SHIPPING + E-COMMERCE GLOSSARY
Below, you will find a collection of words and phrases commonly mentioned in the Shipping and Logistics industry and E-commerce.
Time to study up!
INSIDE THE INDUSTRY
A
Abandonment
Abandonment refers to an e-commerce shopper who has visited a website and left without taking the desired action, such as leaving items in their online cart without purchasing or not scheduling a consultation with your sales team. Learn about why consumers abandon their carts here.
ACC
Short for Accessorial Service, ACC is a carrier-provided service applied when a shipment cannot be delivered by regular transportation, generally with an additional fee charged. Examples of ACC include address corrections, storage, and extra fuel.
Accessorials
Accessorials, also know as accessorial charges, mean any fee for additional or added-value services beyond the standard transportation of goods. Generally, carriers apply these charges for aids such as select parcel pickup options, custom delivery requirements, or documentation fees.
Adult Signature Required
Known by various names to different carriers, this is an option when the shipment receiver's signature is needed to complete the delivery. Examples of this would include businesses asking for a signature required when the package's value exceeds a certain dollar amount or if the package contains alcohol and the recipient needs to be above age to receive by law.
Average Order Value (AOV)
Average Order Value (AOV) is a standard e-commerce metric that helps retailers comprehend customer purchasing behavior. It refers to the average dollar cost that shoppers spend when purchasing from an online store.
API (Application Programming Interface)
Application Programming Interface (API) is a fully presented communication method that allows various programs to interact and share data. A shipping API helps eCommerce companies improve order management, including fulfilling, shipping, and tracking orders by integrating shipping functionalities from multiple marketplaces into a singular business system.
Advanced Ship Notification (ASN)
An advance ship notification (ASN) notifies recipients of incoming deliveries. An ASN can refer to email, text, or even fax announcements that allow the sender to communicate multiple order details, including shipment tracking.
Audit
An audit refers to examining claims that are due for late shipment deliveries and unnecessary costs applied to senders in the shipping industry. Audits are necessary to help reduce bottom-line expenses and improve efficiency in the supply chain. Without this process, shippers risk increasing their spending.
Average Time on Site
Mostly seen in web analytics, Average Time On Site refers to the amount of time the visitor has spent on a webpage. The time measured in minutes or seconds does not calculate the visitor's actual reading time on the web page.
Address Verification Service (AVS)
A process in which companies implement in their checkout verifies the address is valid and formatted correctly. Address Verification can also be utilized in the shipping process, ensuring that the address is correct and a reduction in shipping errors.
B
Base Shipping Rate (BSR)
BSR, also known as Base Rate, Published Rate, or List Rate, is determined by each carrier within shipping contracts. It is a base rate for shippers to know their base spend confidently on shipments outside of potential surcharges and fees that may apply.
Barcode
A barcode is a square or rectangular image consisting of a series of parallel black lines, typically including 12 numbers read by a scanner. Barcodes applied to products are a means of quick identification.
Batch Shipping
Batch Shipping is a common phrase used in order management and fulfillment to describe the processing of large quantities of shipments in a minimal time—this a time-saving method used by companies big and small.
Big Box Retailers
A big-box-retailer is a retail store that occupies an enormous amount of physical space and offers various products to its customers. The store achieves economies of scale by focusing on large sale volumes. Though typical of brick and mortar, this term can also describe retailers who sell in-person and online.
Bounce Rate
Bounce rate refers to the percentage of visitors who navigate away from a website without visiting other site pages—generally expressed in a web traffic analysis. It measures the effectiveness of a website and specific web pages and helps companies revisit their marketing efforts to keep consumers on your website.
Bundling
Bundling refers to when a customer purchases two or more products in one order for one price. Generally, bundling is used as a promotional tool to encourage consumers to buy more products.
Buy-to-Detail Rate
Buy-to-Detail Rate helps identify products that result in the most purchases, and is a metric specifically for e-commerce stores. It allows companies to understand what products customers are purchasing after skimming over the product details.
Buyers Persona
Buyer Persona is a semi-fictional representation of your ideal customer based on market research and actual data from existing customers. It is important to consider race, sex, age, socio-economic status, behavioral pattern, goals, and persona problems. You can make more than one buy persona depending on your company, but be as detailed as possible.
C
Carrier
Carriers undertake the professional conveyance of goods - they are an individual entity in transporting goods for hire. They include shipping lines, airlines, trucking companies, and railroad companies. In the small parcel shipping space, carriers focus on transporting packages to consumers' doorsteps.
