Fulfillment &
eCom glossary.

3PL stands for Third Party Logistics and refers to the outsourcing of logistics services such as warehousing, fulfillment, and shipping to an external service provider.

4PL stands for Fourth-Party Logistics and refers to a logistics model in which a single provider manages the entire supply chain on behalf of a company – including warehousing, transport, technology, and coordination of other logistics partners (like 3PLs and carriers).

An API interface (Application Programming Interface) allows two software systems to communicate with each other by sending, receiving, and processing data automatically and in real time.

Address validation is the process of verifying and correcting customer shipping addresses before fulfillment and delivery. It ensures that an address is complete, accurate, and recognized by postal services.

Article management refers to the structured organization, registration, and maintenance of product information (such as SKUs, barcodes, batch data, and storage attributes) within warehouse and logistics systems.

Automated packing refers to the use of machines and software to prepare, box, seal, and label customer orders without manual intervention. It replaces or supports manual packaging tasks to speed up fulfillment and reduce errors.

Automated picking refers to the use of technology – such as conveyor systems, robots, or software-driven instructions – to retrieve items from warehouse shelves without or with minimal human intervention.

A backorder occurs when a product is temporarily out of stock but can still be ordered by the customer. The item will be delivered once it is back in stock.

A barcode is a machine-readable code consisting of numbers and parallel lines that represents data. It is used to identify and track products, shipments, or inventory items in logistics and retail.

A barcode label is a sticker or tag containing a printed barcode that can be scanned to identify and track products, shipments, or inventory items within logistics and warehouse systems.

Barcode scanning is the process of using optical readers (scanners or mobile devices) to capture and interpret barcode data on products, packaging, or pallets to enable digital tracking, identification, and automation.

Cardboard packaging refers to packaging materials made from corrugated or solid cardboard, commonly used for protecting and shipping goods during storage and transport.

A carrier is a logistics company responsible for transporting goods from one location to another, typically between fulfillment centers and end customers or retail stores.

Click and collect is a delivery method where customers order products online and pick them up at a physical store or designated collection point instead of having them delivered to their home.

Cold chain logistics refers to the transportation and storage of temperature-sensitive goods within a controlled, uninterrupted temperature range – from warehouse to final delivery.

A consignment warehouse is a storage location where a supplier places goods at a customer’s site or a third-party warehouse, but ownership remains with the supplier until the goods are consumed or sold.

The conversion rate measures the percentage of visitors who complete a desired action, such as making a purchase or signing up for a newsletter, compared to the total number of visitors.

Cross-docking is a logistics practice where inbound goods are unloaded from one vehicle and loaded directly onto outbound vehicles with minimal or no storage time in between.

Custom packaging refers to personalized or branded packaging designed specifically for a business's products, including unique box sizes, materials, inserts, and visual elements that reflect the brand identity.

Customer communication refers to all interactions and touchpoints between a company and its customers – including order confirmations, shipping updates, returns handling, and support requests.

Customer Data Management (CDM) refers to the process of collecting, organizing, validating, and securely storing customer information – such as names, addresses, contact details, and order history – across digital systems.

Customer satisfaction refers to how well a product, service, or overall experience meets or exceeds a customer’s expectations. It is a key indicator of brand loyalty and business success.

Customer service refers to the support and assistance provided to customers before, during, and after purchasing products or services. It plays a key role in ensuring customer satisfaction and loyalty.

Customs clearance is the process of declaring and approving goods for import or export through a country’s customs authority. It involves documentation, tax calculation, inspection, and approval.

Customs documents are official forms and declarations required by customs authorities to process and clear goods crossing international borders. They include invoices, packing lists, certificates of origin, and customs declarations.

A customs tariff number – also known as HS code (Harmonized System code) – is an internationally standardized numerical code used to classify traded goods. It determines the customs duties, import/export restrictions, and documentation required for a specific product.

Delivery addresses refer to the specified locations where goods are to be delivered – typically provided by customers during checkout or order creation. They include detailed information like street, postal code, city, and country.

