Amazon wholesale glossary: the terms that matter, in plain English

Apex Applications Team··8 min read
The short answer

This glossary defines the words you meet as an Amazon reseller, from ASIN and UPC to FNSKU, landed cost, ungating and DD+7, in plain English. Terms are grouped by the stage of the Amazon wholesale roadmap where you first need them, then listed A to Z, and each one links to the guide that explains it in full.

Looking for one word? Jump to the terms by stage or the A to Z index.

Selling on Amazon comes with its own vocabulary, and wholesale adds a second one from the supplier side: price lists, case packs, minimums and net terms. Most of what confuses new sellers isn't a hard idea. It's the words: two names for the same thing, or one word that means something different to your supplier, to Amazon and to the seller group you just joined.

This glossary is for people who resell existing brands on Amazon in the US, whether they use FBA or ship orders themselves. Each entry gives a short definition and links to the guide that covers the term properly, with Amazon's sources. A term joins the list once its guide is published and reviewed, so every link takes you somewhere useful.

How this glossary is organized

The terms follow the ten stages of the Amazon wholesale roadmap, in the order you meet them in a real business, and within each stage they run A to Z.

If you're new, read the stages from the top, because each one makes the next easier to follow. If you just heard a word in a seller group or a supplier email, the A to Z index at the end of the page takes you straight to it.

Stef's course runs in much the same order. In The Game, from the first module of Apex University, he lists the skills a wholesale business is built on:

"These are the few pillars that we need to master: how suppliers work and how we reach out to them, how to do product research, how to do the proper amount of purchasing, prepping and shipping, scaling, and optimizing."

From Stef's lesson (The Game, at 7:38)

You don't have to come back here every time you meet a new word. Across our guides, the first mention of a term such as landed cost often links to the guide that explains it.

Words that mean something different at Amazon

Some everyday words mean one thing to suppliers and other sellers and something narrower to Amazon. Amazon's help pages and notices use Amazon's meanings, so it pays to know both. If a search in Seller Central Help comes back empty, try Amazon's word instead of the one from your seller group.

WordWhat sellers usually meanWhat Amazon means
VendorYour supplier: the brand or distributor you buy from. Supplier tools, Apex's included, often use the word this way.A company that sells products to a retailer like Amazon. Amazon calls you, a third party selling in its store, a seller.
ListingThe product page you sell on.The product detail page together with all the offers on it. When you resell a product that's already in the catalog, you add your offer to an existing listing (how wholesale works).
ResellerAnyone who buys products to sell them again.That, and also a Brand Registry role a brand can give a third-party seller it has authorized, which opens some brand tools such as A+ Content (letters of authorization).
Buy BoxThe box with the Add to Cart button, and whoever's offer is in it.The Featured Offer, which is what Amazon now calls it. Its glossary names the spot that holds it the Offer Display, and the section that lists every offer the All-Offers Display (the Buy Box guide).
ShipAny shipment, in or out.Amazon splits the words. Send means moving inventory into Amazon's network, fulfill means picking, packing and delivering to customers, and ship can mean either.
HazmatAnything that sounds dangerous.Dangerous goods: hazardous materials that can pose a risk if they aren't handled properly (products to avoid).
GatedA product you need Amazon's approval to sell.Amazon's pages talk about products that require approval. Search one in Add Products and you'll see Show limitations, with an Apply to Sell button when you can apply (the ungating guide).

The meanings in the Amazon column come from Amazon's A-to-Z selling glossary, apart from the Buy Box rename, which is from Amazon's Featured Offer article, and the gated row, which is from its guide to finding wholesalers. All three are public pages on sell.amazon.com.

You'll see the same split in Seller Central, where the workflow for creating an FBA shipment is called Send to Amazon: it moves your stock into Amazon's network, and orders ship to buyers from there.

Words that get mixed up

These pairs come up again and again in seller groups. This table puts them side by side so you can see where one ends and the other begins.

