200+ Essential Terms and Acronyms You Need to Know

Want to get a handle on the essential dropshipping terms? Ever wondered what “Abandoned Cart” really means or what “MOQ” stands for? Don’t worry! In this article, we’ve put together a complete dropshipping glossary, covering 200+ key terms and acronyms from A to Z, so you can dive in with confidence and stay in the know. Ready to unlock these useful insights? Let’s get started!

Don’t forget to bookmark this page for quick access anytime you need to check a dropshipping term. Keep it handy for easy reference!

A B C D E F G H I J K L M N

O P Q R S T U V W X Y Z

A

A/B Testing: A method of testing by running two versions of a webpage or app to compare their effectiveness.

Abandoned Cart: When a user adds items to their shopping cart but does not complete the checkout.

Abandoned Cart Recovery: Automated reminders, such as emails, sent to customers who abandon their carts to encourage them to complete their purchase. Applications can automate this process, helping recover sales.

Affiliate Marketing: A performance-based marketing method where online store owners collaborate with influencers or online publishers. The influencer promotes products through posts on platforms like Instagram, YouTube, or blogs, and receives payment or commissions based on referred sales or a fixed fee.

AIDA: A marketing model representing stages of consumer engagement:

Attention: Capturing awareness of a product or brand.

Interest: Generating interest.

Desire: Building a need or want for the product.

Action: Encouraging purchase or engagement.

AliExpress: A global e-commerce platform where many dropshippers source products.

API (Application Programming Interface): A software interface that enables integration between different software applications and platforms.

ARPU (Average Revenue Per User): A metric for assessing customer value by calculating the average revenue per user.

Authority Site: A website recognized as a reputable source of reliable information.

Average Order Value (AOV): The average amount of money spent per order over a specific period, useful for assessing purchase behavior.

Average Transaction Value (ATV): The average amount a customer spends in a single transaction in your store, important for evaluating sales performance.

B

B2B (Business to Business): A business model focused on transactions between companies.

B2C (Business to Consumer): A business model focused on transactions between businesses and consumers.

Backlink: A link received when one website links to another, often used to improve SEO.

Backorder: An order accepted when stock is insufficient, typically resulting in delayed shipment.

Black Friday: A shopping holiday originating in the U.S., now popular worldwide, where retail stores offer significant discounts. It occurs the day after Thanksgiving.

Blog: A website section where owners share articles, often optimized for SEO to improve search ranking. Blogs help promote products and provide valuable information for customers.

Bounce Rate: The percentage of visitors who leave a website without interacting further, often indicating content engagement levels.

Brick-and-click: A retail model combining physical stores with an online presence, allowing customers to shop both in-store and online.

Brick-and-mortar: A physical store where customers can shop in person, viewing and purchasing products directly from the shelves.

Buyer Persona: A detailed profile representing an ideal customer, created based on market research to guide marketing and product development.

C

CAC (Customer Acquisition Cost): The cost incurred to acquire a new customer.

Cart Abandonment: Same as Abandoned Cart; when a customer adds items to their cart but does not complete the purchase.

Call-to-Action (CTA): A marketing element encouraging an action, such as “Get it now” or “Subscribe now.”

Chargebacks: Refunds requested by customers through their bank, typically due to dissatisfaction or fraud.

Checkout Process: The steps a customer follows to complete a purchase, from reviewing items to finalizing payment.

Click-and-Collect: A shopping method where customers purchase items online and pick them up in-store.

Compare at Price: The original, higher price displayed alongside the discounted price, allowing customers to compare and see savings.

Conversion Rate: The percentage of visitors who complete a desired action, like making a purchase.

CPC (Cost Per Click): The amount paid for each click on an advertisement.

CRM (Customer Relationship Management): Systems and strategies for managing interactions and relationships with customers.

Cross-Selling: Offering related products to customers based on their interests or cart items to increase sales.

CSS (Cascading Style Sheets): A style sheet language used to control the layout and visual formatting of HTML pages.

CTR (Click-Through Rate): The percentage of users who click on a specific ad after viewing it, indicating ad effectiveness.

COD (Cash on Delivery): A payment method where customers pay upon delivery.

Customer/Consumer: A person who browses your store with the intention of purchasing products.

Customer Lifetime Value (CLV): The total revenue expected from a customer over their entire relationship with a business.

Customer Retention: Strategies used to keep existing customers and encourage repeat purchases.

Cyber Monday: The Monday following Black Friday, featuring significant online discounts to boost digital sales.

