-19 · MIUMX
Amazon has its own language. Mastering it is the difference between an efficient operation and one that leaks money through misunderstood settings. Here are 25 essential terms, explained in plain English.
ACoS (Advertising Cost of Sale) — The ratio of ad spend to ad-attributed revenue. ACoS of 20% means you spent €0.20 on ads for every €1.00 of sales. Lower isn't always better — a profitable ACoS depends on your margins.
TACoS (Total Advertising Cost of Sale) — Ad spend divided by total revenue (organic + paid). This is the metric that matters for brand growth. If TACoS is rising, you're becoming more ad-dependent. If it's falling, organic momentum is building.
RoAS (Return on Ad Spend) — The inverse of ACoS. RoAS of 5 means €5 in revenue for every €1 in ad spend. Most Amazon brands target 3-5x RoAS, but this varies by category and lifecycle stage.
Sponsored Products (SP) — Keyword-targeted ads for individual ASINs. The workhorse format. Appears in search results and on product detail pages.
Sponsored Brands (SB) — Brand-focused ads featuring your logo, a headline, and multiple products. Appears at the top of search results. Includes video format.
Sponsored Display (SD) — Audience-targeted ads that appear on and off Amazon. Useful for retargeting and competitor product page placement.
Impressions — The number of times your ad was shown. High impressions + low clicks = your creative or offer isn't resonating.
CTR (Click-Through Rate) — Clicks divided by impressions. Industry average is 0.3-0.5% for SP. Below 0.2% usually signals a relevance problem.
CVR (Conversion Rate) — Orders divided by sessions (or clicks, for ads). The most important efficiency metric on Amazon. Industry average is 10-15% for established products.
CPC (Cost Per Click) — What you pay for each ad click. Varies by category, competition, and placement. Germany typically runs 30-50% higher than France.
ASIN (Amazon Standard Identification Number) — A unique identifier for every product on Amazon. Think of it as Amazon's SKU. Always starts with B, followed by alphanumeric characters.
Bullet Points — The 5 feature highlights near the top of a product detail page. Prime real estate for conversion. Amazon indexes these for search.
A+ Content (Enhanced Brand Content / EBC) — Rich media descriptions below the fold using modules like comparison charts, image+text layouts, and carousels. Brand Registry required. Can lift conversion 5-10%.
Search Terms (Backend Keywords) — Hidden keywords in the product listing backend that Amazon indexes for search but shoppers never see. 250 bytes limit. Don't repeat words already in your title or bullets.
Parent ASIN / Child ASIN — A parent ASIN groups product variations (size, color). It's not buyable — only children are. Each child gets its own ASIN, reviews are shared across the family.
FBA (Fulfillment by Amazon) — Amazon stores, picks, packs, and ships your products. Also handles customer service and returns. Required for Prime badge eligibility.
FBM (Fulfillment by Merchant) — You (or your 3PL) store and ship products. More control, lower Amazon fees, but you lose the Prime badge (unless Seller Fulfilled Prime).
IPI (Inventory Performance Index) — Amazon's score of your inventory management. 0-1000. Below 400 triggers storage limits. Affected by excess inventory, sell-through rate, stranded inventory, and in-stock rate.
Buy Box — The "Add to Cart" / "Buy Now" box on a product detail page. The seller who wins the Buy Box gets the sale when the customer clicks "Buy." Shared among multiple sellers of the same ASIN.
DoS (Days of Stock) — How many days your current inventory will last at current sales velocity. Below 30 days is caution territory; 0 means you're out of stock and losing rank.
Sell-Through Rate — Units sold in the last 90 days divided by average inventory. Above 4 (selling through inventory 4x per quarter) is healthy for most categories.
SKU (Stock Keeping Unit) — Your internal product identifier. Different from ASIN. One ASIN can have one SKU per seller.
MAP (Minimum Advertised Price) — The lowest price a brand allows resellers to advertise. Enforcing MAP on Amazon protects brand value and margins.
ODR (Order Defect Rate) — Percentage of orders with negative feedback, A-to-Z claims, or chargebacks. Must stay below 1%. Above 1% risks account suspension.
VTR (Valid Tracking Rate) — Percentage of shipments with valid tracking. Must be above 95% for FBM sellers. Below this risks category restrictions.