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Explore our comprehensive glossary of 3PL, e-commerce, and e-commerce logistics terms.

Rapid Order Fulfilment across Aberdeen

Glossary of 3PL, Logistics and E-commerce phrases

3PL (Third-Party Logistics): Outsourcing logistics and supply chain management to a third-party provider.

4PL (Fourth-Party Logistics): A company that manages the entire supply chain for a client, often coordinating multiple 3PL providers.

SKU (Stock Keeping Unit): A unique identifier for each distinct product and service that can be purchased.

WMS (Warehouse Management System): Software designed to optimize warehouse operations, including inventory tracking, picking, and shipping.

OMS (Order Management System): A system that manages sales orders from creation to fulfillment, ensuring efficient order processing.

EPC (Electronic Product Code): A universal identifier that provides a unique identity for every physical item in the supply chain.

RFID (Radio Frequency Identification): Technology that uses electromagnetic fields to automatically identify and track tags attached to objects.

EDI (Electronic Data Interchange): The computer-to-computer exchange of business documents in a standard electronic format.

Last Mile Delivery: The final step of the delivery process where the product reaches the end customer.

Reverse Logistics: The process of moving goods from the customer back to the seller or manufacturer for returns, repairs, recycling, or disposal.

Drop Shipping: A fulfillment method where the retailer does not keep goods in stock but instead transfers customer orders to a third party for direct shipment.

Cross-Docking: A practice in logistics where products from a supplier or manufacturing plant are distributed directly to a customer or retail chain with minimal handling or storage time.

Fulfillment Center: A warehouse facility where products are stored, processed, and shipped to customers.

Pick and Pack: A process where individual items are picked from a warehouse and packed for shipment to fulfill customer orders.

Kitting: The process of grouping, packaging, and supplying separate but related items as one unit.

DC (Distribution Center): A warehouse or specialized building which is stocked with products to be redistributed to retailers, wholesalers, or directly to consumers.

BOPIS (Buy Online, Pick Up In-Store): A service that allows customers to purchase items online and pick them up at a physical store.

D2C (Direct-to-Consumer): A business model where companies sell products directly to consumers, bypassing traditional retail channels.

FBA (Fulfillment by Amazon): A service provided by Amazon where sellers send their products to Amazon’s fulfillment centers, and Amazon handles storage, packaging, and shipping.

POD (Proof of Delivery): Documentation that confirms receipt of goods by the customer.

VMI (Vendor-Managed Inventory): A supply chain practice where the supplier is responsible for maintaining the inventory levels of the products they supply.

Freight Forwarder: A company that arranges the shipment of goods on behalf of other companies, handling logistics, customs, and documentation.

LTL (Less Than Truckload): A shipping service for relatively small freight loads that do not require an entire truck.

FTL (Full Truckload): A shipping service where an entire truck is reserved for a single shipment.

Parcel Shipping: The delivery of packages that are typically smaller and lighter, often handled by carriers like UPS, FedEx, or USPS.

Lead Time: The amount of time between the initiation and completion of a process, such as order fulfillment.

E-commerce Platform: Software that enables businesses to create and manage online stores, such as Shopify, WooCommerce, or Magento.

Payment Gateway: A service that authorizes and processes payments for online retailers, such as PayPal, Stripe, or Square.

Cart Abandonment: When a customer adds items to their online shopping cart but leaves the site without completing the purchase.

CRM (Customer Relationship Management): Software that manages a company’s interactions with current and potential customers.

A/B Testing: A method of comparing two versions of a web page or product to determine which one performs better.

API (Application Programming Interface): A set of rules that allows different software entities to communicate with each other.

Conversion Rate: The percentage of visitors to a website who complete a desired action, such as making a purchase.

ROI (Return on Investment): A measure of the profitability of an investment, calculated as the net profit divided by the cost of the investment.

CAC (Customer Acquisition Cost): The cost associated with acquiring a new customer, including marketing and sales expenses divided by the number of new customers.

UX (User Experience): The overall experience a user has when interacting with a website or product, focusing on ease of use, efficiency, and satisfaction.

UI (User Interface): The design and layout of the elements that a user interacts with on a website or application, including buttons, menus, and forms.

CRO (Conversion Rate Optimization): The process of improving a website or landing page to increase the percentage of visitors who complete a desired action, such as making a purchase.

CX (Customer Experience): The overall impression a customer has of a brand across all touchpoints, from initial awareness to post-purchase support.

SEO (Search Engine Optimization): The practice of optimizing a website to rank higher in search engine results, increasing organic traffic.

PPC (Pay-Per-Click): An online advertising model where advertisers pay a fee each time their ad is clicked, commonly used in search engine advertising.

CTR (Click-Through Rate): The percentage of people who click on an ad or link compared to the number of people who view it.

ROAS (Return on Ad Spend): A metric that measures the revenue generated from advertising compared to the cost of the ads.

Blended ROAS: A comprehensive metric that measures the overall return on ad spend across all marketing channels, not just individual campaigns. It provides a holistic view of advertising effectiveness.

LTV (Customer Lifetime Value): The total revenue a business can expect from a single customer account throughout their relationship with the company.

Affiliate Marketing: A performance-based marketing strategy where businesses reward affiliates for driving traffic or sales through their marketing efforts.

Email Marketing: The use of email to promote products or services and build relationships with potential and existing customers.

Social Media Marketing: The use of social media platforms to promote products, engage with customers, and build brand awareness.

Influencer Marketing: A strategy that leverages influencers—individuals with a large and engaged following—to promote products or services.

DDP (Delivered Duty Paid): An international shipping agreement where the seller assumes all responsibility, risks, and costs associated with transporting goods until the buyer receives or transfers them at the destination port.

DAP (Delivered at Place): An international shipping term where the seller is responsible for delivering the goods to a specified location, but the buyer is responsible for import duties and taxes once the goods arrive at the destination.

Purchase Order (PO): A commercial document issued by a buyer to a seller, indicating the types, quantities, and agreed prices for products or services. It becomes a legally binding contract once the seller accepts it.

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