Glossary

Understand the number before using it.

Short definitions connected directly to the planning tools where each metric becomes useful.

ACoS

Advertising cost of sales: ad spend divided by attributed ad revenue.

The maximum ACoS at which an advertised order produces zero profit.

The total unit cost required to bring a sellable product to its fulfillment location.

Minimum order quantity required by a supplier.

Revenue left after variable costs that can contribute to fixed costs and profit.

The inventory level or date at which a replenishment order should be placed.

Extra inventory held to absorb demand or lead-time uncertainty.

A comparison between Amazon fulfillment and merchant-managed fulfillment.