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[01] Glossary

Ecommerce Agency Hiring Glossary: 77 Proposal Terms in Plain Words

Agency proposals are written in shorthand: TACoS, SOW, GMV Max, whitelisting, Net 30. Each term changes what you pay, what you own or how results get judged. Here are 77 of them in six groups, each in one to three sentences, with a short example where the math helps.

Last reviewed October 23, 2026Prices checked October 2026By Ian Smith

Short answer

The terms in an agency proposal decide what you pay and how results are judged. A retainer is a fixed monthly fee for ongoing work; a project fee is one fixed price for a defined job. TACoS is ad spend divided by total sales, ads plus organic: $2,000 on $40,000 is 5%. ACoS divides the same spend by ad sales only. This page defines 77 such terms in six groups, from contracts to TikTok Shop.

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77

terms defined on this page

in six groups

5%

TACoS on $2,000 of ad spend and $40,000 in total sales

worked example

7 vs 14

days in Amazon's attribution windows

Sponsored Products vs Sponsored Brands and Display

$995

our monthly PPC Management fee, up to $10,000 in ad spend

month to month

How to usePricing and contracts (15)Amazon ads metrics (14)Amazon programs and accounts (17)Creative and rights (12)TikTok Shop (9)Reporting (10)When not to signAuthorFAQ
[02] How to Use This

Read the Proposal With This Page Open

Disclosure: We are Evolve Media Agency and we wrote this glossary. We sell Amazon, Shopify and TikTok Shop services, so several terms use our own published prices as examples, and we say so each time. Every other example is a made-up illustration with round numbers, labeled as an example. Amazon and TikTok change their programs often; the definitions describe them as of October 2026. No company pays to appear here.

Most confusion in agency hiring comes from a few words that sound alike but mean different things. Retainer and project fee decide whether you pay every month or once. ACoS and TACoS decide whether the agency looks good by cutting spend or by growing the business. Usage rights decide whether a video you paid for can run as an ad. The terms are grouped the way they appear in a typical proposal: price first, then the metrics, the Amazon programs, the creative, TikTok Shop and the reports.

This glossary covers hiring and proposal language. For words about AI search, such as how ChatGPT or Alexa for Shopping pick a product to recommend, see our ecommerce AI search glossary. For what agencies charge, see Amazon agency pricing in 2026.

Pricing and contracts (15 terms)

Retainer, Project fee, Percentage of ad spend, Percentage of revenue (revenue share) and more.

Amazon ads metrics (14 terms)

ACoS (advertising cost of sales), TACoS (total advertising cost of sales), ROAS (return on ad spend), Break-even ACoS and more.

Amazon programs and accounts (17 terms)

Seller Central (3P), Vendor Central (1P), Brand Registry, ASIN and more.

Creative and rights (12 terms)

Main image, Secondary images and infographics, Lifestyle image, UGC (user-generated content) and more.

TikTok Shop (9 terms)

TikTok Shop Partner (TSP), GMV (gross merchandise value), GMV Max, Affiliate commission and more.

Reporting (10 terms)

KPI (key performance indicator), Baseline, MoM and YoY, MER (blended ROAS) and more.

[03] Pricing and contracts

Pricing and Contract Terms: What You Pay and What You Can Leave

These terms decide the bill and the exit. Read them before the strategy section of any proposal, because a good plan on bad terms still costs you.

