AMAZON Seller FBA Private Label Basic

 

 

Amazon FBA PL Basic Knowledge & Terminology

What is Amazon.?

 

 

It's an internet-based enterprise that sells either directly or through a middleman between other retailers. In a broader sense, we can also say that it is a search engine where sellers meet buyers and buyers meet sellers for goods and services.

 

Fullfilment Center: Its amazon storage warehouse in marketplace.

Fullfilment Fee: Its amazon rate for fulfilling the order in the light of shipment size or we can say that it’s the fee for order pick and pack in regards of the shipment.

Referral Fee: It’s the referral fee that is based upon the product base price. Most probably, referral fees are different for different categories. However, it lies b/w 8 % to 15% of the item price.

Storage fee: It’s a storage fee for the seller through Amazon's FBA model for facilitating their inventory in the Amazon warehouse.

Long-Term Fulfillment Fee: Amazon charges you the fee if your inventory is aged or older than 360 days.

Amazon Liquidation Inventory: It’s a process that Amazon does offer to its sellers for excess or unsellable inventory to create the fulfilment order so that Amazon can later liquidate your inventory, provide you with the recovery value, and charge you their fee for the whole arrangement.

FBA: The full form is fulfilled by Amazon, including all the labeling, handling, storage, and delivering.

FBM: Full Form is fulfilled by the merchant, whereas the seller himself handles all the handling, labeling, and deliveries and keeps updating Amazon by maintaining their book at Amazon.

Amazon Revenue Calculator: It’s the way to determine the product cost and its net profit margin before touching the marketplace to sell. However, we can also say that it’s the estimates fees to check for FBA/FBM to sell on Amazon.

Amazon Standard Identification Number (ASIN):

ASIN is specifically assigned to products by Amazon for identification purposes. It would be similar to the UPS/EAN for the product at the Amazon fulfilment center.

Amazon Shipment Rate Model: Amazon provides the two shipment based models as mentioned below:

Per Item/Weight-Based: Shipping rates are according to the per item weight.

Price Banded: The shipment rate is determined according to the item's total price.

A9 Algorithm: It’s the system that determines how your products appear in Amazon's search engine. It depends upon the different factors. A few main points are listed below:

• Listing Title
• Listing bullet points
• A Plus Content
• Product Images/Videos
• Review /Ratings of Product
• Competitive Price
• listing keywords, indexing, and many others, etc.

 

Account Health: This is the seller's performance that indicates where you stand in the eyes of Amazon or the buyer.

Moreover, It depends on the three things mentioned below:

• Customer Service Experience
• Policy Compliance
• Shipping Performance

Customer Service Experience (CSE): It holds the buyer's overall analysis of your services and goods, for example, the order defect rate, negative feedback, or any refund claims by the buyer.

Policy Compliances: It is the Amazon terms and conditions for sellers to maintain discipline and quality assurance, whereas any breach of the general seller agreement can’t be committed.

Shipping Performance: It reflects the seller's shipment performance in terms of late shipment, valid tracking rate, and pre-fulfillment cancellation rate.

 

Inventory: It’s the amount of the goods/product available to ship. It should not be in excess, nor should it be in shortage.

Index Performance Index:

Short Form IPI, it’s the indicator the gauge seller overall inventory performance. It depends upon the inventory condition, excess inventory percentage, FBA sell-through rate, stranded inventory percentage, and FBA in-stock rate.

Standard Inventory: It’s the inventory at the Amazon store that needs to be fixed to make it sellable.

Unfulfillable inventory: it’s the inventory that is damaged and not in a condition to sell again.

Dispose off: It’s the option that Amazon gives you to destroy your inventory in the case of unfulfillable inventory. However, Amazon charges a minor fee for doing so.

Return to Address: It’s the way Amazon allows you to return standard inventory or unfulfillable inventory to you on demand.

 

Amazon Promotion Type:

From time to time, Amazon allows its sellers to promote their products with deals, on special occasions, or by continuously providing coupons and promotion offers to grab market share. There are four types of offers, as mentioned below:

• Deals
• Coupons
• Prime Exclusive Discount:
• Promotions

Deals: it normally includes promoting your product on a specific deal page in consideration of the Amazon fee for the deal.

Coupons: Amazon continues to provide you with a way to promote items through coupons. Amazon also has a coupon page, where all the items are displayed with a coupon tag discount. However, Amazon charges a coupon fee per unit ordered.

Prime Exclusive Deal: Amazon continuously provides you with the Prime Exclusive deal, whereas, you can offer discounted rates to Amazon Prime customers. There is no fee for the Prime Exclusive Deal.

Promotion: It works in the same way as the Prime Exclusive Deal, but it is open to all Amazon customers as well as other platforms on social media to attract traffic and convert it to the Amazon product detail page.This is absolutely free to enrol in.

