Amazon Glossary A-Z

A guide to understanding Amazon commonly used terms

Amazon listing optimization

The process of updating a product’s details page on Amazon, including its images, titles, bullet points, features, description and A+ content, to improve its organic ranking in the Amazon search results.

Following Amazon’s A9 algorithm, the content on these pages signifies how well your product list will do in search results. Like with Google, most Amazon users don’t click past the first page of results. Therefore, a better ranking means customers will see your product more often.

Amazon feedback service

Amazon feedback services are designed to give sellers control over their Amazon review process in order to improve the sellers’ reputations and increase sales. This can vary from individual service to service but generally includes automation of Amazon feedback requests, creation of autoresponder emails, and feedback alerts.

Amazon market research tool

Amazon product research tools are services provided by online platforms that can assist Amazon sellers in learning important details about a product and how to market it successfully. These technologies often relate to things like past prices, the volume of sales, anticipated trends, keyword optimization, knowledge of rivals’ strategies, data tracking, and many other things. This information gives retailers a better understanding of their potential sales as well as potential opportunities.

Although many platforms offer different features, many of them are universal, including those for trend predictions, data storage, stock tracking, and expense cataloging.

Ad testing

Ad testing is the practice of displaying various ads to a group of people from your target audience and collecting their opinions. You can conduct ad tests on an entire ad or just a portion of it to gather feedback on anything from how much the ad sticks out to how credible people find it to be.

Split test

An Amazon split test, also known as an A/B test, is a randomized experiment in which people are shown two or more versions of the same website. Then, based on conversion rates, statistical analysis decides which page works better. In order to complete a reliable A/B test, you need at least 100 sessions per day, in addition to at least 10 sales.

For Amazon split testing, you may try several variations of your product’s name, description, primary or secondary image, and Amazon bullet points.

Concept testing

Concept testing is a research technique that involves polling consumers about your concepts and ideas for a product or service prior to its actual launch. As a result, Amazon sellers can determine their clients’ receptivity and willingness to purchase and make important decisions prior to the launch.

Consumer behavior research

Consumer behavior research focuses on examining consumers’ immediate behaviors and learning about their underlying motives. In order to accurately predict customer preferences and purchasing behavior, this form of research benefits from systematic observation and structural analysis that offers valuable insights.

Many different techniques are available for studying consumer behavior; however, market research can be broadly divided into qualitative and quantitative techniques.

Amazon listing service

In order to sell products, you must first list them on Amazon. You can include information about your product, such as its category, brand, features and specs, images, and price. All these details are available to your customer to help them purchase your product. An Amazon listing service refers to any assistance you receive with your listing from a third party.

Amazon listing optimization software

Listing optimization is the process of upgrading a listing’s content in order to boost its organic rating in Amazon’s search results. The services offered by an Amazon listing optimization software usually include listing analysis, keyword management, and list building, just to name a few. Services offered will vary depending on the software used.

Target market segmentation

Market segmentation, sometimes referred to as audience segmentation, is the division of prospective customers into meaningful groups according to their traits, preferences, and behaviors. Once you’ve established these segments, you can modify your marketing strategies to target your diverse client base better.

Market research methods

In order to determine how to offer a product or service to clients most effectively, marketing research involves collecting and analyzing data about the specific market. Based on the rules of proper scientific inquiry, marketing research must be methodical and impartial. Common market research techniques include focus groups, one-on-one client interviews, online or telephone customer surveys, and A/B testing of various advertising strategies.

Simulated test market

Simulated test markets were created to address the shortcomings of conventional test markets. In order to determine the participants’ purchase intent, researchers expose people to advertising and other marketing mix elements in a staged or manufactured marketplace. Simulated test markets are substantially quicker and less expensive than conventional test markets since the marketer does not have to carry out the whole marketing strategy.

Amazon search terms optimization

Optimizing search words is exactly what “search term optimization” means. On Amazon, however, this refers to a more specific process. The goal of search term optimization is to identify the most important search terms and concentrate resources on the most significant, high-converting search terms.