TermWhat it means
RetainerA fixed fee you pay every month for ongoing work, whether that month is busy or quiet. Ask exactly which hours or tasks it covers. Example: Evolve's PPC Management is $995 a month for up to $10,000 in ad spend and about 10 hours.
Project feeOne fixed price for a defined job with a clear finish line, such as a set of listing images or a Brand Store. You know the total before work starts. Example: Evolve's Brand Store build is $1,495 for five pages.
Percentage of ad spendThe agency's fee is a share of what you spend on ads, so the fee goes up whenever spend goes up. Example: 10% of $30,000 a month in ad spend is a $3,000 monthly fee.
Percentage of revenue (revenue share)The fee is a share of your sales. Ask whether it counts only ad-driven sales or all sales, including organic sales the agency did not create. Example: 3% of $200,000 in monthly sales is $6,000.
Base plus percentageA flat monthly minimum plus a percentage of spend or sales above a set level. Ask at what number the percentage starts, because that is where the bill begins to climb.
Performance bonusAn extra payment when the agency hits a target. Tie it to a number that is hard to game, such as total sales or TACoS, not ACoS alone, which an agency can improve by cutting spend.
Setup or onboarding feeA one-time charge for the first audit, account access and rebuilding campaigns. Example: Evolve's PPC Audit + Restructure is $995 one time, about 10 hours.
Minimum termThe shortest length of contract you can sign, such as 3, 6 or 12 months. Month to month means there is no minimum and you can stop after any month.
Notice periodHow far ahead you must tell the agency you are leaving. A 30-day notice period on a monthly retainer usually means paying for one more month after you decide to go.
Scope of work (SOW)The document that lists exactly what the agency will deliver, how many of each, and by when. Anything not written in it can be billed as extra.
Out of scope and change orderWork you ask for that is not in the scope of work. A change order is the written approval, with a price, that you sign before that extra work starts.
Hour blockPrepaid hours sold as a bundle, used for extra work beyond a plan. Example: Evolve sells extra part-time marketing hours in 5-hour blocks at $495.
Net terms and upfront billingNet 30 means the invoice is due 30 days after it is sent. Upfront billing means you pay before the work. Evolve bills 100% upfront with no net terms.
Ad spend minimumThe smallest monthly ad budget an agency will manage. Example: Evolve's minimum is $1,000 a month in Amazon ad spend.
Ad spend billingWho charges you for the ads themselves. On Amazon, ad spend is billed by Amazon to your own account, separate from the agency fee. Check that no agency is adding a markup on top of it.
[04] Amazon ads metrics

Amazon Ads Metrics: The Numbers in Every PPC Report

PPC means pay per click: you pay Amazon each time a shopper clicks your ad. These are the numbers an Amazon ads agency reports every month. The examples use the same made-up account, so you can see how the figures relate.

TermWhat it means
ACoS (advertising cost of sales)Ad spend divided by the sales Amazon credits to those ads. Example: $2,000 in spend and $8,000 in ad sales is a 25% ACoS. Lower means each ad dollar brought in more sales.
TACoS (total advertising cost of sales)Ad spend divided by all sales, from ads and organic search together. Example: $2,000 in spend and $40,000 in total sales is a 5% TACoS. If TACoS falls while sales grow, the ads are likely helping organic sales too.
ROAS (return on ad spend)Ad sales divided by ad spend, the flip side of ACoS. Example: $8,000 in ad sales on $2,000 in spend is a ROAS of 4.0, the same result as a 25% ACoS.
Break-even ACoSThe ACoS at which ads earn zero profit. It equals your profit margin before ad costs. Example: with a 30% margin, any ACoS under 30% makes money on the ad sale.
Target ACoSThe ACoS goal the agency manages to. It sits below break-even when the goal is profit and above it during a launch, when you are paying to build sales history and rank.
CPC (cost per click)What you pay each time a shopper clicks an ad. Amazon sets it through an auction, so it rises when competitors bid more for the same searches.
CTR (click-through rate)Clicks divided by impressions. Example: 50 clicks from 10,000 impressions is a 0.5% CTR. A low CTR usually points to the main image, price or title.
CVR (conversion rate)Orders divided by clicks. Example: 10 orders from 100 clicks is a 10% CVR. A low CVR usually points to the listing page, reviews or price, not the ads.
ImpressionsThe number of times an ad was shown. Impressions alone say little; read them with CTR and orders.
Attribution windowHow long after a click Amazon will credit a purchase to the ad: 7 days for sellers' Sponsored Products, and 14 days for Sponsored Brands and Sponsored Display. Different windows make reports hard to compare.
Match typeHow closely a search must match your keyword for the ad to show. Exact is the same search or a close variant, phrase contains the words in order, and broad allows related searches.
Negative keywordA search term you block so your ad stops showing for it. Agencies add these to stop paying for clicks that never buy.
Search term reportThe list of real shopper searches that triggered your ads, with spend and sales for each. It is where most wasted spend is found.
Top-of-search impression shareThe share of first-row search placements your ads won for a campaign. Agencies use it to show whether you are visible on the searches that matter most.
One account, four numbers (example): $2,000 in ad spend, $8,000 in ad sales and $40,000 in total sales gives a 25% ACoS, a 4.0 ROAS and a 5% TACoS. If your margin before ads is 30%, the 25% ACoS is under break-even, so the ad sales make money.
[05] Amazon programs and accounts