A/B Testing:

It's a way to experiment with the main image, A+ content, bullet point, and title of the product that carries the most popularity among customers to win buyer favour for sale conversion.

Business Report:

It’s a way to detect the seller's performance, either sale-wise or buyer-session-wise.

Subheadings of the Business Report:

• Page View: The number of visitors to your Amazon store. However, Amazon considers each store as a different page, so far, wherever customers visit more than one store. Each will be considered as an individual page view.
• Session: It’s a set of user interactions with your Amazon page in a certain time frame. However, this user would go to your multiple Amazon stores for different products, which would be considered a different page impression but considered as one session.
• Order Session Percentage: It’s the indicator that shows how many orders were placed with the number of unit sessions in a certain time frame. The order session percentage is also considered the conversion rate. It is calculated as (number of unit sessions)/number of ordered.

Basic Amazon Ads Terms:

As a big platform, Amazon does organise its system, whereas every seller gets the Amazon Ads programme to promote their product in terms of the competition by targeting a specific keyword, category, or competitor product. There are a few subterms that would help you understand Amazon advertising metrics, as mentioned below:

• Placement: The place where Amazon advertises your product on a specific query or page.
• Budget: The specific amount that you are willing to pay to promote your product.
• Bid: The amount the seller is ready to pay for the shopper to click on your advertisement.
• Cost per click (CPC): This is the average cost you are paying each time shoppers click on your ads.
• Cost-per-thousand impressions: the average cost you pay to deliver 1000 impressions of your ads.
• Advertising cost of sale: It’s the indicator that reflects the ratio of your total spend over the total attributed sales during that period. It's better to draw the thin line of your ACOS before setting your profit margins.
• Click through Rate (CTR): It’s the ratio of the total number of clicks to the total number of impressions during that time. It's good to have a CTR greater than 25 % in terms of the visibility of your product.
• Impression: The number of your ads that pass through the eyes of the buyer.
• Return on ad spend (ROAS): This is a measure of how much you earned for every dollar spent on advertising, or it is the ratio of total attributed sales to total spending.
• Return on Investment (ROI): This is measured by the net profit gain divided by the cost of buying the item.

 

Brand Advertising Category:

• Sponsored Ads: It’s a way to promote the individual products you sell on Amazon.
• Brand-Sponsored Ads: More specifically, it’s an additional feature of sponsored ads that promote your Amazon brand store dashboard.
• Sponsored Display Ads: It’s a self-service that Amazon provides to help reach the relevant audience on and off the platform.

 

• Automatic Campaign: It's for the beginner, who don’t have the product research and market analysis with respect to competitors and the right audience. As a result, Amazon determines whether to run ads on specific Amazon data collections based on product listing content. Moreover, the best practice is to run an auto campaign for a minimum of 2 weeks and then, through report analysis, check which keywords, ASINs, or categories are best for running ads in a manual campaign.
• Manual Campaign: It’s a more organized campaign, whereas sellers manually define the keyword and ASIN or category targeting.

 

Manual Keyword Targeting:

1.      Exact Match: For this campaign, exact match keywords are used to run ads that range from singular to plural and vice versa.

2.      Phrase Match: It carries the phrase match keywords in order except for prepositions in between them or prefixes and suffixes.

3.      Broad Match: This ad will be triggered by the keywords without any sense of order, except that the exact match will be included.

Auto Targeting:

1.      Closed Match: IT carries the keyword that is closely related to your product.

2.      Loose Match: The ads will be run, whereas the keyword is comparatively close to the match.

3.      Substitute Match: It’s a type of campaign that shows the ads on the detailed page of a similar item.

4.      Complementary Match: It’s a type of campaign that shows the ads on the detailed page of the complementary item.

 

Brand Registry:

Brand registry is a way to register your store on Amazon, to protect your products from hijackers or create a hike following of brand loyal customers.

Brand Analytics:

It’s a special feature given to all the brand register sellers and vendors so they can review their brand position with respect to their market share in relation to their competitors. In other words, we can also say that it’s the overviewing eye of the brand seller to watch the market more in depth.

A Plus Content:

It will provide you with a more detailed module template for your Amazon product detail page to express your story to your buyers.

Vine:

It's a programme that allows you to give away free items to the Amazon Vine community in exchange for reviews. This programme will charge you the Amazon miner fee to enroll in it.

Save and Subscribe:

It’s the way that Amazon allows its customers to save 5 to 20 percent by signing up for auto deliveries.

Backend Search Terms:

The series of keywords that Amazon allows you to add in your listing, which will later help you to search for your product using those keywords to rank and index.

 

By: Junaid Masood