New sellers are often overwhelmed by acronyms. This glossary explains twelve terms you will meet in marketplaces, shipping and advertising, with a short note on why each matters.
1. FBA (Fulfilment by a marketplace). A service where the marketplace stores, packs and ships your products. It can improve delivery speed and customer trust, but you pay storage and handling fees and must manage inventory carefully.
2. DDP and DDU. Delivered Duty Paid means the seller covers import duties and taxes, so the customer pays nothing extra on arrival. Delivered Duty Unpaid leaves the buyer to pay. DDP creates a smoother experience but needs accurate cost planning.
3. HS code. A standard number that classifies products for customs. Correct codes affect duty rates and prevent delays. Ask a broker when unsure.
4. VAT. Value-added tax, common in Europe and many other regions. Selling cross-border may require registration and periodic reporting.
5. ODR (order defect rate). A health metric showing the share of orders with problems such as complaints or claims. Keeping it low protects your account.
6. Landed cost. The total cost of getting a product to the customer: product, freight, duties, taxes, last-mile delivery and returns. Pricing without it can hide losses.
7. Chargeback. A payment dispute raised through the cardholder's bank. Frequent chargebacks can lead to higher fees or account holds.
8. 3D Secure. An extra authentication step for card payments that reduces fraud and can shift liability in some cases, though it may add friction.
9. Business portfolio or business manager. A container in advertising platforms that holds pages, ad accounts and user permissions. A clear structure reduces risk when team members change.
10. Whitelisted or agency account. Terms used for advertising accounts with special status or provided through an authorised partner. Ask exactly what the label means and who owns the account.
11. Appeal. A formal request to review a restriction or rejection. Effective appeals are factual, concise and supported by evidence.
12. Landing page. The page a customer reaches after clicking an ad. It should match the ad promise and display policies and contact details.
Why this list matters
Terms may look small, but misunderstanding them can cost money. A seller who confuses DDP with DDU might sell at a loss; one who ignores ODR may lose an account without warning. Keep this glossary beside your planning spreadsheet and add terms as you learn them.
Continue learning
The cross-border encyclopedia on Facebook520 expands on many of these entries, while the cross-border headlines page tracks recent industry updates that can change definitions or rules. When in doubt, check the official documentation of the platform or authority involved.
References
- U.S. Customs and Border Protection: https://www.cbp.gov/
- European Commission Taxation and Customs Union: https://taxation-customs.ec.europa.eu/
Published by Facebook520 Cross-Border Navigation.