Claim
A claim refers to the manner in which a company or recipient reports a package has been lost or damaged during shipment. According to the claim, the shipment's declared value is what should be refunded to the customer. Generally, the customer files a claim with the business they purchased their order. If it is determined to be the carrier's responsibility, the company files a carrier claim.
Click Through Rate
Click-through-rate (CTR) is a ratio that shows the number of clicks on a specific link, ad, linked image to the total number of visitors browsing through that page or ad. CTR measures these clicks for a webpage, advertisement, or link, which helps determine an online marketing campaign's success and overall return of investment (ROI). Depending on your market and past data, a good click-through rate can range from 0.5% to 5%.
Cold Chain
A cold chain extends the life and preserves perishable foods, drugs, chemicals, and other products by assuring continuous refrigeration through the products supply chain from manufacturing through transport and storage to its final delivery. A cold chain is a constant climate-controlled supply chain.
Commercial Invoices
Commercial invoices are required by foreign buyers in order to establish ownership and arrange payment. Most foreign customs agencies utilize commercial invoices for import control, valuation, and duty determination.
Commercial Rate (Shipping)
Commercial Rate Shipping is an economically-friendly alternative to retail rates provided by the U.S. Postal Service (USPS) for customers who purchase and print shipping labels with an online service provider such as DesktopShipper, Pitney Bowes, and Visible Supply Chain Management.
Consolidated Shipping
Consolidated shipping is a shipping method where a consolidator, such as a warehouse, combines individual packages from various shippers into one shipment made to a single destination. In small parcel shipments, companies usually practice consolidated shipping for customers who make multiple purchases in separate orders. Consolidating these orders helps optimize the supply chain, saving the company time and money while reducing waste and greenhouse gas emissions.
Conversion Rate
Conversion Rate is a term used in marketing to describe when a visitor achieves a marketing goal or completes another action. In terms of e-commerce, the conversion rate is generally used to describe the conversion that occurs when a visitor on a site makes a purchase—converting a potential customer into a paying customer or the journey they took from browsing to purchasing.
Content Optimization System (COS)
Content Optimization System (COS) is a holistic solution designed to help businesses manage their website and other digital marketing components all in one system. It provides a sales-ready webpage that gives a personalized look and feel, while allowing for easy updates and a responsive design.
Cross Docking
Cross-docking refers to the unloading, sorting, and reloading of goods from one transport vehicle directly to another. Shippers can easily condense outgoing goods or even break down larger shipments for more efficient delivery. This method essentially gets rid of the storage piece of the supply chain.
Cross Selling
Though not specific to e-commerce, this is a practice that has proven to be beneficial when done correctly. Cross-Selling is the practice of selling additional products or services to customers who have already made a purchase. Cross-selling is only successful when the additional products or services are related to or commentary to the products already purchased. Learn more about how to cross-sell here successfully.
Cubic Pricing
Cubic Pricing refers to rates based on parcel size and shipping distance instead of on parcel weight through the USPS. Learn more about cubic pricing and how it works here.
Customs
A government agency charged with enforcing rules to protect the country's important export revenues. Certain goods will not be allowed into certain companies and customs forms will have to be filled out anytime anyone or company ships internationally.
D
Distribution Center (DC)
A Distribution Center (DC) is the facility from which outgoing shipments originate. It can be a company-specific warehouse or a 3PL.
Declared Value
Varying from shipment value and retail value, the declared value is a term used by carriers, determined by shippers, to describe a shipment's worth that will be insured for any loss or damage to the load.
Delivered Duty Paid (DDP)
Delivered Duty Paid (DDP) means that the seller must pay any duties, import clearance, and taxes associated with the delivery of goods.
Delivered Duty Unpaid (DDU)
Delivered Duty Unpaid (DDU) is a term used with international shipping in which the seller is accountable for assuring goods arrive safely to a destination. This means the buyer is responsible for any import duties or taxes.
Digital Commerce
Digital Commerece is an e-commerce system that refers to the buying and selling of goods and services using digital channels such as Internet. It includes a combination of features that provide analytics from areas such as search engines, social platforms, and mobile apps.
Dimensional Weight
Dimensional Weight, also known as Dimensional Pricing, is a pricing technique for carriers to better reflect the cost of shipping larger packages, regardless of their weight. It is similar to all other rates and is subject to negotiation based on the volume of packages sent through a specific carrier.
