Key Terms
Scan through the list below, and familiarize yourself with any terms you don't know. They will be used during the training videos.
Arbitrage. When another seller buys a discounted retail product and then simultaneously sells it, often for a higher price, stealing sales from the official retailer. Generally, Amazon frowns on arbitrage and will prevent it if the official retailer restricts other sellers from selling their own products. Helium 10’s Alerts tool helps sellers discover arbitrage when it happens against their products.
ASIN. The Amazon product code assigned to every product sold on their site. Amazon creates these. Helium 10 uses the ASINs in many of its research tools.
BSR: Amazon’s Best Seller Rank. Amazon tracks and publicizes its best-selling products to drive sales. Every product sold on Amazon is ranked by Amazon in at least one category, and often in several sub-categories. Ranking affects where and when products appear in a customer’s organic search. Most sellers try to rank high enough to be on the first results page of a customer search.
FBA vs. FBM (also MFN): Fulfilled by Amazon vs. Fulfilled by Merchant (Merchant Fulfillment Network). Amazon sellers can choose to store and ship their products directly from Amazon warehouses (FBA) or from personal or third-party warehouses (FBM/MFN).
Monthly Revenue. Generally, inside the Helium 10 tools, this refers to the estimated revenue over the past 30 days, at the time of the search.
Monthly Sales. Helium 10's estimated number of unit sales for a product during the past 30 days.
Profit Margin. Money left over for you after paying all the costs generated in bringing a product to market. Costs include manufacturing, fees, and taxes, among other things. Maximizing the profit margin while still maintaining sales is essential to retail success. Helium 10’s Profitability Calculator helps you determine whether a product is worth selling on Amazon. Profits helps you manage and sustain your profit margins.
Referral Fee. This is a fee that Amazon charges for each product sold. Amazon collects a 15% referral fee from private sellers on most of the products it sells, but the fee can range between 6% and 45% depending on the category and product.
Review Rating. Amazon encourages customers to return to their site after a purchase and leave a review both about the product and the seller. These reviews are considered critical to sales and search rankings within the Amazon environment. New customers consult and depend on them for recommendations. Unfortunately, poor reviews can result in fewer sales and lower ranking in Amazon's search results. The ratings are on a scale of 1 to 5 stars, with a 5-star rating equating to outstanding, and a 1-star rating equating to poor.
ROI: Return on Investment. Refers to the relationship between what you’ve put into the effort vs. what you got out of it. Selling products on Amazon and running ads to drive sales means investing time and money into the process. Helium 10’s Profitability Calculator and Profits tools help anticipate and manage product ROI. Helium 10’s PPC tool, ADS, helps you anticipate and manage your advertising efforts.