Wholesale Glossary

Wondering what some of the terms are when dealing with wholesalers and wholesale web sites? Here is a list of commonly used terms, acronyms, and abbreviations, to help you make sense of it all.

AGS
American Gem Society

AMEX
American Express Credit Card

Asset
Something of monetary value that is owned by a firm or an individual.

Backorder
An item not currently in stock but to be sold or delivered when it becomes available

Bank Wire
The movement of funds from one financial institution to another. Also known as "Wire Transfer."

BIN
Buy It Now. Most often seen on ebay Auctions. The ability to purchase an auction item at a set price without the need to bid against others.

Bulk
Items sold in large quantit. Bulk merchandise is usually sold at a discount, as it guarantees the seller will be able to move a certain quantity.

Cargo
Any goods, wares, merchandise, or other articles carried on a ship, airplane, train, truck, or other transportation device which is not necessary for the operation of the transport vehicle. Merchandise carried by a means of transportation.

Carrier
Any person or organization who, in a contract of carriage, performs transport by rail, road, air, sea, inland waterway or by a combination of these methods.

Cashier's Check
A bank check for the exact amount of the order.

CC
Credit Cards.

CFR
Cost and Freight. The seller delivers when the goods pass the ship's rail in the port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination BUT the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer. The CFR term requires the seller to clear the goods for export.This term can be used only for sea and inland waterway transport. Closeout A sale intended to dispose of all remaining stock COD Cash On Delivery. Carriers can be instructed to pick up payment at the time of delivery. The payment is typically issued to and forwarded to the shipper.

COD
Cash On Delivery. Payment is made directly to the carrier upon receipt of merchandise.

Cost
Usually referred to as, "At Cost." M erchandise is not being sold for a profit. Wholesalers will sell items at or below cost to move them so they can make room for new merchandise in their warehouse.

CPT
Carriage Paid To. The seller delivers the goods to the carrier nominated by him, but the seller must in addition pay the cost of carriage necessary to bring the goods to the destination. This means that the buyer bears all risks and any other costs occurring after the goods have been so delivered. The CPT term requires the seller to clear the goods for export. This term may be used irrespective of the mode of transport including multimodal transport.

Dutch Auction
Used to sell more than one identical lot of merchandise. Unlike a regular listing, Multiple Item Auctions can have many winners.

eBay
A popular online auction and storefront service.

Ecommerce
Commerce that is transacted electronically, as over the Internet.

EIN
Employer Identification Number. Required by some states to start a business, this is a federal tax ID assigned to a business employing one or more people.

Entrepreneur
Anyone interested in or involved in the creation of a new business.

Escrow
A procedure in which a third party holds a buyer's payment in trust until the buyer receives and approves the item from the seller.

Expedited
Rushed; given top priority. Usually used in reference to shipping.

Factory Overruns
Production over the desired order or schedule amount.

Factory Overstocks
Unsold stock left over after all orders for that season's manufacturing run.

Factory Direct
Product direct from manufacturer, absent of middleman.

FAS
Free Alongside Ship. The seller delivers when the goods are placed alongside the vessel at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment. The FAS term requires the seller to clear the goods for export. This term can be used only for sea or inland waterway transport.

FCL
Full Container Load.

FEDEX
Federal Express. A carrier for packaged goods.

FOB
Free on board. A symbol indicating that the invoice cost to the buyer includes cost of delivery, (at an agreed point,) beyond which all transportation and delivery costs and risks must be assumed by the buyer.

Freight
Cargo. Goods carried by a large vehicle.
Also: The price paid to the carrier for the transportation of goods or merchandise

Freight Forwarding Company
An intermediary who arranges for the carriage of goods and/or associated services on behalf of a shipper.

INT'L
International.

Invoice
A document identifying the buyer and seller; includes all relevant information such as number, date, shipping date, mode of transport, etc.

IRR
Internal rate of return. Finance-mathematical method for calculating the return of an investment. Irregular Product containing slight imperfections.

ISO
In Search Of.

LCL
Less than Container Load, or Less than Container Load Cargo. Small non-containerised cargo.

LE
Limited Edition

LI or L/I
Letter of Intent. A document that describes the preliminary understanding between parties who intend to make a contract or join together in another action.

Liquidation
The selling of all the assets of a debtor and the use of the cash proceeds of the sale to pay off creditors.

Liquidator
The Official Receiver or an Insolvency Practitioner appointed to administer the liquidation of a company or partnership.

LOC or L/C
Letter of Credit. A document issued by a bank stating its commitment to pay someone a stated amount of money on behalf of a buyer so long as the seller meets very specific terms and conditions. Letters of credit are more formally called documentary letters of credit.

LTL or LTL Shipper
Less Than Load. Small non-containerised cargo. See also LCL.

Manifest
An invoice of cargo; Lists produced by the loading port agents with a detailed breakdown of all cargo to be loaded including Bill of Lading number, weight, volume, shippers and receiver's names, etc.

MC or M/C
Mastercard.

MIJ
Made in Japan.

Min. or Minimum Order
Minimum purchase required by seller in order to do business with buyer.

Mint
In perfect condition. Flawless.

MIP
Mint in Package.

MO or M/O
Money Order

MSRP
Manufacturer's Suggested Retail Price. What this item normally sells for in the retail market, as suggested by the manufacturer.

