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Ecommerce logistics glossary

The words you will meet in a 3PL quote, a marketplace dashboard or a courier statement, explained in plain English — including CBM, SKU, RTO and the marketplace prep programmes.

Updated

A–C

3PL — Third-party logistics: a company that stores your stock and ships your orders. See what is a 3PL.

ASN — Advance shipping notice: a list of what is arriving, sent before the delivery so the warehouse can check it in.

B2B — Business to business: shipments to shops, distributors or marketplaces, usually by carton or pallet.

B2C — Business to consumer: single orders delivered to shoppers.

CBM — Cubic metre: length × width × height in metres. Storage is often billed per CBM. A 60 × 40 × 40 cm carton is about 0.1 CBM.

COD — Cash on delivery: the customer pays when the parcel arrives. See cash on delivery.

Cut-off — The time by which an order must be placed to be dispatched the same day. Ours falls between 14:00 and 16:00.

D–O

D2C / DTC — Direct to consumer: a brand selling through its own store rather than through retailers.

FBA — Fulfilment by Amazon: Amazon stores and ships a seller’s stock from its own warehouses. Sellers must prep and deliver stock to Amazon’s requirements.

FBN — Fulfilled by Noon: noon’s equivalent programme.

FEFO / FIFO — First-expired-first-out and first-in-first-out: rules for which units are picked first.

Inbound — Stock arriving at the warehouse.

Kitting — Assembling several items into one sellable set before or at packing.

Last mile — The final delivery from the warehouse to the customer’s door.

Makani number — Dubai’s ten-digit building location code, useful for accurate delivery.

OMS — Order management system: software where orders from all channels are collected and tracked.

P–W

Pick and pack — Collecting ordered items from storage and packing them for shipping.

Prep — Preparing stock for a marketplace: labelling, packaging and booking delivery to its requirements.

Put-away — Placing received stock into its storage location.

Reverse logistics — Everything to do with returns.

RTO — Return to origin: a parcel that could not be delivered, or was refused, and comes back to the sender.

SKU — Stock keeping unit: a unique code for each product variant. Each size and colour is its own SKU.

SLA — Service level agreement: the commitments a provider makes in writing.

SOP — Standard operating procedure: your written instructions for how orders are packed and handled.

WMS — Warehouse management system: software that tracks where each unit is stored.

Common questions

How do I calculate CBM?

Multiply length × width × height in metres. A carton of 60 × 40 × 40 cm is about 0.1 cubic metres, so ten of them take roughly 1 CBM. Storage is billed per CBM per month.

What is the difference between FBA and FBN?

Fulfilment by Amazon and Fulfilled by Noon are the two marketplaces' own fulfilment programmes. In both, you send prepared, labelled stock into their warehouses and they ship customer orders from it.

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