Use this A–Z guide to understand the words and abbreviations you will encounter while researching products, working with suppliers, and building your ecommerce business.
Dropshipping comes with a lot of unfamiliar terminology. Bookmark this page and use it whenever you encounter a term you do not recognize in a supplier application, product feed, marketplace policy, or customer order.
Application Programming Interface. Technology that allows two systems, such as your ecommerce store and supplier, to exchange information automatically.
A business that has received permission from a supplier or brand to resell its products.
A system where customer orders are automatically sent to the supplier instead of being manually entered.
Formal permission from a supplier, manufacturer, brand, or marketplace allowing a particular business activity.
An arrangement where the supplier ships directly to your customer without prominently identifying itself as the seller.
Permission from a manufacturer or brand allowing a retailer to sell its products through specified channels.
Transactions where one business sells products or services to another business rather than directly to consumers.
The collection of products a supplier makes available to retailers.
Comma-Separated Values file. A spreadsheet-style file commonly used to transfer product titles, prices, SKUs, inventory, URLs, and other product information.
The direct cost associated with the products you sell.
The percentage of visitors who complete a desired action, such as making a purchase.
The average amount of money spent on marketing or advertising to acquire a new customer.
A company that purchases products from manufacturers and supplies them to retailers or other businesses.
A fulfillment method where the seller does not keep inventory. A supplier ships the customer's order directly to the customer.
An additional charge some suppliers assess for processing an individual dropshipping order.
The estimated amount of time required for a shipment to reach the customer.
The buying and selling of products or services through the internet.
Employer Identification Number. A federal tax identification number issued by the IRS to businesses.
Enterprise Resource Planning software. A system businesses may use to manage inventory, orders, accounting, and other operations.
The process of preparing, shipping, and completing a customer's order.
A warehouse facility where products are stored, packed, and shipped.
A shipping method commonly used for large, heavy, or palletized products that are not practical for normal parcel shipping.
A company that transports large or palletized shipments, including LTL freight.
The quantity of products currently available for sale.
A file or automated connection that provides current supplier stock information.
A connection between your ecommerce platform and a supplier that may automate products, inventory, orders, or tracking.
A document showing products purchased, quantities, prices, and transaction information.
The total cost required to get a product to the customer, including the product and applicable shipping or fulfillment expenses.
The amount of time between placing an order and the item being ready to ship.
The product page customers see, including the title, description, images, price, and shipping information.
Less-Than-Truckload freight. Shipping used when an item requires freight service but does not require an entire truck.
Minimum Advertised Price. A pricing policy that may limit the lowest price at which an authorized retailer advertises a product.
A platform where multiple sellers offer products, such as eBay or Walmart Marketplace.
The portion of a sale remaining after costs are deducted, often expressed as a dollar amount or percentage.
The business that makes or produces a product.
Minimum Order Quantity. The smallest quantity a supplier requires you to purchase in a single order.
The steps between receiving a customer order and preparing that order for shipment.
A product that is temporarily unavailable from the supplier.
Monitoring a shipment from the time it leaves the supplier until it reaches the customer.
A service that handles customer payment transactions for your store.
Supplier data containing current product pricing that may be used to help update store prices.
A structured file or automated connection containing supplier product information such as titles, images, SKUs, prices, and inventory.
The money remaining from a sale after applicable costs are deducted.
Profit expressed as a percentage of the selling price.
Documentation commonly used to show a wholesale supplier that products are being purchased for resale.
The price charged to the final customer.
A business that sells products directly to the final customer.
Approval or instructions from a supplier allowing a product to be returned.
Return Merchandise Authorization. A number or approval used to identify and process an authorized return.
The business identified to the customer as the seller responsible for the transaction.
A state or local registration that may allow a business to sell taxable products and collect applicable sales tax.
The company that physically transports a shipment to the customer.
Stock Keeping Unit. A unique identifier used by a business or supplier to identify a particular product or variation.
A company, distributor, or manufacturer that provides products for your business to sell.
Terms defining the relationship between your business and supplier, including pricing, fulfillment, and sales-channel rules.
The website, store, or marketplace where you offer products to customers.
A unique shipment identifier used to monitor a package through delivery.
A business account established with a supplier or manufacturer that may provide wholesale pricing or reseller access.
A fee charged when a payment or marketplace transaction is processed.
Universal Product Code. A standardized barcode identifier commonly used for retail products.
Encouraging a customer to purchase a more valuable version, upgrade, or related option.
A facility where products are stored before being shipped.
The sale of products to businesses for resale rather than directly to the final consumer.
The price a supplier charges an approved retailer or reseller before the product is sold to the customer.
A supplier that sells products to businesses for resale, often at pricing different from consumer retail pricing.
You do not need to memorize these terms. When you see something like MOQ, MAP, CSV, LTL, SKU, or landed cost in one of the supplier guides, return here and look up what it means.
Two suppliers may use different names for similar services, documents, or account types. When terminology affects pricing, shipping, marketplace permission, or your responsibilities, review the supplier's own current definition and terms.
Compare the six suppliers, choose the one that matches your business, and use its step-by-step guide to begin.
View the 6 Supplier Guides →