Glossary
Every guide's key terms link here. Terms link back to the pillar where they're used most.
Marketplace mechanics
| ASIN | Amazon Standard Identification Number — the unique 10-character identifier Amazon assigns to every product in its catalog. → Listings & Catalog Management |
| SKU | Stock Keeping Unit — your own internal identifier for a specific product/variant, used across every channel you sell on. → Listings & Catalog Management |
| UPC / EAN / GTIN | Universal Product Code, European Article Number, and Global Trade Item Number — standardized barcodes used to uniquely identify products across retailers and marketplaces. → Listings & Catalog Management |
| Buy Box / Featured Offer | The default, one-click-purchase offer shown on a shared product page when multiple sellers list the same item; winning it is based on price, fulfillment method, and seller performance. → Marketplace Operations & Account Health |
| Brand Registry | Amazon's program (requiring a registered trademark) that unlocks enhanced brand content, storefronts, and stronger counterfeit-protection tools. → Legal, Compliance & Risk |
| Catalog suppression | When a marketplace removes a listing from search/browse (but not necessarily deletes it) due to a policy or data-quality issue, until the issue is fixed. → Listings & Catalog Management |
| IPI score | Amazon's Inventory Performance Index — a score reflecting how efficiently you're managing FBA inventory, which affects your storage limits. → Inventory Management |
| Account health | A marketplace's rollup of your performance metrics (defect rate, shipping performance, policy compliance) into a status that determines whether you can keep selling. → Marketplace Operations & Account Health |
| Referral fee | The percentage-of-sale-price fee a marketplace charges for facilitating a sale, varying by category. → Pricing & Profitability |
| FBA / WFS | Fulfillment by Amazon / Walmart Fulfillment Services — programs where the marketplace stores, picks, packs, and ships your inventory on your behalf. → Fulfillment & Logistics |
| Marketplace facilitator | A legal designation under which the marketplace itself (not the individual seller) is responsible for collecting and remitting sales tax on transactions. → Payments, Tax & Financial Operations |
| Ungating | The approval process required to sell in a restricted/gated category on a marketplace, typically requiring supplier invoices or brand approval. → Start Selling on Marketplaces |
| Star Seller | Etsy's seller-recognition program for shops that consistently meet response-time, shipping, and rating benchmarks. → Marketplace Operations & Account Health |
| Seller Standards | eBay's performance program tracking defect rate, case rate, and late shipment rate, which determines your seller level and search visibility. → Marketplace Operations & Account Health |
| Prime badge | The visual indicator on Amazon showing an item is eligible for Prime shipping speeds, available via FBA or Seller Fulfilled Prime. → Fulfillment & Logistics |
Advertising
| ACOS | Advertising Cost of Sale — ad spend divided by ad-attributed revenue, expressed as a percentage. Lower is generally better. → Marketplace & Retail Media Advertising |
| TACOS | Total Advertising Cost of Sale — ad spend divided by total revenue (not just ad-attributed revenue), a better long-term efficiency measure than ACOS alone. → Marketplace & Retail Media Advertising |
| ROAS | Return on Ad Spend — ad-attributed revenue divided by ad spend, the inverse framing of ACOS. → Marketplace & Retail Media Advertising |
| Sponsored Products | Keyword- or product-targeted ads that place a single product listing higher in search/browse results. → Marketplace & Retail Media Advertising |
| Sponsored Brands | Headline-style ads featuring a brand logo and multiple products, typically shown above organic search results. → Marketplace & Retail Media Advertising |
| Retail media | Advertising sold directly by a retailer/marketplace on its own site or app, leveraging its first-party shopper data. → Marketplace & Retail Media Advertising |
| Incrementality | The portion of a sale genuinely caused by an ad, as opposed to a sale that would have happened anyway — measured by holdout tests, not just attributed conversions. → Analytics & Measurement |
| Automatic vs. manual targeting | Automatic targeting lets the platform choose which searches trigger your ad; manual targeting lets you specify exact keywords or products. → Marketplace & Retail Media Advertising |
| Negative keywords | Search terms you explicitly exclude from triggering your ad, used to cut wasted spend on irrelevant traffic. → Marketplace & Retail Media Advertising |
Finance & operations
