Wholesale Terms Glossary: 80+ B2B eCommerce and Wholesale Terms Everyone Should Know

Updated on April 4, 2026 with expanded B2B eCommerce and wholesale terminology.

Key Takeaways

• This glossary explains 80+ essential wholesale terms and B2B eCommerce terms used across pricing, shipping, inventory, fulfillment, and ordering workflows.
• Understanding common terms like MOQ, COGS, FOB, lead time, gross margin, sell-through, and net payment terms helps wholesale teams avoid mistakes and improve efficiency.
• Knowing shipping, inventory, and payment terminology makes it easier to work with suppliers, warehouses, retailers, and carriers.
• Clear B2B terminology improves communication between brands, distributors, retailers, sales reps.
• Use this wholesale glossary as a reference as you scale your wholesale business, improve your B2B ordering process, or launch a digital B2B portal.

‍

Whether you’re a brand expanding into wholesale, a retailer buying in bulk, or a seasoned B2B sales rep, wholesale commerce comes with a long list of channel-specific terms that can feel overwhelming. Even experienced teams mix them up sometimes.

If you’ve ever felt like half of these B2B terms sound like Greek, you’re not alone. This glossary breaks down the essential words, abbreviations, and concepts used across wholesale, B2B eCommerce, shipping, pricing, inventory, and order management so you can speak wholesale fluently offline and navigate any B2B portal confidently.

A

Assortment

The selection of products a wholesaler offers retailers. Assortments often vary by size, color, season, and price list.

Advanced Shipping Notice (ASN)

A digital document sent before a shipment arrives that lists product quantities, packaging details, and arrival times. It helps retailers prepare for incoming B2B orders.

B

Backorder

Products ordered but not yet shipped due to low stock or pending production. Backorders are common when demand outpaces inventory.

Big-Box Stores

Large retail chains with multiple locations, such as Target, Walmart, or Costco, offering broad product assortments.

Billing Address

The address where a wholesaler sends  invoices or billing documents for orders. This is often the buyer company’s headquarters or finance office.

Brand

A name or identity under which a company markets and sells products.

Brick and Mortar

A physical retail store location.

Buy Now, Pay Later (BNPL)

A payment method that allows buyers to purchase immediately and pay later, either in full or in installments.

Buybacks

Agreements where retailers can return unsold stock to wholesalers under specific terms.

Bulk Pricing

A pricing strategy that offers lower per-unit costs for larger order quantities. This is common in wholesale and B2B ordering.

C

Case Packs

Pre-set quantities of a single SKU sold together to simplify wholesale ordering. For instance, a case pack may include 12 identical mugs.

Catalog

A digital or printed document listing products for sale. Similar to a line sheet, but usually more visual and design-driven.

Chargebacks

Bank-initiated charge reversals due to disputes such as non-delivery or damaged goods. In wholesale, chargebacks can also refer to retailer compliance penalties.

Collect on Delivery / Cash on Delivery (COD)

A payment arrangement where the buyer pays when the goods are delivered, rather than in advance.

Collection

A themed or grouped set of products sold together.

Consignment

An arrangement where retailers pay only for the goods they sell and return the unsold inventory.
For example, a boutique takes products on consignment and pays the brand only after each item sells.

Cost of Goods Sold (COGS)

The direct costs involved in producing the goods sold. A key metric in wholesale pricing and profitability.

Cost, Insurance, and Freight (CIF)

A shipping term where the seller pays the cost, insurance, and freight required to get goods to the buyer’s port. If goods are sold CIF Los Angeles, the seller covers transport and insurance to the port of Los Angeles.

D

Delivery Window

The specific time frame during which a wholesaler ships or delivers goods to the customer.

Direct-to-Consumer (D2C)

Selling products directly to end consumers instead of through wholesale or retail intermediaries.

Distribution Center

A retailer’s warehouse used to receive, sort, and distribute goods to multiple store locations.

