Glossary of terms

This is a glossary of terminology that are used on this website. Words have often more than one meaning. The definitions of the words in this glossary are only giving the meaning of how these terms and phrases are used on this website. Needless to say, you use this glossary at your own discretion and we are not responsible for any mistakes you make in your business or life because of your use of this glossary.😊

2-PK, 3-PK, etc: 2 packs of an item, 3 packs, etc., offered at the same time.

3rd parties: a 3rd party is someone who is not one of the main people involved in a business, but who is involved in it in a minor role.

3rd party sellers: sellers that sell products on Amazon and do all fulfillment themselves from home or their business, or through the FBA (Fulfillment by Amazon) system.

ACoS: Average Cost of Sale, a term used by Amazon in the dashboard of sponsored ads campaigns.

affiliate: a person who sells products for another organization for a commission.

algorithmic: reference to algorithm, a series of mathematical steps, especially in a computer program, which will give you the answer to a particular kind of problem or question.

Amazon AWS: reference to Amazon Web Services (AWS), the part of Amazon that delivers cloud services to website owners for their websites, video and other storage needed for a business online. The cloud refers to software and services that run on the Internet, instead of locally on your computer.

AmazonBasics: a private label for a product line of Amazon.com. More info on AmazonBasics can be found on Wikipedia.

Amazon Prime (participant): a paid service ($119 per year currently, plus a free 30-day trial or $12.99 per month) that gives Amazon shoppers a few advantages. Members of Amazon Prime are eligible for free one- or two-day shipping on most items, among several other perks. To become an Amazon prime participant (seller), all you have to do is sign up for FBA. There are no joining fees or forms to fill. All your FBA selection automatically becomes Prime selection once you have stocked up on your products in one of the Amazon Fulfillment centers.

API: Application Programming Interface, a set of functions and procedures that allow the creation of applications which access the data of an operating system, other application, or other service. An application is computer software designed to perform a group of coordinated functions, tasks, or activities for the benefit of the user. An interface is a device or program enabling a user to communicate with a computer. A good explanation of what an API exactly is, can be found in the video link. https://www.youtube.com/watch?v=s7wmiS2mSXY

apparel: clothes, especially formal clothes worn on an important occasion.

appliances: an appliance is a device or machine in your home that you use to do a job such as cleaning or cooking. Appliances are often electrical.

ASIN: Amazon Standard Identification Number, a unique block of 10 letters and/or numbers that identify items on Amazon. ASINs can be used to search for items online.

B2B: short for Business to Business.

batch: a batch of things is a group of things of the same kind, especially a group that is dealt with at the same time or is sent to a particular place at the same time.

beta: a phase of operating in the beginning stages of something. During the beta phase, the product is opened up to a limited number of users.

blind CC-ed: reference to bcc, short for blind carbon copy. When you send someone a message and you add a person as blind carbon copy, you send a copy to a third person without the person that you send the original message to knowing.

Black Friday: the day after the US holiday of Thanksgiving, regarded as the first day of the Christmas shopping season, on which retailers make many special offers. It was originally called Black Friday because so many people went out to shop that it caused traffic accidents and sometimes even violence. The Philadelphia Police Department were the first to use the phrase in 1966 to describe the problems caused by the many pedestrians and car traffic in the city center. If you describe a situation as black, you are emphasizing that it is very bad indeed.

blogging: write about (an event, situation, topic, etc.) in a blog. A blog is a regularly updated website or web page, typically one run by an individual or small group, that is written in an informal or conversational style.

blurb: information about something that is written in order to attract people’s interest.

brick and mortar store: a store that has a physical location somewhere other than online. Brick and mortar refers literally to buildings build with stones (bricks) and a mixture of sand, water, and cement (mortar).

BSR: Best Seller Rank, Amazon’s ranking system for products and a metric in deciding what products to sell and/or not sell.

business entity: a business entity is an organization created by one or more natural persons to carry on a trade or business. In the USA business entities are created or formed at the state level. An LLC is a business entity for instance.

