If you’ve ever spoken to a fulfilment provider and nodded along while quietly wondering what half the terms actually mean, you’re not alone.
As your ecommerce brand begins to scale, fulfilment vocabulary ramps up fast. Terms that never mattered when you were packing orders at the kitchen table suddenly start appearing in onboarding calls, contracts, dashboards, and performance reviews - without explanation, and without time to catch up.
Out A–Z guide breaks down the fulfilment terms ecommerce and retail brands actually encounter when working with a 3PL warehouse partner, so you can make better decisions, ask better questions, and understand exactly how your fulfilment model works.
Whether you’re outsourcing fulfilment for the first time or reassessing an existing setup, consider this your reference point for the language of ecommerce fulfilment.
A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z
Allocated Storage - Allocated storage refers to warehouse space that is reserved specifically for your inventory within a fulfilment centre. This means your stock is stored in dedicated locations rather than mixed with other brands, improving inventory accuracy and predictability.
ASN (Advanced Shipping Notice) - An Advanced Shipping Notice (ASN) is a document sent ahead of a delivery that details what inventory is arriving, how much of it there is, and when it will be received. ASNs help 3PL warehouses prepare space, labour, and system entries before stock arrives, reducing delays and errors at goods-in.
API (Application Programming Interface) - An Application Programming Interface (API) is, put simply, the way all of your digital ecommerce systems stay in touch with each other. A 3PL will integrate with a huge range of APIs to help keep your ecommerce brand's sales channels, customer communication channels and inventory management systems connected.
B2B (Business To Business) - B2B (Business to Business) refers to sales and fulfilment between companies rather than direct to the end consumer. In ecommerce, a B2B order might involve wholesale shipments, pallets, or bulk deliveries to retail partners, distributors or other businesses.
B2C (Business To Customer) - B2C (Business to Consumer) is the type of ecommerce where products are sold directly to the end customer. B2C fulfilment usually requires fast, accurate single-parcel deliveries to household addresses, meaning order volumes are smaller but more frequent.
Backorder - A backorder happens when a customer places an order for an item that is temporarily out of stock. Rather than cancelling the order, your brand will fulfil it once the stock returns. They are a common ecommerce practice that helps prevent missed opportunities during periods of low stock, but require up-to-date inventory management to prevent customers slipping through the cracks.
Batch Tracking - Batch tracking is the practice of grouping products together by 'batch' number. This is especially important for products with expiry dates which require specific FIFO regulation (including supplements or food and beverages). It also allows for better tracing of products, from production to distribution 0 this enhances visibility and keeps your brand compliant with sensitive product regulations.
Black Friday - One of the biggest retail events of the year, Black Friday is a day where brands offer significant discounts on their products, providing an incentive for customers to spend. While it is traditionally an in-store retail event, it's impact has spread online in recent years, causing a huge spike in ecommerce sales. Successful Black Friday fulfilment requires robust warehouse operations, accurate inventory management, and the ability to flex labour and dispatch capacity.
Courier - Your courier is the one who will be taking your customer's orders from your warehouse or 3PL partner, right to your customers' door. There are multiple courier services operating within the UK, each with their own specialties and limitations when it comes to parcel weight, size and contents.
Consignment Inventory - Consignment is a stock arrangement where goods are stored and sold by a third party, but ownership of the inventory remains with the supplier until the products are sold. Payment is only made once the goods have been purchased by the end customer or retailer.
Cross-Docking - Cross docking is a logistics process where inbound goods are unloaded at a warehouse and transferred directly to outbound shipping with little or no long-term storage. Instead of products being stored on racking, they are sorted, consolidated, and dispatched as quickly as possible. The primary goal of cross-docking is to streamline the supply chain by reducing the need for long-term storage and speeding up the distribution process.
Dead Stock - Dead stock refers to inventory that has not sold for an extended period and is unlikely to sell at full price. This can include discontinued products, over-ordered items, seasonal stock that missed its selling window, or goods made obsolete by new versions. This doesn't necessarily signal a problem within your fulfilment, however the mismanagement of dead stock can lead to crowded warehouses and fulfilment bottlenecks.
Demand Forecasting - Demand forecasting is a, much overlooked, but crucial part of ecommerce success.