Drop Shipping
Dropshipping is an online retail fulfillment method where a company does not keep the product(s) it sells in stock. Alternatively, it helps streamline the order process by having products shipped directly from the third party to the customer when they make a sale.
Duplicate Charges
Duplicate Charges, recognized through parcel auditing, refer to when carriers duplicate costs for a shipment, often occurring when that shipment has various numbers of parts.
E
E-commerce
E-commerce refers to the commercial buying and selling of goods transmitted electronically through the internet.
Electronic Data Interchange (EDI)
Electronic Data Interchange (EDI) refers to business information, such as contract documents, invoices, and purchase orders, electronically exchanging through various platforms.
Enterprise Resource Planning (ERP)
ERP or Enterprise resource planning is integrated management software. An ERP collects, stores, manages, and interprets data from many different business activities.
Enterprise Social Software (ESS)
Businesses that have a requirement for information sharing, social networking, task sharing, microblogging, and other specialized web-based business applications use Enterprise Social Software (ESS). ESS integrates collaboration and social networking features.
Expedited Shipping
Expedited shipping is a shipping method in which the recipient receives goods faster than usual —expedited means to make something happen more quickly. This method is often the result of the package taking fewer stops in the transit stage.
F
Final Delivery
The last stop on the supply chain, generally a private residence, is referred to as a final delivery destination.
Freight Shipping
Originally referred to as "Transport by Sea," Freight Shipping refers to the physical transport process of moving merchandise goods. The term now encompasses transport by land and air, as well sea.
Fufillment
Fulfillment in shipping refers to when a company completes an order and is shipped as expected by the buyer.
G
Gross Value
Gross value is the total value of all products declared in a package or shipment.
Gross Weight
Gross weight is the total heaviness of a package --products and packaging included.
Guaranteed Service Refund (GSR)
Guaranteed Service Refund (GSR) is the carrier's guarantee that a shipment will arrive on time or they will refund the order's value. It is important to note that not every carrier offers this service.
H
Hazmat
Hazmat, or Hazardous Materials, are dangerous goods such as substances and articles that cause a risk to the environment's health and safety (and those handling it) while being transported.
Harmonized System Code (HSC)
HSC, or Harmonized System Code, is an international model for assigning goods to promote uniform organization and application duties for customs purposes..
I
Import CSV
CSV, or comma-separated values, are a common form of keeping track of shipping orders. You can upload essential data from CSV forms into DesktopShipper's API to ensure an easy transition into faster and more efficient shipping.
Inbound Logistics
Inbound Logistics are the middle of the supply chain. It refers to the guidance of materials from suppliers into the next stages of the supply chain, such as warehouse storage or manufacturing processes.
Integration/Integrating
Integration, in the world of digital commerce, relates to programs that merge into your companies workflow. Marketplaces, shipping UI's (such as DesktopShipper), websites, CRM's, carriers, and more are considered integrations.
Inventory
Inventory refers to the number of products that a business has on-hand or in storage waiting to be sold. It is essential to keep track of inventory levels to ensure sellers do not vend out-of-stock goods. Inventory helps companies keep track of diminishing goods and minimum order requirements to keep customers informed.
Inventory Management System (IMS)
The manner by which a business tracks merchandise through the supply chain process is referred to as an Inventory Management System. Inventory Management Systems dictate how companies approach inventory management for their businesses, from purchasing and producing materials to delivering the product to customers.
Itelligent Product Recommendation System
Intelligent Product Recommendation System is the ability to suggestive sell to a customer based on previous purchase patterns. This digital AI is an all-knowing form generally used for larger companies looking to cross-sell and automate the overall customer experience.
Independent Sales Organization (ISO)
An Independent Sales Organization (ISO) is a third-party company that gives businesses the ability to accept credit cards for merchant transactions without the added complexity of consulting with a financial institution.
J
Just in Time (JIT)
Just in Time (JIT) is an inventory management system within a supply chain strategy that ensures on-time shipments by having stock readily available. Fulfillment can apply this method to optimize a company's manufacturing processes by eliminating excess inventory and keep overall costs down.
L
Large Package Surcharge (domestic)
Specific to UPS, Large Package Surcharge (domestic) refers to an additional fee charged to a shipper when a package's length (longest side of the box) plus girth [(2 x width) + (2 x height)] exceeds 130 inches when combined, or when its length exceeds 96 inches.