Buy Box: reference to the add to cart button on an Amazon website. The term is believed to be coined by Todd Snively, a third-party Amazon seller himself.

Buy Box Percentage: reference to how many times you win the Buy Box out of 100 sales made in Amazon for a certain product. If you win it 25 out of 100 times a puchase is made for a certain product, your Buy Box percentage is 25.

CC: short for carbon copy. When you CC someone, you send him a copy of your message.

CEO: abbreviation for Chief Executive Officer. It is the position of the most senior corporate officer, executive, administrator, or other leader in charge of managing an organization.

claim code: a code that is used to enable a customer to claim an offer on a website. The code can be just number, just text or a combination of the two.

closeout: a closeout at a store is a sale at which goods are sold at reduced prices.

COGS: Cost Of Goods Sold, in other words, what you are paying for inventory.

Competitive FBA seller(s): specific FBA seller(s) who you will be sharing the Buy Box with. When you find a good product, you might find that there are already 5 other FBA sellers who are selling this product. See also Buy Box, FBA and FBA seller in this glossary.

conversion: reference to conversion rate, the percentage of people who completed a desired action on a single web page, such as filling out a form. Pages with high conversion rates are performing well, while pages with low conversion rates are performing poorly.

cPanel: a web-based hosting control panel provided by many hosting providers to website owners allowing them to manage their websites.

counterfeit: reference to goods that have been made to look exactly like genuine ones (but are not the real deal) in order to deceive people.CPA(s): Certified Public Accountant.

credit check: a check performed by a company selling goods on credit to establish if a potential customer is creditworthy.

csv (file): a file with the .csv extension (for instance inventoryfile20-12-208.csv); a spreadsheet file. Csv stands for comma separated values which basically means that each comma in the file represents a cell, so Excel or any other spreadsheet program will divide the data properly.

database: a collection of data that is stored in a computer and that can easily be used and added to.

DBA: Doing Business As. A DBA is simply the name of the business as registered by the county in the USA.

directories: a directory is an online list of the names, addresses, etc. of a specific group of persons.

disclaimer: a statement in which a person or company says that they did not know about something or that they are not responsible for something.

DS: short for Drop Shipping. You offer a product for sale, and a drop shipping company or manufacturer ships it out without you seeing or touching the product. This is not advised as a model on Amazon.

EAN: European Article Numbering, the European version of UPC. See UPC in this glossary. For an in-depth explanation about bar codes, visit http://www.av1611.org/666/barcode.html

eCommerce: a reference to commercial transactions conducted electronically on the Internet.

EIN: Employer Identification Number, a social security number for your business.

entrepreneur: a person who sets up businesses and business deals.

escrow: money or property which is given to someone, but which is kept by another person until the first person has done a particular thing or met particular requirements.

ET: short for Eastern Time.

ETIN: Electronic Transmitter Identification Number (ETIN) A 5-digit identification number assigned by the IRS.

exhibitor: a person, company, etc. that enters an exhibit as in a fair, trade show, to show his product(s).

FBA: Fulfillment by Amazon. The seller has sent the product to Amazon and Amazon stores and ships the product to the customer (and takes care of customer service).

FBA seller: a seller (company, individual, etc.) who sends product(s) to one or more Amazon warehouses to sell.

FBA wholesale: see wholesale model in this glossary.

FBM: Fulfilled By Merchant. See Third Party sellers (FBM) in this glossary.

Fiverr: an online marketplace for freelance services like the designing of logos, etc.

FNSKU: Fulfillment Network Stock Keeping Unit, Amazon’s internal number system. Using this system, they are able to identify you as the seller for an identical item sold through the same listing. You place the label with your FNSKU over the UPC bar code of the product (or have a prep warehouse or the supplier do it for you) so Amazon can identify the product as yours. See also UPC in this glossary.