It involves using estimated, and historic sales data and growth trends to determine how busy certain sales periods will be, allowing you to accurately plan stock quantities, labour and carrier capacity - preventing a last minute meltdown.
Dropshipping - Dropshipping is a fulfilment model where products are sold online but shipped directly from a supplier to the end customer, rather than being held in the retailer’s own inventory.
Dashboard - Your dashboard is essentially an overview of your operations here at GNOC. We partner with 70+ API and ERP programmes which help keep your operations streamlined, and controllable from one, easy hub.
DTC (Direct To Customer) - Much like B2C fulfilment, DTC refers to businesses who sell their own products directly to consumers through their own online channels. This is a common strategy for ecommerce brands, and integration with tools such as Shopify and WooCommerce can make it easier than ever.
Ecommerce Platform - Ecommerce platforms refer to the software through which ecommerce brands can sell online - providing a hub for their website, sales and operations. There are plenty of ecommerce platforms to chose from ,each with their own industry specific advantages and drawbacks. At GNOC, we integrate with dozens of ecommerce platforms, including industry giants such as Amazon, eBay and Shopify.
Expedited Shipping - Expedited shipping means shipping a customer's order as a priority - often shortening delivery times for a quicker service. This can be done by sending the parcel via a next day delivery courier, or scheduling weekend deliveries. More often than not, customer's looking for expedited delivery will cover the costs.
Error Rate - Error rates refer to the amount of incorrectly picked or shipped orders. This includes incorrect items, missing products or wrong quantities. It's crucial to track this metric, as increases in you error rate can significantly impact customer satisfaction.
If you're looking at an outsourced logistics partner, it's important to query their error or accuracy rates to make sure they're keeping accuracy, a priority. At GNOC, we're proud to maintain an order accuracy rate of 99.99%.
End-To-End Fulfilment - End-to-end fulfilment describes the complete lifecycle of a parcel, the journey of an order from inventory storage through picking, packing, dispatch, delivery, and returns.
Fulfilment - Fulfilment is the process of receiving, storing, picking, packing, and shipping customer orders. In ecommerce, fulfilment also includes inventory management, order tracking, and returns handling. At GNOC, quality order fulfilment is our bread and butter! We often help ecommerce brands make the shift from in-house fulfilment to a 3PL partner when their manual fulfilment starts limiting growth, speed, or customer experience.
Fulfilled By Amazon (FBA) - FBA is just one of the methods available to help independent ecommerce brands branch out, and sell on the ecommerce giant 'Amazon'. FBA, specifically, involves storing your products in Amazon's warehouses, allowing them to handle all order fulfilment, including picking, packing, shipping, customer service, and returns - giving you a 'hands off' approach, and allowing you to take advantage of the lucrative 'Prime Seller' badge.
Freight Goods - Freight refers to orders which are oversized, heavy or inconveniently bulky. As opposed to being packed and shipped individually, orders fitting this criteria are transported as 'pallets', generally via a specialist shipping courier.
Fulfilment Centre - A fulfilment centre is a specialised 3PL hub, where orders are received, stored, picked, packed and shipped to customers. At GNOC, our 350,000ft² fulfilment centre is where all the magic happens!
Goods In/Out - Goods In / Goods Out refers to the movement of inventory entering and leaving a warehouse. “Goods In” covers the receipt, checking, and booking of inbound stock from suppliers, while “Goods Out” relates to the picking, packing, and dispatch of customer orders.
Ground Shipping - Ground shipping is the transportation of goods by road rather than air or sea. In UK ecommerce fulfilment, ground shipping is the most common delivery method for standard and next-day orders. Ground shipping is typically more cost-effective than air freight and allows fulfilment providers to optimise delivery routes, carrier selection, and last-mile performance across domestic markets.
Global Fulfilment - Global fulfilment is the management of inventory storage, order processing, and delivery across multiple countries or regions. It can become incredibly expensive, and complicated, to manage in-house as your ecommerce brand expands into new markets and sales territories, with many turning to outsourced partnerships to keep global fulfilment running smoothly.
Handling Costs - Handling costs are the fees associated with the physical movement of inventory within a warehouse, including receiving goods, put away, picking, packing, and internal transfers.
