Ecommerce Fulfilment Glossary
Ecommerce and fulfilment come with a lot of terminology. Short, plain explanations of the key terms used in fulfilment — from 3PL and warehouse processes to software, shipping and industry-specific concepts. Use it as a quick reference for you and your team as your brand grows.
#1 term
- 3PL (third-party logistics)
- A 3PL is an external partner that stores your stock, and picks, packs and dispatches orders on your behalf, instead of you running your own warehouse.
A2 terms
- Address validation
- An automated check that verifies a delivery address is real and correctly formatted before an order is dispatched, reducing failed deliveries.
- Average order value (AOV)
- The average amount a customer spends per order, usually calculated over a set period to see how your basket size is changing.
B4 terms
- Backorder
- A backorder is an order you accept when an item is temporarily out of stock, with the promise to ship it as soon as new stock arrives.
- Batch picking
- A picking method where a picker collects items for multiple orders in one pass through the warehouse, improving efficiency when many orders share the same SKUs.
- Bundle fulfilment
- The process of picking and packing multiple products together as a single SKU or offer, such as gift sets, starter kits or multi-buy packs.
- Business-to-consumer (B2C)
- Direct sales from a brand or retailer to the end consumer, typically through ecommerce or marketplaces.
C2 terms
- Carrier
- A carrier is the courier or delivery company that physically transports parcels from the fulfilment centre to your customers.
- Cut-off time
- The daily order deadline for same-day dispatch. With IMD, orders placed before this time are shipped that day; anything after moves to the next dispatch window.
D2 terms
- Direct-to-consumer (D2C / DTC)
- A sales model where brands sell straight to end customers, usually online, without going through wholesalers or traditional retail.
- Dispatch
- The point at which a packed order leaves the warehouse and is handed over to the carrier, often triggering the first tracking update.
E1 term
- Ecommerce fulfilment
- The end-to-end process of receiving online orders, picking and packing products, shipping parcels and handling returns for eCommerce brands.
F5 terms
- FEFO (First Expired, First Out)
- A stock rotation method that ensures products with the earliest expiry or best-before dates are picked and shipped first.
- FIFO (First In, First Out)
- A stock rotation method where the oldest received stock is used or shipped before newer stock, helping keep inventory moving in date order.
- Forecasting (demand forecasting)
- Estimating future order volumes using historic data, trends and planned campaigns, so you can buy stock and plan fulfilment capacity more accurately.
- Fulfilment centre
- A specialised warehouse that stores your products and manages the full order fulfilment process, including picking, packing, shipping and returns.
- Fulfilment industries
- The different product sectors a fulfilment partner supports, such as fashion, beauty, vitamins & supplements, food & drink, electronics, toys, pet supplies, stationery and more. A broad industry mix lets you run multiple ranges under one proven operation. Learn more →
G2 terms
- Global shipping
- The ability to ship orders from one fulfilment base to customers in multiple countries, using international carrier services.
- Goods-in
- The process of receiving, checking and booking stock into the warehouse system when it arrives from your suppliers or manufacturers.
I1 term
- Inventory management
- The way you track, control and plan your stock levels across SKUs, locations and channels to avoid overselling, stock-outs and overstock.
K1 term
- Kitting
- Assembling multiple items into a pre-defined set or “kit”, which can then be stored and sold as a single unit in your system.
L2 terms
- Last-mile delivery
- The final stage of delivery, where the parcel moves from the local carrier depot to the customer’s address.
- Lead time
- The time between placing an order (for stock or production) and receiving it, often used to plan reorders and marketing activity.
M2 terms
- Marketplace fulfilment
- Order fulfilment for products sold via marketplaces like Amazon or eBay, often alongside your own ecommerce channels.
- Minimum order volume (MOV)
- The lowest order threshold (per day, month or year) a fulfilment partner or supplier might require to work with your brand.
O3 terms
- Omnichannel fulfilment
- A fulfilment set-up that supports multiple sales channels (such as your website, marketplaces and retail) through one coordinated operation and stock pool. Learn more →
- Order management system (OMS)
- Software that centralises and manages orders, stock allocations, shipping statuses and returns across channels and locations. Learn more →
- Order tracking
- The ability for you and your customers to follow an order’s progress via carrier scans and status updates, usually via a tracking link.
P3 terms
- Pick and pack
- The core fulfilment process of picking items from storage locations and packing them into boxes, bags or mailers ready for dispatch. Learn more →
- Pick accuracy
- The percentage of items picked correctly against what was ordered, often tracked as a key performance metric for fulfilment quality.
- Platform integrations
- The connections between your eCommerce platforms (like Shopify, WooCommerce, Amazon or TikTok Shop) and your fulfilment software, so orders, stock levels and tracking data move automatically between systems. Learn more →
R3 terms
- Replenishment
- Moving stock from bulk storage into picking locations, or reordering from suppliers, to ensure there is enough product ready for new orders.
- Returns processing
- The workflow for handling products that customers send back – including checking condition, updating systems and deciding if items can go back into sellable stock.
- Reverse logistics
- The logistics flow that runs back from customer to warehouse, covering returns, repairs, refurbishments or recycling.
S6 terms
- Safety stock
- A buffer of extra inventory held to protect against demand spikes or supply delays, reducing the risk of going out of stock.
- Same-day dispatch
- A service level where orders received before a set cut-off time (3 pm) are picked, packed and handed to the carrier on the same working day.
- SKU (Stock Keeping Unit)
- A unique identifier for each product or variant you stock, used to track inventory and orders accurately.
- Small business fulfilment
- A fulfilment service tailored to smaller or growing brands that need professional logistics without enterprise-level volumes. Learn more →
- Stock rotation
- The practice of moving inventory so that older or earlier-dated stock is picked and used first, reducing waste and ageing stock.
- Subscription box fulfilment
- The specific fulfilment process for recurring subscription orders, often involving kitting, scheduled despatches and changing box contents. Learn more →
T1 term
- Tracking number
- The unique code assigned to each shipped parcel, used by carriers and customers to follow the shipment’s journey.
V1 term
- Value-added services (VAS)
- Additional fulfilment tasks beyond standard pick and pack, such as relabelling, gift wrapping, inserting marketing materials or custom kitting.
W1 term
- Warehouse management system (WMS)
- Software used to control warehouse operations, including locations, picking routes, replenishment and stock movements.