Last Mile Logistics
Last-mile delivery is the movement of goods to the final delivery destination. It does not have to mean when a shipment is within its actual last mile of travel; instead, it's the last leg of the journey, the last part of the supply chain. The focus of last-mile logistics is to deliver items to the customer as fast as possible. Learn more about last-mile logistics here.
Listing Fee
Also known as an insertion fee, a listing fee is a non-refundable exchange of money that an online marketplace or website host charges for listing a seller's goods. This fee can be a percentage of the listing price or a flat fee per month, year, or quarter.
Logistics
Logistics is the coordination of resources, goods, and services, connecting them from point A to point B, ensuring the customer's or corporations' requirements are met.
License Plate Number (LPN)
Applicable to customers with larger daily shipments-- LPNs (License Plate Numbers) are identifiers used when shippers batch and fulfill multiple products in one specific order. Exporters use these scannable numbers to recognize what shipments are going in what car or LPN.
M
Manifest or End of Day
Also referred to as an end-of-day checklist, manifests are a notice of prepared packages waiting to be picked up by a carrier. Some carriers require a manifest before their end-of-day pickups. Although all carriers do not require them, a manifest helps keep both the shipper and the carrier organized by creating a single report that accounts for all applicable shipments.
Marketplace
An e-commerce marketplace is an online host where consumers can find different products from multiple merchants, shops, or persons showcased on the same platform. Marketplaces typically govern the transaction process for the businesses they host, including processing payments, returns, and chargebacks, keeping customer data safe, and ensuring a product or service delivery.
M-commerce
Also referred to as mobile commerce, M-commerce relates to digitally buying and selling goods or services via wireless, handheld devices. M-commerce applies to all mobile phones, tablets, smartphones, and even e-watches.
Merchant Account
Working as an agreement between a retailer, bank, and the payment processor, a merchant account is a commercial bank account that allows businesses to acquire and process payments and fees accumulated through debit or credit cards.
Minimum Billable Charge
Minimum Billing Charge is a term that applies to explicit fees for delivery details, which represent a minimum charge the shipper will spend. These include details such as the package weight or the shipping zone.
Minimum Charge
Minimum Charge is the lowest adjusted or discounted cost for a carrier to manage an order shipment. This fee is usually specified by the carrier and based on their rules or classifications.
Money Back Guarantee
A Money-Back Guarantee is often honored by select carriers based on their predetermined shipping policy. Shippers can utilize it by requesting that their shipping costs be refunded due to couriers not following their quoted delivery times.
Multi-channel
Whether it be on multiple marketplaces or a single marketplace and a social media feed, Multi-channel retailing is the practice of selling merchandise on various sales channels so buyers can find goods on multiple websites.
N
Net Weight
Net weight is the heaviness of the merchandise alone, not including packaging materials.
Niche Market
Aimed at serving specific needs, a niche market (or small market segment) is a market subset that focuses on a particular product set. The item's features, value, and quality are often adjusted to meet the niche market's intended demographic needs.
O
ODBC
An Application Programming Interface (API) for accessing database management systems is called "Open Database Connectivity" (ODBC). For testing and debugging purposes, there are several ODBC drivers available for database engines that are designed to connect existing tools with these engines.
Omni-channel Management
Omni-channel management proposes that no matter how they visit, albeit in-person, website, or mobile app, the buyer has a seamless shopping experience.
Order
An order is the fulfillment of a single or combination of products from seller to buyer.
Order Fufillment
Completed by 3PL or via a self-fulfilled process, Order fulfillment refers to the beginning-to-end journey of an order being prepared and shipped to the customer.
Order Management
Order Management begins when a buyer places an order and ends once they receive their package. It relies on a successful supply chain and a reliable order management system.
Order Management Software (OMS)
Order management software systems can be a stand-alone integration or built into a shipping API, such as DesktopShipper. The system allows a business to organize its entire fulfillment method from order acquisition to inventory and delivery.
Order Tracking
Order tracking follows and monitors the progress of deliveries from the warehouse to your consumer's doorstep.
Over Maximum Limits Surcharge
Over Maximum Limits Surcharge is a UPS specific term that says: "Packages with an actual weight of more than 150 pounds (70 kg), or that exceed 108 inches (274 cm) in length or a total of 157 inches (400 cm) in length and girth combined, as measured to determine their billable weight, are not accepted for transportation. These packages are subject to an Over Maximum Limits surcharge, in addition to all other applicable charges, if found in the UPS small package system."
