Glossary of Terms
Core Order & Fulfilment Terms
- Order: A confirmed customer purchase through Kapsule. Includes details such as products, quantities, prices, and customer information.
- Dispatch: The process of preparing and sending an order to the customer. Vendors are responsible for timely and secure dispatch.
- RMA (Return Merchandise Authorisation): A reference number and process for handling authorised returns. Customers may need an RMA before sending products back.
- Settlement: The payment process where Kapsule transfers funds from customer orders to the vendor, after deducting fees and adjustments.
Delayed dispatch can negatively affect vendor ratings and may result in order cancellations.
Product & Inventory Terms
- SKU (Stock Keeping Unit): A unique identifier assigned to each product variation in your inventory (e.g., a T-shirt in size M and colour blue will have its own SKU).
- DG (Dangerous Goods): Products classified as hazardous or restricted for shipping (e.g., batteries, flammable liquids). These require special handling and labelling.
- MAP (Minimum Advertised Price): The lowest price a vendor is permitted to publicly advertise a product at, often set by manufacturers or distributors.
Selling DG items without following shipping regulations may result in fines or suspension.
Taxation & Legal Terms
- GST (Goods and Services Tax): A value-added tax applied to goods and services in some regions. Vendors must ensure compliance where required.
- CGA (Consumer Guarantees Act): A New Zealand law that provides customers with guaranteed rights when buying goods and services. Similar consumer laws exist in other regions and must be respected by vendors.
Tax obligations vary by country. Check your local regulations to ensure compliance.
Additional Terms You May Encounter
- Back-order: An order placed for an item not currently in stock, to be shipped once available.
- Chargeback: A reversal of a customer payment, typically initiated by the bank if a transaction is disputed.
- Lead time: The time it takes from when an order is placed to when it is dispatched.
- Pick & Pack: The process of selecting items from inventory and packaging them for dispatch.
“Understanding the language of e-commerce is like learning the rules of the game—once you know them, you can play with confidence.”
FAQs
1. Do I need to create SKUs for every product?
Yes. Each variation of a product (size, colour, or model) requires its own SKU for accurate stock tracking.
2. What should I do if a customer requests an RMA?
Follow Kapsule’s returns process. Provide the RMA where applicable, and ensure returns are managed according to platform policy.
3. How often are settlements made?
Settlement frequency depends on your vendor account type and Kapsule’s payment schedule.
4. Am I responsible for GST on all sales?
If you are registered for GST (or equivalent taxes in your region), you are responsible for charging and reporting it correctly.
5. What if my products fall under DG classification?
You must follow all shipping and labelling requirements for dangerous goods. Refer to Shipping Dangerous Goods.
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