In ecommerce fulfilment, handling costs are typically charged per unit, per order, or per activity, and can vary based on the type of product, or complexity of the handling process. A good 3PL will walk you through any and all handling costs as a part of their pricing consultation.
Hazardous Goods - Hazardous goods are products that require special handling, storage, or transportation due to safety, health, or environmental risks. In fulfilment operations, hazardous goods must comply with strict regulations around packaging, labelling, storage conditions, and carrier approval. It's essential that your 3PL partner has any and all necessary qualification and experience handling good that can classified as hazardous.
High-Value Inventory - High-value inventory refers to products with a high unit value that require enhanced security, accuracy, and traceability during storage and fulfilment. Common examples include electronics, luxury items, and premium consumer goods.
Integrations - Integrations are the software connections that link your ecommerce platforms, marketplaces, and sales channels with your fulfilment provider’s system. Integrations automatically sync orders, inventory levels, and tracking information between systems so you don’t have to manually upload or reconcile data. At GNOC, we're proud to host over 70+ integrations, applicable to any ecommerce brand.
Inventory Management - Inventory management is the process and technology used to track, control, and optimise stock levels across your sales channels. Inventory management processes uses tools that show real-time stock levels, forecasting, and low-stock alerts - usually from one, centralised dashboard.
Inventory - Inventory refers to the physical products a business holds for sale, including all SKUs (stock keeping units) stored in a warehouse or fulfilment centre. In ecommerce, inventory visibility is critical because accurate stock levels determine whether orders can be fulfilled and shipped on time.
Inbound Logistics - Inbound logistics covers the processes involved in receiving products from suppliers or manufacturers into a warehouse. This includes delivery scheduling, goods-in checks, quality inspection, and booking stock into the fulfilment system. Good inbound logistics ensure products are available for sale as soon as possible, without delays or data errors that can lead to fulfilment issues later.
Import - Import refers to bringing goods into a country from overseas for storage and fulfilment. For ecommerce brands selling internationally, this involves customs clearance, tax and duty compliance
JIT (Just-In-Time) Inventory - Just-in-time fulfilment is a stock management approach where inventory is received, stored, and dispatched only as it is needed, rather than held in large quantities long-term. The goal is to reduce storage costs and excess stock while keeping fulfilment responsive to demand. For ecommerce brands, JIT fulfilment relies heavily on accurate demand forecasting and strong supplier coordination, as low buffer stock increases risk if demand spikes unexpectedly.
Journey Mapping - Journey mapping in fulfilment refers to mapping every step of a customer order, from checkout through picking, packing, dispatch, delivery, and returns. Understanding the fulfilment journey helps brands identify delays, errors, and friction points that impact customer satisfaction.
Kitting - Kitting is the process of grouping multiple individual products into a single packaged unit before they are sold or shipped. In ecommerce fulfilment, kitting is commonly used for bundles, promotional offers, subscription boxes, or starter kits. Effective kitting reduces picking time, improves order accuracy, and ensures consistent presentation across customer orders.
KPI (Key Performance Indicators) - Key performance indicators are measurable metrics used to assess fulfilment performance and operational efficiency. Common fulfilment KPIs include order accuracy rate, dispatch time, inventory accuracy, returns processing time, and cost per order. Tracking KPIs helps ecommerce brands identify bottlenecks, improve customer experience, and hold fulfilment operations accountable.
Last-mile Delivery - Last-mile delivery refers to the final stage of the fulfilment process, where an order is transported from a warehouse or distribution hub to the customer’s delivery address. Efficient last-mile delivery relies on strong carrier networks, route optimisation, and accurate dispatch processes.
Landed Costs - Landed costs are the total expenses that go into acquiring a product, and delivering it to the final customer. This includes costs such as the purchase price from the supplier and courier fees, however it also includes more niche costs including import fees, packaging and insurance fees.
Lead Time - Lead time is the total amount of time taken from placing an order with a supplier to the inventory being available for fulfilment. Ideally, this needs to be as low as possible to maintain customer satisfaction and prevent stockouts.
Logistics - Logistics is the process of planning, managing, and executing the movement and storage of goods throughout the supply chain. For ecommerce brands, logistics includes inbound stock handling, warehousing, order fulfilment, distribution, and returns. Well-managed logistics ensures orders are delivered accurately, on time, and at a sustainable cost.
