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Learn the lingo

Reselling & Dropshipping Glossary

Every term a KaKiSo ReSeller or Supplier needs, explained in plain language. From margin and MOQ to RTO and Smart Catalogs, search it, skim it, and sell with confidence.

A

Aggregator

A centralized platform that collects products from multiple manufacturers into a single, unified catalog.

For ReSellers: It allows you to source a wide variety of inventory from one dashboard, eliminating the need to manage dozens of vendor relationships.

For Suppliers: It provides instant access to a massive, ready-made distribution network of sellers without needing to spend money on direct-to-consumer marketing.

AOV (Average Order Value)

The average amount of money a customer spends each time they place an order, calculated by dividing total revenue by the total number of orders. For a reseller, increasing AOV, often by bundling products or upselling, is one of the most effective ways to boost overall profit without needing to acquire new customers.

AWB (Air Waybill)

The standard 11 to 14 digit tracking number assigned by logistics partners to trace the physical journey of a parcel from the supplier to the customer.

B

B2B2C

An e-commerce model that connects suppliers, resellers, and end customers in a single chain. A platform or supplier provides the inventory and backend fulfillment to a reseller (the B2B step), who then markets and sells those products directly to the final buyer (the B2C step).

Bulk Order

A single purchase containing a large quantity of products, typically bought at a significantly reduced price per unit.

For ReSellers: A strategy used to secure higher profit margins, build immediate physical inventory, or fulfill high-volume demand at the lowest possible cost.

For Suppliers: A highly efficient transaction that guarantees large-volume sales, clears out inventory faster, and reduces per-unit packing and handling efforts.

C

Catalog

A comprehensive digital display of products available for sale, complete with images and descriptions.

For ReSellers: The curated selection of inventory you choose to market to your specific audience with your own retail pricing.

For Suppliers: Your digital showroom designed to showcase your manufacturing capabilities and attract resellers to push your products.

COD (Cash on Delivery)

A standard e-commerce payment method where the end customer pays for their order at the exact time of physical delivery rather than paying online in advance. The logistics agent collects the total invoice amount directly from the buyer before handing over the package.

Conversion Rate

The percentage of visitors to your catalog or storefront who actually complete a purchase, calculated by dividing your total number of orders by your total number of visitors. For a reseller, this is a vital metric of success: a high conversion rate means your product selection, pricing, and marketing are effectively turning casual browsers into paying customers.

Cross-selling

A sales strategy that encourages a customer to purchase related or complementary items in addition to their primary product, for example suggesting a matching pair of earrings to a customer buying a necklace. It is a highly effective method for a reseller to increase their Average Order Value (AOV) and maximize profit per transaction.

D

Dropshipping

A retail fulfillment method where a reseller operates without holding physical inventory. When an end customer places an order, the reseller transfers the details to the supplier, who then packs and ships the product directly to the buyer. For the reseller, it eliminates warehousing costs and inventory risks. For the supplier, it provides access to a massive retail network, replacing traditional bulk shipping with individual order fulfillment to drive higher overall sales volume.

F

Flash Sale

A short-term promotional event offering significant discounts on specific products for a strictly limited time. For a reseller, running a flash sale creates a sense of immediate buyer urgency, driving quick conversions and a rapid spike in sales volume.

G

GMV (Gross Merchandise Value)

The total monetary value of all merchandise sold over a specific period, calculated before deducting any fees, discounts, or returns.

For ReSellers: It represents your total top-line sales volume and overall business growth.

For Suppliers: It indicates the total scale of inventory moving through the platform and overall market demand.

GST (Goods & Services Tax)

A comprehensive indirect tax levied on the supply of goods and services across India, designed to be a single, destination-based tax that replaces multiple cascading taxes.

For ReSellers: Having a GST registration allows you to claim Input Tax Credit (ITC) on your purchases, effectively lowering your sourcing costs and boosting margins. It is also mandatory if you plan to sell across state lines.

For Suppliers: A mandatory compliance requirement that allows you to legally list inventory, issue valid tax invoices, and conduct large-scale B2B transactions.

H

HSN Code

A globally recognized standardized system of numbers used to classify physical products. In India, this code is critical because it determines the exact GST rate applicable to a specific item.

For ReSellers: Ensures you are calculating and charging the correct tax amount to your end customers on your invoices.

For Suppliers: A mandatory requirement when cataloging products to guarantee accurate tax compliance and seamless B2B billing.

I

Inventory Sync

The automated process of updating stock levels in real time across all connected sales channels, warehouses, and platforms.

