Part of the complete guide: The Complete Guide to Starting Online Selling in Pakistan
Online selling comes with its own vocabulary. This glossary explains the common words in plain language, in the order you will probably meet them, and points to guides that go deeper.
Business model terms
- Dropshipping: selling a product you never hold. It is collected from a shop or supplier when a customer orders. See how dropshipping works in Pakistan.
- Dropshipper or online seller: the person who finds the customer and sets the selling price.
- Supplier or shop: the business that owns the stock and prepares each order.
- Reselling: buying stock first and selling it on at a higher price. See dropshipping vs reselling.
- Marketplace or platform: a service that connects sellers, shops and delivery under written rules.
Order and delivery terms
- COD or cash on delivery: the customer pays when the parcel arrives. See pros and cons for sellers.
- Rider or courier: the person who collects the parcel and delivers it.
- Tracking link: a web page that shows where an order is. See how to track an order.
- Same-day delivery: delivery on the day of the order, as an aim rather than a promise.
- Refused order: the customer declines the parcel at the door.
- Return and exchange: sending an item back for a refund or a replacement.
Money terms
- Cost price or shop price: what the seller pays for the product.
- Selling price: what the customer pays.
- Margin or profit: what is left after all costs.
- Platform fee: the charge a platform takes for each order.
- Wallet: the account balance a platform keeps for a user.
- Payout or withdrawal: moving money from the wallet to the user.
- Deposit: money kept as security, for example to cover return charges.
- Ad spend: money paid to advertise.
Product terms
- SKU: a short code that identifies one product and variation, such as one size and colour.
- Listing: the page or post that shows a product with photos, price and details.
- Variation: a version of a product, such as a colour or size.
- Stock or inventory: the units available to sell.
- Out of stock: nothing is available right now.
Quality and trust terms
- Verification: checking a person's or shop's identity before they can trade.
- Review or rating: a customer's opinion of a product or seller.
- Dispute: a disagreement about an order that needs a decision.
If a word is missing, contact the team and ask.
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