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Glossary

Every Amazon seller, US import, and cross-border term explained. Built for Indian founders going to USA - no jargon, no fluff.

A

A+ Content

Enhanced product description with images, comparison tables, and rich formatting. Available only to Brand Registered sellers. Lifts conversion rate 3-10%.

ACOS (Advertising Cost of Sales)

Ad spend ÷ ad-attributed revenue × 100. A measure of PPC efficiency. Lower = more profitable ads. Healthy range: 15-30%.

AGL (Amazon Global Logistics)

Amazon's in-house freight service from origin (e.g. China, India) to Amazon FCs. Competing with traditional freight forwarders.

ASIN

Amazon Standard Identification Number. The unique 10-character ID Amazon assigns to each product listing.

B

BOI (Beneficial Ownership Information)

Federal report all US LLCs must file with FinCEN identifying owners with 25%+ stake. Due within 90 days of formation. $500/day penalty for non-filing.

Brand Registry

Amazon program protecting your trademark, unlocking A+ Content, Sponsored Brands, video ads, and the Brand Analytics dashboard. Requires a USPTO trademark application.

Buy Box

The featured offer on a product page that gets ~83% of sales when multiple sellers offer the same product. Won by best price + fulfilment method + seller metrics.

C

CBM (Cubic Meter)

Volumetric unit for ocean freight pricing. 1 CBM = 1m × 1m × 1m. Most LCL shipments quoted in $/CBM (currently ~$90/CBM India to USA west coast).

CPSC (Consumer Product Safety Commission)

US agency regulating consumer product safety. Requires certifications for children's products, electronics, and other categories.

D

DDP (Delivered Duty Paid)

Shipping term where seller pays all duties and taxes up to delivery. Used when shipping to Amazon FCs from outside USA.

E

ECI (Effectively Connected Income)

US tax concept. If your business does not have ECI in the US (no employees, no office), you generally owe 0% US federal income tax on profits.

EIN (Employer Identification Number)

Federal tax ID for US businesses, issued by IRS. Required for opening US bank account, filing taxes, selling on Amazon US. Foreign founders apply via Form SS-4 by fax.

EXW (Ex Works)

Shipping term. Buyer (you) takes responsibility from the seller's warehouse onward. Most common for India sourcing.

F

FBA (Fulfilled by Amazon)

Amazon's 3PL service. You ship inventory to Amazon FCs, Amazon picks/packs/ships orders, handles customer service, and takes a per-unit fee.

FBM (Fulfilled by Merchant)

You ship orders yourself or via your own 3PL. Cheaper per unit but loses Prime badge and Buy Box advantage.

FCL (Full Container Load)

You book an entire shipping container (20ft or 40ft). Best when shipment exceeds ~15 CBM.

FDA (Food and Drug Administration)

US agency regulating food, cosmetics, supplements, medical devices. Beauty and supplement sellers need FDA registration.

FEMA (Foreign Exchange Management Act)

Indian law governing foreign currency transactions. Affects how you remit USD payouts from Amazon US to India.

FNSKU (Fulfilment Network Stock-Keeping Unit)

Unique barcode Amazon prints for each ASIN per seller. Must be applied to every FBA unit. Looks like X00ABC1234.

FTL (Full Truckload)

US domestic shipping. You book an entire truck. Faster than LTL but more expensive.

G

Gated Category

Amazon categories requiring approval before listing. Examples: jewellery, watches, automotive, grocery, beauty (for some products).

GMV (Gross Merchandise Value)

Total dollar value of goods sold over a period, before fees and returns. Often used as headline revenue metric.

H

HSN/HTS Code

Harmonized Tariff Schedule code. 10-digit number classifying products for customs. Determines US import duty rate. e.g. bedsheets = 6302.21.50.10 → 11.4% duty.

I

Inbound Shipment

Inventory shipment going into an Amazon FC. Created in Seller Central. Includes labels for boxes, pallets, and units.

IOR (Importer of Record)

The legal entity responsible for ensuring an import complies with US customs law. Must be a US entity for FBA shipments. Your US LLC.

IPI Score (Inventory Performance Index)

Amazon's 0-1000 measure of inventory health. Above 400 unlocks unlimited FBA storage. Below 400 = storage limits.