A delivery attempt occurs when a carrier tries to deliver a package to the recipient, but the delivery is unsuccessful – typically due to the recipient not being available or an incorrect address.

A delivery guarantee is a service commitment made by a seller or carrier that a shipment will arrive at the customer’s location within a specific time frame – often backed by compensation if the deadline is missed.

Delivery logistics refers to the planning, execution, and optimization of the final stages of product transportation – typically from a fulfillment center to the end customer.

A delivery option refers to the selectable method by which an order is shipped to the end customer – such as standard shipping, express delivery, same-day delivery, or pickup.

Delivery time refers to the time span between the shipment of an order and its arrival at the customer's delivery address. It can range from same-day to several business days depending on the location, carrier, and logistics setup.

A distribution channel is the path through which a product travels from manufacturer or supplier to the end customer. It can include intermediaries like wholesalers, retailers, marketplaces, or direct-to-consumer models.

Distribution logistics refers to the planning, execution, and optimization of all processes involved in delivering finished goods from a warehouse or production site to the end customer or point of sale.

A distribution strategy defines how a business delivers its products to end customers or retailers – including channel selection, fulfillment setup, warehousing, and transportation methods.

Dropshipping is a retail fulfillment method where a store does not keep the products it sells in stock. Instead, when an order is placed, the store purchases the item from a third party and has it shipped directly to the customer.

An ERP (Enterprise Resource Planning) system is business software that centralizes and automates core processes such as finance, inventory, order, and customer management in a single platform.

Express shipping is a premium delivery service that ensures significantly faster transit times compared to standard shipping – often within 24 to 48 hours.

Freight costs are the expenses incurred for transporting goods from one location to another, typically charged by logistics providers based on distance, weight, volume, and service level.

A freight invoice is a billing document issued by a carrier or logistics provider detailing the transportation costs associated with a specific shipment or group of shipments.

Fulfillment refers to the complete process of handling customer orders – from receiving the order to picking, packing, shipping, and managing returns.

Fulfillment automation refers to the use of digital systems, software, and machinery to execute and manage order fulfillment tasks – such as order routing, picking, packing, shipping, and inventory updates – with minimal manual intervention.

A fulfillment center is a specialized logistics facility where incoming orders are processed and shipped to end customers. Key tasks include inventory storage, picking, packing, labeling, and handing over parcels to carriers.

A fulfillment partner is a third-party logistics provider that manages warehousing, order processing, packaging, shipping, and often returns on behalf of an eCommerce business.

Goods receipt refers to the process of receiving and recording incoming goods at a warehouse or fulfillment center. It includes checking delivery accuracy, documenting quantities, inspecting product quality, and updating stock records.

Interface management refers to the coordination and maintenance of data exchange between two or more software systems via defined interfaces (e.g. APIs, plugins, file-based integrations). It ensures that systems communicate effectively and consistently.

International shipping refers to the transportation of goods across national borders – from one country to another – including export, customs clearance, and last-mile delivery abroad.

Intralogistics refers to the organization, control, and optimization of internal material flows within a warehouse or distribution center – including the movement, storage, and picking of goods.

Inventory refers to the total amount of goods and materials a business holds in stock, ready for sale or distribution – including raw materials, finished products, and items in transit.

Inventory accuracy refers to the degree of consistency between the actual physical stock in a warehouse and the recorded inventory levels in a digital system or WMS (Warehouse Management System).

Inventory management refers to the process of tracking, organizing, and controlling stock levels across warehouses, fulfillment centers, and sales channels to ensure product availability and efficient operations.

An item number is a unique identifier assigned to a specific product within an inventory system. It helps businesses track, store, and manage products efficiently across locations and sales channels.

Just-in-time delivery (JIT) is a logistics strategy that ensures goods are delivered exactly when they are needed – not earlier or later – to reduce inventory holding costs and improve supply chain efficiency.

Kitting is a fulfillment process where multiple individual items are grouped, assembled, and packaged together as one unit – typically before shipping. It simplifies order handling and improves operational efficiency.

