Category: E-Commerce

WTF! Does it feel like you’re speaking a completely different language as an Amazon seller? One fact quickly becomes apparent as you embark as a merchant in the Amazon marketplace – there are dozens (check that, hundreds!) of acronyms and specialized jargon that make the learning curve a bit steeper than you may have anticipated.

It’s important to have a basic understanding of these acronyms. Having a cheat sheet or even some notes like this should help you when discussing your business with colleagues, peers, and of course Amazon support. It’s also worth noting that you are likely never to be 100% fluent.  That’s because Amazon is continually innovating and launching new programs every year. The list of acronyms will steadily increase over time.

But fear not! The team at Equity Commerce is here to help. Stick with us as you deliver on your KPIs and those SOPs. This initial list is far from complete – or even exhaustive.  But in our opinion, this batch of decoded acronyms will help you get started. 

The Amazon Acronyms – Part One

AGS* (Amazon Global Selling) – This program enables sellers to list and customers to purchase products in 13 online marketplaces around the globe. Think of AGS as Amazon’s version of cross-border e-commerce. 

* Since it’s Amazon, there’s always a complicating factor, LOL. Amazon Games Studios (video game developer) also uses this acronym. So be sure the context of your AGS query speaks to global markets (and not alien dragons invading our globe).

AMC (Amazon Marketing Cloud) – This is a measurement solution related to Amazon’s advertising programs. It’s designed to enable advertisers to analyze and generate insights in a privacy-safe and cloud-based clean room across pseudonymized signals.

AWD (Amazon Warehouse Distribution) – This is the Amazon logistics solution launched in the fall of 2022. AWD is aimed at helping brands and sellers use Amazon in a manner similar to third-party logistics solutions (3PLs). This program is currently by invitation only and thus far, offers limited information to external audiences.

CRaP (Cannot Realize a Profit) – This acronym describes products, based on Amazon algorithms, that are unable to generate a profit due to shipping costs, excessive inventory, and/or pricing issues. Similar to real-world crap, the CRaP designation in the context of your products should be avoided at all costs. Financial impacts can be catastrophic – and losing money stinks.

FBA (Fulfillment by Amazon) – This is a service that enables sellers to outsource order fulfillment (picking, packing, and shipping) to Amazon. Sellers ship their products to Amazon FCs (aka fulfillment centers) and Amazon handles all of the logistics for sales made on Amazon.

FBM (Fulfillment by Merchant) – Instead of FBA, this is when sellers fulfill orders made on Amazon through their own picking, packing, and shipping processes and/or through the use of a 3PL (aka a Third Party Logistics provider).

MCF (Multi-Channel Fulfillment) – This is an option built on the FBA model where Amazon offers fulfillment solutions to sellers. This service is for product orders made via external or non-Amazon sales channels such as a brand’s own D2C (aka Direct-to-consumer) website and other online marketplaces.

TOS  (Terms of Service) – A key aspect of selling on Amazon relates to policy compliance. In other words, brands must follow the terms of service outlined by Amazon, in order to sell to consumers. Keeping your account in good standing and following SOPs (aka standard operating procedures) is the goal. A seller would be considered in breach of their TOS, by leveraging non-compliant or unethical tactics. This could include buying product reviews in bulk and/or using “black-hat” software to artificially inflate your Amazon search ranking.

FYI – Don’t do it!

LOL and FWIW

Again and TBH, we could go on and on here. But for now, we hope this quick guide helps you to navigate the communication streams of Amazon. As a marketplace seller, these acronym-named programs can help run your business in a more streamlined manner. It’s also vital that sellers and brands have a thorough understanding of their unit economics when considering any of the solutions mentioned above.

And FWIW, before we end this article, here’s one more acronym to consider.

BwP (Buy with Prime) – This is another newer (2022) program where customers can shop from direct-to-consumer retailers and check out with fast, free shipping as an Amazon Prime member. Look for the Buy with Prime badge to instantly purchase a product with the fast, familiar Amazon checkout experience.

And speaking of BwP, Equity Commerce is proud to be a Buy with Prime Agency Partner. If you are interested in learning more about Buy with Prime or if you have questions about an Amazon acronym that’s driving you crazy, please reach out to Equity Commerce – we are here to help.

A common concern we hear from brands and sellers already on Amazon goes like this: Will Buy with Prime (BwP) cannibalize my current Amazon sales? 

Let’s cut to the chase and answer that question head-on.  The answer is an emphatic heck no, and in this article, we explain why.  We also offer a few basic strategies to ensure that Buy with Prime is an enhancement, not a cannibal of your existing Amazon marketplace business. 

Product Selection is the Critical First Step to Success

Choose your DTC Website’s Top Seller

Perhaps contrary to intuition and instinct, the best choice of product to launch as part of your Buy with Prime strategy is not your top-selling Amazon product.  At least as of this writing (November 2022), Amazon has placed limitations on the number of products that can be added to the Buy with Prime program.  That’s why we encourage sellers to launch Buy with Prime using the best-selling items from their direct-to-consumer (DTC) website (instead of the top-seller from Amazon). We believe this is the most efficient tactic to avoid negatively impacting your current Amazon business.

Single Items Only

Choose products that are sold individually, or in “eaches” instead of items sold as a bundle in a quantity pack. Buy with Prime currently supports single SKU items only. While customers can of course still choose color and size variations (aka “child ASINs”), Buy with Prime does not support quantity bundles. 

Choose Products that Need to Go (and Fast!)

We are also encouraging sellers to select products that are currently seeing significant return rates on the DTC site and/or those items that may be in need of fast shipping due to looming expiration dates around the corner (this could also include items that may soon be replaced or updated). We suggest products with these attributes because it offers sellers the opportunity to leverage Amazon’s massive logistics infrastructure. And obviously, this is less of an option for smaller businesses with modest shipping and warehouse teams. 

Another benefit of FBA is the fact that Amazon bears the responsibility of handling costly returns and providing fast two-day shipping as part of the Buy with Prime program fees. When comparing those same costs to third-party logistics (3PL) companies in the United States, Buy with Prime makes even more sense.  

Compliance is Critical

This may be obvious, but to ensure a smooth and efficient process, be sure that the Buy with Prime product(s) that you’ve chosen also comply with all relevant Amazon policies for your product category.  

Here is a list of helpful links – just in case you have questions about compliance.

Amazon Seller Central – Restricted Products List

Amazon FBA – Product Restrictions

How to Identify Dangerous Goods – Seller Central Identification Guide (HAZMAT)

Understanding the FBA Impact of Items with Expiration Dates

Amazon Pay – Acceptable Use Policy

And for warmer climates – Amazon’s FBA Guide for Meltable FBA Inventory – “Meltable” refers to all heat-sensitive products, including but not limited to chocolate, gummies, and select jelly- and wax-based products.

The bottom line? There’s plenty to consider.  Please reach out to Equity Commerce and let us know how we can help.  We look forward to hearing from you.