Last week we covered General Business terminology and today it’s time for Importing & Shipping!
If you’re new to my blog, this is a 4 part post series in which I’ll cover the most important terms used in the online business world. Each week I cover a specific topic – last week it was General Business terminology, today it’s Importing & Shipping and in up-coming weeks I will also cover eBay & Amazon, as well as eCommerce.
Without further ado – let’s get started!
Importing – when you buy goods and ship them from another country. Quite often we don’t the use word Importing when buying goods from another European Union country because when you buy from another EU country, there is no customs procedure and we don’t have to pay VAT/import duty. But in general, when you buy from a supplier located in another country, this is called Importing.
Exporting – when you sell goods and ship them to another country. Just like with Importing, when you sell to another EU country, we usually don’t use the word Exporting as there will be no customs procedure in place due to the Free Goods Movement Act all EU countries have accepted.
Shipping – simply means sending goods from one place to another. There are various shipping methods available which we’ll cover later on in this post.
Stock – term used to describe products/items for sale.
B2B – Business to Business. This term is used to describe a transaction between two businesses. Many suppliers will state on their websites that they deal with B2B customers ONLY. This means that they won’t sell directly to end customers, in quantities of just 1 unit.
B2C – Business to Consumer. When a company sells directly to Consumers. Basically any business selling online to retail customers follows a B2C business model. This term is not as widely used as B2B as if it’s a normal online store, it’s obvious that it’s B2C. However, B2B businesses on the other hand are usually clearly “labelled” so that consumers who are looking to buy just 1 item know that this is not the place to look.
MOQ – Minimum Order Quantity. This is a very important term you use when communicating with suppliers. It states how many units you need to buy from a supplier to even get a deal. Sometimes you can negotiate MOQs, as covered in my post here.
There can be product MOQs as well as order MOQs. Product MOQ means how many units of that particular product you need to buy and order MOQ means the total order quantity you need to reach to be able to buy goods from that supplier. [Read more…]