D

DAP (Delivered at Place): A shipping term where the seller assumes all responsibility for delivering goods to a specific location, excluding unloading.

Data Protection: Measures taken to safeguard customers’ personal and sensitive information from unauthorized access or misuse.

Datafeed File: A file containing detailed product data for online stores, often with real-time updates via URL. Useful for managing bulk product information when a supplier provides a datafeed but is not on marketplaces like Syncee.

DDP (Delivered Duty Paid): A shipping term where the seller assumes responsibility for all costs, including duties, to deliver goods to the buyer’s location.

Digital Marketing: Promotional activities carried out online to reach consumers, including SEO, social media, and paid ads.

Discount Code/Coupon Code: A code made up of letters or numbers that provides a discount or free item when entered during checkout.

Domain Name: A unique name in the address bar that identifies an organization or entity on the internet.

DPU (Delivered at Place Unloaded): A shipping term where the seller delivers goods to a specified location and is responsible for unloading.

DSA (Dynamic Search Ads): Ads generated automatically based on the content of a website.

DTC (Direct to Consumer): A business model where companies sell products directly to consumers without intermediaries.

Dropshipping: A retail model where sellers don’t hold inventory. Instead, suppliers ship directly to customers, eliminating the need for upfront stock investment.

E

E-commerce: The buying and selling of goods or services over the internet, often referring to online sales of physical products but applicable to any internet-based commercial transaction.

Ecommerce Platform: A software application for creating and managing an online store, including tools for sales, marketing, order fulfillment, and more.

Email Marketing: The use of email to promote products or services, engage customers, and drive sales.

Encryption: The process of converting information into a secure format to protect it from unauthorized access.

ERP (Enterprise Resource Planning): A system that integrates various business processes, facilitating data flow and efficiency across departments.

ETA (Estimated Time of Arrival): The projected time when an order or shipment will arrive at its destination.

Event-triggered Email: An automated email sent based on specific customer actions, such as signing up, abandoning a cart, or making a purchase.

EXW (Ex Works): A shipping term where the buyer assumes responsibility for all costs and logistics starting from the seller’s location.

ePacket: An affordable international shipping method for small packages, commonly used for faster delivery of items from overseas suppliers.

F

FBA (Fulfillment by Amazon): A service where Amazon stores, packs, and ships products for sellers, handling customer service and returns.

FBM (Fulfilled by Merchant): Orders fulfilled directly by the seller rather than the platform.

FCA (Free Carrier): A shipping term where the seller delivers goods to a specified location, and the buyer assumes responsibility from that point.

Facebook Ad: Paid advertisements created by companies on Facebook. These clickable ads, often appearing as images or banners, direct users to the advertiser’s website and appear in the News Feed on desktop and mobile or in the sidebar on desktops.

FAQ (Frequently Asked Questions): A section where common customer questions are answered to assist with general inquiries.

Filtering: In the context of product management, setting filters on platforms like Syncee Marketplace to refine product search results or selectively add items from a supplier’s catalog.

Fulfillment: The process of completing customer orders, encompassing logistics, packaging, and shipping.

G

Gateway: A payment gateway, an interface that securely processes online payments.

GMS (Gross Merchandise Sales): The total sales value of goods sold over a specific period.

GMV (Gross Merchandising Value): The total value of merchandise sold via a platform over a set time, often used as a performance metric.

Google Ad: Google’s advertising platform, allowing businesses to place ads across Google’s search engine and other Google-affiliated sites.

Google Analytics: A tool by Google that tracks and reports website traffic, providing insights into user behavior and engagement.

Google Shopping: A Google service that allows retailers to list products online, enabling users to search, compare, and shop for items directly on Google.

H

H1: Refers to the first half of the year.

H2: Refers to the second half of the year.

HB (Heavy Bulky): Describes items that are both heavy and large, requiring special handling.

HOTW (Hands Off The Wheel): Indicates an automated state where no manual control is required.

HTD (Half Year to Date): A time period covering the first half of the current year up to the current date.

HTML (HyperText Markup Language): The markup language used to structure and format content on web pages.

HTTPS (Hypertext Transfer Protocol Secure): A secure protocol for transferring data on the internet, encrypting information to protect user privacy.

Handling Time: The time taken to process an order from purchase to shipment.

Hazmat (Hazardous Materials): Refers to flammable, toxic, or pressurized items requiring special handling to ensure safety.