FTC: short for Federal Trade Commission, the commission that is all about consumer protection and the elimination and prevention of anti-competitive business practices. This website has to abide by the rules of the Federal Trade Commission that protects your rights as a visitor of this website.

ftp: file transfer protocol, the standard protocol used to transfer files across the internet, or a similar network, between computer systems.

gated: as a way of figurative speech, restricted and by a gate, security guards, etc. A gated (or restricted) category is simply a category or product that needs approval before you can start selling. It doesn’t mean you can’t sell that product on Amazon; it simply means you’ll have to do a bit more paperwork to receive approval.

GoDaddy: an American Internet domain registrar and web hosting company. The company is known for its advertising on TV and in the newspapers.

Google Analytics: a complete web analytics tool owned by Google that lets you see just about everything you could ever want about your website traffic.

Google Docs: a free web-based application in which documents and spreadsheets can be created, edited and stored online.

GPS: Global Positioning System, a system widely used worldwide to get from A to B without a physical map.

GS1 UPC Code: reference to a unique identification number that is issued just to one separate company – and it’s part of every bar code, UPC code and identification number you create. It’s the internationally accepted way to uniquely identify your brand. More about GS1 through the link. https://www.gs1.org/standards/barcodes/ean-upc

hazmat: short for hazardous materials.

hijacking: the act of illegally taking over something. Used as a reference to using an Amazon listing that was made by someone else for your own purposes and whether that is illegal or not. In many cases it is legal.

html: short for Hypertext Markup Language, a standardized system for tagging text files to achieve font, color, graphic, and hyperlink effects on web pages. A hyperlink is a link from within a document to another location, activated by clicking on a highlighted word or image.

inventory file: the spreadsheet file (usually) sent to you by a wholesaler that contains all the products he has in stock to sell to you. Also called a SKU list.

ITIN: Individual Taxpayer Identification Number. https://www.irs.gov/individuals/individual-taxpayer-identification-number

Jeff Bezos: the CEO of Amazon.com.

joint venture: a commercial activity undertaken together by two or more parties which otherwise retain their distinct identities.

Keepa: a modern Amazon Price Tracker, a tool to help sellers make better buying decisions. It is used as an extension in the Chrome web browser (or Opera, Firefox or Microsoft Edge) and shows the pricing history of a product on Amazon in a graph.

listing: the overall page on Amazon where a product is described and introduced to the customer. Also referred to as product page.

liquidate: if you liquidate a product, you sell it (usually below the value of the product) to retrieve some money for it.

LLC: Limited Liability Company, a form of company that limits the amount of liability undertaken by the company’s shareholders.

MAP: Minimum Advertised Price, a minimum price you can not sell below and set by the wholesaler or manufacturer.

margin: the amount of money you make between buying and selling the product.

MF: Merchant Fulfilled, where the seller stores and ships the product himself (also known as FBM, Fulfilled By Merchant).

M-F, 8-4: short for “from Monday to Friday, from 8 a.m. till 4 pm.”

MOQ: Minimum Order Quantity.

MSDS: Material Safety Data Sheet, a sheet that is produced by companies that manufacture hazardous substances. It provides workers and emergency personnel with procedures for handling a particular substance.

MSRP: Manufacturer’s Suggested Retail Price. Prices are usually always below this.

nameservers: a nameserver is a specialized server on the Internet that handles queries or questions from your local computer when you are online using the Net.

niche: a niche in the market is a specific area of marketing which has its own particular requirements, customers, and products. Niche marketing is the practice of dividing the market into specialized areas for which particular products are made. A niche market is one of these specialized areas. Also, your niche is the job or activity which is exactly suitable for you.

ninja tactic: ninja refers to any of a class of Japanese warriors highly trained in stealth and employed as spies and assassins. Therefore, figuratively, a ninja tactic is a tactic with which you might beat the competition.

offshore: engaged in something outside the USA.

outsource: obtain (goods or, usually, a service) by contract from an outside supplier.