A/B testing

A/B testing is the process of making two versions of a digital asset and comparing how users react to each. A landing page, display advertisements, marketing emails, and social media posts are a few examples of assets. In an A/B test, you automatically send “version A” to half of your audience and “version B” to the other half. Each version’s performance is evaluated based on conversion rate objectives, such as the percentage of users that click a link, fill out a form, or make a purchase.

Fulfillment by Merchant (FBM)

Amazon sellers, as opposed to Amazon itself, who store, assemble, pack, ship, and offer customer support to customers who buy their products.

A9 Algorithm

A9 is a ranking system that considers titles, photos, videos, copy, inventory, and other factors to decide how products appear in search results.

Amazon API

API, also called Application Program Interface, is a code that enables the communication between two platforms or software applications.

Inventory performance index

Inventory performance index, also known as IPI, is a tool to help merchants effectively manage their inventory on Amazon. IPI measures the status of your inventory within the Amazon network. Either too few or too many units might affect the health of an inventory. Out-of-stock merchandise and missed sales are the results of having too little inventory. A surplus of inventory, however, results in extra holding and storage expenses.

The inventory health of your stock-keeping units is captured by the Amazon IPI, which ranges from 0-1000, and measures both low and excess inventory levels.

Gateway Placement

Gateway placement is an ad placement within a category’s specific landing page. These are only available through Amazon Advertising.

Parent Listing (Parent ASIN/PASIN)

A parent listing is a listing that connects versions of the same product but itself is not for sale. For example, the parent ASIN could be hand soap, while the child ASINs could be scent variations (vanilla, lavender, citrus, etc.).

Manually Targeted Sponsored Product Ads

With manual targeting, Amazon merchants choose their own keywords and bid prices for their ad campaigns. Since each keyword is selected and entered manually by the seller, manual campaigns have a more focused target audience. Manually targeted sponsored product ads are likely to give you more control over your bidding approach and a more desirable Advertising Cost of Sales (ACoS).

Manual targeting can also benefit seasonal products or trends because highly effective keywords are constantly evolving. In order to keep up with seasonal developments while manual targeting, you will need an in-depth strategy.

Child Listing (Child ASIN/ASIN)

A product listed under a parent ASIN is described as a child ASIN. In simple terms, a parent listing is a broad category, and a child ASIN is a variation within that category.

For example, a parent ASIN would be potato chips, while a child ASIN would be the flavor variations (paprika, cheese, salt and vinegar, etc.).

Fulfillment by Amazon (FBA)

Fulfillment by Amazon is a service that lets independent sellers store their goods in Amazon fulfillment facilities while Amazon takes care of customer support, sorting, packing, and shipping on their behalf, as opposed to the seller doing it themselves.

Brand Registry

Amazon’s brand registry is a service that enables an Amazon seller to appropriately represent their brand, detect and report violations, and share information to assist Amazon in preventing possible infractions.

Amazon describes it as “An exclusive set of brand benefit tools to sellers who are brand owners. These tools can help your brand improve conversion, drive discoverability, and protect intellectual property.”.

Verified review

A product review that has been approved by Amazon proves the reviewer actually bought the item. This usually means they submitted the review through a specific link that Amazon sent them.

Note that just because a review may not be verified doesn’t necessarily mean it’s fake. However, it’s important to take into account that Amazon does put greater value on verified reviews.

Sponsored display ads

A single product is promoted by Sponsored Display. Advertisers can target consumers using an Amazon PPC (pay-per-click) ad based on their buying behaviors, such as purchases or products viewed.

Sponsored display ads will be shown to audiences as they browse, search for, or purchase products on the Amazon homepage, product detail pages, and shopping results pages. Additionally, they can be displayed on Twitch, as well as third-party websites and apps in certain marketplaces.

Amazon referral fee

Amazon’s referral fee is a fee that’s paid whenever you sell an item. Fees vary depending on the product’s category, which can be seen here.

Amazon charges a referral fee regardless of whether you have an individual selling plan or a professional selling plan.

It is recommended that you upgrade to the professional selling plan once you are selling at least 40 items per month in order to save money on fees, as well as to take advantage of the many benefits the professional plan offers, including volume listing and management tools, and more.

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