Dropshipping Glossary


When going through most of the articles, you stopped for a bit and wondered some words meant. Here is an insight to all the drop shipping related words that were used.Lets go through these Dropshipping Glossary.

(AVS) Address Verification System– This is a fraud prevention system which is built to fight payment card fraud. When a customer uses this system, their credit card, and billing address information is compared to prove legitimacy.


Affiliate– This relates to online marketing. When a site owner sends qualified customers to your online store to buy the merchants on a pay-for-performance agreement we term is as an affiliate.

Affiliate links– a URL (Uniform Resource Locator) that has affiliates’ identification number and any extra information to help in tracking the affiliate activity about the affiliate link.

Amazon– This is a global online retailer that is a hosting marketplace for retailers and online vendors, allowing them to sell and buy products from the site.

The site offers several (software) services and (infrastructure) services solution for business. The site was reported to have capitalized by more than $128 billion U.S by 2013.

APPLICATION Programming Interface (API) – This is a protocol that allows different software to be integrated and used to offer services or serve a particular purpose like communication.

Authorization–  A performance carried out on credit/payment cards to determine if the account has enough funds to complete a transaction.

Authorized Distributor- An approved manufacturer or a designated wholesaler who can sell products to a high quantity of online retailers or commercial customers.

Bing– this is a search engine used by Microsoft. The search engine answers questions asked by using a sophisticated algorithm to pick the best sites that have the response needed. The Microsoft search engine also offers advertising platform in the form of pay-per-click.

Blog– Blogs are online publication sites that have several relevant posts that appear in order of which is the most recent. Blogs can be used for personal or business purposes. Most merchants and retailers take advantage of this online publication to market their products.

Bounce rate– This term relates to online visitors who visits a certain singular web page on a website and bounce from the visited page without having to visit any other page on that site.

Brick and Click store– This is a store that has one existing online store and a physical existing store too.

Brick and mortar store- This is a business outlet with one store with a physical location.

Business structure– Mostly called incorporation, to mean a company that has been legalized.

Call-to-Action– features on a site that will ask a visitor to take action, these steps could vary from purchasing a product, registering or subscribing to the site.

Canonical URL– Search engines are directed to the preferred URL from various available URL’s by a canonical meta tag.

Capture– This is when payment is secured during payment process once it has been authorized.

Chargeback– the process of reversing back funds to the customer from a retailer through force. This occurrence is always from a customer who will complain about not ordering a particular item, the order was never fulfilled, the package wasn’t what they wanted, or there was no authorization for the transactions to be processed.

CVS, Comma Separated Value– This is a file that stores data and is used to transfer product feeds.

Confirmed Shipping Address– This is an existing address that can be confirmed to be existing from a package review that is found from FedEx or USPS. It can also mean an address that a customer has registered with via a payment process (credit card) or an address that has been used before for transaction by a certain wholesaler.

Content Managing System– This is an online software that is used to manage stored-product catalog by either creating, editing, maintaining, publishing or displaying content on the internet from an administration tool.

Conversion– When a site visitor converts to a consumer and purchases a product.

Cookie– This is a micro file that is stored in a consumer device (phone/laptop). The file relates to certain sites the consumer has been visiting.

Corporation– A legal business that has business structure only that the business is different from the shareholders.

Consumer Relationship Management (CRM) – This is a software that organizes, synchronizes and automates the relationship between the customer and the business person.

Cascading Style Sheet– When a site is written in HTML the CSS tries to break the page presentation from its structure, enabling the update and maintenance of the site to be easy.

Delivery Confirmation– This service is often provided by carriers. The information is about a delivered package to the shipper.
Directories- related links to other different sites which might include online sites.

Discount/Coupon Code– A code involving numbers and letters that an online consumer enters at a checkout to receive discount.

Distributor– A person who offer premium charges for service delivery. The distributor takes products from different manufacturers and sells the products (in small quantity) to several retailers.

Domain– Web page root address.
Dropshipping– A fulfilling order process. The retailer passes the consumer’s shipping address to the wholesaler or manufacturer to dropship the purchased item to the consumer.

eBay– A shopping website that acts as an online auction where consumers sell products to each other. Online merchants also use this site to sell their products.

Ecommerce – This is the selling or buying of products over electronic devices.

EIN (Employer Identification Number) – This is a number offered to business by the United States Internal Revenue. The amount which is also known is Federal Tax Identification Number is used to collect tax-related to business.

Expedited Shipping– This is a faster shipping option where the consumer pays a premium for the order to be delivered faster.
Exporting- selling of items in either retail or wholesale to customers in a different country.

Fraud– A purposefully deceptive way of gaining something in return.

Fulfillment– The process of completing an order. This can also refer to the time an additional party fulfill or ship orders on behalf of an online store.

Google– this is a favorite search engine that works the same as Bing. Google offers services like advertisement, payment processing solution, product discovery tools and also analytical solutions.

Google Keyword Tool– This is a free suggestion tool that uses data from various searches that have been conducted on Google Search Engine to suggest keywords for a particular URL.

Google Trends– This is a tool that let you know which words have frequently been used or searched for on Google. The trend search shows the source for results and the changes that have occurred over time in comparison to a particular search.

Hyper Text Markup Language– This is a markup language that displays web pages and applications in web browsers explaining the document and describing the layout and syntax.
Inventory– Current quantity stock of products of a retailer.

JavaScript- A scripting language that makes web pages interactive and lively.

Landing pages– This is a single web page displayed due to a particular call to action process. The landing pages are often found from pay-per-click ads, email links or an advertising URL shown in offline mode.

Limited Liability Company– A business structure that incorporates top-notch elements of partnership and corporations.

Linking Root Domains– SEO mainly uses this. When several different sites are linked severally to one website, the one site is said to be the linking Root Domains.