Label printing refers to the process of generating and physically printing labels used in logistics – including shipping labels, barcode labels, product labels, or return labels.

Labelling refers to the process of marking products or parcels with information such as SKU, batch number, destination, handling instructions, or branding elements to ensure correct identification and routing.

A labelling machine is an automated device used to apply labels to products, cartons, or pallets. It ensures that each item receives the correct barcode, shipping label, or product information in a fast, consistent, and error-free manner.

Logistics consulting refers to professional advisory services that help businesses analyze, design, and improve their logistics and supply chain operations – including warehousing, transportation, technology, and process strategy.

A logistics hub is a central location in a supply chain network where goods are received, sorted, stored, and redistributed to regional destinations. It acts as a consolidation and distribution point for domestic or international shipping.

Logistics management is the process of planning, implementing, and controlling the efficient flow of goods, services, and information from origin to consumption.

A logistics network is the interconnected system of warehouses, distribution centers, transportation routes, and digital infrastructure used to move goods from suppliers to end customers efficiently and reliably.

Logistics optimization refers to the continuous improvement of logistics processes and infrastructure to reduce costs, improve speed, enhance visibility, and increase delivery accuracy.

Logistics outsourcing refers to the practice of transferring logistics tasks – such as warehousing, order fulfillment, and shipping – to an external service provider that specializes in supply chain operations.

A logistics partner is an external company that supports businesses in managing and executing their logistics operations – including warehousing, fulfillment, transportation, and returns management.

A logistics service includes all tasks and processes related to the transportation, storage, handling, and distribution of goods – from first-mile to last-mile delivery.

Logistics software refers to digital tools and platforms used to plan, manage, and automate logistics processes such as inventory control, order fulfillment, carrier management, and real-time tracking.

A logistics strategy is a long-term plan that defines how a business designs, controls, and optimizes the flow of goods, information, and resources across its supply chain – from warehousing and transportation to fulfillment and returns.

Material flow refers to the movement of goods, components, or raw materials within a supply chain – from the point of origin through warehousing and production to final delivery.

Online shipping refers to the end-to-end process of preparing, managing, and sending products purchased through an online store – including order transmission, carrier selection, labeling, and tracking.

An online shop is a digital storefront where businesses sell products or services via the internet. Customers can browse, pay, and place orders anytime, from anywhere.

Order management refers to the entire process of receiving, tracking, and fulfilling customer orders – from the moment an order is placed until it is delivered and invoiced.

Order picking is the process of retrieving specific items from storage locations within a warehouse to fulfill a customer order. It is one of the most labor-intensive and time-critical steps in warehouse operations.

Order processing is the complete workflow that starts when a customer places an order and ends with the successful shipment – including order confirmation, picking, packing, labeling, and dispatch.

Order status refers to the current processing stage of a customer's order – from receipt and fulfillment to shipping and delivery. It helps businesses and customers track progress in real time.

Order tracking is the process of monitoring the status and location of a customer's order throughout the fulfillment and shipping journey – from warehouse to delivery.

Packaging costs refer to all expenses associated with preparing a product for shipment – including packaging materials, custom branding, labeling, filler, labor, and sustainability measures.

Packaging design refers to the creative and functional process of developing a product’s outer packaging – including structure, materials, visuals, and branding elements – to protect the product and enhance the customer experience.

A packaging line is a sequence of automated or manual workstations where products are prepared for shipping or retail. It includes steps such as boxing, sealing, labeling, and quality control to create finished packages.

Packaging management refers to the planning, coordination, and execution of how products are packaged for storage, shipping, and delivery – including the selection of materials, packaging types, and labeling.

Packaging size refers to the physical dimensions (length, width, height) of a product’s shipping packaging. It directly affects storage space, shipping method, transport cost, and environmental impact.

A packaging solution refers to the set of materials, processes, and services used to pack products securely and efficiently for storage, shipping, and delivery – tailored to product type, brand, and logistics needs.

Packaging types refer to the different forms and materials used to package products for storage, transport, and delivery – such as boxes, envelopes, pallets, shrink wrap, or eco-friendly materials.