WordsThe differenceRead more
ASIN, UPC, SKU and FNSKUFour codes, one product. The UPC is the barcode number the brand prints on the package, and it's how a supplier's price list matches to Amazon. The ASIN is Amazon's code for the product page. The SKU is the code you give your own offer. The FNSKU is the code on the label that marks an FBA unit as yours.FNSKU labels
ROI and marginBoth divide your profit by something. ROI divides it by what you spent to get the unit to Amazon; margin divides it by the selling price. For example, a unit that costs you $15 to land and sells for $30, leaving you $6 of profit once Amazon's fees are paid, has a 40% ROI ($6 of $15) and a 20% margin ($6 of $30).Wholesale profit margins
Landed cost and cost of goods soldLanded cost is what one unit costs you by the time it's ready to sell at Amazon. Cost of goods sold counts that cost in the month the unit sells, which is how it reaches your profit and loss.Landed cost, bookkeeping
Referral fee and FBA fulfillment feeThe referral fee is Amazon's commission on each sale, a percentage of the price that depends on the category. The fulfillment fee is charged for each unit Amazon picks, packs and ships, by size and weight. An FBA sale pays both.Referral fees, all FBA fees
Gated, restricted and prohibitedGated means you need Amazon's approval and can apply for it. Restricted means the product type carries extra rules from the law, product safety or Amazon policy, whatever your approvals. Prohibited means nobody can sell it on Amazon.The ungating guide
Price list and purchase orderThe price list is the supplier's offer: products, UPCs, case packs and your cost. The purchase order is what you decide to buy from it, line by line.Analyzing a price list, purchase orders
Case pack and MOQThe case pack is how many units come in one case, and many suppliers sell only whole cases. The MOQ is the smallest order a supplier accepts overall, in units, cases or dollars.Your first wholesale order
Seller feedback and product reviewsSeller feedback rates you as a seller, on delivery, packaging and service. A product review rates the product itself.Review requests
DD+7 and the account reserveUnder DD+7, Amazon usually holds the money from each order until seven days after it's delivered. The reserve is money Amazon holds back from your balance to cover refunds and chargebacks.Amazon payouts
Wholesale, arbitrage and private labelWholesale means buying from a brand or its distributors in bulk. Arbitrage means buying from other stores, online or in person, to resell. Private label means selling a product under your own brand.Online vs retail arbitrage, wholesale vs private label
FBA and FBMWith FBA, Amazon stores your stock and ships each order. With FBM, you store and ship the orders yourself.How wholesale works

Shorthand you'll see in seller groups

Seller groups, supplier emails and Amazon's notices are full of abbreviations. Here are the common ones and what they stand for.

ShorthandStands for
3PLThird-party logistics: a company that stores, packs or ships inventory for you
AHRAccount Health Rating
AWDAmazon Warehousing and Distribution, Amazon's long-term storage service
FCFulfillment center: an Amazon building where customer orders are picked, packed and shipped
IPIntellectual property, as in an IP complaint
IPIInventory Performance Index
MAPMinimum advertised price: the lowest price a brand's policy lets resellers advertise
MSRPManufacturer's suggested retail price
OA and RAOnline arbitrage and retail arbitrage
ODROrder defect rate
PLPrivate label
POPurchase order
POAPlan of action
Q4The fourth quarter, October to December: the holiday season

Several of these, such as AHR, ODR, POA, OA and RA, have an entry under their full name below. Amazon's own list of the acronyms it uses for its programs, AWD and IPI among them, comes right after the entries in its A-to-Z glossary.

How we keep these definitions accurate

The Apex team keeps each definition to a sentence or two. The detail lives in the guide each entry links to, and when a term involves one of Amazon's rules or fees, that guide cites Amazon's own US pages. We don't put fee amounts in the glossary at all, because Amazon changes them; the fee guides show Amazon's current tables or link to them.

If an entry here ever disagrees with an Amazon page about your account, go with Amazon's page, and please tell us so we can fix it. Our editorial policy explains how we source and update every guide.

Questions about the glossary

Where can I find Amazon's own definitions of selling terms?

Amazon publishes an A-to-Z selling glossary on sell.amazon.com that anyone can read without signing in. It covers Amazon's own words, such as the Offer Display, Brand Registry roles and stranded inventory, and after the A to Z entries it lists the acronyms Amazon uses and the terms people mix up. It doesn't cover most of the supplier-side words in this glossary, such as ungating, letters of authorization, MOQ or DD+7. For the rules behind a term, Seller Central Help is the source, and most of its pages need a sign-in. Amazon's Seller University has its own courses too.

Which terms should I learn before my first wholesale order?

Before you place a first purchase order, make sure these are clear: ASIN and UPC (how a price list matches Amazon), BSR (how well a product sells compared with others in its category), price list, case pack and MOQ (what a supplier sells and how), referral fee and FBA fulfillment fee (what Amazon takes), landed cost and ROI (what you keep), gated (whether you can sell it at all) and FNSKU (how your units are labeled). Most of them belong to stages 2 to 7 of the roadmap (some join the list below as their guides are reviewed), and the rest can wait until you need them. If you'd rather hear them used in context, Apex University uses them lesson by lesson.

