With the development of cross-border e-commerce, more and more people are getting involved in this field, but for novices, many vocabulary commonly used by foreign trade e-commerce may not be familiar to them. In this article, we will introduce some commonly used vocabulary in foreign trade e-commerce to help novices better understand and master the professional terminology in the field of foreign trade e-commerce.
1. FOB price.
FOB price refers to the “free on board price”, which is the price at which the seller delivers the goods to the ship, including sea freight, loading fees, etc. FOB prices are usually used in ocean trade, and buyers are responsible for other costs such as transportation, insurance, and duties.
2. CIF price.
CIF price refers to the “cif price”, which is the price for the seller to transport the goods to the destination port, including sea freight, loading and unloading fees, insurance premiums, etc. CIF prices are usually used in ocean shipping trade, and the seller is responsible for other costs such as transportation, insurance, and customs duties.
3. MOQ.
MOQ refers to “minimum order quantity”, which is the minimum order quantity set by the seller in order to obtain the best price and minimum cost. MOQ is an important indicator in foreign trade e-commerce transactions. It can help sellers reasonably plan production and logistics costs, and it can also help buyers control inventory costs.
4. Lead time.
Lead time refers to “delivery time”, which is the time from order placement to shipment, including production time, logistics time, etc. Lead time is very important for foreign trade e-commerce. It can help buyers predict the arrival time of products and thus plan orders and inventory reasonably.
5. OEM.
OEM refers to “original equipment manufacturer”, that is, the seller provides customized products and services to buyers, including design, production, packaging and other aspects. OEM is usually used for customized products in foreign trade e-commerce, which can help sellers meet the specific needs and requirements of buyers.
6. ODM.
ODM refers to “original design manufacturer”, that is, the seller provides customized product design and production services to buyers. ODM is usually used for new product development in foreign trade e-commerce, and can help sellers meet the specific needs and requirements of buyers through independent design and development.
7. Dropshipping.
Dropshipping refers to “dropshipping”, which means that sellers work with third-party suppliers to directly ship products to buyers without the need to store and handle inventory. Dropshipping is usually used by novice and small sellers in foreign trade e-commerce. It can help sellers reduce inventory costs and transportation costs, while focusing on marketing and customer service.
8. Private label.
Private label refers to “private brand”, that is, sellers provide buyers with their own brand products and services. Private label is usually used for brand management in foreign trade e-commerce. It can help sellers improve brand awareness and market competitiveness, and it can also help buyers establish their own brand image in the market.
9. B2B.
B2B refers to “business to business”, which is the model of business transactions between enterprises. B2B is usually used for bulk commodity trading in foreign trade e-commerce, which can help sellers better meet buyers’ bulk purchasing needs, while also helping buyers control costs and improve purchasing efficiency.
10. B2C.
B2C refers to “business to consumer”, which is the model in which companies sell products and services to individual consumers. B2C is usually used in retail trade in foreign trade e-commerce, which can help sellers expand market share and increase sales, while also helping consumers gain more choices and shopping convenience.
In short, the vocabulary commonly used by foreign trade e-commerce involves many aspects such as supply chain management, price, order management, logistics management, product development, marketing, etc. Understanding these professional terms can help novices better master them. Knowledge and skills in the field of foreign trade e-commerce to improve transaction efficiency and success rate.