eBay Dropshipping Glossary
59+ essential terms every eBay seller and dropshipper should know. Bookmark this page.
Showing 59 terms
1099-K (US)
Tax & LegalUS tax form sent to sellers earning >$600/year on eBay. Since 2024, eBay reports all earnings to IRS.
AliExpress Saver Shipping
AliExpressCheaper but slower (30-60 days). Risky for eBay where buyers expect <30 day delivery.
AliExpress Standard Shipping
AliExpressTracked shipping from China, typically 15-30 days to UK/US. Always tracked, generally reliable. Most common dropshipping shipping method.
Amazon Arbitrage
AmazonBuying products from Amazon at retail price and reselling on eBay at a markup. Works because eBay buyers often don't comparison shop on Amazon.
Amazon Prime
Amazon1-2 day free delivery service. Key for dropshipping — your buyer gets fast shipping while you pay no shipping cost.
ARPU (Average Revenue Per User)
GeneralAverage monthly revenue per customer. Used to compare plan values.
ASIN
AmazonAmazon Standard Identification Number. Unique 10-character code for every Amazon product. UnicornDS uses ASINs to track variants and pricing.
Buy Box
AmazonThe featured offer on an Amazon product page (the 'Add to Cart' seller). For dropshipping, you only source from Buy Box winners for reliability.
Buyer Protection Fee (BPF)
eBayFee paid by the BUYER (not seller) on UK private sales. Tiered by item value. Seller still receives 100% of listed price.
Cassini
eBayeBay's search algorithm. Ranks listings based on title relevance, seller performance, conversion rate, and price competitiveness. UnicornDS AI titles are optimized for Cassini.
Choice Day
AliExpressAliExpress's weekly promo (Mondays). Free shipping + discounts on selected products. Great for sourcing.
COGS (Cost of Goods Sold)
GeneralWhat you paid the supplier for the item, plus shipping cost to you. Direct cost of each unit sold.
Conversion Rate
General% of listing views that turn into sales. eBay average is 1-3%. Above 5% is excellent.
Cost Per Listing
GeneralYour monthly subscription cost ÷ number of listings created. UnicornDS Starter = £29.99 ÷ 500 = £0.06 per listing.
Cross-Border Trade
GeneralSelling to buyers in different countries. UnicornDS supports UK→US, UK→DE, UK→FR, UK→AU, UK→CA international.
Defect Rate
eBayPercentage of orders with issues (cancellations, late shipments, cases). Must stay below 2% to avoid being marked Below Standard.
DPD
ShippingUK courier offering same-day, next-day, and economy services. Common for UK-to-UK dropshipping with quick fulfilment.
Drop Shipping
GeneralSelling products you don't hold. When a buyer orders, you forward the order to a supplier who ships directly to the buyer.
Dropship Friction
GeneralEach manual step that slows down listing or fulfilling. UnicornDS removes friction with bulk listing, auto-order, address auto-fill.
ePacket
AliExpressFaster tracked shipping from China to US/UK (10-20 days). No longer available to all destinations but still common for US buyers.
FBA (Fulfilled by Amazon)
AmazonAmazon stores and ships the product. FBA items have faster delivery and fewer cancellations — safer for dropshipping.
FBM (Fulfilled by Merchant)
AmazonThird-party seller ships directly. Often slower and less reliable than FBA. Avoid for dropshipping where possible.
Feedback Rate
General% of buyers who leave positive feedback. Industry average 20-40%. Higher feedback = more Cassini ranking signal.
Final Value Fee (FVF)
eBayThe main eBay commission, charged when an item sells. Currently 12.8% for most UK categories, lower for electronics and vehicle parts.
Calculate exact FVF →Gross Margin
General(Revenue − Costs) ÷ Revenue. Excludes platform fees. Useful for comparing products before fees.
Calculate margin →GTC (Good 'Til Cancelled)
eBayA fixed-price listing format that renews automatically every 30 days. Each renewal counts as a new listing against your free monthly allowance.
Hand Lifting
GeneralManually processing orders one by one. The thing UnicornDS automates away.
Handling Time
ShippingDays between sale and dispatch. eBay measures from sale time. Dropshippers should set 2-3 day handling to allow supplier processing.
HMRC Reporting
Tax & LegalSince 2024, eBay reports UK seller earnings to HMRC once you cross 30 sales OR £1,700/year. Don't try to hide it.