Dropshipping

A fulfillment method where suppliers ship products directly to buyers on behalf of sellers. For instance, a brand may accept an order through its B2B portal while the supplier fulfills and ships the order directly.

E

Electronic Freight Waybill (EFW)

A digital shipping document shared between the wholesaler, carrier, and buyer.

Estimated Time of Arrival (ETA)

The expected date or time a shipment will arrive.

Exclusivity

An agreement preventing a wholesaler from selling to competing retailers within a specific area or market.

Exporter

A seller shipping goods to international wholesale customers.

Early Payment Discount

A discount offered to buyers who pay invoices early. For example, a buyer can get a 2% discount if they pay within 10 days.

F

Free On Board (FOB)

The point at which ownership and responsibility transfer from seller to buyer. After shipment, the buyer assumes risk. Example: If goods are shipped FOB Warehouse, the buyer becomes responsible as soon as the shipment leaves the seller’s facility.

Fill Rate

The percentage of B2B orders fulfilled completely and on time. A major wholesale performance KPI.

G

Gross Margin

The percentage of revenue left after subtracting the cost of goods sold (COGS). It shows how much a business keeps from each sale before operating expenses.

H

House Accounts

Key customers handled directly by a wholesaler’s office rather than by sales reps. These are often long-standing or legacy accounts.

I

Importer

A business that brings goods into a country to sell to local retailers or distributors.

In and Out

Not the famous burger chain, but a special-order item a distributor doesn’t keep in regular inventory.

Inventory

The total goods a wholesaler has available for sale.

Invoice

A billing document listing purchased products, quantities, prices, taxes, and payment terms.

J

Just-in-Time (JIT) Inventory

An inventory strategy where goods are produced or received only as needed, helping minimize storage costs. JIT requires accurate forecasting and reliable suppliers to avoid stockouts.

K

Keystone Pricing

A pricing strategy where retailers typically double the wholesale cost to set the retail price. Example: A product sold at $50 wholesale may be priced at $100 retail.

L

Lead Time

The amount of time it takes to produce, process, and/or deliver goods.

Lead Time Variability

Fluctuation in lead times that affects inventory planning and forecasting.

Less-than-Truckload (LTL)

A shipping method for freight that is too small to fill an entire truck.

Line / Product Line

The full range of products a wholesale business offers.

Line Sheet

A structured product document showing items, pricing, SKUs, and order details used for wholesale ordering.

M

Manufacturer

A person or company producing goods sold to wholesalers or retailers.

Manufacturer’s Suggested Retail Price (MSRP)

The recommended retail price retailers should charge.

Margin

The difference between a product’s cost and its selling price.

Markup

The percentage added to cost to determine a selling price.

Minimum Order Quantity (MOQ)

The minimum quantity or dollar amount required per wholesale order. For example, a supplier may require an MOQ of 24 units per style before accepting an order.

N

Net Payment Terms

Invoice payment terms such as Net-30, Net-60, or Net-90. These terms define how many days the buyer has to pay after receiving the order. Example: Net-60 means payment is due 60 days after delivery.

O

Open-to-Buy (OTB)

A retailer’s available budget for placing new orders within a given period.

Order Minimum

The minimum spend or minimum order amount required by a wholesaler.

Order Cycle Time

The time between a buyer placing a B2B order and receiving it.

P

Pick List

A document listing which SKUs should be picked from inventory to fulfill an order. For example, a warehouse worker may use a pick list to collect 12 units of SKU-1457 from Shelf A3.

Point of Sale (POS)

The place or system where a retailer processes payments.

Pre-Order

Ordering products before they are produced or officially released.

Price Lists

Custom pricing groups assigned to different buyers, buyer types, or markets.

Private Label

Products manufactured by one business and sold under another company’s brand.

Pro Forma Invoice

A preliminary invoice issued before shipping that outlines estimated charges.

Purchase Order (PO)

The document retailers use to submit official wholesale orders.

Q

Quantity Breaks

Pricing tiers where the unit price decreases as order quantities increase. Quantity breaks encourage larger wholesale orders while helping sellers protect margins. Example: A buyer may pay $12 per unit for 25 items, but $10 per unit for 100.

Quote

A price estimate a seller provides before an order is placed. A quote usually includes product prices, quantities, shipping costs, payment terms, and validity dates so the buyer can review costs before confirming a wholesale purchase.

R

Range

Another term for a product line.

Recommended Retail Price (RRP)

The price wholesalers recommend retailers charge. Often used interchangeably with MSRP.

Resale Tax ID Number

An identification number that allows eligible retailers to buy tax-exempt for resale purposes.

Return & Exchange Policy

The rules governing how goods can be returned or exchanged.

Return Merchandise Authorization (RMA)

The approval process a retailer must follow before returning goods. RMAs help sellers track and manage returns more accurately.

S

Sales Representative (Sales Rep)

A representative who sells products to retailers in exchange for commission.

Sales Tax

A consumption tax charged at the point of sale.

Samples

Product samples sent to buyers before they place larger wholesale orders.

Sell-Through

How quickly a product sells through a retailer’s channel, store, or B2B portal. For instance, if a retailer sells 80 units out of 100 received, the sell-through rate is 80%.

Shipping Address

The location where goods are delivered.

Shipping Policy

Guidelines covering shipping fees, delivery times, return handling, and shipping conditions.

Shipping Window

The time period during which an order can be shipped.

Showroom

A physical space where wholesalers present their products to retailers and buyers.

Standing Orders

Recurring wholesale orders placed automatically at set intervals, such as weekly, monthly, or seasonally. They help retailers stay stocked and help wholesalers forecast demand more accurately. For example, a coffee shop may place a standing order for 50 units of a specific blend every month.

Stock-Keeping Unit (SKU)

A unique identifier assigned to each product or product variant.

Stocklist

A list of available inventory currently in stock.

Stock Turnover (Inventory Turnover)

A metric that measures how often inventory is sold and replaced over a given period. High turnover usually signals strong sales and efficient inventory management, while low turnover may point to overstocking or weak demand. For example, if a product sells out and is restocked four times in one year, its annual turnover rate is four.

T

Ticketing

Labels applied to merchandise for retail display and product identification.

Trade Show

Industry events where wholesalers showcase products, meet retail buyers, and build business relationships.

U

Universal Product Code (UPC)

A standardized barcode used to identify and track products across retail and wholesale systems. UPCs help support scanning, inventory tracking, and product reporting.

V

Value-Added Tax (VAT)

A consumption tax applied at each stage of the supply chain.

Vendor

A seller or supplier providing goods to retailers.

Vendor Compliance

A set of retailer requirements wholesalers must meet, often covering shipping, packaging, labeling, testing, ticketing, and documentation.

W

Wholesale

The sale of goods in bulk to retailers, distributors, or resellers. Wholesale commerce often relies on B2B eCommerce platforms, order management tools, price lists, MOQs, and inventory systems.

Y

Year-to-Date (YTD)

Sales or performance measured from the start of the fiscal year to the present.

Z

Zero Stock

A fulfillment model where a business sells products without holding physical inventory. Orders are fulfilled through suppliers, dropshipping partners, or just-in-time replenishment instead of stored stock. This model can reduce storage costs and inventory risk, but it requires strong coordination and reliable suppliers.

Speak wholesale with confidence

Wholesale and B2B eCommerce come with a language of their own, but once you understand the core terms, everything starts to click into place. Use this glossary whenever you need clarity, whether you’re setting up a B2B portal, placing wholesale orders, managing inventory, or improving internal workflows.

If you want a smoother, more modern way to manage wholesale ordering, explore how B2B Wave can help you streamline products, pricing, customers, and orders. Request a demo and see how simple B2B ordering can be.