Oversize Charge
An oversize charge applies to any package exceeding a particular length or grith at the carrier's discretion. For example, FedEx's oversize charge applies to any package that exceeds 96 inches in length or 130 inches in length and girth. Carriers base the oversize cost on the package's actual rounded or dimensional weight, subject to a 90-lb minimum billable weight.
Oversized Cargo
Cargo that exceeds the standard restriction for shipment is referred to as Oversized Cargo and requires an additional fee to ship.
P
Packing Slip
A packing slip is a report that includes a comprehensive list of order items in the package. These slips cover many specifications, including SKU numbers, weight, dimensions, and occasionally the item's cost. Generally, shipping departments use packing slips to determine what inventory needs to be sent to complete the order accurately, but it is also beneficial to the consumer.
Parcel
The formal definition of a parcel is an object or collection of items wrapped in paper or boxes that weigh under 150 lbs. Simply put, it is a sendable package.
Parcel Auditing
Parcel auditing is the process of reviewing shipping invoices for invalid charges and billing inaccuracies such as duplicate charges, late deliveries, and more.
Partial Shipment
Also know as part shipment, partial shipment is a special kind of distribution process where you send various items from a single order in multiple shipments.
Peak Season Surchage
Peak Season Surcharges apply to packages transmitted during a peak period based on service level and package properties. Generally used by all carriers during Q4, it can be applied whenever the carrier deems appropriate.
Point-of-Sale (POS)
Point-of-Sale (or POS) terminals are a computerized replacement for a cash register that can log customer orders, process credit/debit cards, connect to other systems in a network, and manage inventory.
Proof of Delivery
Proof-of-Delivery is a feature in which carriers establish the package recipient's identity to confirm the fact that recipients have received their shipments. It can come in the form of an email or text message but is most often established using a carrier's tracking number.
Purchase Order (PO)
A purchase order (PO) is an official document that buyers send to sellers to document products and services' transactions to be delivered later.
Q
QR Code
QR Code or Quick Response Code is a machine-readable two-dimensional barcode consisting of an array of black and white squares. E-commerce stores often utilize QR codes, typically using them to store URLs and provide easy access to information through smartphones. This feature offers touch-free shopping experiences or market-specific products/services.
R
Rate Shopping
Based on your preferred carriers to get the best price per parcel, zone, weight, and size, rate shopping compares all major carriers, service levels, and shipping rates agist each other. With DesktopShipper, rate-shopping happens in real-time without having to change pages within our UI. Learn more about DesktopShipper real-time rate shopping feature here.
Real-Time Tracking
Real-time Tracking refers to notifications of an order's whereabouts through all stages, including stops and check-in points in the delivery process, until it reaches the recipient's door.
Recurring Transaction
Generally associated with subscription-based services, a recurring transaction is when the customer has given specific consent to the merchandise to charge for goods/services on a pre-arranged schedule. This Transaction method stores payment information and does not require a consumer's debit or credit card details at the point of each reoccurring purchase.
Residental Surcharges
Residential charges are additional costs applied to packages when shipped to a residential location.
Retail Prices
Retail prices are the face-value charges that the customer pays. Generally, the retail price refers to in-store retail shopping, but the retail price also relates to consumers' prices online. Ensure that your retail price is the fair market value but is also enough to make a profit.
Retail Rate (shipping)
The retail rate for shipping refers to how much a customer is charged to have their order delivered. Compared to commercial pricing, retail pricing is the same price as any customer walking into a carrier to ship a package would pay.
Return
A (product) return is the process of a customer taking merchandise that was previously purchased back to the retailer, and in turn, receiving a refund in the original form of payment, exchange for another item (identical or different), or store credit.
ReShip
Reship refers to the company's ability to ship an order again if the item is received damaged. If using a shipping solution like DesltopShipper, the system will reprint the correct label, ensuring your customers get the items they ordered as-is.
Reverse Logistics
Reverse logistics refers to the method of repurposing or properly disposing of goods after they are no longer able to reach their final destination, i.e., the customer no longer wants the product after making an order.
S
SaaS (Software as a Service)
Software as a service, or SaaS, is a software distribution guide that provides access to product or service software and functions remotely as a web-based service. It is licensed on a subscription basis, thus removing the need for an organization to handle the installation and general maintenance.
