Amazon Glossary

What is Amazon?

Amazon-Specific Glossary to help guide you through the different ecosystems.

1P Vendors

These companies sell directly to Amazon through retail relationships. Amazon pays their wholesale price, and orders by carton, pallet, truck.

3P Sellers

All Sellers on SellerCentral are considered 3P sellers, because they are using Amazon as a marketing platform to gain customers and let Amazon process the transactions.

Advertising Attribution

Connecting a customer purchase conversion back to the actual ad they clicked on to get them there.

attribution is the term for helping advertisers know which of their ad campaigns are successful or not.

There are many different attribution models.

Advertising Bid

The Bid is the maximum amount that a seller/vendor is willing to pay for a click on their sponsored ads.

IF sponsor A bids $1.00 and sponsorB bids $1.25 then keeping all other constants similar, sponsorB would win the click with a Cost of $1.01

Amazon Choice Badge

The Badge is applied to products with high conversion for a given keyword. Its different from a best-seller because it has the potential to include metrics other than sales, like low returns and higher ratings.


SERP is an Acronym for Search Engine Results Page - whenever you visit you are requesting the Search Results for the keyword “Garlic Press” is the search page

?k=garlic+press is the keyword.

You can always get to the base search page by pasting[your keywords here]

Advertising Glossary


The amazon search algorithm., Inc. is the subsidiary of Amazon that builds their search and advertising technology.

ACOS (Advertising Cost of Sales)

(Ad Spend / Sales) = ACOS. Measures the performance of Sponsored Products campaigns in a ratio format.

Brand lift

A measurement of the direct impact your ads have on a shopper’s perception and behaviors toward a brand. This metric is calculated in a number of ways using post-exposure success metrics, such as brand awareness, and likelihood to purchase metrics.

CPC (Cost-per-click)

Amazon defines this as The average cost you pay each time someone clicks your ad. This number is calculated by dividing the amount of money you spent on an ad divided by the number of clicks it received. Sponsored Products and Sponsored Brands are examples of cost-per-click ads, so you only pay when your ad receives clicks.

CPM (Cost per thousand impressions)

Amazon defines this as The average cost you pay to deliver 1,000 impressions of your ads.

CTR (Click-through rate)

Amazon defines this as The percentage of ad impressions that are clicked as compared to the entire number of clicks. The standard calculation for CTR is (clicks/impressions) x 100.


Amazon defines this as An action that a customer completes; this phrase can be used to refer to any number of actions, including clicking “Add to Cart,” completing a purchase, etc.


Number of times the Ad was shown on the screen, does not gaurantee the customer visually looked at your ad. Amazon defines it as The number of times an ad was rendered on a page or device.

New-to-brand metrics

Amazon defines this as metrics to describe customers purchasing your brand/product for the first time on Amazon over the past year

ROAS (Return on ad spend)

A measure of how many dollars you earn for every dollar you spend on advertising. The standard calculation for ROAS is (Revenue – Cost) / Cost.


Amazon defines this as The total number of unique users who are shown the same ad on any web page or screen.