A packaging warehouse is a fulfillment or logistics facility specialized in preparing, assembling, and customizing product packaging before goods are shipped to end customers or retail partners.

Packing is the process of securely packaging picked items into boxes or parcels for shipment. It includes choosing the right packaging materials and ensuring that products arrive safely and undamaged.

A packing station is a dedicated workspace within a fulfillment center or warehouse where picked items are packed into parcels, labeled, and prepared for shipping to customers.

Parcel posting refers to the process of handing over a parcel to a shipping carrier for delivery – either via a drop-off at a parcel shop, postal office, or through scheduled pickup from a warehouse or fulfillment center.

A parcel service is a logistics provider that specializes in the transportation and delivery of small to medium-sized packages – typically through a network of local, national, or international delivery routes.

A parcel shop is a physical location, such as a kiosk, retail store, or pick-up point, where customers can drop off or collect parcels – typically operated in partnership with shipping providers like DHL, UPS, or DPD.

A partial delivery refers to a shipment in which only part of a customer's order is delivered initially, while the remaining items are sent in one or more subsequent shipments.

Payment methods are the various options customers can use to pay for goods or services – including credit cards, PayPal, direct debit, digital wallets, and buy-now-pay-later services.

Payment processing refers to the workflow that authorizes, verifies, and completes a financial transaction between a buyer and a seller. It includes payment gateways, security checks, and confirmation systems.

A payment provider (also known as a payment service provider or PSP) is a third-party company that enables merchants to accept digital payments securely – including credit card, PayPal, direct debit, and more.

Payment reconciliation is the process of matching incoming payments with corresponding invoices, orders, or transactions to ensure that financial records are accurate and complete.

Pick & pack is a core logistics process that involves selecting the right items (picking) from warehouse shelves and preparing them for shipment (packing), typically as part of eCommerce order fulfillment.

A pick list is a document or digital record used in warehouse operations that lists the items, quantities, and storage locations required to fulfill a customer order.

Picking errors occur when the wrong item, quantity, or variation of a product is selected during the order fulfillment process. This often leads to incorrect deliveries, customer dissatisfaction, and increased return rates.

A picking warehouse is a fulfillment or storage facility where goods are stored in a structured manner to enable efficient picking – the process of retrieving items for outbound orders.

Platform integration refers to the process of connecting different software systems – such as online shops, ERPs, and logistics platforms – to enable seamless data exchange and automation of business processes.

Prime shipping refers to a premium delivery option offered by marketplaces like Amazon, providing customers with ultra-fast delivery – typically within one or two days – as part of a subscription service.

Product availability refers to the extent to which a product is in stock and ready to be purchased, picked, packed, and shipped to customers without delay.

Product bundling is a sales and fulfillment strategy in which multiple products are grouped together and sold as a single combined package – often at a discounted price or to enhance customer value.

Product inspection is the process of checking goods for quality, accuracy, and condition before they are stored, shipped, or returned. This includes verifying quantities, identifying defects, and ensuring compliance with product specifications.

Product packaging refers to the material, design, and structure used to enclose, protect, and present a product for storage, shipment, and sale.

Proof of Delivery (POD) is a confirmation – typically digital or physical – that a shipment has been successfully delivered to the recipient. It may include a signature, timestamp, geolocation, or photo.

Reasons for return refer to the various explanations customers provide when sending products back – such as wrong size, damaged item, delayed delivery, or simply a change of mind.

Replenishment is the process of restocking inventory to maintain optimal stock levels and avoid stockouts or overstocking. It ensures that the right quantity of goods is available where and when needed.

A returns form is a document – physical or digital – that accompanies a product return and provides key information such as the reason for return, order number, product details, and customer data to ensure proper processing.

Returns management refers to the process of handling returned goods – from customer-initiated returns to inspection, restocking, or disposal. It includes workflows, communication, and logistics related to returned items.

A returns policy defines the rules and conditions under which customers can return purchased products – including timeframes, acceptable reasons for return, refund or exchange options, and who bears the return shipping costs.

