Merchandising SOP: Seller Central Terms and Definitions

Consignment

• Consignment sales can be conducted on both Vendor Central and Seller Central for Sellers who sell to Amazon via FBA or Fulfillment by Amazon. Consignment involves shipping products to Amazon as a supplier, with payment only made by Amazon upon consumer purchase from the inventory holding on their website. Amazon receives a commission fee from this payment. Sales, shipments, and replenishment reports enable Vendors and Sellers to monitor their FBA Consignment Stock on their Amazon Storefront.

Consolidation and Inventory Placement Service

• When creating a shipping plan as a Seller on Seller Central shipping via FBA, your shipment may be divided into multiple shipments, each directed to different receive centers or fulfillment centers by default, which is referred to as distributed inventory placement. The selection of the fulfillment centers is based on your products and shipping location. Distributing your inventory across multiple fulfillment centers across the country enables faster delivery of products to customers who buy your product, which is made possible through Amazon routing the shipment through a receiving center that receives units and then reships them to other fulfillment centers in their network. Once Amazon has successfully received your products at any receive center or fulfillment center, they become available for sale, but customers may be shown a future ship date if no other units are available for immediate fulfillment. Amazon consolidates all your shipments into one shipment going to one fulfillment center before separating them out. Signing up for the Inventory Placement Service enables you to send all eligible inventory to a single receive center or fulfillment center, which is determined by Amazon. The shipment is then split and sent to different fulfillment centers for you, but you cannot choose the receiving center or fulfillment center to which you send your shipment as it may vary from shipment to shipment.

PAN EU

• PAN EU is a type of Fulfilled By Amazon (FBA) service that allows Sellers to send their products to a single Fulfilment Centre, and Amazon will distribute the products to various Fulfilment Centres across Europe based on anticipated sales. To use this service, Sellers must be registered for VAT in the different countries in Europe.

European Fulfillment Network

• Amazon's European Fulfilment Network (EFN) enables Sellers to sell their products on other EU marketplaces but fulfill all orders from Fulfilment Centres in their home country.

Multi-Country Inventory (MCI)

• Multi-Country Inventory (MCI) is a service offered by Fulfilled by Amazon (FBA) that allows Sellers to choose specific countries to send their stock to and fulfill orders for that marketplace using the local inventory.

Seller Fulfilled Prime (SFP)

• Seller Fulfilled Prime (SFP) is an option available for Sellers to display the prime badge on their listings while retaining complete control over inventory, as the stock is stored and shipped from their own warehouses.

Amazon Business Advisory

• Amazon Business Advisory (ABA) is a fee-based account management service that offers sellers strategic insights driven by business intelligence to help them increase their revenue and succeed on the platform by providing essential inputs. This service provides sellers with a dedicated account manager who has expert knowledge in their relevant category.

"Damaged" Terms

• Vendor Damaged refers to products that are damaged before reaching Amazon due to handling by the vendor or the vendor’s carrier.
• Warehouse Damaged refers to products that are damaged after delivery to Amazon's fulfillment center but before leaving for delivery to an Amazon customer, including damage caused by handling in the fulfillment center.
• Undamaged / Undamaged Overstock refers to products that are not damaged or defective, but for which Amazon does not have customer demand, resulting in overstock.
• Carrier Damaged refers to products that are damaged during transit or delivery to an Amazon customer or during return transit or delivery to an Amazon fulfillment center after a customer return.
• Customer Damaged refers to products returned by a customer that is not in new condition due to damage, wear, or signs of use, including broken seals, opened boxes, and product testing.
• Expired products are products that have passed their expiration date or will expire in the next 90 days.
• Defective products are those that Amazon has determined to be defective, including missing parts, manuals, instructions, or warranty information, among other things.

Fulfilled by Amazon (FBA)

• Amazon's Fulfilled by Amazon (FBA) service allows sellers to send their products to Amazon's fulfillment centers, where Amazon takes care of the picking, packing, and shipping process once a customer places an order.

