Key Terms

This glossary covers the Amazon FBA and inventory terms you will encounter while using Profit Hawk. Definitions are written for sellers, not developers.

Amazon and product terms

ASIN (Amazon Standard Identification Number) A unique 10-character code Amazon assigns to every product in its catalog. Each product variation (size, color) has its own ASIN.

SKU (Stock Keeping Unit) Your internal identifier for a product. You create SKUs when listing products. One ASIN can have multiple SKUs if you list the same product under different conditions or bundles.

FBA (Fulfillment by Amazon) A service where you send inventory to Amazon's warehouses and Amazon handles storage, packing, and shipping to customers.

Inventory terms

Safety stock Extra inventory you keep on hand as a buffer against unexpected demand spikes or supply delays. Profit Hawk helps you calculate how much safety stock to hold for each product.

Lead time The number of days between placing a purchase order with your supplier and receiving the inventory at Amazon's fulfillment center. This includes manufacturing time, shipping time, and Amazon's receiving time.

Days of supply How many days your current inventory will last based on your recent sales velocity. If you have 300 units and sell 10 per day, you have 30 days of supply.

Velocity Your sales rate for a product, usually measured in units per day. Profit Hawk uses velocity to forecast demand and calculate when you need to reorder.

Stockout When a product runs out of inventory and is no longer available for sale. Stockouts hurt your sales rank and can take time to recover from.

Replenishment The process of reordering inventory from your supplier to keep products in stock at Amazon. Profit Hawk generates replenishment recommendations based on your forecasted demand.

Order and supplier terms

MOQ (Minimum Order Quantity) The smallest number of units a supplier will accept for a single order. If your supplier's MOQ is 500 units, you cannot order fewer than 500.

Case pack The number of units packed together in one shipping carton. Amazon often requires shipments in full case packs. If a case pack is 24 units, your order quantity needs to be a multiple of 24.

Purchase order (PO) A formal order you send to your supplier specifying the products, quantities, and terms for a shipment.

Related pages