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Glossary

Short, sourced definitions of the terms that decide an Amazon 1P vendor's margin, and of the AI and eCommerce vocabulary that shows up in our work.

Amazon Vendor Economics

  • Co-op Allowances

    Co-op allowances are the trade allowances a 1P supplier funds for Amazon: what they cover, how they accrue monthly, and what a vendor can dispute.

  • Compliance Chargeback

    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.

  • Contra-COGS

    Contra-COGS is co-op money seen from Amazon's cost side: how it feeds Net PPM, why the dashboard figure is an estimate, and why it cannot be disputed.

  • CRaP (Can't Realize a Profit)

    CRaP is Amazon's designation for a 1P product it cannot sell profitably: what happens when an ASIN is CRaP-ed out, and how to see it coming.

  • Net PPM

    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.

  • Shortage Claim

    A shortage claim is an Amazon 1P invoice underpayment booked as PQV: what causes it, why most are data errors, and the two-year dispute window.

Missing a term you need defined? Ask in a working session, or start with the Margin Recovery Audit if you run a Vendor Central P&L.