Heatmap: A visual representation of data showing areas of high and low engagement on a webpage, often used in website analysis.

I

IDQ (Item Data Quality): Used to identify product listings with missing or incomplete information, such as titles or bullet points, that need improvement.

IOR (Importer of Record): The party responsible for ensuring goods are legally imported and compliant with regulations.

IP (Intellectual Property): Legal rights covering brands, trademarks, patents, and other proprietary assets.

IPCP (Inbound Preferred Carrier Program): A program designating preferred carriers for inbound shipments to streamline logistics.

IPIP (Items Per Inner Pack): The number of individual items contained in an inner pack.

IPMP (Inner Packs Per Master Pack): The number of inner packs contained within a master pack.

ISA (Inbound Shipment Appointment): A scheduled appointment for inbound shipments to ensure smooth delivery and processing.

Impression: The number of times an ad or piece of content is viewed.

Incoterms (International Commercial Terms): Standardized trade terms that define the responsibilities of buyers and sellers in international transactions.

Internal Link: A link within a website that connects one page to another, aiding navigation and SEO.

Inventory: The stock or quantity of products available for sale.

Inventory Synchronization: The process of keeping inventory levels consistent across various platforms and channels.

J

Just-In-Time Inventory: A strategy of producing or purchasing inventory only as needed, reducing storage costs.

K

KPI (Key Performance Indicator): A metric used to measure the success or performance of a business or specific activity.

KVI (Key Value Item): A strategically important item used to attract customers due to its perceived value or low price.

Keyword: Words or phrases that represent the content of a website or post, important for SEO. Effective keywords improve site visibility and ranking, helping users find relevant content. Also known as tags.

L

LBO (Lost Business Opportunity): A missed opportunity for a sale or business growth due to various factors.

LBB (Lost Buy Box): The status of a listing that has lost the Amazon Buy Box, often affecting sales potential.

LD (Lightning Deal): A type of limited-time discount on Amazon, running for 4-6 hours to boost sales.

LPR (License Plate Receive): A receiving process where items are scanned by a package barcode, streamlining intake by avoiding individual item scans.

LTL (Less than Truck Load): A shipping term for freight shipments that do not require a full truck, allowing for cost-sharing.

LTV (Lifetime Value): A metric predicting the total value a customer will bring over their entire relationship with a business.

Landing Page: The page a user arrives on after clicking an advertisement, designed to prompt specific actions.

Lead Generation: The process of identifying and attracting potential customers to convert them into leads.

Lead Magnet: A free offer used to attract potential customers in exchange for their contact information.

Link Building: The process of acquiring external links to improve a website’s SEO and authority.

Listing Optimization: Enhancing listing content to improve its organic ranking and visibility on platforms like Amazon.

Live Chat Support: Real-time customer service provided through chat on a website, assisting users instantly.

M

MAP (Minimum Advertised Price): The lowest price at which products can be advertised for sale, ensuring a balance between value and marketability.

MDF (Marketing Discretionary Funding): Funds offered by Vendor Managers to support marketing efforts during annual negotiations.

MCF (Multi-Channel Fulfillment): A service allowing brands to use Amazon warehouses to store and ship products sold outside of Amazon.

MCP (Matching Compensation): Amazon’s request for investment support to keep low-margin products listed in their catalog.

MF (Merchant Fulfilled): Refers to sellers who ship products directly to customers rather than using a fulfillment service.

MOQ (Minimum Order Quantity): The smallest quantity required to be ordered from a supplier.

ML (Machine Learning): A subset of artificial intelligence that enables systems to learn and improve from experience.

MLA (Machine Learning Algorithm): A method or formula used by machine learning systems to analyze data and make predictions.

MoM (Month over Month): A comparison metric measuring changes in data from one month to the next.

MFP (Minimum Featured Price): The minimum price that products must be featured at within a listing.

MP (Marketplace): The locale or domain in which a sales platform operates, such as Amazon.co.uk or Amazon.de.

MPPP (Master Packs Per Pallet): The number of master packs that fit on a single pallet.

MSRP (Manufacturer’s Suggested Retail Price): The price recommended by the manufacturer for retail sales; retailers should confirm if they can sell below this price.

Merchant Account: An account used to facilitate online payment processing for transactions.

Meta Description: A brief summary of a web page’s content, displayed as a snippet in search engine results, aimed at improving click-through rates.

MTD (Month to Date): A measure of data collected from the beginning of the month up to the current date.