ITAR/EAR

US export control laws. Most consumer products are not affected, but always check if you sell electronics or anything dual-use.

ITIN (Individual Taxpayer Identification Number)

IRS-issued tax ID for non-residents who need to file US taxes. Not required for most Indian Amazon sellers - EIN is sufficient.

L

LCL (Less than Container Load)

You share a container with other shippers. Priced per CBM. Best for shipments under 15 CBM. Slower than FCL (consolidation/deconsolidation adds 5-10 days).

LLC (Limited Liability Company)

US business structure offering liability protection and pass-through taxation. Most popular structure for Indian Amazon sellers.

LTL (Less than Truckload)

US domestic shipping. Shared truck with multiple shipments. Cheaper than FTL but slower.

M

MAP (Minimum Advertised Price)

Lowest price a reseller is allowed to advertise. Brand-controlled. Violations can trigger Brand Registry takedowns.

Mercury

Online-only US business bank popular with foreign-owned LLCs. Free, no SSN required, fully remote application.

MPF (Marketplace Facilitator)

47 US states require Amazon to collect and remit sales tax on your behalf. You are not liable for tax in those states for Amazon sales.

O

Operating Agreement

Internal LLC document defining ownership, profit distribution, and decision-making. Not filed publicly but required by most US banks.

P

PCI-DSS

Payment Card Industry Data Security Standard. Compliance level required by payment processors. Stripe and Razorpay are PCI Level 1.

POA (Plan of Action)

Document submitted to Amazon when your account is suspended. Required to reinstate. Must address root cause, immediate fix, and long-term prevention.

PPC (Pay Per Click)

Amazon's advertising platform. Sponsored Products, Sponsored Brands, Sponsored Display, and DSP. Pay only when someone clicks your ad.

Prep Centre

Third-party warehouse that receives inventory, prepares it to FBA standards, and ships to Amazon. What we are.

R

Razorpay

Indian payment gateway. Accepts UPI, cards, net banking, wallets. Used for collecting INR payments from Indian clients.

Registered Agent

A person or company designated to receive legal documents on behalf of your LLC. Required in the state of formation. $99-$199/year.

S

Section 321

US customs rule allowing duty-free entry for shipments under $800/day per consignee. Useful for e-commerce trial shipments.

Seller Central

Amazon's dashboard for sellers. Where you manage listings, inventory, ads, performance, and finances.

SKU (Stock Keeping Unit)

Internal product identifier. You assign these. Different from ASIN (which Amazon assigns).

SOP (Standard Operating Procedure)

Documented process for repeating an operation consistently. Critical for prep centres and account management.

Sponsored Brands

Amazon ad type showing your logo + 3 products at top of search results. Brand Registry required.

Sponsored Products

The most common Amazon ad - keyword-targeted product ads shown within search results and on product pages.

Storefront

Customizable Amazon page showing your full brand. Available to Brand Registered sellers. Drives ~10% of brand sales for established sellers.

T

TACoS (Total ACOS)

Ad spend ÷ total revenue (organic + ad). Better measure of brand health than ACOS alone. Target: 15-22% for established listings.

Transfer Pricing

Rules for pricing transactions between related entities (e.g. your Indian co. → your US LLC). Matters when invoicing across borders.

U

UPC (Universal Product Code)

Standard barcode for retail products. Amazon requires a UPC or GTIN to create a new ASIN. Buy authentic ones from GS1, not cheap resellers.

USPTO (US Patent and Trademark Office)

US government body for trademarks. Filing fee: $250-$350/class. Required for Brand Registry.

V

VAT

Value-Added Tax. Not used in USA at federal level - USA uses state sales tax instead. Relevant when expanding to EU/UK/UAE.

Vine Program

Amazon's official review program. You give free units to vetted reviewers in exchange for honest reviews. $200/ASIN. Brand Registry required.

W

Wayfair Decision

US Supreme Court 2018 ruling allowing states to require sales tax collection from out-of-state sellers. Foundation of modern marketplace facilitator laws.

WFS (Walmart Fulfillment Services)

Walmart's answer to FBA. Worth considering for diversification beyond Amazon.

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