Ecommerce Fulfilment Services

Fulfilment Glossary

Use our fulfilment glossary to learn more about industry terms, acronyms and methods from our fulfilment experts.

B2B Fulfilment refers to "Business to Business" fulfilment. This is a process where a company fulfils orders to other businesses rather than individual consumers.
A backorder happens when a customer orders a product, but it's not in stock.
The Bill of Lading (BOL) is a legal document issued by a carrier to a shipper.
Bulk shipping refers to sending large quantities of goods together.
Cart abandonment rate represents the percentage of online shoppers who add items to their cart but leave the website before completing the purchase.
The checkout process is the final step in online shopping, where customers complete their purchases.
A courier service is a type of professional delivery service that ensures the quick, secure, and efficient transportation of items from one location to another.
Cross docking is a logistics process where products received from a supplier or manufacturing plant are distributed directly to a customer or retail chain with minimal to no handling or storage time. It involves unloading items from an incoming lorry or railway wagon and loading these items directly into outbound lorries, trailers, or railway wagons, with no storage in between.
Customer Relationship Management (CRM) is a strategy and technology used by businesses to manage and improve their interactions with current and potential customers. It involves using data analysis about customers' history with a company to improve business relationships, specifically focusing on customer retention and ultimately driving sales growth.
Delivered at Place (DAP) shipping is when the seller delivers the goods to a specified place, but the buyer handles the import duties.
DDP, or Delivery Duty Paid Shipping, is where the seller takes on all the shipping responsibilities and costs.
Demand forecasting is predicting future customer demand for products or services.
A digital supply chain integrates digital technology into all areas of supply chain operations, from sourcing materials to delivering products to the customer.
Direct to Retail refers to the business model where manufacturers or producers sell their products directly to retail stores.
Direct-to-Consumer, often shortened to D2C, is a business model where companies sell products directly to customers.
A Distribution Centre is a dedicated space where goods are dispatched to the final customers or retail outlets.
Dropshipping is a retail method where a store doesn't keep the products it sells in stock.
Ecommerce, short for electronic commerce, refers to the buying and selling of goods or services using the internet and the transfer of money and data to execute these transactions
Ecommerce analysis involves gathering, analysing, and interpreting data types and metrics to gain insights into your online store's performance.
eCommerce Fulfilment Services (EFS) are services that help online businesses manage and send out orders to customers. EFS takes care of storing products, packing orders, and shipping them out.
An ecommerce platform is a software tool that allows businesses to sell products and services online.
First mile delivery refers to the initial stage of the delivery process, where the items are collected from the seller and transported to the courier's warehouse or directly to the distribution centre.
Flat rate shipping is a fixed cost for shipping, regardless of the package’s weight or size.
Freight forwarding is the process of organising the shipment of goods from one place to another.
Fulfilment by Amazon (FBA) is a service offered by the tech giant Amazon that allows businesses to outsource their warehousing and shipping processes to Amazon.
A fulfilment centre is a specialised facility used primarily by eCommerce businesses to process and fulfil customer orders.
Fulfilment cost refers to the total expenses associated with completing a customer order in an ecommerce business
A fulfilment network refers to a system of warehouses and distribution centres that work together to store, pack, and ship products to customers.
A fulfilment partner refers to a third-party company that handles the storage, picking, packing, and shipping of products on behalf of another business
The Import One-Stop Shop (IOSS) is a scheme introduced by the European Union (EU) on 1 July 2021.
The in-stock rate (IRS) measures the percentage of time that products are available for sale and not out of stock
Incoterms, short for "International Commercial Terms", are a set of rules.
The Internet of Things (IoT) involves integrating advanced sensors, software, and internet connectivity into logistics and supply chain operations.
Inventory carrying cost, also known as inventory holding cost, refers to the total cost that a business incurs to store and maintain its inventory over a certain period in fulfilment and logistics.
Inventory management refers to the systematic approach to sourcing, storing, and selling inventory — both raw materials (components) and finished goods (products). Effective inventory management is important for ensuring that there is always enough stock on hand to meet customer demand without surplus.
Inventory replenishment refers to the process of restocking products or materials in a warehouse or retail location to maintain adequate inventory levels
Inventory turnover is a measure used by businesses to evaluate how effectively they manage and sell their stock.
Inventory visibility is the ability of a business to track and manage its stock levels in real time across all locations.
The Import One-Stop Shop (IOSS) is the European Union’s system designed to simplify VAT obligations for businesses selling imported goods to customers in the EU. An IOSS solution refers to the services or software products that assist sellers in complying with the requirements of the IOSS. This solution aims to streamline the VAT process for low-value goods not exceeding €150.
Just-In-Time (JIT) Inventory is a production strategy that aims to improve a business's ROI by reducing in-process inventory and its associated carrying costs.
Kitting is an essential process in fulfilment that involves gathering individual items together to create a ready-to-ship 'kit'.
Last mile delivery describes the final leg of a product's delivery process from the supplier to the consumer.
Line Haul refers to the movement of goods or freight from one place to another, typically over long distances.
Logistics planning involves a lot of key components in the supply chain.
A "marketplace" is a term used to describe a platform where transactions between buyers and sellers take place.
MOQ is the smallest number of products you can purchase in one order from a supplier.
Multi-channel fulfilment refers to the process of managing and delivering orders to customers from multiple sales channels.
