Glossary

An AI acceptable use policy sets how people may use AI tools at work and who answers for the output. Why a written rule alone does not hold, and what does.

An AI agent is an AI model using tools in a loop, choosing its own next step. How it differs from a workflow, and when an agent is worth its cost to run.

AI automation means an AI model does a step of work a person used to do, with output usable without edits. Which work automates well, and how to judge it.

An AI hallucination is a fluent, confident answer that is false or invented. Why models produce them, what lowers the risk, and the checks that catch them.

An AI pilot is a limited version of an AI system put into real work and judged on whether it can scale. How it differs from a probe, and how to set one up.

Fine-tuning is further training of an AI model on curated examples to change its behavior: what it buys, what it costs, why retrieval usually comes first.

Human in the loop (HITL) means a person checks an AI model's output against a reference before it takes effect: when a process needs it, and how.

Retrieval-augmented generation (RAG) hands an AI model passages from your own documents before it answers: how it works, where it fails, when to use it.

Amazon Retail Analytics (ARA) is Vendor Central's reporting hub for 1P vendors: seven report families, which view to read, and why Net PPM is an estimate.

An Amazon vendor deduction is money Amazon subtracts from a 1P vendor's invoice before paying it: the deduction streams and how to work through them.

Amazon Vendor Services (AVS) is Amazon's paid account management for 1P vendors: how it differs from a vendor manager, and how to price an invitation.

An ASN (Advance Shipment Notification) tells Amazon what a 1P shipment holds before it arrives: what Amazon requires, and how a bad ASN drives chargebacks.

A backup report is the line-item detail behind an Amazon co-op invoice: what it carries, which agreements produce one, and how to recompute a deduction.

Co-op allowances are the trade allowances a 1P supplier funds for Amazon: what they pay for, how the accrual works, and where they appear in remittance.

A compliance chargeback is Amazon's penalty for a 1P supply-chain defect, not a card chargeback: what it costs and the 30-day dispute window.

On Amazon, contra-COGS is vendor-funded money booked against Amazon's cost of goods: what it covers, how it feeds Net PPM, and why it is an estimate.

On Amazon, CRaP means Can't Realize a Profit: a 1P product Amazon cannot resell profitably, so it stops ordering. What it means and how Net PPM drives it.

Direct Fulfillment is Amazon's dropship program for 1P vendors: Amazon buys the goods, the vendor ships each order. What it asks of the vendor in return.

Dispute Management is the Vendor Central surface where a 1P vendor contests Amazon deductions one claim at a time: the route, and the rules for each type.

EDI is the machine-to-machine exchange of purchase orders, ship notices and invoices between a 1P vendor and Amazon: the documents and what Amazon expects.

In Full Delivery is Amazon's chargeback for quantity defects on confirmed 1P purchase orders: Not Filled, Down Confirmed and Overage, and what each costs.

Net PPM (Net Pure Product Margin) is the product-level profitability metric Amazon shows 1P vendors: what it counts, what it omits, why it is an estimate.

A price claim is an Amazon invoice underpayment on unit cost, not quantity: how it differs from a shortage claim, and how a 1P vendor disputes one.

Provision for Receivables is a temporary hold on a 1P vendor's Amazon payment that looks like a deduction but is not one: how to spot it on a remittance.

A purchase order (PO) is Amazon's order to a 1P vendor: quantities, cost and ship window. What happens once Amazon sends one, and how it is measured.

Shipped COGS is the cost Amazon paid a 1P vendor for units it shipped to customers: where it sits in Net PPM, and why its base differs from co-op accruals.

On an Amazon remittance, "Shortage Claim for Invoice" means a 1P invoice was short-paid for units Amazon logged as not received (PQV). What to check next.

SIPP (Ships in Product Packaging) is Amazon's packaging certification: three tiers, the 1P chargeback, and why an item you never certified draws one.

Vendor Central is Amazon's first-party (1P) portal, where a brand sells wholesale to Amazon: how access works, and where a vendor finds the money in it.

A vendor code is Amazon's supplier number for a 1P vendor in Vendor Central: why brands hold several, and why reports rarely add up across vendor codes.

An Amazon Vendor Manager owns a category's sales and profitability, not one vendor's account: what the role does for a 1P vendor and why silence is normal.