Fulfilled by Merchant (FBM)

• When a seller uses Fulfilled by Merchant (FBM), it means that they are responsible for shipping products from their own inventory and handling any customer inquiries or feedback.

Fulfillment by Amazon Small and Light

• Fulfillment by Amazon Small and Light is an option that provides lower fulfillment costs on qualified items, allowing sellers to pass on the savings to customers. By signing up for Small and Light, sellers can benefit from free shipping for Prime customers, reduced fulfillment costs, and instant customer trust. Eligible products for this option include ASINs that are 10 oz or less, 16 x 9 x 4 inches or less, $7 or less, and fast-moving ASINs.

Multi-Channel Fulfillment

• Amazon's Multi-Channel Fulfillment (MCF) service provides access to Amazon's fulfillment network, expertise, and shipping options for all your orders, regardless of where they are placed. MCF enhances the customer experience by providing faster delivery and simplifying operations. You can store your inventory in Amazon's warehouses, which can help you lower your fulfillment costs with competitive rates and scalable capacity. With MCF, you can choose to send some or all of your inventory directly to an Amazon fulfillment center, and Amazon will pick, pack, and ship the products to your customers when they make a purchase on your website or other third-party sales channels. MCF is available with or without Fulfillment by Amazon (FBA), and if you use FBA, your existing inventory can serve both Amazon customers and customers from your other sales channels.

Amazon Storage and Replenishment

• Amazon's Storage and Replenishment service enables its sellers to store inventory near Amazon's delivery operation, allowing for quick replenishment of products. This service is designed to provide a temporary warehouse solution to facilitate faster holiday deliveries.

Fulfillment by Amazon Onsite

• Amazon's Fulfillment by Amazon Onsite is an exclusive program that combines the features of both FBA and SFP. It involves Amazon's intervention to enhance the efficiency of seller warehouses to match Amazon's fulfillment center standards. The service includes the provision of Amazon's Warehouse Management System (WMS), label printing system, and shipping managed by Amazon.

Seller Flex

• Amazon's Seller Flex program is an invitation-only program aimed at providing more space for other sellers in conventional FCs. The criteria for invitation are as follows: sellers should have their own warehouse, should currently occupy space in a conventional FC, wants to sell more ASINs through FBA but are unable to add them due to space/cost constraints, or wants to sell in new categories and add more products to FBA. If invited, Seller Flex sellers will be required to carry out various inventory and order processing operations at their specified premises, also known as the 'Flex Site,' recorded in Amazon systems.

Amazon Buy Shipping and Print Connect

• Amazon offers sellers the option to purchase shipping labels for non-FBA orders through the Merchant Fulfillment API or a Seller Central account. Additionally, you can configure your Buy Shipping preferences within Seller Central to expedite the process of purchasing shipping labels. By setting these preferences, you can reduce the amount of time it takes to purchase each label.

Amazon Global Selling

• Amazon Global Selling is a program designed to assist sellers in registering their products for sale across Amazon's global markets. By leveraging the power of Amazon's trusted brand, sellers can accelerate their international sales and gain access to millions of potential customers who visit Amazon's international marketplaces. Additionally, taking advantage of peak sales seasons in other countries can help sellers reduce low sales periods.

FBA Export

• FBA Export is a service that enables customers from different countries to purchase export-eligible items. This service utilizes the FBA inventory stored in US-based fulfillment centers to make the products available to customers from all over the world on amazon.com. Amazon takes care of the shipping process for eligible products at no additional cost to the seller, making it easy for international customers to purchase items from your store.

European Fulfillment Network

• Sellers registered for Fulfillment by Amazon on Amazon Europe Marketplaces can utilize the European Fulfillment Network (EFN) to store their inventory in their local fulfillment center. This allows them to fulfill orders from other European marketplaces using the same local inventory pool, providing them with greater control and flexibility over their inventory. Additionally, by storing inventory in one fulfillment center and registering for taxes in one country, sellers can streamline their operations. Amazon lists the seller's products in all European country stores, and the seller pays Amazon's cross-border fulfillment fees for using the EFN service.