MWS (Marketplace Web Services): Amazon’s API that allows developers to integrate their applications with Amazon’s services.

N

Net Profit: The remaining profit after subtracting all expenses from total revenu

Niche: A specific, targeted customer segment or market with unique needs and preferences.

O

O2C (Order to Cash): The end-to-end process of managing sales, including shipping goods, invoicing, receiving payments, and reporting.

OOT (Over the Counter): Products sold directly to customers without a prescription, often in a retail setting.

OOS (Out of Stock): Indicates that a product is currently unavailable for purchase.

OPS (Ordered Product Sales): Also known as Ordered Revenue, representing the total sales value of ordered products.

OTP (One-Time Password): A single-use password sent to users for secure access or transactions.

OpEx (Operational Excellence): A business philosophy focused on improving processes to achieve optimal performance and efficiency.

Omnichannel Retailing: A retail approach where customers can engage, transact, and interact across various channels, such as in-store, online, and mobile, seamlessly and interchangeably.

Open Rate: The percentage of recipients who opened an email, calculated by dividing the number of opens by the total number of emails sent.

Order Fulfillment: The complete process of preparing and delivering customer orders, including picking, packing, and shipping.

Order Tracking: A system that allows customers and businesses to monitor the shipping and delivery status of an order.

Organic Traffic: Visitors who arrive at a website through unpaid search results or direct links, not through paid advertising.

Outsource: Assigning business tasks or services to a third party to improve efficiency or reduce costs.

P

POD (Print on Demand): A model where items, like apparel or books, are printed only when an order is placed, reducing inventory needs.

POS (Point of Sale): The location where retail transactions occur, typically involving cash registers or card readers. Modern POS systems often include additional functions like CRM, financial management, and inventory control.

PPC (Pay Per Click): An advertising model where advertisers pay based on the number of clicks their ads receive.

Payment Gateway: An interface that securely processes online payment transactions.

Pop-up: A small window that appears on a website, often to offer discounts, sales, or subscription opportunities when a user is about to leave.

Price Margin: The difference between the supplier’s price and the retailer’s selling price, which can be specified as a fixed amount or percentage.

Privacy Policy: A statement outlining how a website collects, uses, and protects user data.

Private Label: A practice where products are sold under a retailer’s brand instead of the manufacturer’s name.

Product ID: A unique identifier for products, composed of letters and numbers, used to group product variants.

Product Listing: An online catalog entry displaying a product’s details, such as images, description, and price.

Product Sourcing: The process of finding suppliers or manufacturers for products to sell in a retail or online store.

Q

Q1-Q4 (Quarter 1-4): The four quarters of a fiscal year, often used to track business performance. Q1: January-March, Q2: April-June, Q3: July-September, Q4: October-December.

QA (Quality Assurance): A process focused on preventing defects and ensuring quality throughout product development.

QBR (Quarterly Business Review): A periodic review of business performance conducted every quarter.

QD (Quantity Discount): A price reduction offered based on the quantity of products purchased.

QUID (Quantitative Ingredient Declaration): A label declaration stating the percentage of certain ingredients in a product.

Quality Control: Procedures implemented to ensure that products meet established quality standards.

R

ROI (Return on Investment): A metric that measures the profitability of an investment by comparing returns to the initial investment.

RRA (Rapid Retail Analytics): Tools and methods used to quickly analyze retail data for actionable insights.

RRP (Recommended Retail Price): The price suggested by the manufacturer or supplier for retailers to sell a product.

RSP (Retail Selling Price): The actual price at which a product is sold to the consumer.

RVR (Retail Vendor Recruitment): The process of identifying and onboarding new vendors for retail partnerships.

Reseller: A seller who purchases products from suppliers to resell for profit.

Return Policy: Guidelines that outline the terms and conditions for product returns and refunds.

Retargeting: A marketing strategy that targets users who previously visited a website with ads to encourage them to return and complete a purchase.

S

SaaS (Software as a Service): A software distribution model where a third-party provider hosts applications accessible to users via subscription. Maintenance is managed by the provider, making it easier for businesses to use these applications.

SEO (Search Engine Optimization): Techniques used to increase a website’s visibility in search engine results, using keywords and optimized content to drive organic traffic.

SERP (Search Engine Result Page): The page displayed after a search engine query. SEO helps improve a website’s position on SERPs, ideally placing it higher for better visibility.

SKU (Stock Keeping Unit): A unique identifier assigned to each specific product in inventory, used for tracking purposes.

