Amazon Merch glossary

Amazon Merch on DemandGlossary for Sellers.

Plain-English definitions of the metrics and concepts Amazon Merch on Demand sellers need to understand their business.

18 terms

01

ACOS

Aggregate advertising cost of sales

The percentage of Ads-attributed sales spent on aggregate advertising. Calculate it as aggregate Amazon Ads spend ÷ Ads-attributed sales × 100. An ACOS of 25% means you spent €25 on ads for every €100 in sales attributed to those ads.

Formula
ACOS = aggregate Amazon Ads spend ÷ Ads-attributed sales × 100
Example
€50 ad spend ÷ €200 attributed ad sales = 25% ACOS.

A lower ACOS is generally more efficient, but the right target depends on your royalty and goals.

#
02

Aggregate Amazon Ads spend

The amount paid for advertising during a selected period. Compare aggregate Amazon Ads spend with Ads-attributed sales, Amazon royalties (estimated payout), normalized to USD, and Royalties after ads.

#
03

Attributed ad sales

Sales Amazon associates with an ad interaction within its attribution window. This figure is used to calculate aggregate advertising cost of sales and may differ from your net units for the same period.

#
04

Catalog

The complete set of designs, products, and listings you sell through Amazon Merch on Demand.

#
05

Design

The artwork or creative concept that can appear on one or more products. A single design may produce several listings across product types, colors, and marketplaces.

#
06

Royalties after ads

Amazon royalties minus aggregate Amazon Ads spend for a selected period. It is a narrow business-level view, not a product-level result, margin, accounting, or tax figure.

Formula
Royalties after ads = Amazon royalties − aggregate Amazon Ads spend
Example
€600 Amazon royalties − €150 aggregate Amazon Ads spend = €450 Royalties after ads, before any other expenses.

Only aggregate Amazon Ads spend is included in this view.

#
07

Listing

A customer-facing Amazon product page for a specific design and product configuration. Price, marketplace, and product type can vary between listings.

#
08

Margin

A percentage showing how much remains after specified costs. Merch HQ does not provide a complete accounting margin; always read any percentage alongside its calculation basis.

Formula
Margin = specified remainder ÷ stated basis × 100
Example
A percentage should identify the exact royalty and cost basis used.
#
09

Marketplace

A regional Amazon storefront, such as Amazon.com or Amazon.de. Prices, currencies, demand, and available products can differ by marketplace.

#
10

Momentum

The direction and strength of a recent performance change. Positive momentum means net units or Amazon royalties are increasing relative to an earlier period.

Example
A product with 18 net units this week after 10 last week has positive momentum.

Compare equal periods so a longer date range does not create misleading momentum.

#
11

Price point

The selling price set for a listing. Changing the price point can affect both the royalty earned per sale and the number of units sold.

#
12

Product

The physical item carrying a design, such as a T-shirt, hoodie, or phone case. One design can be offered across multiple products.

#
13

Cooling product to review

A Merch HQ insight that identifies a product whose net units fell by 50% or more versus the prior comparable period, after at least 5 net units in that prior period. It may deserve review. It is a review signal, not a recommendation to reprint or a guarantee of future performance.

#
14

Amazon royalties (estimated payout), normalized to USD

The Amazon-reported royalty amount presented as an estimated payout and normalized to USD. This is the amount used for the Merch HQ royalty view, not customer sales value.

Formula
Amazon royalties (estimated payout), normalized to USD = reported royalty converted to USD
Example
A reported €600 royalty is shown as its normalized USD equivalent.

Conversion uses current exchange rates, or built-in fallback rates if the rate providers are unavailable. It does not use the rate from the day of each sale.

#
15

Royalty

The amount Amazon reports as payable after applicable production and platform costs. The royalty can vary with product type, marketplace, and selling price.

Formula
Royalty = selling price − applicable Amazon costs

Merch HQ uses Amazon royalties (estimated payout), normalized to USD, rather than an unspecified customer-sales metric.

#
16

Net units

Units sold minus cancellations during a selected period. Returns are subtracted only where the dashboard says so (for example, when you turn on the exclude-returns option). This is a volume measure, not a customer sales-value measure.

#
17

Net-unit velocity

The rate at which a design, product, or listing records net units over a given period. Comparing equal periods helps reveal acceleration or slowdown.

Formula
Net-unit velocity = net units after cancellations ÷ number of days
Example
28 net units after cancellations over 7 days equals 4 net units per day.
#
18

Historical price-tier analysis

A deterministic, heuristic comparison of observed historical price tiers using royalty and net-unit data. It can identify a listing for manual review when sufficient evidence exists; it is not a forecast or guaranteed outcome.

Example
If a listing's historical net-unit volume and normalized royalty/day support comparison between €19.99 and €21.99, Merch HQ may surface the tier for review.

Historical price-tier analysis is based on observed patterns; actual customer response can differ.

#

Stop making pricing decisions in the dark.

Amazon gives you net units, not the answers behind them. Merch HQ shows you which listings to review, which products/ASINs need attention, and how Royalties after ads is changing.