Top 35 Wholesale Terms Businesses Need to Know

Let’s be real—wholesale jargon can sound like alphabet soup. MOQs? COGS? Chargebacks? If you’ve ever stared at a line sheet feeling like you need a translator, you’re not alone. Whether you’re a designer trying to land your first boutique partnership or a store owner hunting for that perfect summer collection, getting fluent in these terms is your ticket to better deals, fewer headaches, and way more high-fives. Here’s your wholesale cheat sheet to the most essential jargon.

1. Wholesale Price: The discounted price brands charge retailers for bulk orders. Typically 40-60% of the retail price.
2. Retail Price (RRP/MSRP): The price consumers pay. Also called Manufacturer’s Suggested Retail Price.
3. Keystone Pricing: A common strategy where wholesale = 50% of retail (e.g., $50 wholesale → $100 retail).
4. COGS (Cost of Goods Sold): Production cost per unit (materials, labor). Wholesale price = COGS + profit margin.
5. Markup: The percentage added to COGS to set wholesale/retail prices.
6. Volume Discount: Lower per-unit prices for larger orders (e.g., 10% off orders over 500 units).
7. Tiered Pricing: Discounts increase with order size (e.g., 100 units = $10/unit, 500 units = $8/unit).
8. MOQ (Minimum Order Quantity): The smallest order a brand accepts (e.g., 100 units).
9. Lead Time: Time between placing an order and delivery. Critical for seasonal fashion drops.
10. FOB (Free on Board): Determines who pays shipping. FOB Origin = buyer pays; FOB Destination = seller pays.
11. Backorder: Products temporarily out of stock but available for future shipment.
12. SKU (Stock Keeping Unit): Unique code for tracking inventory (e.g., “BS123” = black silk dress, size M).
13. Drop Shipping: Supplier ships orders directly to consumers, bypassing retailer inventory.
14. B2B (Business-to-Business): Transactions between brands and retailers (e.g., Stylebuy’s marketplace).
15. DTC (Direct-to-Consumer): Selling via owned channels (e.g., brand websites, pop-ups).
16. Consignment: Retailer pays only after selling your product. Riskier for brands, lower risk for stores.
17. Private Label: Products made by one company but sold under another’s brand (common in beauty).
18. Contract Manufacturing: Producing goods for another company (e.g., a spa’s branded skincare line).
19. Exclusivity Clause: Restricts brands from selling to competitors in a retailer’s region.
20. Net Terms: Payment deadlines (e.g., Net 30 = pay within 30 days).
21. Chargebacks: Fees retailers deduct for errors (late shipments, incorrect orders). A major pain point in fashion.
22. RTV (Return to Vendor): Unsold goods returned to the brand, often at the brand’s cost.
23. MSA (Master Service Agreement): Contract outlining terms like pricing, delivery, and chargeback policies.
24. Sell-Through Rate: Percentage of stock sold in a period. High rates = popular products.
25. Testers: Free samples provided to retailers for in-store customer trials.
26. Cross-Merchandising: Pairing products (e.g., lipstick + matching liner) to boost sales.
27. COA (Certificate of Analysis): Proof a beauty product meets safety/quality standards.
28. Trim Season: Periods when retailers place orders (e.g., Spring/Summer, Fall/Winter).
29. Chargeback Fees: Penalties for late/misdelivered fashion orders. Can eat into margins!
30. Lookbook: A visual catalog showcasing a collection’s aesthetic. Used to pitch buyers.
31. Capsule Collection: A limited-edition line sold exclusively through select retailers.
32. Open-to-Buy (OTB): A retailer’s budget for new inventory. Ask about this before pitching.
33. EDI (Electronic Data Interchange): Automated systems for orders, invoices, and inventory.
34. Trading Terms: Conditions like payment deadlines, returns, and discounts.
35. Line Sheet: A product list with prices, MOQs, and images. The holy grail for buyers

Ready to stock up smarter?

Running a boutique is thrilling—you get to curate trends, style customers, and build a brand that feels like yours. But let’s be real: stocking your shelves without blowing your budget? That’s the real hustle. Here’s the good news: buying wholesale doesn’t have to mean boring bulk orders or settling for last season’s leftovers. With Stylebuy, you can snag trendy pieces at prices that’ll make your profit margins smile, all while keeping your store fresh and your customers obsessed.

Sign up for Stylebuy today and let’s make your boutique the talk of the town. Low minimum orders, free shipping on most brands, and 10,000+ styles? Yeah, we’re basically your new secret weapon.