Shopify: A widely-used e-commerce platform, especially popular for supporting dropshipping businesses.

Shipping Time: The duration required for a product to be shipped and delivered to the customer.

Shopping Cart: An online tool where customers can add items they intend to purchase before checkout.

Social Proof: Evidence that others have purchased or approved a product, often influencing potential customers’ purchasing decisions.

Supplier: A business that offers products to retailers at wholesale prices, though not necessarily the manufacturer. Operates primarily in B2B sales.

T

T12M (Trailing 12 Months): A financial metric that represents the past 12 months of data, often used for performance analysis.

T5 (Turkey Five): Refers to the five-day shopping period from Thanksgiving through Cyber Monday, a peak retail season.

TAT (Turnaround Time): The time required to complete a specific task or process.

TL (Truck Load): A shipping term indicating a full truckload of goods, typically used for large shipments.

TTM (Trailing Twelve Months): A performance measure covering the past twelve months, used to evaluate recent business trends.

Target Audience: A specific group of people identified as the primary recipients of marketing efforts.

Target Marketing: The strategy of dividing a market into segments and focusing on key groups whose needs align with a product or service, to attract new business and drive sales.

Terms of Service (TOS): A set of rules and guidelines users must agree to when using a website or service.

Third-Party Logistics (3PL): Companies that provide outsourced warehousing, order fulfillment, and shipping services for businesses.

Third-Party Seller: A seller who lists and sells products directly on a platform like Amazon without selling to Amazon itself.

Tracking Number: A unique identifier generated for each order, allowing the customer, store, and carrier to track the shipment.

Traffic: The number of users who visit a website, an important indicator of site popularity and reach.

Turnkey Solution: A ready-to-use solution that is fully complete and operational upon implementation, requiring minimal setup by the user.

U

UI (User Interface): The point of interaction between a user and a computer system, focusing on aesthetics and design. UI design aims to create an intuitive and visually appealing interface.

UPC (Universal Product Code): A unique code assigned to each product for identification and tracking, commonly used in retail.

USP (Unique Selling Proposition): A distinctive feature of a product or service that differentiates it from competitors, often highlighted in marketing to attract customers.

UX (User Experience): The overall experience a user has when interacting with a website or product. Good UX design ensures ease of use and a satisfying user journey.

UX/UI (User Experience/User Interface): A combined approach in design that considers both user interaction (UI) and the overall experience (UX) to create functional and enjoyable digital products.

Upselling: A sales technique used to encourage customers to purchase higher-value items or add-ons, increasing transaction value.

V

VAT (Value-Added Tax): A consumption tax added to the sale price of goods and services.

Variant: A version of a product available in different sizes, colors, materials, or other attributes.

Vendor: A supplier or seller who provides goods or services, often to other businesses.

Voice Shopping: The process of purchasing products using voice-activated devices or voice commands through platforms like Alexa or Google Assistant.

Void: The action of canceling a transaction or operation, making it null or invalid.

W

Warehouse: A storage facility used for holding and managing inventory before distribution or sale.

Web Analysis: The process of analyzing website data to understand user behavior, optimize performance, and enhance the user experience.

Web Hosting: A service that provides the infrastructure to make a website accessible on the internet.

Wholesale: A purchasing model where products are bought in bulk at discounted rates, typically for resale.

Wholesale Price: The cost paid by retailers to a wholesale supplier, generally lower than the retail price seen in online stores.

Wholesale Supplier: A business that sells products in large quantities to retailers, often at discounted rates.

Wish List: A feature on e-commerce websites that allows users to save items for future purchase or reference.

X

XML (Extensible Markup Language): A markup language used for structuring, transmitting, and exchanging data across different systems.

Y

YTD (Year to Date): A period starting from the beginning of the current year up to the present date, often used for financial or performance metrics.

Yield: The return rate or profit ratio generated from an investment.

YoY (Year over Year): A comparison of performance metrics between the current year and the previous year.

Z

Zero Inventory: A strategy where businesses hold no stock, relying on suppliers to ship products directly to customers, commonly used in dropshipping.

With this glossary, you now have a solid foundation in the essential dropshipping terms from A to Z. Whether you’re new to the field or looking to refresh your knowledge, keep this guide bookmarked for whenever you need a quick reference. Mastering these concepts can help you navigate the world of dropshipping more confidently and make smarter business decisions. Ready to put your knowledge into action? Start exploring, and watch your dropshipping expertise grow!