OMG – Please Explain Amazon Acronyms – ASAP

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.