If you’ve been looking into how to sell on Amazon for beginners, you’ve probably come across this terminology and queries. We’ll respond to them on your behalf.
If you’ve come this far, you’ve probably been looking for answers to some of the most often asked questions by new or prospective Amazon sellers.
We understand that much of our content is geared toward intermediate and advanced sellers, but we haven’t forgotten about those of you who are just getting started.
That’s why we’ve compiled a list of frequently asked questions from newcomers and those just getting started with their studies. Links to more detailed explanations and background are provided where applicable.
What is an ASIN code, and what does it mean?
The ASIN (Amazon Standard Identification Number) is the number that Amazon employs to keep track of all of the items in their catalog, including those that you sell. It’s made up of ten different letters and numbers, and it’s visible on the Amazon item page in various locations, including the URL.
What exactly is an FNSKU?
The Fulfillment Network Stock Keeping Unit (FNSKU) is the number seen on the Amazon barcode label on Amazon-fulfilled products. It refers to the product’s seller; two vendors with the same ASIN, for example, would have separate FNSKUs.
What is the Amazon Buy Box, and how does it work?
The Amazon Buy Box is the portion of an item’s website where you may make a purchase. On desktop screens, this appears on the right side, while on mobile screens, it appears below the product photos and delivery/price information.
When a buyer selects “Buy it Now” or “Add to Cart,” “Winning the Buy Box” signifies you are now the seller whose product is sold.
When a client clicks on “Buy it Now” or “Add to Cart,” another seller’s item will be put to their cart or purchased if you are not presently winning the Buy Box.
Wholesalers and retail/online arbitrage sellers, in general, are concerned about losing the Buy Box.
What does “Sponsored” on Amazon mean?
You might come across a product that says “Sponsored” when browsing Amazon. This indicates that the product’s seller has paid to have their product advertised in that location. This advertisement typically appears near the top or middle of search results, as well as in banners on various Amazon pages.
What is Amazon PPC?
Because the costs you pay for adverts are frequently based on clicks, PPC stands for “Pay Per Click” and relates to advertising on Amazon. Sponsored Ads, as described above, are one form of advertising on Amazon.
What is Amazon’s ACoS?
ACoS (Advertising Cost of Sales) is a term that is connected to PPC. It shows what % of your sales are spent on advertising to close that sale.
Selling and branding are two different things.
What is the definition of a Private Label?
A Private Label seller on Amazon is someone who creates their own product with their own branding and then markets and sells it on Amazon.
In contrast, an arbitrage seller resells things purchased at a bargain, whereas a wholesaler buys in bulk from a manufacturer at a discount and resells at retail.
What is Amazon Brand Registry, and how does it work?
Private Label vendors with their own brand can join the Amazon Brand Registry. It gives Private Label vendors who meet specific criteria (such as holding a trademark) additional control over their product management.
Some of the rights provided include greater listing editing control, improved display of listing material, better protection against listing hijackers and piggybackers, and so on.
What does it mean to be fulfilled?
Fulfillment in eCommerce refers to the process of “fulfilling” an order, which includes storing the goods, retrieving them from storage, packaging it for shipping, and finally shipping it to the buyer.
What is Amazon Fulfillment (FBA)?
FBA (Fulfillment by Amazon) is an Amazon retailing. The FBA approach entails Amazon picking, packing, and shipping your orders directly to Amazon customers. The shipping of your products to an Amazon warehouse or fulfillment center is your main responsibility in the fulfillment process under FBA; Amazon takes care of the rest.
Many sellers only sell through Amazon’s Fulfillment by Amazon (FBA) program. However, total fees are greater due to Amazon’s convenience in handling fulfillment.
What is Merchant Fulfillment (FBM)?
Fulfillment by Merchant (FBM) is a term that refers to the process of a merchant fulfilling a customer Sellers are responsible for all stages of fulfillment, including storage, picking, packaging, and shipping, under the FBM system, which differs from FBA. When you think of the typical “start a business out of your garage” idea, this is most likely the model that comes to mind.
Because you handle fulfillment yourself, your fees are cheaper than with FBA. Many fbm sellers also employ 3PLs (third-party logistics), which may cost less than FBA in the long run.
What does it mean to use a 3PL (third-party logistics) service?
Third-party logistics is abbreviated as 3PL. This is a third-party warehouse/fulfillment service that you engage to hold, pick, pack, and ship your orders for you. This is generally used by merchants who don’t want to use Amazon’s FBA model but don’t want to handle the order fulfillment.
What is Amazon dropshipping?
Another way to sell and fulfill orders is through dropshipping. When you dropship, you act as a “go-between” for an Amazon customer and a manufacturer. When a customer orders something on Amazon, you execute the order, and the manufacturer ships the item directly to the client. At no point during the process does the product pass through your hands.
Contrary to widespread assumption, Amazon dropshipping is legal as long as certain guidelines are followed.
What is the definition of a freight forwarder?
A freight forwarding service is a company that manages the transportation of your goods, usually from another country. They’ll help you coordinate shipping points, negotiate freight pricing, handle customs/import paperwork and fees, track shipments, and more.
Not everyone requires the services of a freight forwarder; your requirements will be determined by your supply chain and company needs.
How much does it cost to sell anything on Amazon?
There are various costs to consider, based on what you’re selling, how much you’re selling, whether you’re doing FBA, FBM, or both and other factors.
Fees can include things like per-sale commissions/referral fees, FBA shipping/fulfillment expenses, the cost of shipping your goods to Amazon, the cost of purchasing inventory, the cost of freight/shipping from your supplier, advertising fees, and so on. The list continues on and on, and there’s no way to fit it all into one FAQ!
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