P&L(s): Profit and Loss Statement(s). https://www.investopedia.com/terms/p/plstatement.asp

PayPal: a service that enables you to pay, send money, and accept payments.

PL: Private Label is all about creating your own product and brand it as your own.

plugin(s): a piece of software containing a group of functions that can be added to a WordPress website. See also WordPress in this glossary.

PM: Profit Margin.

PO: Purchase Order.

PPC: Pay Per Click, Amazon’s internal advertising system to show your item to customers (where you will get the Buy Box). Not really used in our method.

Q1, Q2, Q3, Q4: the quarters of the year (Jan – March, April – June, etc).

QA: Quality Assurance.

Quickbooks: an accounting software for small and medium-sized businesses.

R&D: Research and Development. It refers to innovative activities undertaken by corporations or governments in developing new services or products, or improving existing services or products.

RA and OA: Retail Arbitrage and Online Arbitrage, where you buy something at a store (i.e. on sale), or buy something online (i.e. Ebay) and sell it on Amazon for a profit.

reseller permit: also called resale certificate. Reseller permits identify a business as having the right to make certain nontaxable purchases. These include wholesale items for resale and items that are purchased for use in the manufacture of products for resale. Reseller permits prevent the double collection of sales tax on products. Sales tax is collected further down the road when the item is purchased by the final customer. The seller of the original items will require the purchaser to provide a copy of a reseller permit to keep on file for tax purposes.

revolving (lines of) credit: revolving credit is referring to a letter of credit for a fixed sum, specifying that the person receiving it may make repeated use of the credit provided that the fixed sum (maximum) is never exceeded. A line of credit is an arrangement between a financial institution, usually a bank, and a customer, that established the maximum amount of a loan that the customer can borrow. Line in this context literally means amount.

rinse and repeat: do things over and over and over.

RMA: Return Merchandise Authorization, a number used for returns by customers so these can be identified by Amazon as physically returned.

robust: someone or something that is robust is very strong or healthy.

ROI: Return On Investment, in other words, how much money you make after all costs, such as Cost Of Goods Sold (COGS) and Amazon’s take (the amount they charge for their services of fulfillment). See also COGS in this glossary.

sanity check: a check done to see if it is a good idea to sell a product or if the product has any peculiarities to it you don’t want to run into later.

SC: Seller Central, your Amazon seller dashboard. This is where you will control everything, such as inventory, restocking, sales, seller feedback, etc.

scale, scaling: to increase or reduce proportionately in size, etc.

SDS: Safety Data Sheet, a sheet that is produced by companies that manufacture hazardous substances. It provides workers and emergency personnel with procedures for handling a particular substance.

seller feedback: the buyer’s way of letting future buyers know what their experience has been with the seller of the product they bought. High seller feedback refers to a high percentage of buyers giving positive feedback.

shipping plan: when you’re ready to send inventory to Amazon, you begin by creating a shipping plan. A shipping plan specifies: The products you want to send to Amazon, the quantity of each product,the shipping method and carrier details and whether or not you want to prep and label your inventory yourself or have Amazon do it.

Shopify: an effective eCommerce website builder that allows merchants to design, develop, market, and sell any type of goods to consumers around the world. See also eCommerce in this glossary.

SKU: a standard inventory management acronym meaning Stock Keeping Unit.

SoS fee: Secretary of State fee, a fee charged by a state when you set up your corporation.

split tested: from split testing (also called A/B testing), the process of comparing two variations of a single variable to determine which performs best in order to help improve marketing efforts. This is often done in email marketing (with variations in the subject line or copy), calls-to-action (variations in colors or different wording), and landing pages (variations in content).

sole proprietor: (USA) a person who is the exclusive owner of a business, entitled to keep all profits after tax has been paid but liable for all losses. In the UK the person is called a sole trader.

sole trader: (UK) a person who is the exclusive owner of a business, entitled to keep all profits after tax has been paid but liable for all losses. In the USA the person is called a sole proprietor.