Why is a term I heard missing from this glossary?

Usually because its guide is still being reviewed, or isn't written yet. We add a term when its guide is ready, so the list grows over time. Advertising terms such as ACoS aren't here because our guides don't cover running Amazon ads. If you meet a word in Seller Central that isn't here, try Amazon's A-to-Z glossary, and if you think we should add it, let us know through our contact page.

Terms by stage

Stage 1Understand reselling

1P and 3P
1P (first party) means a brand sells to Amazon and Amazon resells the product. 3P (third party) means an independent seller lists and sells on Amazon's marketplace, which is how resellers sell. Reselling on Amazon
FBA (Fulfillment by Amazon)
Amazon's service where you send inventory to its warehouses, and Amazon stores it, packs and ships each order, and handles customer service and returns, for a fee. How Amazon wholesale works
FBM (fulfilled by merchant)
Selling on Amazon while you store and ship each order yourself, or through your own warehouse, instead of using FBA. How Amazon wholesale works
Online arbitrage
Buying products from online stores, often on sale, and reselling them on Amazon for more than you paid. Online vs retail arbitrage
Private label
Selling a product under your own brand, usually made for you by a manufacturer. You create the product and its listing instead of reselling a brand that already exists. Wholesale vs private label
Retail arbitrage
Buying products in physical stores, often on clearance, and reselling them on Amazon for more than you paid. Online vs retail arbitrage
Wholesale
Buying existing branded products in bulk from the brand or an authorized distributor, then reselling them on Amazon listings that already exist. How Amazon wholesale works

Stage 3Fees and numbers

Closing fee
A fixed fee Amazon adds to each sale of media, such as books, music and video, on top of the referral fee. Referral fees by category
Inbound placement fee
A per-unit fee for sending a shipment to fewer Amazon warehouses than Amazon would choose. The fewer locations you ship to, the higher the fee. Inbound placement fee
Individual and Professional plans
Amazon's two selling plans. Individual charges a fee for each item sold; Professional charges a monthly subscription and opens the selling tools most resellers need. Amazon FBA fees
Profit margin
Profit divided by the selling price, as a percentage. It tells you how much of each sale you keep. Profit margin and ROI
Referral fee
The commission Amazon takes on each sale: a percentage of the total price that depends on the product's category, with a minimum per item in most categories. Referral fees by category
ROI (return on investment)
Profit divided by what you spent to get the product to Amazon, as a percentage. It tells you how hard your money works on each buy. Profit margin and ROI

Stage 4Get approved

Authorized reseller
A seller the brand itself has agreed may sell its products, usually shown by the brand's signed letter and, for a Brand Registry brand, the Reseller role. Buying from its distributor alone doesn't make you one. Letter of authorization
Brand Registry
Amazon's program for trademark owners. It gives a brand more control over its listings and tools to report sellers it believes infringe its rights. Letter of authorization
Gated
Restricted on your account until Amazon approves you. When you try to list a gated product, Seller Central asks you to request approval first. Get approved
LOA (letter of authorization)
A signed letter from the brand owner or manufacturer saying your business may sell its products. Amazon may ask for one when you apply to sell a brand. A distributor's letter doesn't count. Letter of authorization
Ungating
Getting Amazon's approval to sell in a category, a brand or a product that is restricted on your account. Get approved

Stage 5Find suppliers

Brand direct
Buying straight from the brand that makes a product instead of through a distributor. Brand-direct wholesale
Reverse sourcing
Finding a product that already sells well on Amazon first, then working back to the brand or distributor you could buy it from. Find brands to wholesale

