Dropship Resources – 22 Ecommerce Terms All Resellers Should Know


Why is it so Important to be a Knowledgable Reseller?

More than anything else, a reseller needs to remain knowledgeable about the industry he/she is working in. The reason for this is that the more knowledgeable the reseller possesses, the more organized, adaptable, flexible, and successful the reseller will be. And, of course, this will boost the success potential of the business enormously.

The 22 Most Important Ecommerce Terms

Product Feed:

A file maintaining all the requisite information about a product list associated with an ecommerce site.

Such feeds provide product information to search engines which aid in reseller inexpensively finding customers.

Data Feed:

This is a process in which user can receive updated from a data source.

For resellers, the ability to stay in the loop with their affiliate service and to keep their customers informed becomes possible.


XML stands for Extensible Markup Language and it is means of encoding documents electronically.

Resellers will employ it to exchange data over the internet in a safe and secure manner.


RMA stands for Return Material Authorization which is the process of returning goods or services for replacement or repair.

Resellers need a RMA system in place so they are not forced to accept losses on defective products.

Import Duties:

These are taxes the recipient of a package from a foreign company will need to pay on the receipt of certain items.

Dropshippers need to know how much customers will pay on import duties so they can adjust their pricing and shipping accordingly.

This can help the company still remains cost effective for customers.


VAT stands for Value Added Tax and it is a fee charged on all levels of consumption and sale. Mostly used in Europe, a VAT tax can add upwards of 20% to the cost of an order.

Billing Address:

This is the address associated with the credit card used in the purchase.

Proving a billing address to the reseller allows the reseller to charge the credit card. It also aids in preventing the use of stolen credit card.

Shipping Address:

This is the specific address the customer would like the order shipped to. It may or may not be the same address as the billing address.

Ecommerce Portal:

This is an online hub where sellers, suppliers, and consumers can interact.

For the reseller, such a portal can greatly expand social media marketing potential.


A merchant is someone that sells a product directly to a customer.

Merchants should not be confused with suppliers which are, in essence, wholesalers that provide products for merchants or retailers to sell.


A Content Management System allows for the proper maintenance and management of workflow.

Dropshippers will find it enormously helpful to maintain organization.


Dynamic Source Routing is designed to effectively route wireless mesh networks which aids the dropshipper with computer networking setups.


Terms of Service (TOS) refers to the contractual agreement concerning the rules of working with the dropshipping agency.

Violating terms of service could lead to the affiliate being dropped from the main company the dropshipper is affiliated with.


Frequently Asked Question(s) from potential customers.

Dropshippers need to know the common FAQs associated with their business so they can put them up on a special page on their website.

This can eliminate a lot of time responding to the same customer inquiries over and over again.


Stock Keeping Units are common identifiers for products.

Maintain lists of SKUs can ensure a dropshipper knows exactly what is in an inventory at a particular time.

Listing Software:

This is software designed to presents proper listings of products and merchandise.

Dropshippers can use this software to more effective present eBay or other listings.

Merchant Account:

A bank account that allows a company to accept credit and debt card payments. Such an account provides more convenient payment options to the dropshipper from the customer.


This is a law passed in the United States that places restrictions and regulations on how a seller can promote a direct email campaign.

Dropshippers employing mass emailing marketing strategies need to be in compliance with such regulations or face fines and other penalties.

Shopping Cart:

This is a software program that allows customers to add pending purchases to a section of the website where purchasing can be completed when all the items the person wishes to purchase are “placed” in the cart.

Such software is vital to dropshippers since it makes online purchasing more streamlined and less cumbersome.


An affiliate is an associate of a retail service that sells on a consignment or commission basis.

Dropshippers would be the affiliates of the dropshipping service that actually warehouses and ships purchased items.


This is when a financial institution forces a refund to a customer.

In many ways, this keeps dropshippers honest since a third party (a financial institution) can hold them to certain standards.

However, it is sometimes used by unscrupulous people to get their products for free.

Email Client: Specialized software program designed to manage email accounts.

This makes the process of managing email much easier for the dropshipper.

Do This Right Now!

Memorize the ecommerce terms on the list to boost knowledge levels and success potential!

Source by Rose Li

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