Dropshipping Glossary

A Chinese online retail marketplace commonly used by dropshippers for sourcing products at wholesale prices with single-unit ordering.

The average amount of money a customer spends per transaction on a store.

A strategy focused on building a unique brand identity rather than selling generic unbranded products.

A forced reversal of a credit card transaction initiated by the cardholder's bank, often due to fraud or customer dissatisfaction.

A sourcing and fulfillment platform offering product sourcing, warehousing, and global shipping services for dropshippers.

The percentage of website visitors who complete a desired action, typically a purchase.

The direct cost of producing or purchasing the goods sold by a business, including supplier price and shipping.

The total cost of marketing and sales efforts required to acquire one new customer.

A retail fulfillment method where the retailer does not hold inventory and instead relies on a third-party supplier to ship products directly to customers.

An affordable shipping method from China and Hong Kong offering tracking and relatively fast delivery to select countries.

A JavaScript tracking code installed on websites to monitor user behavior and optimize Facebook advertising campaigns.

The complete process of receiving, processing, packaging, and shipping customer orders.

The stages a potential customer passes through from initial awareness to final purchase.

A specialized segment of a larger market, defined by specific customer needs, demographics, or product categories.

A service that authorizes and processes credit card payments for online transactions, such as Stripe or PayPal.

A fulfillment model where custom-designed products are produced only after a customer places an order.

Products manufactured by a third party but sold under the retailer's own brand name.

The process of finding suppliers and selecting products to sell in a retail operation.

The percentage of revenue remaining after all costs are deducted from the selling price.

An advertising strategy that displays ads to users who have previously visited a website but did not convert.

A metric measuring revenue generated per dollar spent on advertising.

A sufficient connection between a business and a taxing jurisdiction that creates a sales tax collection obligation.

A leading e-commerce platform enabling businesses to create and manage online stores.

A third-party manufacturer or wholesaler who stores, packages, and ships products on behalf of the dropshipping retailer.

A product that consistently generates profitable sales at scale through paid advertising or organic traffic.