Listing fees– This is the nominal listing fee charged by online marketplaces for posting products on their site.

Logistics– It can mean shipping an order to a consumer or transporting inventories to a merchant.

Long Tail– Wired Magazine first introduced the word in 2004. The Chris Anderson’s idea was propelled by the notion that markets and marketplaces (online) were focusing on niche product and leaving behind the mainstream, broad-appeal products. In short, this term refers to focusing on niche products rather than broad-appeal products.

Long-Tail Variations– This is a keyword that acts similarly to any other keywords, the difference is that Long-Tail Variation doesn’t offer more competition. The keyword is favorable to new business that can’t afford to compete with other higher performing keyword.

Long-Tail Traffic– This is a website traffic caused by Long -Trail Variations.

Manufacturer– A company that produces goods for sale.
Manufacturers Suggested Retail Price- the naming price is given to a retailer to use in selling a specified product.

MAP (Minimum Advertised Price) Pricing- this is the least price offered by manufacturers to retailers when selling or advertising a given product. Some manufacturers will turn down an offer when a retailer doesn’t agree with their MAP pricing.

Margins– The remaining difference after what a retailer has paid for the product and what the retailer’s customer has paid for the goods.
Meta Tags– These are HTML tags which provide information on a web page but doesn’t influence how the page is viewed.

The information provided by Meta Tag is useful in SEO and various social media programming interfaces.

Minimum Order Size– this are orders placed by retailers to manufacturers or wholesalers that meet minimum unit count.

Multi-Channel Retailing– These are retailing products through several different channels. The channels in these case refer to online stores, online marketplaces like eBay, physical stores/catalogs.

Net Profits– the change you get after paying every bill.

Net Terms– an extended period of days that allows a retailer to pay for the already purchased product after they have been shipped to the consumer.
An instance; net 20’ means the retailer has 20 days before he can pay for the already shipped product, and in the case he pays before the days have elapsed there is an existing discount of either 5-10%.

Niche– specified market section.

Open Site Explorer– this is a tool associated with SEOmoz that helps in measuring the SEO and link quality.

Order Fulfillment– A completed e-commerce order by shipping a product(s) to the consumer.

Organic– These are non-paid sites that will appear on the list of search engines relating to the question posted on any search engine. The site will appear on the first page because of SEO usage.

Outsource– Issuing or asking for work from an external source or a third party.

Overhead– An ongoing expense that relates to managing a business.

PageRank– This is a ranking system used by Google which determines the importance of a page according to how many inbound link it has.

PageRank is measured on a 10 or 100 scale.
Patent– Intellectual protection offered to certain forms, allowing the inventors exclusive rights to manufacture, use and sell an invention for a specified period of years.

PayPal– A global payment process that services both the merchants and consumers.

Pay Per Click (PPC) – This is an online advertisement program where advertisers only pay when a prospect client click on their advertised product found on their site.

An example of this model is carried out by Google AdWord.
Preferred Supplier- these are suppliers who get customer being referred to them by business.

When retailers send consumers to the preferred Suppliers, they tend to add up on their sales.

Pre-Order Fee- When a customer receives an order directly on behalf of the retailer, the retailer will have to pay the pre-order fee for processing the order.

Profit Margin– The change that is left from subtracting what the retailer paid for the product and what the customer pays for the product from the retailer.

This margin may include other related costs when taken into account.
Quantitative Metrics- these are online measures that are represented by numbers. Examples include; time-on-site, visitor counts, and click-through rates.

Qualitative Metrics– These are measures taken about quality of customer interaction.

Reseller– Company that buys goods or services and resell it but never use it. It can also refer to when a service has been rebranded, and it’s being promoted through affiliate marketing.

Restocking Fees– Fees that is passed to the customer when they return goods, the cost is often removed from customer’s refund.
Retailer- Company that sells the product to the customer directly.

Search Engine Marketing– This is an online marketing strategy that increases an internet site visibility by optimizing the site for indexing and purchasing ads. The website visibility is judged by the Search Engine Results Page (SERP).

Search Engine Optimization (SEO) – A model process that is used to increase the site’s visibility by making it simpler for search engine bots to index and rank or categorize the website.

Search Engine Results Page (SERP) – This is a search engine page that always displays the result of a particularly asked question.
Shipping– The act of moving goods or merchandises from one place to another place, e.g., from a warehouse to a customer’s address.

Social Media– Internet sites that allow people to share their opinions, links, images, videos or content.

Social Media Marketing– The act of promoting goods, services or brands through social media services.

Sole Proprietorship– A one person business. This person often runs the business he owns alone.

Split Testing– A testing online marketing model, where two sites are variables are tested to find the favored site. The testing can be based on a web page, ad content or web design.

Supply Chain– A sequence that is followed by involved business. The sequence involves moving of goods from the manufacturer to the customer.

Tracking Number– These are alphanumeric that are tagged to an- order or goods to monitor their progress until they reach the named destination. Traffic number is often used by carriers.

Trademark– Protection from the government in forms of words, design, symbol that represent a product or a brand.

Trade Show– An exhibition that is created for a day or several days that allows manufacturers and distributors to display their products and services.

Traffic– The number of visitors to a particular page or site due to internet marketing.

Usability– The comfort of interacting, browsing and reading a particular web page without interactions.

Value Added Tax (VAT) – Tax added to a product that increases its value.

Vertical– industry sector that is made of similar business and customers.

Voice over Internet Protocol– a technology that allows communication via the internet.

Wholesale Price– The price a retailer is charged for products by either the distributor or the manufacturer.

Wholesaler– A person who sells to a retailer. They are mainly Distributors and Manufacturers.

Extensible Markup Language (XML) – This is a global web Consortium standard that encodes and annotate text document and is often used in product feeds.


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