Stage 6Research and first order

ASIN
Amazon Standard Identification Number: the 10-character code Amazon gives each product page. Every seller of that product sells on the same ASIN. ASIN
Case pack
The number of units a supplier packs in one case. Many suppliers sell only full cases, which sets the smallest amount of a product you can buy. Analyze a price list
EAN
European Article Number: the 13-digit barcode number used in much of the world. It does the same job as a UPC. ASIN
GTIN
Global Trade Item Number: the family name for product barcode numbers, including UPC and EAN. ASIN
Hazmat
Short for hazardous materials: products Amazon treats as dangerous goods, such as some aerosols, lithium batteries and flammable liquids. They go through extra review before FBA accepts them. Products to avoid
Keepa
A third-party service that tracks the history of a product's Amazon price, rank and offers. Resellers read its charts to judge how steadily a product sells. Reading Keepa charts
Landed cost
Everything one unit costs you until it is ready to sell at Amazon: the supplier price plus freight, prep, labels and inbound fees. Landed cost
Meltable
A heat-sensitive product, such as chocolate, gummies or some jelly- and wax-based products. Amazon accepts meltables into FBA only during the cooler months of the year. Products to avoid
Parent ASIN
The ASIN that groups a product's variations. Shoppers see the parent page, and each size or color has its own child ASIN that sellers sell on. ASIN
Price list
A supplier's list of the products it sells, usually with UPCs, case packs and your cost per unit. Matching it against Amazon shows which products could make a profit. Analyze a price list
SKU
Stock keeping unit: your own code for a product in your inventory. On Amazon, each of your offers has a SKU you choose. ASIN
UPC
Universal Product Code: the 12-digit barcode number on most products sold in the US. Suppliers list products by UPC, which is how a price list is matched to Amazon. ASIN
Variation
One version of a product, such as a size or a color, grouped with its siblings under a parent listing on Amazon. ASIN

Stage 7Prep and ship

Commingling
Amazon's former practice of storing identical units from different sellers together and shipping whichever was closest to the buyer. It ended for inventory shipped on or after March 31, 2026. FNSKU labels
FNSKU
Fulfillment network SKU: the barcode Amazon uses to track FBA units as yours. It is printed on the label that goes on each unit. FNSKU labels
Prep center
A company that receives your inventory, checks it, labels and packs it to Amazon's requirements, and ships it into FBA for you. Prep and ship
Transparency
Amazon's anti-counterfeiting program in which a brand puts a unique code on every unit. Units of an enrolled product need a valid code to be sold. FNSKU labels

Stage 8Sell and win the Buy Box

Buy Box
The box on a product page with the Add to Cart button. When several sellers offer the product, Amazon picks whose offer goes there, and that seller makes the sale. The Buy Box
Request a Review
The Seller Central button that sends a buyer Amazon's standard email asking for a product review and seller feedback. Automate review requests

Stage 9Protect your account

Account Health Rating
Amazon's score of how well your account follows its selling policies, shown on the Account Health page in Seller Central. Account health
Order defect rate
The share of your orders that get negative feedback, an A-to-z Guarantee claim or a credit card chargeback. Amazon uses it to measure the experience buyers have with you. Account health
Plan of action
The appeal you send Amazon after a suspension or a policy violation, explaining what went wrong, what you fixed and how you will stop it happening again. Suspension appeal
Section 3
The section of Amazon's Business Solutions Agreement on term and termination. Amazon cites it when it suspends or ends a selling account. Section 3 violations

Stage 10Run the numbers and scale

Account level reserve
Money Amazon holds back from your payouts to cover possible refunds and chargebacks. It shows in your payments report and is released later. Amazon payouts
Cost of goods sold (COGS)
What the units you sold cost you, counted when they sell rather than when you buy them. Your profit and loss statement subtracts it from sales. Bookkeeping
Days of cover
How long your stock lasts at your current pace: the units you own divided by the units you sell a day. When to reorder
DD+7
Short for delivery date plus seven days: Amazon holds the money from an order until seven days after it is delivered before the money can be paid out. Amazon payouts
Lead time
Every day from deciding to reorder until new units are available to buy at Amazon: ordering, the supplier, freight to your prep center, prep and Amazon receiving. When to reorder
Reorder point
The stock level for one product at which you place the next purchase order, so new units are sellable before the old ones run out: units sold a day times lead time plus safety days. When to reorder
Safety stock
Extra days of stock held for when a lead time runs long or sales run fast. When to reorder
Settlement report
Amazon's report for each payout period, listing every sale, fee, refund and adjustment that adds up to the payment sent to your bank. Amazon payouts

A to Z

Apex University comes with a free Apex account: nine lessons, no card.

Sources

  1. Amazon A-to-Z: A glossary for ecommerce sellers, Amazon (sell.amazon.com)
  2. Maximize your sales potential with the Featured Offer (formerly the Buy Box), Amazon (sell.amazon.com)
  3. How to find wholesalers, Amazon
  4. Seller University, Amazon (sell.amazon.com)

How we source and check our guides