Marketplace - In the context of ecommerce, a marketplace refers to a digital platform (such as Amazon, eBay or
Minimum Order Quantities - Minimum order quantities (MOQs) refers to the minimum number of units a supplier requires per order. In fulfilment planning, MOQs influence inventory levels and storage requirements, particularly for brands managing multiple SKUs.
Manual Picking - Manual picking is a fulfilment method where warehouse staff physically locate and pick items from storage locations. While suitable for lower volumes or complex products, manual picking can become less efficient as order volumes scale. Manual picking is often the culprit for mistakes and order inconsistencies for in-house brands, and is generally the first sign that it might be worth outsourcing to a 3PL partner.
Multi-channel Fulfilment - Multichannel fulfilment is the process of fulfilling orders across multiple sales channels, such as Shopify, Amazon, marketplaces, and wholesale, from a single inventory pool. It allows ecommerce brands to centralise stock while selling through multiple platforms without overselling or fulfilment delays.
Next-Day Delivery - Next-day delivery is a shipping service where orders are delivered to customers the day after dispatch. In the UK ecommerce market, next-day delivery is often considered a baseline customer expectation rather than a premium service, with the rise of services such as Amazon Prime raising customer expectations beyond a standard 2-3 day delivery window.
Net Storage - Net storage refers to the actual usable warehouse space available for storing inventory, excluding walkways, loading bays, and operational zones. At GNOC, we're proud of our 350,000ft² warehouse, with huge storage capabilities.
Order Fulfilment - Order fulfilment is the complete process of receiving, processing, picking, packing, and shipping customer orders. In ecommerce, effective order fulfilment ensures fast delivery, accurate orders, and a positive customer experience from checkout to doorstep. A great deal of processes go into creating the ideal order fulfilment processes.
Omnichannel Fulfilment - Omnichannel fulfilment is a strategy that enables ecommerce brands to fulfil orders across multiple sales channels, such as online stores, marketplaces, and wholesale, using a single, unified inventory system. It provides consistent delivery experiences while preventing stock discrepancies across channels.
Order Tracking - Order tracking allows customers and brands to monitor an order’s journey from dispatch to delivery using tracking numbers and carrier updates. Reliable order tracking improves transparency, reduces customer service enquiries, and increases trust in the fulfilment process.
Outbound Logistics - Outbound logistics refers to all activities involved in moving goods from a warehouse to the end customer. This includes order picking, packing, carrier handover, shipping, and last-mile delivery. Efficient outbound logistics is critical for meeting delivery expectations and controlling shipping costs.
Pick and Pack - Pick and pack is the core fulfilment process where items are selected (“picked”) from storage and then packaged (“packed”) for shipping to customers. Efficient pick and pack systems reduce errors, speed up dispatch times, and improve customer satisfaction, especially during peak sales periods.
Peak Season - Peak season refers to predictable periods when ecommerce order volumes increase significantly, such as Black Friday, Cyber Monday, Christmas, and other major sales events. During peak season, fulfilment operations must scale efficiently to maintain delivery speed, accuracy, and customer experience. While peak season can be a goldmine for ecommerce brands, it can also be dangerous if it isn't managed correctly.
Periodic Inventory - Periodic inventory is an inventory tracking method where stock levels are updated at specific intervals, such as daily, weekly, or monthly, rather than continuously in real time. While simpler to implement, periodic inventory can lead to discrepancies between recorded stock and actual stock levels, especially during busy periods. This is why it's crucial to accompany your period inventory management with live reporting that keeps you up to date in-between formal stock counts.
Quantity Control - Quantity control in fulfilment is the process of tracking and managing the exact amount of stock available at any given time, ensuring inventory counts are accurate and aligned with sales activity. It involves monitoring stock movements and reconciling expected vs actual quantities.
Queue Management - Queue management in fulfilment refers to organising and prioritising the sequence in which orders are processed or tasks are completed within a warehouse. A well-structured queue ensures that orders are picked and packed in the most efficient order based on cut-off times, delivery service levels, or urgency, for example, prioritising next-day orders ahead of standard shipping.