SSN: Social Security Number, a nine-digit number issued to U.S. citizens, permanent residents, and temporary (working) residents.

Stripe: a technology company that has software to accept (credit card) payments and that you can use for your business online.

tax ID#: short for Tax Identification Number (TIN), an identifying number used for tax purposes in the United States. It is also known as a Taxpayer Identification Number or Federal Taxpayer Identification Number. A TIN may be assigned by the Social Security Administration or by the Internal Revenue Service (IRS).

tax treaty: an agreement made by two countries to resolve issues involving double taxation of passive and active income. Tax treaties generally determine the amount of tax that a country can apply to a taxpayer’s income, capital, estate, and wealth.

terms: reference to the agreement between supplier and you when a bill needs to be paid. Usually we don’t need terms and pay with a credit card immediately when we order. You might buy so frequently from a supplier though, that he offers you terms (for instance, payment 14 days after your order).

Third Party sellers (FBM): sellers who do not use Amazon’s warehousing services. They stock the item themselves, ship it themselves, and deal with all the shipping and customer service issues. They only use Amazon as a sales channel. They can often sell at a lower price because they won’t be paying Amazon warehouse or fulfillment fees. However, they usually have shipping cost which, when added to the total price, make them more expensive then FBA sellers and thus FBA sellers usually get the Buy Box anyway.

TOS: Terms of Service (also known as terms of use and terms and conditions) are rules by which one must agree to abide in order to use a service. Terms of Service can also be merely a disclaimer, especially regarding the use of websites.

tracking ID: a unique link that is provided that allows you to track all the clicks, registrations, impressions, and conversions that originate from a site or web page.

trade associations: a trade association, also known as an industry trade group, business association, sector association or industry body, is an organization founded and funded by businesses that operate in a specific industry. An industry trade association participates in public relations activities such as advertising, education, political donations, lobbying and publishing, but its focus is collaboration between companies. Associations may offer other services, such as networking or offering classes or educational materials.

“turn”: a common name used in retail, and measures how efficient a business is. The more turns, the more sales, and the higher profit. Think of it this way: If you invest $1000 in inventory, and you have 17 turns, that means you will leverage that $1000 17 times per year, or $17,000. So, you have $17,000 a year to make a profit on (If your profit on that item is 20%, that means you will earn $3,400 on it).

un-gated: see gated in this glossary.

UPC: Universal Product Code, a bar code symbology that is widely used in the United States, Canada, United Kingdom, Australia, New Zealand, in Europe and other countries for tracking trade items in stores. See also EAN in this glossary. For an in-depth explanation about bar codes, visit http://www.av1611.org/666/barcode.html

VA: Virtual Assistant, a person you can hire online to help you with your business.

W7: short for W-7 form, a form used to apply for an individual taxpayer identification number (ITIN), for non-citizens who aren’t eligible to receive a Social Security number but need to file a federal tax return with the IRS for income from US sources.

W-8ECI: abbreviation for W-8 Effectively Connected Income. See W8 form below in this glossary. For more information about W-8ECI, see also https://www.irs.gov/forms-pubs/about-form-w-8eci.

W8 form: a W-8 form is an Internal Revenue Service (IRS) form that provides foreigners with an exemption from specified U.S. information return reporting and backup withholding regulations. There are a variety of W-8 forms.

Wholesale Inspector: an online software program that analyzes SKU lists for profitable products. It is a very fast way to find products to buy and sell from a list that is provided by a distributor.

wholesale model: a business model where you sell simple, unsexy products on Amazon. You purchase these products from qualified distributors and send them to an Amazon FBA warehouse. See also FBA in this glossary.

WL: White Label, similar to PL, you brand an existing product made in (usually Chinese factories) as your own and sell it with the agreement of the manufacturer. See also PL in this glossary.

WordPress: a very popular online website creation tool.

WS: Wholesale Distribution; this is what we are doing. We are buying products from a wholesaler and selling it for a profit on Amazon.

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