A return portal is a digital self-service interface that allows customers to initiate and manage product returns online – including generating return labels, selecting reasons for return, and tracking the return status.

A returns solution is a system or service that manages the process of receiving, inspecting, and restocking returned products. It includes return labels, tracking, refund processing, and reintegration into inventory.

Route optimization is the process of determining the most efficient delivery route for shipments, based on factors like distance, traffic, carrier capacity, service levels, and delivery time windows.

SKU stands for Stock Keeping Unit. It is a unique alphanumeric code used to identify individual products and their variations (e.g., size, color) within inventory and fulfillment systems.

Safety stock is a buffer quantity of inventory kept on hand to prevent stockouts caused by supply chain delays, demand fluctuations, or inaccurate forecasts.

A shipment number is a unique identifier assigned to a specific shipment or package. It is used to track the movement of goods from the fulfillment center to the recipient.

Shipment status refers to the current stage or condition of a shipment as it moves through the fulfillment and delivery process – from warehouse dispatch to final delivery.

Shipping automation refers to the use of software and integrated systems to streamline and automate tasks related to order shipment – including carrier selection, label generation, tracking updates, and dispatch management.

Shipping classes are predefined categories used to group products by shipping cost, weight, size, or delivery priority. They help standardize rates and determine the optimal shipping method.

A shipping cost calculator is a digital tool that estimates shipping fees based on factors such as package weight, dimensions, destination, and carrier service level.

A shipping delay occurs when a parcel does not arrive within the expected delivery timeframe. Causes may include carrier issues, high demand, customs delays, or stock shortages.

A shipping label is a document or sticker attached to a parcel that contains key delivery information – such as sender, recipient, tracking number, carrier, and barcode.

Shipping methods describe the different options available to deliver goods from a seller to a buyer – including standard, express, economy, and same-day delivery.

Shipping of dangerous goods refers to the transport of products classified as hazardous due to their physical, chemical, or biological properties – such as flammability, toxicity, or reactivity. These shipments require strict handling, documentation, and packaging standards.

A shipping platform is a digital system that connects online stores or ERP systems with carriers to automate and manage the shipping process – including label generation, tracking, and carrier selection.

Shipping processes encompass all the steps required to prepare, dispatch, and track goods from a warehouse or fulfillment center to the end customer – including packaging, carrier selection, label creation, pickup coordination, and delivery tracking.

Shipping rates refer to the cost charged by a carrier to transport a package from the sender to the recipient. Rates are calculated based on factors like weight, size, destination, shipping method, and carrier.

A shipping service refers to the transportation solution provided by a carrier or logistics provider to deliver goods from the seller to the recipient. It includes pickup, transit, tracking, and delivery.

Shipping software is a digital tool that helps businesses manage and automate their shipping processes – including carrier selection, label generation, tracking, and returns.

A shipping window defines the specific time frame in which an order must be picked, packed, and handed over to the carrier to ensure timely delivery.

Shipping zones are geographic areas defined by carriers to calculate delivery timeframes and shipping costs. These zones are typically based on distance from the shipment’s origin to the destination.

A shop system (also: eCommerce platform) is a software solution used to create and manage an online store – including product listings, checkout processes, payment gateways, and customer data handling.

A shopping basket (also known as a shopping cart) is a digital feature in online stores where users temporarily store selected products before proceeding to checkout and placing an order.

A stock transfer is the internal movement of inventory from one storage location or warehouse to another – typically done to balance stock levels, reduce delivery times, or prepare for regional demand.

Stock types refer to the different classifications of inventory based on its status, availability, or intended use – such as available stock, reserved stock, safety stock, returned stock, or damaged stock.

A storage area is a designated space within a warehouse or fulfillment center where inventory is stored until it is needed for order picking, packing, or replenishment.

Storage costs refer to the expenses incurred for holding inventory in a warehouse or fulfillment center. These costs typically include rent, utilities, handling, insurance, and administrative overhead related to storing goods.

Supplier evaluation is the process of assessing and monitoring suppliers based on defined criteria such as reliability, quality, pricing, lead times, sustainability, and service performance.