Reverse Logistics - Also known as returns, reverse logistics is the process of handling returned products after they’ve been delivered to customers. It includes inspecting returned items, sorting sellable stock, restocking inventory, quarantining damaged goods, and updating stock data so returned products can be resold or responsibly processed.
Reorder Point - Reorder point is the inventory level at which a new stock order should be placed to avoid running out of stock. It is calculated based on average demand, lead time from suppliers, and safety stock levels.
Real Time Inventory - Real time inventory refers to a live view of stock levels that updates immediately whenever products are received, sold, returned, or moved. With real time inventory data, brands can forecast demand, manage availability across sales channels, and avoid costly fulfilment errors.
Self-Fulfilment - Also known as in-house fulfilment, self-fulfilment refers to an eCommerce business managing its own fulfilment operations, from storing inventory to picking, packing and shipping orders, without outsourcing to a third‑party logistics (3PL) provider. It often means investing in warehouse space, staff, and technology to handle logistics in‑house. While it can be a good way to save money as your ecommerce brand grows, increasing order volumes can quickly become overwhelming and ecommerce brands often have to make a decision whether you continue in house, or switch to a 3PL.
Seller Fulfilled Prime (SFP) - Seller Fulfilled Prime (SFP) is an Amazon programme that lets sellers deliver Prime‑eligible orders directly to customers from their own warehouse or a 3PL, rather than using Amazon’s fulfilment centres. To keep Prime status, sellers must meet strict standards for delivery speed, reliability and customer service. SFP can boost conversions by offering Prime delivery benefits while maintaining control of inventory, but it requires rigorous performance and logistics precision.
Stock Keeping Unit (SKU) - A SKU is a code assigned to each product variant (size, colour, style) to track inventory across warehouses, sales channels and fulfilment systems. It’s fundamental to organised inventory management and forecasting. Using accurate SKUs helps brands avoid stock discrepancies and ensures orders are picked, packed and shipped correctly.
Stockout - Also known as 'Our of Stock' products, a stockout occurs when a business runs out of inventory for a given SKU. This results in the inability to fulfil orders, potentially harming revenue and customer trust. Stockouts can lower search rankings and sales velocity online because they disrupt conversion and customer satisfaction.
Safety Stock - Safety stock is extra inventory held beyond forecasted demand to protect against unexpected sales spikes, delivery delays or supply chain disruptions. It cushions the risk of stockouts. Maintaining optimal safety stock ensures customer orders can be fulfilled without interruption , a key factor in high‑conversion eCommerce fulfilment.
Scalability - Scalability in fulfilment means the ability of a business’s logistics operations to grow smoothly as order volume increases, without sacrificing speed, accuracy or costs. The most scalable fulfilment models adapt to seasonal peaks and market growth. Scalable fulfilment ensures a brand can handle surges (like holiday seasons or promotions) while sustaining customer satisfaction and efficiency.
Third Party Logistics (3PL) - Third-Party Logistics (3PL) refers to outsourcing fulfilment, warehousing, inventory management, shipping, and related logistics tasks to an external specialist provider. A 3PL partner handles the operational complexity of storage, order processing, packing and shipping so that eCommerce brands can focus on selling and scaling their business.
Tracking - Tracking is the process of monitoring the location and status of an order or shipment in real time — from when it leaves the fulfilment centre to when it arrives at the customer’s door. It typically uses unique tracking IDs and integrates with courier systems to provide visibility and updates throughout transit.
Tariff Code - A tariff code is a standardised numerical identifier used in international trade to classify products for customs purposes. It determines the duties, taxes and regulation applied when goods cross a border, and helps customs authorities and carriers process shipments efficiently and legally.
Uniform Product Code (UPC) - A Uniform Product Code (UPC) is a standardised barcode symbology and numerical identifier used globally to uniquely identify retail products and track them through the supply chain. Comprised of a 12-digit number encoded in a machine-readable barcode, a UPC ensures products are scanned accurately at checkpoints like warehouses, retail outlets and shipping hubs.
Unfulfilled Order - An unfulfilled order is a customer order that has been placed by the buyer but has not yet been picked, packed and shipped from the fulfilment centre. It often sits “open” in the order management system, waiting for inventory availability or processing. Keeping unfulfilled orders low improves customer satisfaction and delivery performance, key metrics that can impact your SEO and brand reputation when mentioned in customer content or policy pages.
