Glossary

Plain-English definitions for Amazon sellers.

The acronyms that actually matter, defined. Cross-linked to the dispatches that go deeper. No jargon for jargon's sake.

Algorithm

Amazon's ranking system and its inputs.1 term

Metric

Numbers sellers measure (and Amazon ranks on).4 terms

Ads

Sponsored Products, Brands, and the data they produce.5 terms

ACoS (Advertising Cost of Sales)

ACoS (Advertising Cost of Sales) is the ratio of ad spend to ad-attributed sales on Amazon, expressed as a percentage. ACoS = (Ad Spend ÷ Attributed Sales) × 100. A 25% ACoS means you spent $25 on ads to generate $100 in attributed sales. Break-even ACoS depends on margin; profitable target ACoS is typically below 1 ÷ (gross margin %).

TACoS (Total Advertising Cost of Sales)

TACoS (Total ACoS) is the ratio of ad spend to total sales (organic + advertised), expressed as a percentage. TACoS = (Ad Spend ÷ Total Sales) × 100. Unlike ACoS, TACoS captures whether ad spend is lifting organic sales — falling TACoS over time indicates ad-driven traffic is building organic rank.

Search Term Report

The Search Term Report is Amazon's data export showing which customer search queries triggered your Sponsored Products ads, along with their click and conversion metrics. It is the most-cited single data source for keyword-level conversion analysis on Amazon, particularly the click-to-cart ratio used to identify low-converting keywords for removal.

Negative Keyword (Amazon Ads)

A negative keyword in Amazon Sponsored Products is a search term you explicitly exclude from triggering your ads. Adding negative keywords prevents waste on irrelevant clicks (e.g. 'free' or 'cheap' on a premium product) and concentrates ad spend on converting traffic. Negative phrase match blocks the phrase anywhere in the query; negative exact match blocks the exact query only.

Match Type (Broad / Phrase / Exact)

Match types in Amazon Sponsored Products determine how loosely a customer search term must match a campaign keyword to trigger an ad. Broad match is loosest (synonyms, related terms, misspellings all match). Phrase match requires the keyword phrase to appear in order, possibly with words around it. Exact match requires the customer search to be exactly the keyword (or a close variant).

Operations

Seller workflow and program enrollment.5 terms

Amazon Vine

Amazon Vine is Amazon's invitation-only program where trusted reviewers receive free products in exchange for honest reviews. Vine reviews are marked Verified Purchase and carry a Vine Voice badge. Sellers pay a per-unit enrollment fee plus the cost of the units sent. Vine reviews count toward review velocity, which is weighted in A10.

FBA (Fulfillment by Amazon)

FBA (Fulfillment by Amazon) is Amazon's logistics program where sellers ship inventory to Amazon warehouses and Amazon handles storage, packing, shipping, customer service, and returns. FBA products automatically earn the Prime badge, which lifts conversion 20-40% in our panel. FBA fees include per-unit fulfillment cost and monthly storage cost.

FBM (Fulfillment by Merchant)

FBM (Fulfillment by Merchant) is the Amazon fulfillment method where the seller ships orders themselves rather than using FBA. FBM listings do not automatically earn the Prime badge (Seller Fulfilled Prime is the workaround). FBM is preferred for oversized items, custom-made products, slow-moving inventory, and brands that want direct customer-experience control.

IPI (Inventory Performance Index)

IPI (Inventory Performance Index) is Amazon's 0-1000 score measuring how well a seller manages FBA inventory across four factors: excess inventory, sell-through rate, stranded inventory, and in-stock rate. IPI scores below 400 trigger restock limits (capped storage), making it the most operationally consequential FBA metric. Target IPI: 500+ comfortable, 600+ excellent.

MFN (Merchant Fulfilled Network)

MFN (Merchant Fulfilled Network) is Amazon's internal abbreviation for what sellers call FBM (Fulfillment by Merchant). MFN listings are fulfilled by the seller directly, with the seller's own shipping speeds and customer service. MFN is the opposite of FBA in Amazon's internal language.

Platform

Amazon-side programs and features.4 terms