Dropshipping glossary

The words you’ll see in videos, forums and ad dashboards.

AOV / average order valueWhat each customer spends per order on average.

CPACost per acquisition: what you pay in ads for each sale.

CPCCost per click on an ad.

CPMWhat it costs for your ad to be seen 1,000 times.

CTRPercentage of people who see the ad and click.

Conversion ratePercentage of shop visitors who buy.

ROASSales ÷ ad spend.

Upsell / cross-sellOffering a better version or a related product at checkout.

ChargebackA complaint to the bank that reverses the customer’s payment.

IOSSEU single window for collecting VAT on parcels under €150 coming from outside.

OSSEU single window for declaring VAT on sales to customers in other EU countries.

GPSREU General Product Safety Regulation (since December 2024).

White labelA generic product you sell under your own brand and packaging.

Sourcing agentA middleman in China who buys, checks and ships for you.

Print on demandProducts made with your design only when someone buys.

“Winning product”A marketing term for a product that sells well. If someone sells it to you, it isn’t one any more.