Amazon Programs and Accounts: Where the Work Happens

These are the Amazon accounts, ad types and page features an agency will propose to work on. Several require Brand Registry, so check that first.

TermWhat it means
Seller Central (3P)The account you use to sell directly to Amazon shoppers as a third-party seller. You set the price and own the listing relationship.
Vendor Central (1P)The account used to sell wholesale to Amazon, which then sets the price and resells to shoppers. It is invite only.
Brand RegistryAmazon's program for trademark owners. It requires an active or pending trademark and gives access to A+ Content, Brand Stores, Sponsored Brands and Brand Analytics.
ASINAmazon Standard Identification Number, the 10-character ID for each product listing. Proposals often price work per ASIN.
Parent and child ASINA parent groups variations, such as sizes or scents, and each variation is a child with its own ASIN. Ask whether a per-ASIN price counts parents or children.
Featured Offer (Buy Box)The Add to Cart button on a product page, which Amazon awards to one seller at a time. Sponsored Products ads only run while your offer is eligible to win it.
FBA and FBMFulfillment by Amazon means Amazon stores and ships your product. Fulfilled by merchant means you ship it yourself.
Sponsored ProductsAds for a single product that show in search results and on product pages. Most Amazon ad budgets start here.
Sponsored BrandsAds that show your logo, a headline and several products, or a video, at the top of search results. They require Brand Registry.
Sponsored DisplayAds that reach shoppers based on what they viewed or bought, on Amazon and on other sites and apps.
Amazon DSPDSP stands for demand-side platform. It is Amazon's system for buying display, video and streaming TV ads on and off Amazon, usually for larger budgets.
A+ Content and Premium A+The images and text in the product description section, lower on the product page. Premium A+ is a larger version with more modules, open to eligible brands. Example: Evolve creates 5 Premium A+ designs for $495.
Brand StoryA row of swipeable cards above A+ Content that tells shoppers about the brand and links to other products. Example: Evolve's Brand Story is $595 for 7 to 10 cards.
Brand StoreA free, multipage storefront for your brand on Amazon, built in Seller Central. Example: Evolve builds a five-page store for $1,495.
Amazon VineA program where you give free units, sent through Amazon, to reviewers Amazon invites, who post unbiased reviews. It requires Brand Registry, Amazon charges an enrollment fee, and it helps new products get their first reviews.
Alexa for ShoppingAmazon's AI shopping assistant, which answers shopper questions using listing copy, images and reviews. Agencies may propose rewriting listings so its answers describe your product correctly.
Amazon PostsA free, social-style photo feed for brands. Amazon has discontinued it. It is listed here only because older proposals still include it; if one sells Posts as a live service, ask why.
[06] Creative and rights

Creative and Rights: What You Get and What You Own

Creative proposals are priced by the count of files, but the value is in the rights. Two videos with the same price can differ by thousands of dollars in what you are allowed to do with them.