Multi-channel retailing is a retail strategy where businesses sell their products and services through multiple sales channels, both online and offline.
The Net Performer Score (NPS) is a valuable metric utilised by businesses to gauge the loyalty of their customer base.
Omnichannel Retailing refers to a retail strategy that integrates different methods of shopping available to consumers. This could be through online channels such as from a mobile app, a website, telephone, or physically visiting a brick-and-mortar store.
Order accuracy is a metric representing the percentage of orders that are correctly fulfilled without any errors
Order batching is a process used in warehouse management and order fulfilment to increase efficiency. It involves grouping multiple orders into a single batch to be processed together. This method optimises picking and packing activities by reducing the time and effort needed to process each order individually.
The order cancellation rate is used to measure the percentage of orders cancelled by customers or the company before the completion of the transaction.
Order consolidation refers to the practice of combining multiple orders destined for the same location into a single shipment in the field of logistics and fulfilment.
Order cycle time refers to the total time taken from when an order is placed by a customer to when the product is delivered to them in the fulfilment industry.
Order fulfilment refers to the steps involved in receiving, processing, and delivering orders to end customers.
Order lead time is the total time taken from the moment a customer places an order until the time it is fully delivered to them.
Order processing time is the duration between when a customer places an order and when that order is dispatched from the warehouse or fulfilment centre
Order Shipment refers to the process of sending out goods or products to a customer after an order has been placed and processed.
Order tracking is a vital part of the online shopping experience. It allows customers to monitor the status of their purchase from the moment it is placed until it arrives at their doorstep. This process provides transparency and reassurance, enhancing customer satisfaction and trust in a company.
Out of Stock (OOS) is a term used in inventory management to describe a situation where items are unavailable for purchase due to a lack of inventory.
Overstocking is a term used in inventory management that refers to the situation where a business holds more stock than is needed to meet demand.
A payment gateway is a technology used in e-commerce to authorise credit card or direct payment processing for online businesses and online retailers
A perpetual inventory system (PIS) is a method of accounting for inventory. It records the sale or purchase of inventory immediately through the use of computerised point-of-sale systems and enterprise asset management software.
Pick and pack involves selecting (picking) the ordered items from their storage locations within a warehouse and then packing them into shipping containers or packages, ready for dispatch to the customer.
Product Bundles refer to a marketing strategy wherein several products are grouped together and sold as a single combined unit.
Real-time inventory management uses technology to monitor and update inventory levels as soon as changes happen. This could be through sales, returns, or receipt of new stock.
Returns management is how you deal with products that your customers decide to send back.
A returns policy is a set of guidelines that a retailer or supplier establishes to manage the returns process for previously purchased merchandise for a refund, replacement, or store credit.
Reverse logistics refers to the process of managing the return of goods from the point of consumption back to the point of origin or proper disposal. It encompasses activities such as product returns, recalls, repairs, refurbishment, recycling, and disposal.
Same-day delivery is a shipping option that guarantees that a package will be delivered on the same day that it is shipped.
Shipment tracking is the process of locating and monitoring the progress of cargo, packages, or parcels as they move from the sender to the recipient.
A shipping and delivery policy is a document that outlines important information regarding how a company handles the shipment and delivery of products to customers. This policy typically includes details on shipping methods, delivery timelines, costs, and procedures for handling lost or damaged items.
Shipping confirmation refers to the notification sent by a seller to inform a buyer that their order has been dispatched.
Standard shipping rates depend on the package’s weight, dimensions, and distance it needs to travel.
A stock audit is a process used by businesses to verify the quantity and value of physical stock within their premises.
Stock control includes ordering, storing and tracking inventory to to ensure stock levels remain consistent.
A Stock Keeping Unit (SKU) is an identifier for each distinct product and service that can be purchased in business.
A stockout, also known as an out-of-stock situation, is a situation where an item that is expected to be in stock is not
Supply Chain Management (SCM)involves the active management of supply chain activities to maximise customer value and achieve a sustainable competitive advantage. This encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management.
Supply chain optimisation is the process of improving the efficiency and effectiveness of the supply chain network.
Supply Chain Technology refers to the tools, systems, and solutions designed to streamline and optimise supply chain processes.
Sustainable fulfilment aims to reduce environmental impact by using eco-friendly practices and materials in the order fulfilment process.
Third-Party Logistics (3PL) allows businesses to outsource logistics operations including warehousing, shipping, and inventory management.
Vendor Managed Inventory (VMI) is a supply chain practice where the inventory is managed by the supplier, rather than by the retailer.
Warehouse management is a term that refers to the processes and systems that optimise warehouse functions.
A Warehouse Management System (WMS) is a software solution designed to support and optimise warehouse functionality and distribution centre management.
Warehousing refers to the process of storing goods and materials in a large building or space, known as a warehouse, before they are sold, distributed, or shipped to their next destination.
Zone skipping is a logistics strategy used to streamline distribution processes and reduce shipping costs. This approach involves bypassing intermediary shipping zones to deliver goods directly to a zone closer to the final delivery point. It is widely adopted in parcel delivery and freight shipping to optimise transit times and decrease the handling stages that a package goes through.

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