Common Terms/jargon in an eCommerce Business

admin wrote this on 25 Sep 2012

SKU i.e. Stock Keeping Unit :

It is usually the product id that is used to uniquely identify the product. Some customers will require T-shirt to be one SKU but some really large customers will require T-Shirt - XL - yellow to be one SKU and T-shirt, XXL Yellow to be another SKU. Its very important to know this at the start of the project.

Drop Ship :

Drop shipping is a supply chain management technique in which the retailer does not keep goods in stock, but instead transfers customer orders and shipment details to either the manufacturer or a wholesaler, who then ships the goods directly to the customer

Back Order :

When one or more items from an order are currently unavailable for shipment and the customer is ok to wait for it to be shipped after they are in stock.


Contributor: Vinci Rufus

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