For ReSellers: Ensures the products displayed on your storefront are actually in stock, protecting your brand reputation by preventing oversold items and canceled customer orders.

For Suppliers: Automatically updates your total available inventory across the entire B2B network the moment a unit is sold, eliminating manual tracking and preventing double-booked stock.

K

KYC (Know Your Customer)

A standard verification process used to authenticate the identity and legal status of a business, validating government-issued business credentials such as a PAN card or GST certificate.

For ReSellers: A compulsory compliance step completed before placing your first order to unlock secure B2B pricing and ensure your transaction is legally compliant.

For Suppliers: A mandatory measure that ensures every order coming through the platform is from a verified business entity, guaranteeing clean tax invoicing and legal compliance.

L

Landing Page

A standalone web page created specifically for a marketing or advertising campaign. It is the destination where a customer lands after clicking a link from an ad, social media post, or promotional message. For a reseller, a highly focused landing page, often highlighting a single product, a specific collection, or a flash sale, removes distractions and uses a clear Call to Action (CTA) to turn visitors into buyers.

Last-mile Delivery

The final leg of the supply chain where a package is transported from a local distribution hub directly to the end customer's doorstep. It is typically the most critical and time-sensitive part of the shipping process.

For ReSellers: The ultimate touchpoint for customer satisfaction. Even though the platform handles the physical shipping, a smooth and fast last-mile delivery directly builds your brand's reputation, ensures positive reviews, and drives repeat purchases.

For Suppliers: The operational step of coordinating with courier partners to successfully hand over the physical product to the end consumer, officially completing the B2B2C fulfillment cycle.

Lead Time

The total amount of time that elapses between the moment an order is placed and when it is successfully prepared and handed off for delivery.

For ReSellers: The timeline you must communicate to your end customer. Understanding supplier lead times ensures you set accurate delivery expectations on your storefront, which is vital for maintaining customer trust and preventing order cancellations.

For Suppliers: Your operational window to manufacture (if made-to-order), pick, pack, and dispatch an order to the shipping partner. Keeping this window as short as possible directly improves your ranking and appeal to resellers.

M

Margin

The difference between the final selling price of a product and its total base cost, representing the actual financial profit retained from a single transaction.

For ReSellers: The gap between the marked-up retail price you charge your end customer and the total amount paid on the platform (which includes the wholesale price, shipping, and any applicable fees). Setting this markup strategically ensures you cover all order expenses and marketing costs to secure your true take-home profit.

For Suppliers: The difference between your manufacturing or sourcing costs and the wholesale price you offer to the network. It ensures your operations remain sustainable while still providing attractive rates that encourage resellers to push your products.

Marketplace

An e-commerce platform where multiple third-party vendors can list and sell their products to a large pool of buyers, with the platform operator facilitating the transactions. Unlike a traditional online store that sells a single brand's inventory, a marketplace acts as a digital mall, allowing buyers to discover, compare, and purchase goods from many different sellers all in one centralized location.

MOQ (Minimum Order Quantity)

The lowest number of units, or a minimum monetary value, that a supplier is willing to accept for a single order.

For ReSellers: The minimum threshold you must meet to successfully purchase an item. In a dropshipping model, the MOQ is typically set to just one unit so you can fulfill individual customer orders. For bulk purchases, meeting a higher MOQ usually unlocks much lower wholesale pricing.

For Suppliers: A strategic baseline you set to ensure the cost of manufacturing, picking, and packing the items is fully covered, guaranteeing that the transaction remains profitable.

N

NDR (Non-Delivery Report)

The critical warning step before an RTO happens. When a courier fails a delivery attempt (for example, the customer was not home or the phone was unreachable), an NDR is flagged. This gives the reseller a short 24 to 48 hour window to contact the buyer and arrange a re-attempt before the package bounces back as an RTO.

Niche

A highly specific, focused segment of a broader market that caters to a distinct audience with specialized needs, tastes, or preferences. Instead of trying to appeal to everyone, a business operating in a niche focuses on a specialized category, such as minimalist premium silver jewelry, allowing them to build a highly loyal customer base, concentrate their marketing efforts, and stand out from generic competitors.

O

Order Fulfillment

The complete operational process that takes place from the moment a customer places an order until the product is delivered to their doorstep. It includes receiving the order details, picking the item from inventory, packing it securely, and handing it off to a courier for shipping. In a dropshipping or B2B2C model, this entire backend logistics operation is handled by the supplier or platform, allowing the reseller to process orders without ever managing physical stock or shipping labels.

Order Tracking

The system used to monitor the real-time status and physical location of a package as it travels from the dispatch facility to its final destination.