Schedule B Number
Schedule B Numbers are used by the United States to classify products for export. The first six digits of these numbers are the HS numbers. The Foreign Trade Division of the United States Census Bureau administers Schedule B. All physical products, from paper clips to airplanes, are assigned a Schedule B number.
Selling Platform
A selling platform supports e-commerce merchants by providing the services and marketing channels they need to connect with their customers. Unlike a marketplace, a selling platform typically has less control over the finalization of a sale, leaving the companies or brands that host their goods on a selling platform responsible for the transaction process.
Service
Service is a term used to classify the choice of delivery speed for packages, including priority, overnight, and ground shipping.
Service Group
Unique to DesktopShipper, service group is a rate-shop term that describes the grouping of specific shipping services, such as expedited or standard, put into our system to compare cost rates in real-time. The service group set is defined by what type of shipping service your company prefers.
Service Level
The service level refers to the percentage of satisfying demand through inventory or the current production schedule to fulfill the buyer's inquired delivery dates and quantities.
Ship Method
Ship methods are any transportation method or specific carrier used to ship orders. Examples of shipping methods include Gound, Air, and Freight and carriers such as UPS, FedEx, and USPS.
Shipper
Although a shipper refers to a person that sends or transports goods, in e-commerce, a shipper relates to the whole company.
Shippping API
Application Programming Interface (API) is a fully presented communication method that allows various programs to interact and share data. A shipping API helps eCommerce companies improve order management, including fulfilling, shipping, and tracking orders by integrating multiple marketplaces' shipping functionalities into a single business system.
Shipping Discount
Shipping Discounts are cost modifications applied by carriers to help incentivize shippers to use their services. Discounts vary based on the selected carrier and can change without notice. Contact your carrier rep to learn more about what adjustments are available to your company.
Shipping Label
When shipping a package, carriers require shipping labels as a type of order identification. The label will specify distinct elements, including shipper and recipient information, package weight, and a tracking barcode. Additional information may be present depending on carriers.
Shipping Preference
Shipping preference explicitly references a customer's choice of a delivery method when purchasing an online order. Examples include standard, expedited, and overnight shipping. Shipping preferences can also mean that the consumer can pick which carrier they prefer to ship their package. Retailers get to decide which and how many selections from which the shopper can choose.
Social Commerce
Social commerce is the manner of advertising and selling goods or products directly on integrated social media platforms. The entire buyer journey takes place directly on a social platform.
Software stack
Software stacks comprise a number of components and services that work together to support a given application. It establishes a hierarchy by stacking elements such as operating systems, architectural layers, protocols, runtime, databases, and function calls.
SKU (Stock Keeping Unit)
SKU (Stock-Keeping Unit) is a scannable barcode that enables companies to automatically track the movement of inventory. It is often marked on a product's label. And can be used in-store or in warehouse management systems.
Small Parcel Shipping
Small Parcel Shipping is a term used regarding shipping lighter and small boxed items generally weighing no more than 100 pounds. It applies to companies that are sending small packages direct to consumers.
Standard Shipping
Standard shipping is the most common shipping service, utilizing middle-of-the-road shipping methods to get a package to its recipient in an average amount of time. Standard shipping is generally the cheapest option for the company and consumer. Though shipping time could vary, depending on the carrier, it is typically 5-10 business days.
Subscription Based Services
Also known as the subscription business model, subscription-based services are a business model in which a customer pays a reoccurring price at regular intervals for time-based access to a product or service. The subscription can be recurring on any time frame agreed upon by the consumer and company.
Supply Chain
The supply chain is a series of processes involved in producing goods or services and distributing them to a buyer. Learn more about the e-commerce supply chain process here.
Surcharges
Surcharges, also known as accessorial charges, are extra fees applied to shipment order fees. Carriers base the costs on features such as residential delivery, package size, and weekend or holiday delivery. Be sure to contact your carrier reps to understand what fees do and do not apply to your shipments.
T
Third Party Payment Processor
A third-party payment processor is a company that manages retailer payments from channels such as credit or debit cards. They generally take a service fee associated with processing payments and regularly use commercial bank accounts to conduct these payments.
TMS (Third Party Management Software)
TMS (Third Party Management Software) is sophisticated software that allows companies to easily analyze and automate transportation operations. This service is especially beneficial for companies handling large amounts of shipping.
Transit Time
Transit time refers to the time needed for a shipment to be delivered once picked up from the shipper. Essentially, it is the amount of time a package is spent with a carrier. Transit time will vary depending on the route and the mode of transportation used.
