Fullfillment Terminology

Seller Managed

Seller owns their fulfillment and logistics capabilities

Last Mile

The point at which the package finally arrives at the buyer's door from the carrier's sorting center. In addition to being a key to customer satisfaction, last mile delivery is both the most expensive and time-consuming part of the shipping process.

manufacturer

AKA Brand, they are stocking product in their own warehouse or a 3PL that is exclusive to their product

Wholesale

B2B bulk selling relationship between a retailer and a vendor

Shipping Label

Carrier specific label for shipping. There are specific components to a shipping label: Return address, Delivery Address, Priority Status, Tracking Number, Delivery certification, etc.

Pack

Process for a "Packer" to place all of the SKUs into a package. They add the shipping label of the order to the package and place it in the carrier's pick up area.

Ship

Process of printing a shipping label for an associated order for the "packer" to apply to the package

3PL

Third party logistics provider - a third party business that helps a company with its distribution, warehousing, and fulfillment services.

dropshipper

a company who stocks and fulfills products on behalf of resellers

Vendor/Supplier

a global term interchangeable for either a manufacturer or the party supplying goods to the consumer

Distributor

consolidator of multiple product lines in one or more vertical market

D2C

direct to consumer

Pick

process for a "picker" to receive the SKUs in an order and go into the warehouse to get those SKUs and bring them back to a sorting table

carriers

shipping companies who will pick up packages from warehouses and deliver to consumers

drop shipping

the retailer does not keep goods in stock but instead transfers the customer orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer