The Complete Ecommerce Glossary

Want to start a dropshipping business but are confused by all the terms? The Ecommerce Glossary breaks down everything you need to know about dropshipping. So let’s not wonder about the different terminologies of Ecommerce !

Ecommerce Glossary: Key Terms You Need to Know

Understanding key terms and concepts is crucial for anyone entering the Ecommerce & dropshipping industry. Familiarity with the language used in dropshipping can help you navigate the business more effectively and make informed decisions. In this glossary, you will learn essential dropshipping terms, from “supplier” to “fulfillment,” and everything in between. This glossary aims to equip you with the knowledge needed to succeed in the dropshipping world.


API (Application Programming Interface)

An API is a set of rules and tools that allows different software applications to communicate with each other. In dropshipping, APIs enable the seamless integration of various platforms, like your online store and supplier systems, ensuring smooth operations such as inventory updates and order processing.


Automation refers to using technology to perform tasks with minimal human intervention. In dropshipping, automation can handle repetitive tasks like updating inventory, processing orders, and tracking shipments, saving time and reducing errors.


An affiliate is someone who promotes products on behalf of a company and earns a commission for each sale made through their unique referral link. In dropshipping, affiliates help increase sales by marketing products to their audience.

Address Verification System

An Address Verification System (AVS) checks the validity of the address provided by a customer during the checkout process. This system helps prevent fraud and ensures that orders are shipped to the correct addresses, reducing the chances of delivery issues.

Average Order Value (AOV)

Average Order Value (AOV) is the average amount spent by customers per order. It’s calculated by dividing the total revenue by the number of orders. Higher AOV indicates customers are buying more or choosing higher-priced items, which is beneficial for business profitability.

Abandoned Cart

An abandoned cart occurs when a customer adds items to their online shopping cart but leaves the website without completing the purchase. Reducing abandoned carts is crucial as it directly impacts sales. Strategies to recover these sales include email reminders and special offers.


Accessibility ensures that your online store is usable by everyone, including people with disabilities. This includes having features like screen reader compatibility, keyboard navigation, and text alternatives for images. Accessibility improves the user experience and broadens your potential customer base.



A backorder occurs when a product is temporarily out of stock but customers can still place orders. Once the item is back in stock, it is shipped to the customer. This helps maintain sales and customer interest even when inventory is low. It’s a common practice in dropshipping to manage supply chain disruptions without losing potential sales.


Branding is the process of creating a unique identity for a business or product. It involves designing logos, choosing colors, and crafting messages that convey the brand’s values and appeal to its target audience. Effective branding helps differentiate a dropshipping store from competitors, build customer loyalty, and enhance market recognition.

Bulk Import

Bulk import refers to the process of adding large quantities of product data into an online store at once. This is done using tools or software that uploads multiple product listings simultaneously. It saves time and effort for dropshippers, allowing them to efficiently manage and update their inventory.


A blog is an online platform where individuals or businesses publish articles, tips, and other content. For dropshipping stores, a blog can attract visitors, provide useful information, and improve SEO. Regularly updated blogs help build brand authority, engage customers, and drive organic traffic to the store.


Bundling is the practice of selling multiple products together as a single package at a discounted price. This strategy can increase sales by offering more value to customers. In dropshipping, bundling helps clear inventory, boosts average order value, and provides customers with a convenient, cost-effective buying option.


Cart Abandonment

Cart abandonment happens when customers add items to their online shopping cart but leave the site without completing the purchase. This can be due to various reasons like high shipping costs or a complicated checkout process. Reducing cart abandonment is crucial for increasing sales.


A chargeback is a refund initiated by the customer’s bank. It occurs when a customer disputes a charge on their credit card statement. Chargebacks can affect a business’s reputation and finances, so managing them effectively is important.

Customer Lifetime Value (CLV)

Customer Lifetime Value (CLV) estimates the total revenue a business can expect from a single customer throughout its relationship. It helps businesses understand the long-term value of customers and informs marketing and retention strategies.

CSV File (Comma-Separated Values)

A CSV file is a simple text file used to store tabular data, such as spreadsheets or databases. Each line in the file corresponds to a row of data, with fields separated by commas. It’s commonly used for importing and exporting data between different systems.


Cross-selling involves recommending additional products related to the one being purchased. For example, suggesting a phone case when a customer buys a phone. This strategy can increase average order value and enhance the shopping experience.

Call to Action (CTA)

A Call to Action (CTA) is a prompt encouraging users to take a specific action, such as “Buy Now,” “Sign Up,” or “Learn More.” Effective CTAs are clear and compelling, and can significantly improve conversion rates on websites and marketing materials.

Conversion Rate

Conversion rate is the percentage of visitors to a website who complete a desired action, such as making a purchase or signing up for a newsletter. It is a key metric for evaluating the effectiveness of marketing campaigns and website performance.

Cost of Goods Sold (COGS)

Cost of Goods Sold (COGS) represents the direct costs of producing goods sold by a business. It includes expenses like materials and labor but excludes indirect costs like marketing. Calculating COGS helps determine a business’s profitability.

Cash On Delivery (COD)

Cash On Delivery (COD) is a payment method where customers pay for their goods upon delivery, rather than in advance. This can attract customers who prefer not to use credit cards online but require efficient cash handling by the business.

Checkout Process

The checkout process is the series of steps a customer takes to complete a purchase online. It includes entering shipping details, choosing payment methods, and reviewing the order. A smooth and straightforward checkout process is vital for reducing cart abandonment and improving customer satisfaction.



Dropshipping is a retail method where stores sell products without keeping them in stock. Instead, they purchase items from a third-party supplier who ships them directly to the customer. This means the seller doesn’t handle the product physically. It’s a low-risk way to start an online store because you don’t need to invest in inventory upfront.

Domain Name 

A domain name is the address people use to access your website on the internet. It’s your online identity and helps customers find your store. Choosing a memorable and relevant domain name is crucial for branding and marketing your business effectively.

Data Feed 

A data feed is a file that contains information about your products, such as descriptions, prices, and images. This file is used to update your online store or share product information with other platforms. It ensures that all details about your products are accurate and up-to-date across multiple channels.


A distributor is a company that buys products from manufacturers and sells them to retailers or wholesalers. In dropshipping, distributors play a key role by supplying products to dropshippers. They help bridge the gap between product creators and sellers, ensuring a steady supply chain.


A dropshipper is a business or individual that sells products online without holding inventory. They list items for sale and then purchase them from a supplier once a customer orders. The supplier ships the product directly to the customer, allowing the dropshipper to focus on marketing and customer service.

Delivery Confirmation 

Delivery confirmation is a service provided by shipping carriers that verifies the delivery of a package to the recipient. It includes tracking information and a record of when and where the package was delivered. This service helps both sellers and customers ensure that orders are successfully received.

Direct to Garment (DTG) 

Direct to Garment (DTG) is a printing method where designs are printed directly onto clothing using specialized inkjet technology. It’s ideal for small batches and custom designs because it allows for high-quality, detailed prints without the need for screens or transfers. DTG is commonly used for custom t-shirts and apparel.


Ecommerce Platform

An ecommerce platform is a software application that allows businesses to set up and manage an online store. It handles everything from website creation, product listing, shopping cart functionality, payment processing, and order management. Examples include Shopify, WooCommerce, and BigCommerce. These platforms provide tools and features to help sellers reach customers and sell products online efficiently.


Epacket is a shipping option offered by many China-based online retailers and marketplaces. It provides faster delivery of small packages compared to standard international shipping. Epacket is popular because it includes tracking and delivery confirmation at a low cost, making it a preferred choice for dropshippers who want to offer reliable shipping options to their customers.

ERP (Enterprise Resource Planning)

ERP, or Enterprise Resource Planning, is software used by businesses to manage and integrate the important parts of their operations. This includes inventory, order management, accounting, human resources, and customer relationship management (CRM). ERP systems help streamline processes and data across the organization, ensuring that all departments work with the same information in real time.



Fulfillment refers to the complete process of receiving, processing, and delivering orders to customers. It includes picking and packing products, managing inventory, shipping, and handling returns. Effective fulfillment is crucial for customer satisfaction as it ensures that orders are delivered accurately and on time.

Fulfillment Center

A fulfillment center is a warehouse where products are stored, picked, packed, and shipped to customers. Fulfillment centers handle the logistics of order processing for ecommerce businesses. By outsourcing to fulfillment centers, companies can focus on other aspects of their business while ensuring that customers receive their orders efficiently.

FBA (Fulfillment by Amazon)

FBA, or Fulfillment by Amazon, is a service provided by Amazon where sellers store their products in Amazon’s fulfillment centers. Amazon takes care of picking, packing, shipping, and customer service. Sellers benefit from Amazon’s fast and reliable shipping network, as well as customer trust in Amazon’s delivery system. FBA helps sellers reach more customers and grow their business.


Gross Margin

Gross Margin is the difference between sales revenue and the cost of goods sold, expressed as a percentage of sales. It shows how much profit a business makes after accounting for production costs. Higher gross margins indicate more profitability.

Gross Profit

Gross Profit is the total revenue minus the cost of goods sold (COGS). It reflects the amount of money a business earns from sales before deducting operating expenses, taxes, and interest.

Google Ads

Google Ads is an online advertising platform by Google. It allows businesses to create ads that appear on Google’s search engine and other Google properties. Advertisers pay when users click on their ads, a model known as pay-per-click (PPC).

Google Shopping

Google Shopping is a service that allows users to search for products and compare prices across different online retailers. Businesses can list their products on Google Shopping to reach potential customers who are searching for similar items.

Google Trends

Google Trends is a tool that analyzes the popularity of search queries in Google Search across different regions and languages. It provides insights into trending topics, helping businesses understand consumer interests and market trends.


Handling Time

Handling Time is the period required to process and prepare an order for shipping after it has been received. It affects the overall delivery time and customer satisfaction. Shorter handling times are often preferred by customers.


Hyper-targeting involves directing marketing efforts to a very specific audience based on detailed demographic, geographic, and behavioral data. It allows businesses to reach potential customers who are most likely to be interested in their products or services.

HTML (Hypertext Markup Language)

HTML (Hypertext Markup Language) is the standard language used to create and design web pages. It structures content on the web using elements like headings, paragraphs, links, and images, forming the backbone of all websites.


Inventory Management

Inventory Management is the process of overseeing and controlling the ordering, storage, and use of a company’s inventory. It ensures that the right amount of stock is available at the right time to meet customer demand while minimizing costs.


Inventory refers to the goods and materials a business holds for the purpose of resale. It includes raw materials, work-in-progress products, and finished goods ready for sale. Effective inventory management is crucial for meeting customer demands.

Inventory Source

Inventory Source is a platform that connects dropshippers with a network of reliable and trustworthy suppliers. It offers automation tools for managing inventory, orders, and product data, helping businesses streamline their dropshipping operations.


Integration refers to the process of connecting different software systems and applications to work together seamlessly. In ecommerce, integration allows for the automatic sharing of data between platforms like online stores, payment processors, and inventory management systems.


Just-in-Time (JIT)

Just-in-Time (JIT) is an inventory management strategy where materials and products are produced or acquired only as needed for immediate use or sale. It reduces inventory costs and minimizes waste by aligning production closely with demand.

JSON (JavaScript Object Notation)

JSON (JavaScript Object Notation) is a lightweight data-interchange format that is easy for humans to read and write, and for machines to parse and generate. It is commonly used for transmitting data between a server and a web application.


Key Performance Indicators (KPIs)

Key Performance Indicators (KPIs) are measurable values that show how effectively a business is achieving its key objectives. In dropshipping, KPIs might include metrics like sales revenue, profit margins, conversion rates, and customer retention rates. Monitoring KPIs helps businesses understand their performance and make data-driven decisions to improve their operations and achieve their goals.


Keywords are specific words or phrases that people use in search engines to find products or information. In dropshipping, choosing the right keywords is essential for SEO and PPC advertising. Effective keyword usage helps attract the right audience to your online store, improving visibility and driving more organic and paid traffic to your product listings.



Logistics refers to the process of planning, implementing, and controlling the efficient movement and storage of goods from the point of origin to the end consumer. In dropshipping, logistics involves managing the supply chain, including order processing, warehousing, inventory management, and shipping, to ensure the timely and accurate delivery of products to customers.

Landing Page

A landing page is a standalone web page designed specifically for marketing or advertising campaigns. It’s where visitors “land” after clicking on an ad or link. In dropshipping, landing pages are used to showcase products, collect visitor information, and encourage specific actions like making a purchase or signing up for a newsletter. They are crucial for conversion optimization.

Listing Fees

Listing fees are charges imposed by online marketplaces or platforms for listing products for sale. In dropshipping, these fees can vary based on the platform, product category, and duration of the listing. Understanding listing fees is important for budgeting and pricing strategies, ensuring that the costs associated with listing products do not erode profit margins.


Minimum Order Quantity (MOQ)

Minimum Order Quantity (MOQ) is the smallest number of units a supplier will sell in a single order. It’s set by suppliers to ensure profitability and manage inventory efficiently. For dropshippers, understanding MOQ is crucial because it affects purchasing decisions and inventory management.

Multichannel Selling

Multichannel Selling means offering products through multiple sales channels, such as your own website, Amazon, eBay, and social media platforms. This strategy helps reach a broader audience and increases sales opportunities by leveraging different platforms to attract customers.


A Marketplace is an online platform where multiple sellers list and sell products. Examples include Amazon, eBay, and Etsy. These platforms provide a ready audience and tools for selling, making it easier for businesses to reach customers without building their own websites.


A Manufacturer is a company that produces goods from raw materials. They create products that can be sold directly to consumers or through wholesalers and retailers. For dropshipping, working with manufacturers can ensure high-quality products and better pricing.

Manufacturer’s Suggested Retail Price (MSRP)

The Manufacturer’s Suggested Retail Price (MSRP) is the price a manufacturer recommends retailers charge for a product. It helps standardize pricing across different sales channels and ensures fair competition among retailers selling the same product.

Minimum Advertised Price

The Minimum Advertised Price (MAP) is the lowest price a retailer can advertise a product for sale, as set by the manufacturer. This policy prevents price wars and maintains brand value by ensuring all retailers advertise the product at a consistent minimum price.

Multi-Channel Ecommerce

Multi-Channel Ecommerce involves selling products across various online and offline channels, including websites, social media, marketplaces, and physical stores. This approach helps businesses reach more customers, increase sales, and provide a seamless shopping experience.


A Niche Market is a specific, focused segment of a larger market. It targets a unique group of customers with particular preferences or needs. Dropshippers often choose niche markets to avoid heavy competition and cater to a dedicated customer base with specialized products.

Net Profit

Net Profit is the amount of money a business earns after all expenses, taxes, and costs are deducted from total revenue. It indicates the profitability of the business and is a key measure of financial health. Higher net profit means better business performance.

Notification System

A Notification System alerts users about important updates, such as order confirmations, shipping status, or low inventory levels. It helps businesses and customers stay informed in real time, ensuring smooth communication and better management of operations.

Net Terms

Net Terms refer to the payment period allowed by suppliers for invoices. For example, “Net 30” means payment is due 30 days after the invoice date. Net terms help manage cash flow by giving businesses time to sell products before paying suppliers.


Order Tracking

Order tracking allows customers to monitor the status and location of their purchased items in real time. It provides updates from the moment an order is placed until it is delivered. This feature enhances transparency and customer satisfaction by keeping buyers informed about their shipment progress.


Outsourcing involves hiring third-party companies or freelancers to handle specific business tasks. It allows businesses to focus on core activities while leveraging external expertise and resources. Commonly outsourced tasks include customer service, manufacturing, and IT support.

Order Management System (OMS)

An Order Management System (OMS) is a software solution that helps businesses track sales, manage orders, and fulfill customer requests efficiently. It integrates with various sales channels and automates processes like inventory management, order processing, and shipping.


Overhead refers to the ongoing business expenses not directly tied to producing goods or services. These include rent, utilities, salaries, and office supplies. Managing overhead costs is crucial for maintaining profitability and ensuring the efficient operation of a business.

Order Fulfillment

Order fulfillment is the complete process from receiving a customer’s order to delivering the product to their doorstep. It includes inventory management, picking and packing products, shipping, and handling returns. Efficient order fulfillment ensures timely delivery and customer satisfaction.


Payment Gateway

A payment gateway is an online service that processes credit card payments for ecommerce sites and traditional stores. It securely transmits payment information between the customer, merchant, and banking institutions, ensuring safe and seamless transactions.

Product Feed

A product feed is a digital file that lists all the products a business sells, including details like prices, descriptions, and images. It is used to update inventory on ecommerce platforms, advertising channels, and comparison shopping engines.

PPC (Pay-Per-Click)

PPC (Pay-Per-Click) is an online advertising model where advertisers pay a fee each time their ad is clicked. It is commonly used in search engine advertising and social media platforms to drive traffic to websites and increase brand visibility.


PayPal is an online payment system that allows individuals and businesses to send and receive money electronically. It offers a secure and convenient way to make transactions, shop online, and transfer funds across different currencies.

Print on Demand (POD)

Print on Demand (POD) is a service that allows businesses to print products only when an order is placed. It eliminates the need for large inventories and reduces costs. Common POD products include books, apparel, and custom merchandise.

Private Label

The Private label refers to products manufactured by one company but sold under another company’s brand name. Retailers often use private labeling to offer unique products and increase profit margins by eliminating the middleman.

Pop up

A pop-up is a small window or advertisement that appears on a website to capture visitor attention. Pop-ups are commonly used for promotions, newsletter sign-ups, and special offers. They aim to engage users and drive conversions.

Point of Sale (POS)

A Point of Sale (POS) system is the place where a customer completes their purchase. It includes hardware and software used to process transactions, manage inventory, and track sales data. POS systems are crucial for retail and hospitality businesses.

Payment Card Industry (PCI)

The Payment Card Industry (PCI) refers to the set of security standards designed to protect credit card information during and after a financial transaction. Compliance with PCI standards is essential for businesses that handle card payments to prevent fraud and data breaches.


Quality Control

Quality control is the process of ensuring that products meet specific standards and customer expectations. It involves regular inspections, testing, and quality checks during production. Effective quality control helps maintain product consistency and customer satisfaction.


QuickBooks is an accounting software program designed for small and medium-sized businesses. It helps manage financial tasks such as invoicing, payroll, expense tracking, and financial reporting. QuickBooks simplifies bookkeeping and ensures accurate financial management.


Return Policy

A return policy outlines the terms under which customers can return or exchange purchased products. It includes conditions such as the time frame for returns, acceptable reasons for returns, and refund or exchange options. A clear return policy enhances customer trust and satisfaction.


A reseller buys products from manufacturers or wholesalers and sells them to end customers. Resellers typically operate in retail or online stores, offering a wide range of products. They add value by providing customer service and convenience.


A retailer is a business that sells goods or services directly to consumers. Retailers operate physical stores, online shops, or both. They purchase products from wholesalers or manufacturers and aim to meet the needs and preferences of their target market.

Reorder Point

The reorder point is the inventory level at which a business should place a new order to replenish stock before it runs out. Calculating the reorder point helps maintain optimal inventory levels and prevents stockouts.

Return on Investment (ROI)

Return on Investment (ROI) measures the profitability of an investment by comparing the gain from the investment to its cost. It is calculated as a percentage and helps businesses assess the efficiency of their investments and make informed financial decisions.

Restocking Fee

A restocking fee is a charge that some suppliers or retailers apply when a product is returned by a customer. This fee helps cover the costs associated with processing the return, inspecting the product, and updating inventory. It is usually a percentage of the product’s price and is deducted from the refund amount given to the customer.


Stock Keeping Unit (SKU)

A Stock Keeping Unit (SKU) is a unique code assigned to each product in a store’s inventory. It helps businesses track and manage their stock efficiently. SKUs include a combination of letters and numbers that provide information about the product, such as its type, size, color, and brand. This system ensures accurate inventory control and easy identification of items.


A supplier is a company or individual that provides products to retailers or dropshippers. They manufacture, distribute, or import goods that are then sold to customers. Suppliers play a crucial role in the supply chain, ensuring that retailers have the products they need to meet customer demand. In dropshipping, suppliers ship products directly to the end customer on behalf of the retailer.

Shipping Carrier

A shipping carrier is a company responsible for transporting packages from the supplier or retailer to the customer. Popular shipping carriers include USPS, UPS, FedEx, and DHL. They handle the logistics of moving goods, ensuring timely and safe delivery. Shipping carriers offer various services, such as standard, expedited, and international shipping, to meet different delivery needs.

SEO (Search Engine Optimization)

Search Engine Optimization (SEO) involves optimizing a website to improve its visibility on search engines like Google. This process includes using relevant keywords, creating high-quality content, and ensuring a user-friendly site structure. Effective SEO helps a website rank higher on search engine results pages (SERPs), driving more organic traffic and potential customers to the site.

Search Engine Results Page (SERP)

A Search Engine Results Page (SERP) is the page displayed by a search engine in response to a user’s query. It lists the most relevant websites, images, videos, and other content based on the search terms used. Higher-ranking pages on the SERP receive more visibility and clicks. Businesses aim to improve their SERP rankings through SEO to attract more visitors to their sites.

Supply Chain Management (SCM)

Supply Chain Management (SCM) involves overseeing and coordinating the entire process of producing and delivering products. It includes sourcing raw materials, manufacturing, transportation, warehousing, and distribution to customers. Effective SCM ensures products are available when needed, reduces costs, and improves customer satisfaction. It is essential for maintaining smooth operations in any business, especially in dropshipping.


Stripe is an online payment processing platform that allows businesses to accept payments over the Internet. It supports various payment methods, including credit cards, debit cards, and digital wallets. Stripe is known for its easy integration with websites and its robust security features. It is widely used by ecommerce businesses, including dropshippers, to handle transactions securely and efficiently.


Shipping refers to the process of transporting goods from one location to another. In ecommerce, it involves moving products from the supplier or retailer’s warehouse to the customer’s address. Shipping can vary in speed and cost, depending on the method chosen (e.g., standard, expedited, or international). Effective shipping strategies ensure timely delivery, and customer satisfaction, and can impact a business’s reputation.


Third-Party Logistics (3PL)

Third-party Logistics (3PL) is a service that manages the logistics and supply chain operations for other companies. This includes warehousing, transportation, and distribution. 3PL providers help businesses streamline their shipping processes, reduce costs, and improve efficiency by handling these logistics tasks.


Traffic refers to the number of visitors who visit a website. High traffic indicates a popular site, which can lead to more sales and engagement. Traffic can come from various sources such as search engines, social media, and direct visits.

Tracking Number

A tracking number is a unique code assigned to a shipment. It allows customers and sellers to track the location and status of a package in real time. This helps ensure transparency and reliability in the shipping process.

TLS (Transport Layer Security)

Transport Layer Security (TLS) is a protocol that ensures privacy and data security between communicating applications over the internet. It encrypts the data transferred between a web server and a browser, protecting it from being intercepted by hackers.



Upselling is a sales technique where a seller encourages customers to purchase a higher-end product or add-ons to increase the value of their purchase. It aims to boost sales by offering better or additional items than what the customer initially intended to buy.

User Interface (UI)

User Interface (UI) refers to the visual elements through which users interact with a digital product, like buttons, icons, and menus. A good UI is intuitive and easy to navigate, enhancing the overall user experience.

User Experience (UX)

User Experience (UX) encompasses all aspects of a user’s interaction with a product or service. Good UX design ensures that the product is user-friendly, efficient, and enjoyable to use, leading to higher customer satisfaction and loyalty.

URL (Uniform Resource Locator)

A Uniform Resource Locator (URL) is the address used to access web pages on the internet. It includes the domain name and specific paths to resources, helping users and browsers locate and retrieve web content easily.

Unique Selling Proposition (USP)

A Unique Selling Proposition (USP) is the distinct feature or benefit that sets a product or service apart from its competitors. It’s a key marketing message that highlights what makes the offering unique and why customers should choose it over others.

User Generated Content (UGC)

User Generated Content (UGC) refers to content created and shared by users rather than the brand itself. This can include reviews, testimonials, social media posts, and photos. UGC helps build trust and authenticity for a brand.



A vendor is a person or company that sells products or services to customers. Vendors can supply goods in various settings, such as markets, online stores, and physical retail shops. They play a crucial role in the supply chain.

Value Proposition

A value proposition is a statement that explains how a product or service solves a problem, delivers benefits, and why it is better than the competition. It is designed to attract customers by clearly explaining the value they will receive.

Value Added Tax (VAT)

Value Added Tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. It is commonly used in many countries around the world.



Warehousing involves storing goods in a large facility until they are needed for distribution or sale. Warehouses help businesses manage inventory, ensuring products are available for timely shipment to customers.


A wholesaler buys goods in large quantities from manufacturers and sells them in smaller quantities to retailers or other businesses. Wholesalers help bridge the gap between producers and the market, facilitating the distribution process.

Wholesale Price

The wholesale price is the cost charged by a wholesaler to retailers or other businesses for bulk purchases. It is usually lower than the retail price, allowing retailers to resell the products at a profit.


WooCommerce is a popular, open-source ecommerce plugin for WordPress. It enables businesses to create and manage online stores, offering features like product listings, inventory management, payment processing, and shipping options.

White Label

White Label products are manufactured by one company and rebranded by another company to make it appear as if they made it. This allows businesses to sell products under their own brand without having to produce them.

X, Y, Z

XML (eXtensible Markup Language)

XML (eXtensible Markup Language) is a flexible text format used for creating structured documents and data interchange between systems. It helps store and transport data in a way that is both human-readable and machine-readable.

Yield Management

Yield Management is a pricing strategy used to maximize revenue by adjusting prices based on demand and supply. It is commonly used in industries like airlines and hospitality, where prices are dynamically altered to optimize sales.

Zero Inventory

Zero Inventory is a business model where a company does not hold physical stock. Instead, products are purchased from suppliers only when an order is placed. This reduces storage costs and minimizes the risk of unsold inventory.

Are you ready to make the right move?

Understanding dropshipping terminology is crucial for success in this business. Familiarizing yourself with these terms helps you communicate effectively and make informed decisions. Use this glossary as a handy reference to build and grow your dropshipping business. By staying informed, you’ll navigate the industry more confidently and efficiently. Keep this guide close and refer to it whenever needed. This knowledge will support your journey toward a successful dropshipping venture.

Bookmark this glossary for future reference. It’s a handy tool to help you understand dropshipping terms whenever you need it.

Share this glossary with friends or colleagues who are interested in dropshipping. It’s a great resource for anyone starting or growing their dropshipping business.

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