Cross-Border E-Commerce Glossary
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Cross-Border E-Commerce Glossary

Date: 2025-03-06 10:23:19    View: 258

5. Amazon FBA (Fulfillment by Amazon)

Definition: Amazon FBA is a logistics and warehousing service provided by Amazon. Sellers store their products in Amazon’s fulfillment centers (FBA warehouses), and Amazon manages picking, packing, shipping, and customer service, including returns handling.

Features:
✅ Provides fast delivery (such as Prime service)
✅ Increases chances of winning the Buy Box
✅ Amazon handles logistics and customer service, reducing operational burden for sellers

Applicable Scenario: Suitable for sellers who want to leverage Amazon’s warehousing and distribution network to improve product competitiveness on the Amazon marketplace.

6. Dropshipping

Definition: A no-inventory business model where sellers do not need to stock products in advance. When a customer places an order, the seller purchases the product from a supplier or third party, who then directly ships it to the customer.

Features:
✅ Low startup costs, no need for inventory management
✅ Flexible business model, allowing sellers to test various products
✅ Dependent on supplier inventory and shipping efficiency

Applicable Scenario: Ideal for new entrepreneurs and independent e-commerce sellers who want to start a cross-border e-commerce business with low investment.

7. Merchant Account

Definition: A merchant account is an account created by businesses or individual sellers in collaboration with payment processors (banks or third-party payment platforms) to receive online payments from customers (such as credit card and digital payments).

Features:
✅ Supports multiple payment methods, such as Visa, Mastercard, and PayPal
✅ Settlement speed varies depending on the payment service provider
✅ Some payment processors may charge transaction fees

Applicable Scenario: Any cross-border e-commerce seller who wants to accept online payments needs a merchant account. Common platforms include Shopify, Amazon, eBay, and independent online stores.

8. Buy Box

Definition: The Buy Box is the “Add to Cart” button on an Amazon product page. Sellers who win the Buy Box gain priority for customer purchases, significantly increasing sales potential.

Features:
✅ Determined mainly by factors such as pricing, shipping speed, and account performance
✅ Amazon FBA sellers have a higher chance of winning the Buy Box
✅ Winning the Buy Box can significantly improve conversion rates

 

Applicable Scenario: Amazon sellers looking to enhance product exposure and conversion rates by optimizing pricing, logistics, and account health metrics.

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