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eBay Dropshipping Glossary

59+ essential terms every eBay seller and dropshipper should know. Bookmark this page.

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Showing 59 terms

1099-K (US)

Tax & Legal

US tax form sent to sellers earning >$600/year on eBay. Since 2024, eBay reports all earnings to IRS.

AliExpress Saver Shipping

AliExpress

Cheaper but slower (30-60 days). Risky for eBay where buyers expect <30 day delivery.

AliExpress Standard Shipping

AliExpress

Tracked shipping from China, typically 15-30 days to UK/US. Always tracked, generally reliable. Most common dropshipping shipping method.

Amazon Arbitrage

Amazon

Buying 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

Amazon

1-2 day free delivery service. Key for dropshipping — your buyer gets fast shipping while you pay no shipping cost.

ARPU (Average Revenue Per User)

General

Average monthly revenue per customer. Used to compare plan values.

ASIN

Amazon

Amazon Standard Identification Number. Unique 10-character code for every Amazon product. UnicornDS uses ASINs to track variants and pricing.

Buy Box

Amazon

The 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)

eBay

Fee paid by the BUYER (not seller) on UK private sales. Tiered by item value. Seller still receives 100% of listed price.

Cassini

eBay

eBay'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

AliExpress

AliExpress's weekly promo (Mondays). Free shipping + discounts on selected products. Great for sourcing.

COGS (Cost of Goods Sold)

General

What 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

General

Your monthly subscription cost ÷ number of listings created. UnicornDS Starter = £29.99 ÷ 500 = £0.06 per listing.

Cross-Border Trade

General

Selling to buyers in different countries. UnicornDS supports UK→US, UK→DE, UK→FR, UK→AU, UK→CA international.

Defect Rate

eBay

Percentage of orders with issues (cancellations, late shipments, cases). Must stay below 2% to avoid being marked Below Standard.

DPD

Shipping

UK courier offering same-day, next-day, and economy services. Common for UK-to-UK dropshipping with quick fulfilment.

Drop Shipping

General

Selling products you don't hold. When a buyer orders, you forward the order to a supplier who ships directly to the buyer.

Dropship Friction

General

Each manual step that slows down listing or fulfilling. UnicornDS removes friction with bulk listing, auto-order, address auto-fill.

ePacket

AliExpress

Faster 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)

Amazon

Amazon stores and ships the product. FBA items have faster delivery and fewer cancellations — safer for dropshipping.

FBM (Fulfilled by Merchant)

Amazon

Third-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)

eBay

The 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)

eBay

A fixed-price listing format that renews automatically every 30 days. Each renewal counts as a new listing against your free monthly allowance.

Hand Lifting

General

Manually processing orders one by one. The thing UnicornDS automates away.

Handling Time

Shipping

Days between sale and dispatch. eBay measures from sale time. Dropshippers should set 2-3 day handling to allow supplier processing.

HMRC Reporting

Tax & Legal

Since 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

eBay

The fee charged to list an item. UK private sellers get 1,000 free listings per month. Above that, £0.35 per listing.

Item Specifics

eBay

Structured 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

eBay

An 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

eBay

Multi-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

General

Selling on multiple platforms (eBay + Etsy + Amazon). Diversifies risk if one platform suspends you.

Net Margin

General

Profit after ALL costs and fees, divided by revenue. The only margin that matters for your bank account.

Niche

General

A focused category you sell in (e.g. 'gaming mice' instead of 'all electronics'). Niching helps build expertise and repeat buyers.

Pickup / Sale Velocity

General

How fast a product sells. Sale velocity is the #1 Cassini ranking factor — listings that sell rank higher.

Product Hunter

General

Tool for finding products to dropship. UnicornDS Product Hunter scans Amazon by keyword with VERO check, stock check, and demand score.

Profit per Order

General

Net profit divided by number of orders. Most successful dropshippers target £3-10 per order.

Promoted Listings

eBay

Paid 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

eBay

0.35% fee on every UK sale, introduced April 2024 to cover eBay's regulatory compliance costs.

Repricer

General

Tool that auto-adjusts your listing price based on competitor changes or supplier price updates.

ROI (Return on Investment)

General

Net 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

Shipping

Tracked UK delivery service. Tracked 24 = next day, Tracked 48 = 2-3 days. Cheap but reliable for small items under 2kg.

Schedule C

Tax & Legal

US self-employment income form. Where you deduct eBay fees, shipping, COGS to lower your taxable profit.

Schedule of Goods

Tax & Legal

HMRC list of items with reduced or zero VAT (children's clothes, books, food). Important if you sell these categories.

Seller Standards

eBay

eBay's performance scorecard. Above Standard, Top Rated, or Below Standard. Top Rated Sellers get 10% off the FVF.

SKU (Stock Keeping Unit)

General

Unique identifier for each product variation. Critical for tracking which supplier variant to order when a buyer purchases.

Stock Checker

General

Tool that verifies supplier inventory before you list or fulfil. Prevents the worst case: selling something you can't ship.

Tracking Upload

Shipping

Adding tracking number to the order on eBay. Required within handling time to count as 'on time'.

TRS (Top Rated Seller)

eBay

eBay's highest seller tier. Requires <0.5% defect rate, <3% late shipments, >100 transactions/year, >£1,000 sales/year. Gives 10% FVF discount.

Turnover

General

Total revenue. Used for tax thresholds (VAT in UK at £85K). Not the same as profit.

Unit Economics

General

The profit math on a single sale. If unit economics don't work, scaling makes it worse, not better.

Variation / SKU ID

AliExpress

Each 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 & Legal

20% 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 & Legal

Currently £85,000/year UK turnover. Cross this and you must register for VAT within 30 days.

VERO (Verified Rights Owner)

eBay

eBay's program that protects brand IP. 3,629 brands currently restricted. Listing them = instant suspension. UnicornDS auto-checks every listing.

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