Amazon & eCommerce Glossary

Plain-English definitions of the terms you'll encounter when selling on Amazon, running Shopify stores and managing digital marketing campaigns.

Amazon SEO

Amazon SEO

Amazon SEO is the process of optimizing product listings to rank higher in Amazon search results and convert more shoppers into buyers. It covers keyword research (identifying the search terms shoppers use), title optimization, bullet point copy, product descriptions, backend search terms, A+ Content and review management.

Unlike Google SEO, Amazon SEO is primarily driven by sales performance — the more a product sells (especially at full price, without heavy discounting), the higher it tends to rank. This is why conversion rate optimization and pricing strategy are core parts of Amazon SEO, not just keyword placement.

Learn more: Amazon SEO & Listing Optimization Services


A10 Algorithm

A10 Algorithm

The A10 algorithm is Amazon's current search ranking system, succeeding the A9 algorithm. It determines the order in which products appear in Amazon search results for any given query. The key ranking signals in A10 are: seller authority (account age, performance metrics), sales velocity (units sold per day), click-through rate from search results, conversion rate, keyword relevance, review count and average rating, and off-Amazon traffic (traffic you drive from external sources like Google, social media or email).

The A10 algorithm places greater emphasis on seller authority and organic sales than A9 did. This means that early momentum, consistent sales history and good account health are harder to recover from if lost — prevention is more valuable than remediation.


ACoS

ACoS (Advertising Cost of Sale)

ACoS is the primary efficiency metric for Amazon PPC advertising. It expresses your ad spend as a percentage of the revenue those ads directly generated. Formula: ACoS = (Ad Spend ÷ Ad Revenue) × 100. If you spent $200 on ads and those ads generated $800 in sales, your ACoS is 25%.

A "good" ACoS depends entirely on your product's margin. If your net margin after COGS, FBA fees and other costs is 30%, an ACoS below 30% means you are profitable on ad spend. Most established sellers target a break-even ACoS or below. During product launch phases, a higher ACoS (sometimes 40–60%) is acceptable in exchange for ranking gains and review accumulation.

Groke Digital averages 68% ACoS reduction from baseline across managed accounts. Learn more: Amazon PPC Management


ROAS

ROAS (Return on Ad Spend)

ROAS is the inverse of ACoS — it expresses the revenue earned for each dollar (or pound) spent on advertising. Formula: ROAS = Ad Revenue ÷ Ad Spend. A ROAS of 4 means you earned $4 for every $1 spent on ads. ROAS = 1 ÷ (ACoS ÷ 100), so a 25% ACoS equals a 4x ROAS.

ROAS is more commonly used in Google Ads and Meta Ads contexts, while ACoS is the default metric on Amazon. Both measure the same thing from different angles. Groke Digital manages Amazon PPC accounts to an average 3.2x ROAS portfolio-wide.


FBA

FBA (Fulfillment by Amazon)

FBA is Amazon's logistics service. Sellers ship their inventory in bulk to Amazon fulfilment centres (warehouses), and Amazon handles storage, picking, packing, shipping, returns and customer service for every order. FBA products are eligible for Amazon Prime, which offers customers free next-day or two-day delivery.

FBA fees include a monthly storage fee (per cubic foot) and a per-unit fulfilment fee (based on size and weight tier). These fees make FBA less suitable for large, heavy or slow-moving products. The main advantages of FBA are Prime eligibility (which significantly boosts conversion rate), Amazon handling customer returns, and the "Fulfilled by Amazon" trust signal on product pages.

The alternative is FBM (Fulfillment by Merchant), where sellers ship directly to customers from their own warehouse or a 3PL. Learn more: Amazon Account Management