Insertion Fee
eBayThe fee charged to list an item. UK private sellers get 1,000 free listings per month. Above that, £0.35 per listing.
Item Specifics
eBayStructured product details (brand, model, colour, size, etc.) that help eBay categorise and rank your listing. More specifics = better Cassini ranking.
Late Shipment Rate
Shipping% of orders dispatched late (after the handling time you promised). Must stay <3% to remain Top Rated.
MC011
eBayAn eBay buyer protection case opened against you when the buyer claims item not received or significantly not as described. Resolve fast to protect your seller metrics.
MSKU
eBayMulti-Variation SKU. A single listing with multiple options like size or colour. Each variation has its own SKU. UnicornDS Empire includes an MSKU builder.
Multi-Channel Selling
GeneralSelling on multiple platforms (eBay + Etsy + Amazon). Diversifies risk if one platform suspends you.
Net Margin
GeneralProfit after ALL costs and fees, divided by revenue. The only margin that matters for your bank account.
Niche
GeneralA focused category you sell in (e.g. 'gaming mice' instead of 'all electronics'). Niching helps build expertise and repeat buyers.
Pickup / Sale Velocity
GeneralHow fast a product sells. Sale velocity is the #1 Cassini ranking factor — listings that sell rank higher.
Product Hunter
GeneralTool for finding products to dropship. UnicornDS Product Hunter scans Amazon by keyword with VERO check, stock check, and demand score.
Profit per Order
GeneralNet profit divided by number of orders. Most successful dropshippers target £3-10 per order.
Promoted Listings
eBayPaid eBay ads. You set an ad rate (e.g. 3-5%). eBay charges only when someone clicks your ad and buys. Useful for new sellers without sales history.
Refund Rate
General% of orders refunded. Industry average 3-5%. Above 8% damages your seller standing.
Regulatory Operating Fee
eBay0.35% fee on every UK sale, introduced April 2024 to cover eBay's regulatory compliance costs.
Repricer
GeneralTool that auto-adjusts your listing price based on competitor changes or supplier price updates.
ROI (Return on Investment)
GeneralNet Profit ÷ Total Investment. For dropshipping, usually 50-200% per order. Higher than retail because you don't tie up capital in stock.
Royal Mail Tracked 24/48
ShippingTracked UK delivery service. Tracked 24 = next day, Tracked 48 = 2-3 days. Cheap but reliable for small items under 2kg.
Schedule C
Tax & LegalUS self-employment income form. Where you deduct eBay fees, shipping, COGS to lower your taxable profit.
Schedule of Goods
Tax & LegalHMRC list of items with reduced or zero VAT (children's clothes, books, food). Important if you sell these categories.
Seller Standards
eBayeBay's performance scorecard. Above Standard, Top Rated, or Below Standard. Top Rated Sellers get 10% off the FVF.
SKU (Stock Keeping Unit)
GeneralUnique identifier for each product variation. Critical for tracking which supplier variant to order when a buyer purchases.
Stock Checker
GeneralTool that verifies supplier inventory before you list or fulfil. Prevents the worst case: selling something you can't ship.
Tracking Upload
ShippingAdding tracking number to the order on eBay. Required within handling time to count as 'on time'.
TRS (Top Rated Seller)
eBayeBay's highest seller tier. Requires <0.5% defect rate, <3% late shipments, >100 transactions/year, >£1,000 sales/year. Gives 10% FVF discount.
Turnover
GeneralTotal revenue. Used for tax thresholds (VAT in UK at £85K). Not the same as profit.
Unit Economics
GeneralThe profit math on a single sale. If unit economics don't work, scaling makes it worse, not better.
Variation / SKU ID
AliExpressEach AliExpress variation has a unique skuId. UnicornDS captures this for accurate auto-ordering of the exact variation your buyer chose.
VAT (Value Added Tax)
Tax & Legal20% UK sales tax. You must register if turnover >£85K/year. eBay charges 20% VAT on top of all fees (reclaimable if VAT registered).
VAT Threshold
Tax & LegalCurrently £85,000/year UK turnover. Cross this and you must register for VAT within 30 days.
VERO (Verified Rights Owner)
eBayeBay's program that protects brand IP. 3,629 brands currently restricted. Listing them = instant suspension. UnicornDS auto-checks every listing.
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