For ReSellers: A crucial customer service tool. It gives you the visibility needed to keep your end customers updated, proactively manage their delivery expectations, and quickly resolve any "where is my order?" inquiries.

For Suppliers: The operational mechanism that confirms your packed inventory has successfully reached the buyer, providing concrete proof of delivery and officially closing out the fulfillment cycle for that transaction.

P

Product Listing

The digital catalog entry created to display a specific item on an e-commerce platform. It serves as the digital showcase for a single product, containing all the essential details a buyer needs to make a purchasing decision, including high-quality images, technical specifications, pricing, available inventory, and descriptive text. A well-optimized listing is critical for search visibility and driving sales.

R

Refund

The actual financial reimbursement of funds back to a buyer. It represents the monetary reversal of a transaction, processed after an order is successfully returned, canceled, or fails to deliver, in accordance with established policies.

Reseller

An individual or business that markets and sells products directly to the end consumer. Operating as the customer-facing brand, a reseller focuses entirely on sales, marketing, and building customer relationships. By setting their own retail margins and curating catalogs, they drive the actual sale while relying on suppliers to hold physical inventory and manage direct fulfillment.

Restock

The replenishment of inventory for an item that has sold out or run low. It involves updating available stock counts on a product listing, allowing the item to become active and purchasable again. Keeping high-demand items consistently restocked is essential for maintaining sales momentum and preventing lost revenue.

Retail Margin (or Profit Margin)

The exact monetary difference between the wholesale price and the custom price the reseller sets for their end customer.

Return

The physical process where an end customer sends a successfully delivered product back to the seller or platform. This action typically initiates a formal verification process before any refund or exchange is authorized.

RTO (Return to Origin)

The process where a shipped package is returned to its original dispatch location because it could not be successfully delivered. This typically occurs when a customer refuses a delivery, is unavailable to receive it, provides an incorrect address, or after failed delivery attempts, causing the courier to return the package to the supplier's warehouse. Keeping RTO low directly protects your profit.

S

SKU (Stock Keeping Unit)

A unique alphanumeric code assigned to a product variant to identify and track it throughout its entire lifecycle. It serves as the master identifier used across product listing, order placement, inventory tracking, and final fulfillment to ensure absolute accuracy at every stage of the transaction.

Smart Catalog

A shareable, interactive collection of products that allows a reseller to set custom retail pricing before distributing it to end customers. Often shared via a direct link or mobile messaging platforms, it effectively transforms a standard product list into an instant, one-tap digital storefront to streamline the browsing and purchasing experience.

Supplier (Manufacturer/Wholesaler)

A business entity that produces, sources, or holds the physical inventory of goods. Within a shared fulfillment network, the supplier provides products at wholesale prices and assumes responsibility for the backend operations, such as quality control, packaging, and direct shipping, once a reseller secures a sale. This role allows the supplier to focus entirely on production and stock management while leveraging a vast network of resellers to handle customer-facing marketing and retail sales.

U

Unboxing Video

A continuous, unedited video recording that documents an end customer opening a sealed package for the first time. It serves as essential, verifiable proof of a product's condition upon delivery, protecting both the buyer and the seller in the event of claims involving damaged, defective, or missing items. To be valid for initiating a return or exchange, the footage must clearly display the original, untampered shipping label before the package is opened.

Upselling

A sales strategy that encourages a customer to purchase a higher-end version of a product, a premium upgrade, or additional features to increase the total value of their order. In e-commerce, this often involves presenting superior variants or higher-quality alternatives during the browsing or checkout process to maximize revenue per transaction.

W

White-Label Shipping

A crucial feature for resellers. When an order arrives at your customer's doorstep, it is shipped without the supplier's branding. This protects your business identity and ensures the customer remains loyal to your brand, not the manufacturer.

White-labelling

A manufacturing and retail practice where a product is produced by one company but packaged and sold by another under their own distinct brand name. It allows a business to offer a fully branded customer experience, building its own identity and customer loyalty without bearing the costs of product design or manufacturing.

Wholesale Price

The discounted price at which a manufacturer or supplier sells goods to a retailer or reseller, rather than directly to the end consumer. It represents the base cost of a product before any retail markup is added, providing the reseller with the necessary margin to generate a profit upon the final sale.

Wishlist

An e-commerce feature that allows a user to save and curate products they are interested in purchasing at a later time. It provides a convenient way to track desired items, monitor inventory availability, and plan future orders without immediately committing to a transaction.

Z

Zero-Investment Business

A business model requiring no upfront capital. Because you only pay for a product after your customer has placed an order, you do not need to spend money buying bulk stock or renting warehouse space.

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