An initiative to provide you with quick know-how about eCommerce industrial terms


1P - Vendor control

Vendor is a wholesaler supplier to Amazon. As a 1P seller, you have access to a wider array as you are a brand trusted by Amazon.

3P - Seller control

the 3P model allows to sell the products directly and track


AAS - Amazon's Authorised

The sellers who abide by Amazon's guides and stay upto date with the rules.

ACOS - Advertising cost of sales (ad spend/ad revenue)

A word used by Amazon to describe the amount of money spent on sponsored advertising in relation to product sales; it is calculated as total ad spend divided by total ad sales

ACPC - Average cost per click

The average amount bieng charged for the click on ad

AMS - Amazon marketing services

Amazon Marketing Services is is a collection of advertising tools designed to assist sellers in running and managing their ads on the Amazon marketplace. Amazon Advertising Console has replaced AMS.


B2B - Business to business

Indicates where the transaction happens from one business to the other business. For eg, wholesaler to retailer

B2C - Business to consumer

Indicates where the transaction happens from one business to the other business. For eg, wholesaler to retailer


COGS - Cost of goods sold

The cost of goods sold covers all costs and expenses directly associated to the manufacturing of commodities. It is subtracted from revenues (sales) to determine gross profit and gross margin. Lower margins are the result of higher COGS.

CPC - Cost per click

denotes the Cost for each click, For AMS it is second highest bid

CTA - Call to action

Produces a sense of urgency among the customer to take actions without any second thought.

CTR - Click through rate (click + impressions)

Tracks the customer ratio through clicks and impressions. The method is prominent in advertising and used to see the effectiveness of the campaign.

CVR - Conversion rate

The percentage of people that saw an app-install ad, clicked on it, and converted via some pre-specified action. CVR informs app marketers on how many people clicked on their ad.


DS - Drop shipping

Dropshipping is an alternate method to fulfill the orders, one does not need to keep the products in stock in advance. The seller ship the product to a third party, who ships the products to the consumer


EAN - European article number

International Article Numer also known as European Article number is a unique numbering and barcode method through which one can find out the specifc details about the products such as the type or a manufacturer.


FBA - Fulfilment by amazon

A 3P inventory held by amazon where the fulfillment, delivery, customer services are managed by Amazon itself.

FBM - Fulfilment by merchant

The sellers list products on Amazon but manages everything independently from stocks to customer support on their own

FC - Fulfilment center

Acts as a bridge between the merchant and the customers, the products are stored and shipped from these warehouses.














MAP - Minimum advertised price

As the name suggests, MAP refers to the lowest price cap on which the product can be advertised.




OOS - Out of stock

Product unavailable for sale or purchase because they have been sold out.

OTP - One time password

OTP is used as a part of multifactor security. These are the unique codes used to login to the platform or authenticate any service.


PDP - Product detail page

The page offers detailed information about the product such as size, price, quality, reviews etc

PL - Private label

retailer assigns a third-party to produce goods or products as per the specifications and these products are sold by the retailer under their own brand name.

PO - Purchase order

The document consists the details of the order, specification , amount and quantity along with the details of both the seller and the consumer

POC - Point of contact

A person or a representative assigned who looks after the activity or project and does the necessary communication.

PPC - Pay per click

A digital advertising model to drive traffic and generate leads. In this model an advertiser pays a publisher when the ad is clicked. The amount is charged as per the Ad and one can curate or customise as per their needs - Spend/Clicks




ROI - Return on Investment

Vendor is a wholesaler supplier to Amazon. As a 1P seller, you have access to a wider array as you are a brand trusted by Amazon.


SAAS - Software as a service

The Software is offered on the subscirption model and can be accessed on the internet. Being a software licesnsing model, it is cost-effective and easy to use.

SB - Sponsored brands (advertising)

Being one of the Amazon's flagship ad service is used to engage visitors at the start of their purchasing trip, employ brand graphics, message, and a product carousel.

SBV - Sponsored Brand Video

Introduced in 2020, SBVs are ads displayed to the relevant customers. the ads are based on Pay Per Click Model and helps the sellers to promote the products

SEO - Search engine optimization

The technique is used to optimise the online web business and drive traffic to the site.

SKU - Stock keeping unit

An alphanumeric code assigned to every product which is used in segreggating from each other and to keep a track in inventory

SP - Sponsored products (advertising)

The ads helps in driving traffic to the products on the website.




UPC - Universal product code

A universal barcode assigned to the product which helps in tacking the items or trade




WFS - Walmart fulfilment services

WFS provides an end-to-end service from inventory to returns and customer support.

WL - White label

The products are manufactred by the third party but are sold by retailers after rebranding




YOY - Year over year

To calculated and compare the annual growth of the organisation. This formula is beneficial in tracking the performance of the company.



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