User Experience - In an ecommerce context, user experience (UX) refers to the overall experience a customer has when interacting with your brand’s ordering, fulfilment communication and delivery process, including tracking updates, delivery times and returns handling. It goes hand in hand with customer satisfaction, and it's crucial to make your user experience as stress-free as possible.
Vendor - In logistics and fulfilment, a vendor is a business or individual that supplies goods or services to other companies or customers within the supply chain. Vendors can be manufacturers, wholesalers, online sellers, or service providers whose products are purchased for resale or use in further operations.
Value-Added Services - Value-Added Services (VAS) are additional fulfilment offerings beyond basic picking and packing — such as bespoke packaging, labelling, kitting, custom inserts, or quality checks. These services help brands differentiate their unboxing experience and meet specialised customer or marketplace requirements.
Warehousing - Warehousing refers to the secure storage of products in a dedicated facility (a warehouse or fulfilment centre) where goods are received, stored, managed and prepared for picking, packing and shipping. Warehouses act as operational hubs that help brands balance inventory levels, reduce delivery times and support scalable fulfilment operations, especially for multi-channel ecommerce.
White-label Shipping - White-label shipping is a fulfilment option where the logistics provider ships orders using your brand’s identity, including packaging, labels and tracking updates, rather than theirs. This means customers see your brand throughout the delivery experience, strengthening brand perception and customer loyalty without disclosing that it was sent from a 3PL partner.
Warehouse Management Software (WMS) - Warehouse Management Software (WMS) is a digital system that controls and optimises warehouse operations including inventory tracking, order routing, storage allocation and real-time data on stock movements. A WMS reduces errors, speeds up picking/packing workflows and synchronises warehouse activity with sales channels and fulfilment platforms.
X-Border Ecommerce - X-border or cross-border ecommerce refers to the sale and fulfilment of products to customers in other countries through online channels. It involves managing international shipping, customs clearance, duties and taxes, currency considerations, delivery times and returns. Cross-border ecommerce allows brands to access new international markets and scale revenue beyond domestic demand. However, success depends on efficient logistics, accurate customs documentation and reliable fulfilment partners who can manage international complexity without slowing delivery or increasing costs.
Year on Year (YoY) - Year-on-Year (YoY) is a performance comparison metric that measures change over a 12-month period, comparing results from one year to the same period in the previous year. In ecommerce and fulfilment, YoY is commonly used to track growth in order volume, revenue, shipping costs, inventory levels and operational performance.
Yard Management - Yard management is the coordination of trailers, vehicles and containers as they arrive at, wait within, and depart from a fulfilment centre or warehouse. It ensures smooth inbound and outbound traffic flow and supports accurate receiving and dispatch operations.
Yield Optimisation - Yield optimisation in fulfilment refers to maximising the output of warehouse space, labour and shipping capacity while minimising waste and inefficiencies. This includes optimising pick rates, packaging density and courier selection. Optimised yields reduce fulfilment costs and support profitable scaling during peak demand periods.
Zone Picking - Zone picking is a warehouse picking strategy where the fulfilment centre is divided into defined zones, with staff assigned to pick items only within their zone. Orders are completed by combining items from multiple zones, improving speed and accuracy. Zone picking reduces travel time, improves pick accuracy and supports high-volume fulfilment.
Zero Inventories - A zero-inventory model is a strategy where businesses aim to hold minimal stock by relying on rapid replenishment, dropshipping or fulfilment partners with real-time inventory visibility. This approach lowers storage costs but depends heavily on accurate forecasting and reliable fulfilment operations.
As order volumes grow and logistics become more complex, having clarity around fulfilment language helps brands make smarter decisions, whether that’s improving in-house processes or choosing the right third-party logistics (3PL) partner. A well-structured fulfilment operation is not just about moving products; it’s about building a reliable, scalable foundation for growth.
If you're looking to put these terms into practice, explore GNOC’s ecommerce fulfilment, inventory management guide to learn more, or get in touch with our team, to see how expert logistics support can help your brand scale faster and more efficiently.