Track and Trace
Track-and-Trace refers to monitoring a shipment without indication of whether it is tracked while in transit or after the order has been delivered – leading to some uncertainty on whether it is live information or not. Learn more here.
Transaction
A transaction is defined as the concluded process of buying and selling goods. It completes the moment the user purchases something that involves transferring currency.
Service Level
The service level refers to the percentage of satisfying demand through inventory or the current production schedule to fulfill the buyer's inquired delivery dates and quantities.
Ship Method
Ship methods are any transportation method or specific carrier used to ship orders. Examples of shipping methods include Gound, Air, and Freight and carriers such as UPS, FedEx, and USPS.
Shipper
Although a shipper refers to a person that sends or transports goods, in e-commerce, a shipper relates to the whole company.
Shippping API
Application Programming Interface (API) is a fully presented communication method that allows various programs to interact and share data. A shipping API helps eCommerce companies improve order management, including fulfilling, shipping, and tracking orders by integrating multiple marketplaces' shipping functionalities into a single business system.
Shipping Discount
Shipping Discounts are cost modifications applied by carriers to help incentivize shippers to use their services. Discounts vary based on the selected carrier and can change without notice. Contact your carrier rep to learn more about what adjustments are available to your company.
Shipping Label
When shipping a package, carriers require shipping labels as a type of order identification. The label will specify distinct elements, including shipper and recipient information, package weight, and a tracking barcode. Additional information may be present depending on carriers.
Shipping Preference
Shipping preference explicitly references a customer's choice of a delivery method when purchasing an online order. Examples include standard, expedited, and overnight shipping. Shipping preferences can also mean that the consumer can pick which carrier they prefer to ship their package. Retailers get to decide which and how many selections from which the shopper can choose.
Social Commerce
Social commerce is the manner of advertising and selling goods or products directly on integrated social media platforms. The entire buyer journey takes place directly on a social platform.
Software stack
Software stacks comprise a number of components and services that work together to support a given application. It establishes a hierarchy by stacking elements such as operating systems, architectural layers, protocols, runtime, databases, and function calls.
SKU (Stock Keeping Unit)
SKU (Stock-Keeping Unit) is a scannable barcode that enables companies to automatically track the movement of inventory. It is often marked on a product's label. And can be used in-store or in warehouse management systems.
Small Parcel Shipping
Small Parcel Shipping is a term used regarding shipping lighter and small boxed items generally weighing no more than 100 pounds. It applies to companies that are sending small packages direct to consumers.
Standard Shipping
Standard shipping is the most common shipping service, utilizing middle-of-the-road shipping methods to get a package to its recipient in an average amount of time. Standard shipping is generally the cheapest option for the company and consumer. Though shipping time could vary, depending on the carrier, it is typically 5-10 business days.
Subscription Based Services
Also known as the subscription business model, subscription-based services are a business model in which a customer pays a reoccurring price at regular intervals for time-based access to a product or service. The subscription can be recurring on any time frame agreed upon by the consumer and company.
Supply Chain
The supply chain is a series of processes involved in producing goods or services and distributing them to a buyer. Learn more about the e-commerce supply chain process here.
Surcharges
Surcharges, also known as accessorial charges, are extra fees applied to shipment order fees. Carriers base the costs on features such as residential delivery, package size, and weekend or holiday delivery. Be sure to contact your carrier reps to understand what fees do and do not apply to your shipments.
U
UI (User Interface)
User Interface (UI) refers to what a user interacts with to conduct various activities. Generally, it is the space where interactions between humans and computers transpire, usually to perform specific tasks.
Universal Product Code (UPC)
Universal Product Code (UPC) is a common code type consisting of a scannable barcode and a unique 12-digit code. Retail product packaging is marked with a UPC to help distinguish particular merchandise in inventory management systems.
UX (User Experience)
UX, short for User Experience, measures the visitor's overall experience and ease of use when using a particular system or service.
Track and Trace
Track-and-Trace refers to monitoring a shipment without indication of whether it is tracked while in transit or after the order has been delivered – leading to some uncertainty on whether it is live information or not. Learn more here.
Transaction
A transaction is defined as the concluded process of buying and selling goods. It completes the moment the user purchases something that involves transferring currency.
Service Level
The service level refers to the percentage of satisfying demand through inventory or the current production schedule to fulfill the buyer's inquired delivery dates and quantities.