The supply chain refers to the complete flow of goods – from raw material sourcing to final delivery to the end customer. It includes all stages such as production, warehousing, fulfillment, shipping, and returns.

Supply chain management (SCM) refers to the strategic coordination of all processes involved in the production and distribution of goods – from sourcing and manufacturing to warehousing, fulfillment, and delivery.

Supply chain optimization refers to the process of improving the efficiency, visibility, and performance of all elements in the supply chain – from sourcing and warehousing to fulfillment and delivery.

Supply chain planning (SCP) refers to the strategic process of forecasting, coordinating, and optimizing all activities within the supply chain – from sourcing and production to warehousing and delivery.

Supply chain transparency refers to the visibility of all activities, data, and processes within a supply chain – from raw material sourcing to final delivery. It enables companies to track where products are, who handles them, and under what conditions.

Supply chain visibility refers to the ability to track and monitor every step of the supply chain in real time – from inventory and order status to shipping and delivery, across all systems and locations.

Traceability refers to the ability to track the history, location, and movement of a product or batch across the entire supply chain – from raw material sourcing to end-customer delivery.

"Track shipment" refers to the ability to monitor the location and delivery progress of a shipment in real time, from the moment it leaves the warehouse to final delivery.

Tracking refers to the continuous monitoring of goods, shipments, or orders along their journey from the warehouse to the final destination. It provides real-time updates on the location and status of shipments.

A tracking number is a unique code assigned to a shipment that allows the sender, receiver, and logistics providers to monitor the shipment's location and delivery status in real time.

A tracking system is a digital solution that monitors the location and status of shipments in real time – from warehouse dispatch to final delivery at the customer’s doorstep.

Transport insurance protects goods against damage, loss, or theft during shipping – whether by road, air, rail, or sea. It ensures financial compensation in case of incidents during transit.

Transport management refers to the planning, execution, and optimization of the physical movement of goods from one location to another – including carrier selection, route planning, freight cost control, and delivery tracking.

Warehouse locations refer to the physical sites where inventory is stored and orders are fulfilled. These can be regional, national, or international distribution centers used to shorten delivery times and optimize logistics operations.

Warehouse logistics refers to all processes involved in storing, organizing, managing, and moving goods within and between warehouses – including inventory control, picking, packing, and shipping preparation.

Warehouse management refers to the control and coordination of all processes that take place within a warehouse – including inventory tracking, picking, packing, stock replenishment, and space optimization.

A warehouse management system (WMS) is software that helps businesses manage and optimize warehouse operations – including inventory tracking, picking, packing, and shipping.

Warehouse optimization refers to the continuous improvement of warehouse operations, layouts, systems, and workflows to maximize storage efficiency, reduce picking times, lower costs, and improve fulfillment speed and accuracy.

Warehouse planning refers to the strategic and operational design of a warehouse’s structure, layout, processes, and resource allocation to ensure optimal inventory storage, order processing, and space utilization.

Warehousing refers to the storage of goods in a dedicated facility before they are sold, distributed, or further processed. It includes inventory management, organization, security, and handling of goods.

A waybill is a shipping document issued by a carrier that includes key details about a shipment – such as sender and recipient information, tracking number, contents, weight, and delivery instructions.

eCommerce automation refers to the use of software and systems to automatically execute and manage repetitive tasks and processes within an online retail operation – such as order routing, inventory updates, shipping notifications, and returns processing.

eCommerce growth refers to the expansion of online sales and operations over time – measured through metrics like revenue, order volume, market presence, or number of SKUs.

eCommerce logistics refers to all logistical processes involved in online retail – including inventory management, warehousing, order fulfillment, shipping, and returns handling to ensure fast and accurate delivery to customers.

An eCommerce platform is a software solution that enables businesses to sell products or services online. It provides tools for product listings, checkout, payment processing, and customer communication.

An eCommerce strategy is a long-term plan that defines how a business intends to achieve growth, customer satisfaction, and operational efficiency in online retail – covering areas such as product offering, marketing, logistics, and technology.