TermWhat it means
Main imageThe first product photo shoppers see in search. Amazon requires a pure white background, and the product should fill about 85% of the frame.
Secondary images and infographicsImages two through seven or more on a listing, often with text that explains features, size or use. Example: Evolve designs a set of 5 main listing images for $295.
Lifestyle imageA photo of the product in use, in a real setting, often with a model. It helps shoppers picture owning it.
UGC (user-generated content)Video made by a creator in a natural, phone-shot style, as if a customer filmed it. Example: Evolve's UGC is $495, or $1,295 for a 3-pack.
Usage rightsWhere and for how long you may use a piece of creative, such as organic posts only for 12 months. Read this line before you plan to run a video as an ad.
Paid usage and whitelistingPermission to run ads using a creator's video or their account name. It usually costs more than organic rights, and the term should be stated in months.
BuyoutA one-time payment for broad or unlimited use of a creative asset, often with no end date. Ask whether it covers paid ads on every platform.
Raw files and final filesRaw files are the unedited photos or footage. Final files are the finished, edited deliverables. Proposals should say which ones you receive.
Revision roundOne pass of requested changes on a deliverable. Proposals should state how many rounds are included. Example: Evolve's Brand Store includes one revision round.
Model releaseA signed form from a person who appears in photos or video, allowing commercial use. Without one, using the image in ads is a risk.
Shot listThe written list of every image or clip to capture, agreed before the shoot. It is how you check that you got what you paid for.
DeliverablesThe exact count and format of finished files the agency will hand over, such as 10 images at 2,000 pixels or three 30-second videos.
[07] TikTok Shop

TikTok Shop Terms: Creators, Commissions and GMV

TikTok Shop sells through creator videos and LIVE streams. These are the words a TikTok Shop agency proposal will use.

TermWhat it means
TikTok Shop Partner (TSP)An agency approved by TikTok to manage shops for sellers. Approval is a TikTok program status, not a measure of results.
GMV (gross merchandise value)The total value of goods sold before returns, refunds and fees. Example: 400 orders at $25 is $10,000 in GMV. It is larger than the money you keep.
GMV MaxTikTok's automated ad campaign type for TikTok Shop, which chooses the creative, audience and placement to raise shop sales. Example: Evolve's GMV Max ads management is $995 a month.
Affiliate commissionThe share of each sale paid to a creator who promotes your product. Example: a 15% commission on a $25 sale is $3.75.
Open and targeted collaborationAn open collaboration offers a public commission any creator can accept. A targeted collaboration invites chosen creators, often at a higher rate.
Free samplesProduct sent to creators so they can make videos. Ask the agency how many samples turned into posted videos last quarter.
Spark AdsAds that boost an existing organic TikTok post, often a creator's video, using an authorization code from that creator.
LIVE shoppingSelling through a live TikTok stream, where viewers buy pinned products while the host demonstrates them. Example: Evolve's LIVE Show Kit is $595.
Seller CenterTikTok Shop's back-end account where products, orders, affiliates and payouts are managed. The agency should be added as a user, not given your password.
[08] Reporting

Reporting Terms: How Results Get Judged

The report is where an agency shows its work. These terms tell you whether it is showing the numbers that matter or the ones that look best.

TermWhat it means
KPI (key performance indicator)One of the few numbers the work will be judged by, such as total sales, TACoS or conversion rate. A proposal with no KPIs has no way to fail.
BaselineWhere your numbers stand before the agency starts. Without a dated baseline, nobody can say later what changed.
MoM and YoYMonth over month compares to last month; year over year compares to the same month last year. YoY is fairer for seasonal products.
MER (blended ROAS)MER stands for marketing efficiency ratio: total revenue from all channels divided by total marketing spend. It shows whether marketing pays as a whole, not channel by channel.
Contribution marginRevenue minus product cost, platform fees, shipping and ad spend. It is the profit number that tells you whether growth is worth it.
IncrementalitySales that would not have happened without the ad. A shopper who searched your brand name might have bought anyway, so those ad sales are less incremental.
Sessions and unit session percentageIn Amazon's Business Reports, sessions are visits to a listing and unit session percentage is units ordered divided by sessions, a conversion rate.
Brand AnalyticsAmazon reports for Brand Registry owners showing top search terms, which products are bought together, and repeat purchase rates.
Search Query PerformanceA Brand Analytics report that shows, for each search, your brand's share of impressions, clicks, cart adds and purchases against the whole search.
User permissionsAccess the agency gets as a named user inside your Amazon, TikTok or Shopify account. You stay the owner and can remove access any time; never share your own login.
[09] Red Flags in the Wording

When Not to Sign: Six Terms That Should Stop You

The bonus is tied to ACoS alone

An agency can lower ACoS by cutting spend and shrinking sales. Ask for TACoS or total sales alongside it.

