Updated on November 27, 2025 with expanded B2B eCommerce and wholesale terminology.

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. And honestly? Even the pros mix them up sometimes.

If you’ve ever found yourself thinking that 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, and ordering workflows, so you can speak wholesale fluently offline and navigate any B2B portal with confidence.

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. Helps retailers prepare for B2B order receiving.

B

Backorder

Products ordered but not yet shipped due to low stock or pending production. Common in wholesale when demand outpaces inventory.

Big-Box Stores

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

Billing Address

The address where invoices or billing documents are sent. Often the company’s headquarters.

Brand

A name or identity under which a company markets products.

Brick and Mortar

A physical retail store location.

Buy Now, Pay Later (BNPL)

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

Buybacks

Agreements where retailers can return unsold stock to wholesalers.

Bulk Pricing

A pricing strategy offering lower unit costs for larger order quantities—common in B2B ordering and wholesale commerce.

C

Case Packs

Pre-set quantities of a single SKU sold together to simplify wholesale ordering.

Catalog

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

Chargebacks

Bank-initiated charge reversals due to disputes (non-delivery, damage). In wholesale logistics, may also refer to retailer compliance fees.

Collect on Delivery / Cash on Delivery (COD)

Payment for an order is made upon delivery rather than upfront.

Collection

A themed group of products sold together.

Consignment

An agreement where retailers pay only for goods sold, returning unsold inventory. For instance, a brand places products in a boutique on consignment; the shop only pays for the items after they sell.

Cost of Goods Sold (COGS)

The direct costs of producing goods sold. A key metric in B2B pricing strategies.

Cost, Insurance, and Freight (CIF)

A shipping term where the seller pays cost + insurance + freight to the buyer’s port. Example: If a shipment is sold CIF Los Angeles, the seller pays to get the goods to the LA port — including insurance — before responsibility transfers to the buyer.

D

Delivery Window

The specified time frame when goods are shipped to the customer.

Direct-to-Consumer (D2C)

Selling products directly to end consumers instead of through wholesale channels.

Distribution Center

A retailer’s warehouse used to allocate products to multiple store locations.

Dropshipping

Suppliers ship products directly to buyers on behalf of sellers.

E

Electronic Freight Waybill (EFW)

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

Estimated Time of Arrival (ETA)

The expected date a shipment will arrive.

Exclusivity

An agreement preventing wholesalers from selling to competing retailers within a specific area.

Exporter

A seller shipping goods to international wholesale customers.

Early Payment Discount

A discount offered to buyers who pay invoices early (e.g., 2/10 Net 30).

F

Free On Board (FOB)

The point at which ownership and responsibility transfer from seller to buyer. After shipment, the buyer assumes risk. For example, if goods are shipped FOB Warehouse, the buyer becomes responsible for the shipment as soon as it 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 and is a core metric for evaluating profitability.

H

House Accounts

Key customers managed directly by the wholesaler’s office instead of sales reps.

I

Importer

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

In and Out

A special-order product not kept in ongoing inventory.

Inventory

The total goods a wholesaler has available for sale.

Invoice

A billing document listing purchased products, quantities, costs, taxes, and payment details.

J

Just-in-Time (JIT) Inventory

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

K

Keystone Pricing

A pricing strategy where wholesalers double their cost to determine retail price.

L

Lead Time

How long it takes to produce or deliver goods.

Lead Time Variability

Fluctuation in lead times that affects inventory planning and wholesale forecasting.

Less-than-Truckload (LTL)

A shipping method for freight not large enough to fill a truck.

Line / Product Line

All products a wholesale business offers.

Line Sheet

A structured document showing products, pricing, and SKU 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 wholesale cost and selling price.

Markup

The percentage added to wholesale cost to determine retail price.

Minimum Order Quantity (MOQ)

The minimum quantity or dollar amount required per wholesale order. Example: A supplier might require an MOQ of 24 units per style before accepting an order from a retailer.

N

Net Payment Terms

Invoice payment terms such as Net-30, Net-60, or Net-90. For instance, a retailer may request invoice payment terms of sixty (60) days, that is Net-60.

Open-to-Buy (OTB)

A retailer’s available budget for placing orders.

Order Minimum

The minimum spend or 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 to pick from inventory to fulfill orders. For instance, a warehouse worker uses a pick list to gather 12 units of SKU-1457 from Shelf A3 to fulfill a customer order.

Point of Sale (POS)

Where a retailer processes payments.

Pre-Order

Ordering products before they’re produced or released.

Price Lists

Custom pricing groups assigned to different buyers.

Private Label

Products manufactured by one business but sold under another brand.

Pro Forma Invoice

A preliminary invoice issued before shipping.

Purchase Order (PO)

The document retailers use to submit official wholesale orders.

R

Range

Another term for a product line.

Recommended Retail Price (RRP)

The price wholesalers recommend to retailers (same as MSRP).

Resale Tax ID Number

An ID allowing retailers to buy tax-exempt.

Return & Exchange Policy

Rules for returning or exchanging goods.

Return Merchandise Authorization (RMA)

The process retailers must follow to return goods.

S

Sales Representative (Sales Rep)

A representative selling 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 placing orders.

Sell-Through

How fast a product sells through a retailer’s channel or online B2B portal.

Shipping Address

Where goods are delivered.

Shipping Policy

Guidelines for shipping, delivery times, fees, and returns.

Shipping Window

The period during which an order can be shipped.

Showroom

A physical space for presenting wholesale products.

Stock-Keeping Unit (SKU)

A unique identifier for each product.

Stocklist

A list of available inventory.

Ticketing

Labels applied to merchandise for retail display.

Trade Show

Industry events where wholesalers present products to retailers.

U

Universal Product Code (UPC)

A barcode used to track products and inventory.

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

Rules retailers require wholesalers to meet—covering shipping, labeling, testing, ticketing, and more.

W

Wholesale

The sale of goods in bulk to retailers, distributors, or resellers. Wholesale commerce often uses B2B eCommerce portals, wholesale ordering platforms, price lists, MOQs, and bulk inventory workflows.

Y

Year-to-Date (YTD)

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

Speak wholesale with confidence

Wholesale and B2B eCommerce come with a language of their own, but once you understand the core terms, everything clicks into place. Use this glossary as a reference whenever you need clarity, whether you're setting up a B2B portal, placing wholesale orders, or improving your internal processes.

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.