| Contribution margin | Revenue minus all variable costs (COGS, fees, shipping, variable ad spend) for a sale — what's left to cover fixed costs and profit. → Pricing & Profitability |
| Gross margin | Revenue minus cost of goods sold (COGS) only, expressed as a percentage of revenue. → Pricing & Profitability |
| Landed cost | The true, fully-loaded cost of a unit once it's in your warehouse — product cost plus freight, duties, and import fees. → Product Sourcing & Supply Chain |
| MOQ | Minimum Order Quantity — the smallest quantity a supplier will accept per order. → Product Sourcing & Supply Chain |
| Incoterms | Standardized international trade terms (e.g., FOB, EXW, DDP) defining who is responsible for shipping, insurance, and customs at each stage. → Product Sourcing & Supply Chain |
| Chargeback | A forced reversal of a payment initiated by the buyer's card issuer or payment provider, typically due to a dispute. → Marketplace Operations & Account Health |
| 1099-K | A U.S. tax form marketplaces and payment processors issue reporting the gross payment volume processed on your behalf. → Payments, Tax & Financial Operations |
| Safety stock | Extra inventory held above expected demand to buffer against demand variability or supply delays. → Inventory Management |
| Reorder point | The inventory level at which you should place a new purchase order to avoid stocking out before the new stock arrives. → Inventory Management |
| SKU rationalization | The process of reviewing a catalog and cutting SKUs that no longer justify the operational cost of carrying them. → Product Research & Assortment Strategy |
| Break-even ROAS | The minimum Return on Ad Spend at which an advertised sale is still profitable, given the product's margin. → Pricing & Profitability |
| CAC | Customer Acquisition Cost — total marketing/sales spend divided by the number of new customers acquired in a period. → Ecommerce Marketing |
| LTV | Customer Lifetime Value — the total revenue or margin a customer is expected to generate over their relationship with your business. → Ecommerce Marketing |
| Sales tax nexus | The connection between a business and a state/jurisdiction sufficient to require that business to collect and remit sales tax there. → Payments, Tax & Financial Operations |
| MAP | Minimum Advertised Price — a policy set by a brand/manufacturer specifying the lowest price at which resellers may advertise a product. → Pricing & Profitability |
Sourcing & compliance
| Private label | Products manufactured by a third party but sold under your own brand name. → Product Sourcing & Supply Chain |
| White label | A generic product manufactured once and sold under multiple different sellers' own brand names. → Product Sourcing & Supply Chain |
| QC (Quality Control) inspection | A pre-shipment inspection process (often via a third-party inspection service) verifying that a production run meets your quality specifications. → Product Sourcing & Supply Chain |
| Prop 65 | A California law requiring warning labels on products that contain certain chemicals, enforced regardless of where the seller is based if selling into California. → Legal, Compliance & Risk |
| GPSR | The EU's General Product Safety Regulation, imposing safety and traceability requirements on products sold into the EU market. → Legal, Compliance & Risk |
| VAT | Value Added Tax — a consumption tax applied in the EU, UK, and many other countries at each stage of the supply chain. → International & Cross-Border Ecommerce |
| DDP / DDU | Delivered Duty Paid / Delivered Duty Unpaid — Incoterms specifying whether the seller (DDP) or buyer (DDU) is responsible for import duties. → International & Cross-Border Ecommerce |
Technology
| PIM | Product Information Management system — centralizes and syncs product data (titles, attributes, images) across every channel. → Technology & Integrations |
| OMS | Order Management System — centralizes order processing and routing across every sales channel and fulfillment location. → Technology & Integrations |
| ERP | Enterprise Resource Planning system — integrates core business processes (finance, inventory, purchasing) into one system of record. → Technology & Integrations |
| WMS | Warehouse Management System — manages inventory location, picking, and packing within a physical warehouse. → Technology & Integrations |
| SP-API | Amazon's Selling Partner API — the current API surface for catalog, orders, inventory, and reporting, replacing the older MWS API. → Technology & Integrations |
| Feed | A structured file (or API payload) used to bulk-create or bulk-update listings, inventory, or pricing on a marketplace. → Listings & Catalog Management |
| Middleware | Software that connects and synchronizes data between two or more systems (e.g., your ecommerce platform and a marketplace) that don't natively talk to each other. → Technology & Integrations |