Pan-European FBA

• Pan-European FBA provides a way for sellers to expand their reach across Europe by storing their inventory closer to their customers and fulfilling orders at a lower cost and with faster delivery times. By using this service, sellers can make their products eligible for Prime and visible to millions of customers across Amazon's European marketplaces.
• To use Pan-European FBA, sellers must send their inventory to one fulfillment center, and Amazon will move the inventory across Europe based on demand. Sellers need to register for taxes in each country where their inventory is stored, which can require additional paperwork. However, by utilizing this service, sellers can avoid paying Amazon cross-border fees, resulting in a better customer experience.

North America Unified Account

• The North America Unified Account allows for unified inventory management across the United States, Canada, and Mexico.

European Unified Account

• The European Unified Account allows for unified inventory management across the various countries in Europe.

Repricing Software

• Repricing software is a type of software that assists in managing a product's price to increase the likelihood of winning the buy box.

Best Seller Rank

• The Best Seller Rank on Amazon is the ranking of a product at a particular point in time. This rank provides insight into how well or poorly the product is currently performing in terms of sales.

Seller Feedback

• Seller Feedback or Seller Rating is a system that allows customers to leave feedback on the quality of service provided by an Amazon merchant within three months of the purchase date. Ratings are based on a star system, ranging from 1 star (poor) to 5 stars (best), and can be submitted through the Amazon feedback page or the "your orders" section of the customer's Amazon account.

Amazon A-Z Guarantee

• The Amazon A-to-Z Guarantee provides customers protection when they purchase items from a third-party seller that are both sold and fulfilled by them. This guarantee encompasses timely delivery and the condition of the items, and is often referred to as "Amazon's amazing return policy."

Cube

• In the wholesale purchasing and shipping industry, a "cube" refers to the volume of space that a shipment occupies on a trailer. Specifically, a "case cube" is a measurement that denotes how much space a case of any given item will take up in a warehouse. This measurement is typically given in cubic feet or cubic meters. To determine the case cube, one can measure the length, width, and height of a single unit in either inches or meters and multiply them together. Then, divide the result by 1728 if the measurements were in inches, or by 100,000 if the measurements were in centimeters. This calculation is necessary to ensure that the correct cubic feet measurement is provided in Routing Requests and Advanced Shipment Notifications.

Pallet

• A Pallet is a portable platform that is used for stacking cases or boxes to make handling easier. These are typically made of wood or plastic.
• A PECO Pallet is a pallet that is rented from the PECO pallet rental service.
• A CHEP Pallet is a pallet that is provided by the CHEP Pallet Pooling service of the Commonwealth Handling Equipment Pool.
• GMA Pallets refer to pallet specifications that are provided by the Grocery Manufacturers Association (GMA) Pallet Recycling Corporation.

ORM-D

• ORM-D is an acronym that stands for "Other Regulated Material - D." It is a marking used in the United States for consumer commodities that contain hazardous material in a limited quantity, which presents a limited hazard during domestic transportation. ORM-D is a type of Hazard Class, similar to Class 3 (Flammable and Combustible Liquid) and Class 8 (Corrosive Material). Despite popular belief, the "D" in ORM-D does not stand for Domestic; it only distinguishes it from other ORM classifications. Hazardous materials that may be classified as ORM-D are restricted to Consumer commodities, Cartridges (Small Arms), and Cartridges (Power Devices). You can identify ORM-D packages by the ORM-D label on the package.

Amazon Payments Marketplace

• Amazon Payments Marketplace provides payment processing tools for third-party sellers.
• The feature enables shopping cart providers, e-commerce platforms, and other service providers to:

1. Submit transactions through the Amazon Payments Marketplace service on behalf of their clients.
2. Access the transaction data of their clients.