Ecommerce fulfillment glossary
26 terms every ecommerce brand should know.
- Advance Shipping Notice (ASN)
- A document sent before an inbound shipment arrives listing the SKUs, quantities, carton or pallet counts and expected arrival. Receiving teams use it to verify what actually arrives.
- Batch Picking
- Picking items for multiple orders in a single trip through the warehouse, then sorting them into individual orders at packing.
- Billable Weight
- The weight a carrier charges for, which is the greater of a package's actual weight and its dimensional weight.
- Cycle Count
- Counting a portion of inventory on a regular schedule instead of shutting down for a full physical count. It keeps system records aligned with what is actually on the shelf.
- Dimensional Weight (DIM Weight)
- A pricing method that converts a package's size into a weight by multiplying length, width and height and dividing by a carrier-set divisor. It prevents large, light packages from being undercharged.
- Distributed Inventory
- Splitting stock across multiple fulfillment locations so orders ship from the location closest to the customer.
- FIFO (First In, First Out)
- An inventory rotation method in which the oldest received units are shipped first.
- Kitting
- Assembling multiple individual SKUs into a single sellable unit, such as a bundle or gift set, either in advance or at the time of order.
- Lot Tracking
- Recording the production lot or batch of units in inventory so specific batches can be traced, rotated or recalled.
- LTL (Less-Than-Truckload)
- A freight mode in which smaller shipments, often a few pallets, share space on a truck with other shippers' freight.
- Mispick
- A fulfillment error in which the wrong item, size, color or quantity is picked for an order.
- Multi-Channel Fulfillment
- Fulfilling orders from several sales channels, such as your own store, marketplaces and wholesale, from one shared pool of inventory.
- Order Cutoff Time
- The daily time by which an order must reach the warehouse to ship the same business day.
- Pick, Pack and Ship
- The core fulfillment cycle of retrieving ordered items from storage, packing them for shipment and handing them to a carrier with a label.
- Piece Picking
- Picking individual units rather than full cases or pallets, typical of direct-to-consumer ecommerce orders.
- Rate Shopping
- Comparing carrier services and prices for each order at label creation to choose the best option for the delivery promise and cost.
- Reorder Point
- The inventory level at which a new purchase order should be placed so stock arrives before you run out.
- Reverse Logistics
- The process of handling returned goods, including authorization, receiving, inspection, restocking, refurbishment or disposal.
- Routing Guide
- A retailer's set of rules for how suppliers must label, pack and ship wholesale orders, with chargebacks often applied for non-compliance.
- Safety Stock
- Extra inventory held to protect against stockouts caused by demand spikes or supplier delays.
- Shipping Zone
- A carrier's measure of distance between the origin and destination of a parcel. Higher zones generally mean higher rates and longer transit times.
- SKU (Stock Keeping Unit)
- A unique identifier for each distinct product variant, such as a specific size and color, used to track inventory.
- Tracking Writeback
- The automatic return of carrier tracking numbers from the fulfillment system to the storefront so customers receive shipping notifications.
- UPC (Universal Product Code)
- A standardized 12-digit barcode widely used to identify retail products. Many retailers and marketplaces require a valid UPC or GTIN.
- Wave Picking
- Releasing groups of orders to the warehouse floor together, often timed to carrier pickups, so pickers can work efficiently.