Ship Method
Ship methods are any transportation method or specific carrier used to ship orders. Examples of shipping methods include Gound, Air, and Freight and carriers such as UPS, FedEx, and USPS.
Shipper
Although a shipper refers to a person that sends or transports goods, in e-commerce, a shipper relates to the whole company.
Shippping API
Application Programming Interface (API) is a fully presented communication method that allows various programs to interact and share data. A shipping API helps eCommerce companies improve order management, including fulfilling, shipping, and tracking orders by integrating multiple marketplaces' shipping functionalities into a single business system.
Shipping Discount
Shipping Discounts are cost modifications applied by carriers to help incentivize shippers to use their services. Discounts vary based on the selected carrier and can change without notice. Contact your carrier rep to learn more about what adjustments are available to your company.
Shipping Label
When shipping a package, carriers require shipping labels as a type of order identification. The label will specify distinct elements, including shipper and recipient information, package weight, and a tracking barcode. Additional information may be present depending on carriers.
Shipping Preference
Shipping preference explicitly references a customer's choice of a delivery method when purchasing an online order. Examples include standard, expedited, and overnight shipping. Shipping preferences can also mean that the consumer can pick which carrier they prefer to ship their package. Retailers get to decide which and how many selections from which the shopper can choose.
Social Commerce
Social commerce is the manner of advertising and selling goods or products directly on integrated social media platforms. The entire buyer journey takes place directly on a social platform.
Software stack
Software stacks comprise a number of components and services that work together to support a given application. It establishes a hierarchy by stacking elements such as operating systems, architectural layers, protocols, runtime, databases, and function calls.
SKU (Stock Keeping Unit)
SKU (Stock-Keeping Unit) is a scannable barcode that enables companies to automatically track the movement of inventory. It is often marked on a product's label. And can be used in-store or in warehouse management systems.
Small Parcel Shipping
Small Parcel Shipping is a term used regarding shipping lighter and small boxed items generally weighing no more than 100 pounds. It applies to companies that are sending small packages direct to consumers.
Standard Shipping
Standard shipping is the most common shipping service, utilizing middle-of-the-road shipping methods to get a package to its recipient in an average amount of time. Standard shipping is generally the cheapest option for the company and consumer. Though shipping time could vary, depending on the carrier, it is typically 5-10 business days.
Subscription Based Services
Also known as the subscription business model, subscription-based services are a business model in which a customer pays a reoccurring price at regular intervals for time-based access to a product or service. The subscription can be recurring on any time frame agreed upon by the consumer and company.
Supply Chain
The supply chain is a series of processes involved in producing goods or services and distributing them to a buyer. Learn more about the e-commerce supply chain process here.
Surcharges
Surcharges, also known as accessorial charges, are extra fees applied to shipment order fees. Carriers base the costs on features such as residential delivery, package size, and weekend or holiday delivery. Be sure to contact your carrier reps to understand what fees do and do not apply to your shipments.
V
Value Added Services
Please refer to Surcharges definition.
VAT (Value Added Tax)
A value-added tax (VAT), also known in some countries as a "goods and services tax," is a type of tax charged incrementally at each stage of production, delivery, or final sale to the end consumer.
Voids
Shippers request voids via carriers to terminate charges or shipping requests to cancel schedule errors or services no longer needed.
W
Warehousing
Warehousing refers to a large storage facility where inventory is collected, stored, packaged, and shipped.
Wavier
A request that terminates a right or a claim is referred to as a waiver. Carriers might apply waivers to specific shipments with distinct details identified in their carrier contracts. Contact your carrier(s) or carrier reps to learn more about when a need for a waiver would be necessary.
webrooming
The term "Webrooming" refers to the method of starting the shopping process online and then purchasing the items in-store. Alternatively called ROPO (Research Online, Purchase Offline), Webrooming is a popular trend that allows customers to test, touch, and feel products before making a purchase when shopping this way.
White Glove Service
White-Glove Service refers to specific carriers' assistance going above and beyond the standard expectations for delivery. Receiving its name for the literal white gloves that shippers wore to protect certain goods while shipping generally means ensuring that the consumer's package is not left on their doorstep, guaranteeing it is secure for the consumer. However, it can mean different services to different carriers.
Warehouse Management System (WMS)
Warehouse management systems, or WMS, allow companies to supply and regulate warehouse operations via software that manages goods from when they enter a warehouse until they leave.
