The basic shipping terms – INCO terms

When dealing with suppliers you will come across a few different shipping and freight terms these very depending on what you are wanting to do and achieve.


The most common terms areĀ INCO (international commerce terminology)

Allocations of costs to buyer/seller according to Incoterms 2010

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The drop shipping order process

Still curious about what drop shipping is and how you can do it? Hopefully the below order processes will help to explain it further.


Traditional e-commerce store:

  1. you purchase stock in bulk from a supplier
  2. you receive the goods and store it
  3. you manually list the stock for sale on your website
  4. you advertise your website and the goods you have for sale
  5. customer views your website and orders an item
  6. you pick and pack the item and make it ready for shipping
  7. you ship the item directly to the customer

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Handling returns

It does not matter what you sell who you purchase stock from unfortunately at some stage there will be the need to handle returns. A dropship store is different to a traditional store as you did not directly send the product to the customer. So there are a couple of different options available to you depending on who the supplier is and how you want to handle the return itself. The other option to consider is if you want to hide the supplier from your customer (this is very useful for products that have repeat sales, or for customers you are trying to upsell)

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