The A-Z of Wholesale Terminology: 55 Terms To Know

1. Advanced Shipping Notice (ASN):
   A document sent by suppliers to retailers detailing the contents of an upcoming shipment, ensuring smooth inventory management and preparation.
2. API Integration (Application Programming Interface Integration):
   A seamless connection between software systems, enabling real-time data exchange and streamlined operations.
3. Average Order Value (AOV):
   The average amount spent by customers per transaction, a key metric for evaluating sales performance and profitability.
4. Available to Sell (ATS):
   The current stock quantity ready for purchase, helping retailers manage inventory levels effectively.
5. Assortment:
   The variety of products offered, including styles, sizes, and colors, designed to meet diverse customer preferences.
6. Backorders:
   Orders placed for out-of-stock items, with delivery scheduled once inventory is replenished.
7. B2B (Business-to-Business):
   Transactions between businesses, such as wholesalers and retailers, forming the backbone of the supply chain.
8. Brand Identity:
   The visual and emotional elements (logo, colors, design) that differentiate a brand and resonate with consumers.
9. Customer Relationship Management (CRM):
   A strategy to manage and enhance interactions with customers, fostering loyalty and driving sales.
10. Digital Catalogs:
    Online platforms showcasing product details, pricing, and imagery, simplifying the buying process for retailers.
11. Digital Line Sheets:
    Digital documents presenting product lines with images, descriptions, and wholesale pricing, essential for order placement. .
12. Dropshipping:
    A fulfillment method where products are shipped directly from the supplier to the customer, eliminating the need for inventory storage.
13. Ecommerce Integration:
    The synchronization of ecommerce platforms with backend systems for efficient order and inventory management.
14. Enterprise Resource Planning (ERP):
    Software that streamlines business operations like accounting, procurement, and supply chain management.
15. Ethical Sourcing:
    Ensuring products are made under fair labor conditions, promoting sustainability and social responsibility.
16. Exclusivity Agreement:
    A contract granting a retailer sole rights to sell specific products within a market.
17. Fashion Forecasting:
    Predicting future trends using historical data and consumer behavior insights to guide product development.
18. Gross Margin:
    The percentage of revenue remaining after deducting the cost of goods sold, indicating profitability.
19. Gross Merchandise Value (GMV):
    The total sales value of merchandise sold over a specific period, a key metric for marketplaces.
20. Handling Fee:
    An additional charge covering the labor and materials used to prepare products for shipment.
21. Integrated Payment Solutions:
    Payment processing tools embedded within business systems for seamless financial operations.
22. Inventory Tracking:
    Monitoring stock levels, locations, and movements to optimize inventory management.
23. Just-In-Time (JIT) Inventory:
    An inventory strategy minimizing storage costs by aligning orders with production schedules.
24. Key Account Management:
    A strategic approach to building and maintaining relationships with high-value clients.
25. KPI (Key Performance Indicator):
    Metrics used to evaluate the success of business objectives and strategies.
26. Lead Time:
    The duration from order placement to product delivery, critical for supply chain planning.
27. LineSheet:
    A document showcasing product details like descriptions, pricing, and sizes, aiding buyers in decision-making.
28. Lookbook:
    A visual presentation of a fashion collection, inspiring retailers and consumers with styling ideas.
29. MOQ (Minimum Order Quantity):
    The smallest quantity a supplier is willing to sell, influencing wholesale purchasing decisions.
30. Multi-Channel Distribution:
    A strategy using multiple sales channels (online, in-store, wholesale) to reach customers.
31. Net Terms:
    Payment terms specifying the number of days a retailer has to pay an invoice in full.
32. Negotiated Shipping Rates:
    Discounted shipping costs agreed upon between sellers and carriers, often based on volume.
33. Off-Price Retailing:
    Selling high-quality goods at reduced prices, often leveraging overstock or end-of-season items.
34. Omni-Channel:
    A seamless shopping experience across online and offline channels, enhancing customer satisfaction.
35. Order Management:
    The end-to-end process of handling customer orders, from receipt to fulfillment.
36. Order Fulfillment:
    The complete process of delivering products to customers after purchase.
37. Open to Buy (OTB):
    A budgeting tool helping retailers plan inventory purchases based on sales forecasts.
38. Order Lead Time:
    The total time from order placement to delivery, including processing and shipping.
39. Product Information Management (PIM):
    Managing product data (descriptions, pricing, images) for effective marketing and sales.
40. Product Lifecycle Management (PLM):
    Overseeing a product’s lifecycle from conception to disposal, ensuring efficiency and innovation.
41. Quality Assurance:
    Processes ensuring products meet established quality standards, building customer trust.
42. Real-Time Analytics:
    Instant data analysis enabling businesses to make informed, timely decisions.
43. Retail Markup:
    The difference between a product’s cost and its selling price, representing profit margin.
44. Reorder:
    Restocking products based on demand or low inventory levels.
45. Sales Forecasting:
    Predicting future sales to guide inventory and production planning.
46. Stockouts:
    A situation where inventory is depleted, potentially leading to lost sales.
47. Supply Chain Visibility:
    Tracking products as they move through the supply chain, ensuring transparency and efficiency.
48. Suggested Retail Price (SRP):
    The manufacturer-recommended price for retail sale, serving as a guideline for retailers.
49. Tradeshow:
    An industry event where brands showcase products to potential buyers and partners.
50. Trade Margin:
    The profit margin calculated as the difference between selling price and cost.
51. Turnover Rate:
    The rate at which inventory is sold and replaced, indicating product popularity.
52. UPC (Universal Product Code):
    A barcode used for tracking products in retail settings.
53. Virtual Showrooms:
    Digital platforms simulating physical showrooms, allowing buyers to explore collections online.
54. Wholesale Pricing:
    The price charged to retailers, typically lower than retail, enabling profit margins.
55. Zero Inventory:
    A strategy minimizing stock levels to reduce costs and increase operational efficiency.

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