NBW
Never Been Worn.

Net 30
Credit is extended for 30 days, at which time it must be made in full.

New
Products are in original packaging and possess all of the characteristics as advertised by the manufacturer. In most cases, they were never offered for sale in a retail environment or used in any way.

NIB
New in Box.

NIP
New in Package

NM
Near Mint.

NO
Never Opened

NR
No reserve. See also: reserve.

NRFB
Never Removed From Box.

OEM
Original Equipment Manufacturer. This is a designation for companies that manufacture equipment that is then marketed and sold off to other companies under their own names.

OOP
Out of Print.

Origination Fee
The fee imposed by a lender or creditor to cover certain processing expenses in connection with making a loan. Usually a percentage of the amount loaned.

Overruns
Production over the desired order or schedule amount.

Overstocks
Unsold stock left over after all orders for that season's manufacturing run.

Pallet
A platform on which a number of packages or pieces may be loaded to facilitate handling by a lift truck.

PayPal
An online service used for credit card, EFT, and check payment processing. Most commonly used by buyers and sellers of ebay auctions. Paypal.com

PowerSeller
A seller on eBay who has maintained a 98% positive feedback score and provided a high level of service to their buyers.

Prepack
An assortment of merchandise with a pre-determined color, style, and/or size ratio, based upon the original way the merchandise was received by warehouse.

Prepay
Payment is due before merchandise is prepared for shipment.

Propay
Propay is an online service allowing for the manual processing of credit card payments. Propay.com is a convenient and affordable resource for those who do not want a full merchant account.

Prior Terms
Payment and/or delivery requirements as already established between buyer and seller before time of purchase. Usually means a relationship must be established before sale.

R/A or RA #
Return Authorization. Returns will only be accepted if an authorization has been given.

Refurbished
Products that are used but have been inspected, tested, and restored to full working condition. They rarely come in original packaging and seldom contain any documentation or any additional parts and/or accessories. Due to their operational history, refurbished assets may possess noticeable defects such as dents, scratches, and signs of age.

Replica
A replica is a product which resembles the original name brand, but does not use the name brand logo or name, and is not represented as the original. This differs from knockoff, counterfeit, and fake in that it is clearly not manufactured (or represented as being manufactured,) by the original brand and bears only a likeness - with no identical markings.

Reserve
Amount which seller is defining as lowest acceptable payment for item being auctioned. If reserve amount is not met, the item will not be sold.

Restocking Fee
A percentage of original cost witheld from refund to cover costs associated with original processing of an order, and handling its return.

Returns
Product that was sold to a customer, who then either physically brought the item back to a store or mailed it back to a specified location. Reasons for returning a product may not have any effect on its usefulness, and the product may be in fine working order. The majority of returns do have some operational and/or cosmetic problem. Depending on a company's return policy, these items may also reflect a measurable amount of use. Since most of these items are sent through a reverse supply chain (e.g., from a customer back to a store or a centralized warehouse), they can show signs of further handling. Returned products typically do not come in original packaging and often do not have any of the advertised documentation or additional parts and/or accessories. Returns can exhibit a wide range of individual product and package conditions that can differ substantially from the original manufacturing.

Salvage
Products that have been identified as defective for their functionality, appearance, or both. Salvage can usually only be used for parts.

S/H
Shipping & Handling

Shelf Pulls
Product previously available in a retail environment but were never sold. They usually have one or more price tags and/or stickers on them, and have been exposed to customer contact. Shelf Pulls can exhibit a wide range of individual product and package conditions that can greatly differ from the original manufacturing.

SKU
Stock Keeping Unit. A code used by retailers to identify the lowest level of product detail.

S/O
Sold Out.

SRP
Suggested Retail Price. What this item normally sells for in the retail market, as suggested by the manufacturer. Also commonly referred to as MSRP.

SSN
Social Security Number. Some wholesalers will accept this as a Tax ID if you are selling on eBay or other venues.

Tax ID
A nine-digit number assigned specifically to you that identifies your business to the government. Tax IDs are often required to establish wholesale accounts, as proof of resale business.

TM or Trademark
A word, phrase, graphic image, or symbol used by a business or other organization to represent itself or its merchandise. Trademarks must be registered with the U.S. Patent and Trademark Office (in the United States) or with the appropriate international authority in order to be legally recognized.

TT or T/T
Telegraphic transfer/wired money. The transfer of funds from buyer's bank to seller's bank. Product is shipped after transfer has succeeded.

UPC
Universal Product Code. A commercial bar code system that many commercial product manufacturers use on product labels. Administered for the retail industry.

UPS
United Parcel Service. A shipping method.

Urbanwear
Hip Hop apparel. "Street" clothing. Trendy fashions.

Used
Product that was previously sold and put into use. These products display noticeable defects, including dents, scratches, and signs of age. They are minimally tested to meet only the most basic requirements of functionality. Used products may not be in optimal working condition, rarely come in original packaging, hardly ever contain any documentation, and can require additional maintenance and repair.

USPS
United States Postal Service. Shipping or mailing via the post office.

Wholesale
The sale of goods in quantity for resale purposes.

Wire Transfer
Money is sent directly to a bank account for payment. Payment can be initiated through your bank, or a wire service such as Western Union.

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