Dropship Resources: 22 Ecommerce Terms Every Reseller Should Know

Why is it so important to be an informed reseller?

More than anything else, a reseller must stay informed about the industry in which they are working. The reason for this is that the more knowledge the reseller has, the more organized, adaptable, flexible and successful the reseller will be. And of course, this will greatly boost the potential for success of the business.

The 22 Most Important Ecommerce Terms

Product feeding:

A file that holds all the necessary information about a product listing associated with an e-commerce site.

Such feeds provide product information to search engines that help resellers find customers cheaply.

Data feed:

This is a process where the user can receive updates from a data source.

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


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

Resellers will use it to securely exchange data over the Internet.


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

Resellers need an RMA system so they are not forced to accept losses for defective products.

Entry fees:

These are taxes that the recipient of a package from a foreign company must pay when receiving certain items.

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

This can help keep the business profitable for customers.


VAT stands for Value Added Tax and is a fee charged at all levels of consumption and sale. Mainly used in Europe, a VAT tax can add more than 20% to the cost of an order.

Shipping 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 helps prevent the use of stolen credit cards.

Shipping Address:

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

E-commerce portal:

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

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


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

Merchants should not be confused with Vendors which are, in essence, wholesalers who offer products for merchants or retailers to sell.


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

Dropshippers will find it enormously helpful to stay organized.


Dynamic Source Routing is designed to effectively route wireless mesh networks, helping the dropshipper with computer network setups.


The Terms of Service (TOS) refers to the contractual agreement on the rules of work with the dropshipping agency.

Violation of the terms of service could lead to the affiliate being removed from the parent company the dropshipper is affiliated with.

Frequent questions:

Frequently asked questions from potential clients.

Dropshippers need to know the most common FAQs associated with their business so that they can be placed 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 product identifiers.

Keeping SKU lists can ensure that a dropshipper knows exactly what is in inventory at any given time.

List of programs:

This is software designed to present proper product and merchandise listings.

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

Business account:

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


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

Dropshippers who employ bulk email marketing strategies must comply with 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 purchases can be completed when all the items the person wishes to purchase are “placed” in the cart.

Such software is vital for dropshippers as it makes online shopping more streamlined and less cumbersome.


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

Dropshippers would be the affiliates of the dropshipping service that actually store and ship the purchased items.


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

In many ways, this makes dropshippers honest, as 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 – ​​A 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 from the list to increase knowledge levels and potential for success!

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