Amazon Merch glossary

Amazon Merch on Demand Glossary for Sellers.

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

18 terms

01

ACOS

Advertising Cost of Sales

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

Formula
ACOS = ad spend ÷ attributed ad 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.

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02

Ad spend

The amount paid for advertising during a selected period. Compare ad spend with attributed sales, royalties, and estimated profit to understand whether advertising is supporting profitable growth.

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03

Attributed ad sales

Sales Amazon associates with an ad interaction within its attribution window. This figure is used to calculate ACOS and may differ from your total sales for the same period.

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04

Catalog

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

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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.

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06

Estimated profit

An estimate of earnings remaining after the costs included by Merch HQ, such as advertising spend, are deducted from royalties. It is a decision-support estimate, not an accounting or tax figure.

Formula
Estimated profit = royalties − included costs
Example
€600 in royalties − €150 in ad spend = €450 estimated profit, before any other expenses.

Always check which costs are included when comparing profit figures.

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07

Listing

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

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08

Margin

The share of a financial amount that remains after the included costs. In Merch HQ, margin should be read alongside its calculation basis. For example, estimated profit as a percentage of revenue.

Formula
Estimated profit margin = estimated profit ÷ revenue × 100
Example
€450 estimated profit ÷ €1,000 revenue = 45% margin.
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09

Marketplace

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

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10

Momentum

The direction and strength of a recent performance change. Positive momentum means sales or revenue are accelerating; negative momentum means they are slowing relative to an earlier period.

Example
A design that sold 18 units this week after selling 10 last week has positive sales momentum.

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

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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.

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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.

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13

Reprint opportunity

A Merch HQ insight that identifies a design with potential on another product type, based on its existing performance. It is an opportunity estimate rather than a guarantee of future sales.

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14

Revenue

The total customer sales value generated before royalties and other relevant costs are considered. Revenue is not the amount paid to you.

Formula
Revenue = units sold × selling price
Example
20 sales at €19.99 generate €399.80 in revenue.
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15

Royalty

The amount Amazon pays you for a sale after deducting its applicable production and platform costs. The royalty can vary with product type, marketplace, and selling price.

Formula
Royalty = selling price − applicable Amazon costs

Revenue is the customer sales value; royalty is the amount you earn from that sale.

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16

Sales

The number of units sold during a selected period. Sales count measures volume, while revenue measures the customer sales value those units generated.

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17

Sales velocity

The rate at which a design, product, or listing sells over a given period. This could be measured in units per day or week. Comparing equal periods helps reveal acceleration or slowdown.

Formula
Sales velocity = units sold ÷ number of days
Example
28 units sold over 7 days equals 4 sales per day.
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18

Underpriced listing

A listing where Merch HQ detects that a higher price may increase earnings based on historical sales and pricing patterns. The recommendation is an estimate, not a guaranteed outcome.

Example
If a listing keeps similar sales volume after moving from €19.99 to €21.99, the higher royalty per sale may increase total earnings.

Price recommendations are based on historical patterns; actual customer response can differ.

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Stop making pricing decisions in the dark.

You don't know which listings are underpriced. You don't know which designs are trending up or down or how to price them. You don't know where your margins are leaking. Amazon won't tell you. Merch HQ will.