A revenue share counts all sales

If the fee is a percentage of total revenue, you pay on organic sales the agency did not create. Ask for ad-attributed sales or a fixed fee.

A 12-month minimum term with no exit

If results are poor in month three, you still pay for nine more. Ask for month to month or a 30-day notice period.

The agency asks for your login

A professional agency works as a named user with permissions you can remove. Never share your own password or let an agency own your ad account.

No scope of work, or "as needed" hours

Without a written list of deliverables and hours, you cannot tell what you are paying for or what counts as extra.

Usage rights are missing from a creative quote

If the proposal does not say where and how long you can use the files, assume you cannot run them as ads until it does.

If a proposal is clear on all six and you still do not need the work, do not sign either. Under about $20,000 a month in sales, most agency fees are a large share of margin; fix the listing yourself first. Our how we work page shows the terms we use: a written fixed-price scope, 100% upfront, month to month on monthly services.

[10] Who Wrote This

About the Author

Evolve Media Agency is a three-person ecommerce content and growth agency in Colorado, founded in 2017 by Ian Smith. It works with Amazon, Shopify and TikTok Shop brands doing roughly $1M to $10M a year, sells fixed-price projects and flat monthly fees with no long-term contract, publishes its prices on its site (see the pricing page and each service page), and is paid 100% upfront with no net terms.

Ian Smith, founder of Evolve Media Agency

Ian Smith

Founder, Evolve Media Agency

Ian has run Evolve Media Agency since 2017 and has spent more than a decade in ecommerce, building and selling his own brands and producing listing content, video and ads for Amazon, Shopify and TikTok Shop brands. He writes every page on this site himself and the prices quoted for Evolve are the prices you pay.

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[11] FAQ

Agency Proposal Terms Questions

What is TACoS in an agency report?
TACoS means total advertising cost of sales: ad spend divided by all sales, from ads and organic search together. Example: $2,000 in ad spend and $40,000 in total sales is a 5% TACoS. A falling TACoS while sales grow usually means ads are helping organic sales.
What is the difference between a retainer and a project fee?
A retainer is a fixed fee you pay every month for ongoing work, such as ad management. A project fee is one fixed price for a defined job with a finish line, such as a set of listing images. Example: Evolve's PPC Management is a $995 monthly retainer; its Brand Store build is a $1,495 project fee.
Which matters more, ACoS or TACoS?
Use both. ACoS shows whether the ads themselves are efficient. TACoS shows whether ads are growing the whole business. An agency judged on ACoS alone can look better by cutting spend while total sales fall.
What does percentage of ad spend pricing mean?
The agency's fee is a share of your monthly ad spend, so it rises when spend rises. Example: 10% of $30,000 is a $3,000 fee. Ask whether there is a minimum fee and whether the percentage drops at higher spend.
What is a scope of work?
A scope of work, or SOW, is the document that lists exactly what an agency will deliver, how many of each and by when. Anything not in it can be billed as extra through a change order.
What is a TikTok Shop Partner?
A TikTok Shop Partner, or TSP, is an agency approved by TikTok to manage shops for sellers. It is a program status, so still ask for results, commission terms and how samples turned into posted videos.
What is GMV on TikTok Shop?
GMV, gross merchandise value, is the total value of goods sold before returns, refunds and fees. Example: 400 orders at $25 is $10,000 in GMV. It is larger than the money you actually keep.
What do usage rights and whitelisting mean in a UGC quote?
Usage rights say where and for how long you may use a creator's video, such as organic posts for 12 months. Whitelisting, or paid usage, is permission to run it as an ad, sometimes under the creator's own account name, and it usually costs more.
Is Amazon Posts still available?
No. Amazon has discontinued Posts, the free social-style photo feed for brands. If a proposal sells Posts as a live service, ask the agency to explain or remove it.
What is Alexa for Shopping?
Alexa for Shopping is Amazon's AI shopping assistant, which answers shopper questions using listing copy, images and reviews. Agencies may propose rewriting listings so its answers describe your product correctly. Our ecommerce AI search glossary covers the related terms.

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