If you're a first-time crowdfunder and planning the logistics of your campaign, this glossary will help you become familiar with fulfillment lingo so you can ship your product like a pro in no time!
Find all the terms you need to know to get a handle on crowdfunding fulfillment here:
3PL: Stands for "Third party logistics".
Dangerous goods: In shipping, these are components that, if not handled with care, could cause harm to those handling them in transit.
Examples include liquids and lithium ion batteries. Learn more.
Dimensional weight: Also known as “volumetric weight”, usually calculated by multiplying the length, width, and height of your package, then dividing this number by a cubic divisor.
Express couriers measure both deadweight and dimensional weight of a package, and charge the higher of the two.
DDP: Deliver Duty Paid. The sender is responsible for paying the duties. Choosing DDP decreases the risk of having goods stuck in customs.
DDU: Deliver Duty Unpaid. The receiver of the shipment is responsible for paying the duties. They will get contacted directly by customs, and the package won’t get delivered until the charges are settled.
Learn more about the differences between DDP and DDU.
Express courier: Express couriers have courier networks around the world and operate globally. They provide fast and reliable delivery services, though their pricing is more complex.
GST: Goods & Services Tax. This tax is charged in stages, then reimbursed to everyone except the end buyer. It’s different from VAT because it’s a flat-rate percentage of the total transaction, instead of a percentage of value added.
Import Duty: A tax imposed by a government on goods from other countries. Increased prices on imported goods make these products less "desirable" so buyers are encouraged to support the domestic market.
You’ll find that import duty percentages vary for each category of goods, while VAT and GST are more consistent. Learn more about import duty.
Kitting: Warehousing process in which individually separate but related items are grouped, packaged, and supplied together as one unit.
PI965: A specific Packing Instruction created by the IATA (International Air Transport Association). Meant for lithium cells / batteries that are loose, or bulk.
PI966: A specific Packing Instruction created by the IATA (International Air Transport Association). Meant for products where lithium cells / batteries are packed with equipment.
PI967: A specific Packing Instruction created by the IATA (International Air Transport Association). Meant for products where lithium cells / batteries are contained in the equipment.
Postal courier: A courier service normally operated by national governments. Pricing-wise, they are simple and relatively affordable: you mostly pay for the shipping costs.
Learn more about the differences between express and postal couriers.
Regional courier: This is a company that specializes in deliveries to certain markets, and their pricing is usually in between postal and express couriers.
SDS: Safety Data Sheet. This paperwork usually accompanies dangerous goods shipments.
VAT: Value Added Tax. This tax is charged to consumers when they buy any good or service. Learn more about VAT.
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