Reference
UK Ecommerce Inventory Glossary
82 inventory, order management, dispatch, and marketplace terms — defined plainly for UK ecommerce sellers.
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1 term- 3PL (Third-Party Logistics)
- An outsourced fulfilment provider that stores your stock, picks and packs orders, and ships to your customers on your behalf. In the UK, common 3PLs include James and James, Huboo, and Prime Warehousing. Right choice below ~5,000 orders/month or when you don't want to run a warehouse.
A
8 terms- ACN (Account Creation Number)
- Courier identifier used by some carriers (notably DPD) to link a commercial account to label purchases. Required when bringing your own courier account into an inventory platform.
- Allocation (Stock Allocation)
- The process of committing available stock to a specific order, channel, or time window. Different from physical picking — allocation happens in software, picking happens in the warehouse. Platforms that do allocation poorly oversell; platforms that do it well handle livestream spikes and pre-orders gracefully.
- API (Application Programming Interface)
- A structured way for one software system to talk to another. In ecommerce, inventory platforms use APIs to pull orders from marketplaces, push stock updates, and purchase courier labels. Good APIs are public, documented, and versioned. Bad APIs require you to scrape web pages.
- ASIN (Amazon Standard Identification Number)
- Amazon's internal 10-character product identifier. Every listing on Amazon has exactly one ASIN, regardless of seller. If you share a listing with another seller, you share the ASIN.
- ATP (Available To Promise)
- The stock quantity that can be promised to new orders right now — calculated as on-hand stock minus stock already committed to open orders and reservations. The single most important number your inventory platform tracks.
- Auto-enrich
- Automation that adds missing information to orders as they arrive — customer history, delivery preferences, previous returns, address verification. Runs in the background before the order hits the dispatch queue, so by the time a human sees it the context is already there.
- Auto-print
- Automation that prints dispatch labels and paperwork automatically as orders move through the queue — triggered by picking, packing, or some other state change. Eliminates one click per order.
- Auto-split
- Automation that breaks a single multi-item order into multiple shipments when items are in different warehouses, require different couriers, or can't ship together (hazmat, size limits). Required for any multi-warehouse operation.
B
4 terms- B2B Customer Portal
- A self-serve login where wholesale / trade customers browse their catalogue, see their own pricing and credit terms, place orders, and download invoices. Replaces the email-and-spreadsheet ordering loop.
- BOM (Bill of Materials)
- The list of component SKUs and quantities that make up an assembled or manufactured finished-good SKU. Example: a gift box BOM might be 1x box + 1x candle + 1x chocolate + 2x tissue paper. Platforms that handle BOMs let you sell the finished good while tracking stock at the component level.
- Brightpearl
- UK-headquartered retail operations platform, owned by Sage. Strong on omnichannel retail with tight accounting integration. Typically enterprise pricing. See our switch-from guide for a comparison.
- BYOC (Bring Your Own Courier)
- An inventory platform's ability to use your existing courier accounts at your negotiated rates, rather than forcing you onto their reseller rates. Should be standard; some platforms charge markup on shipping and don't support BYOC.
C
5 terms- Channel Order
- An order that originated on an external sales channel (eBay, Amazon, TikTok Shop, Temu, Shopify, etc.) as opposed to an internal or direct order. Each channel has its own order ID, which your inventory platform should cross-reference.
- Cin7 (Omni / Core)
- Global inventory platform (formerly DEAR Systems for Cin7 Core). Strong feature depth, per-user pricing, broader global focus than UK-specific. See our switch-from guide for a comparison with MaxInvent.
- ClearanceFood
- UK marketplace specialising in short-dated food and near-expiry stock. Growing rapidly since 2023. One of the few UK-specific marketplaces with native integration depth across the UK inventory platform market.
- Credit Note
- A document issued by the seller to the customer acknowledging that money will be refunded. In accounting terms, it reverses an invoice or portion of one. Critical for partial refunds — the credit note must match the specific items being refunded, not the whole order.
- Cron Job
- A scheduled task that runs automatically at fixed intervals. Inventory platforms use cron jobs to pull new orders (typically every 5-15 minutes), sync stock (every 30 minutes), refresh courier tokens (hourly), etc.
D
3 terms- Delivery Note
- Paperwork that accompanies a shipment listing what's in it. Often includes customer details, line items, and a return address. Required for some B2B customers whose own receiving process demands paperwork.
- Dispatch Queue
- The ordered list of orders ready to be shipped — what your warehouse team works from. A well-designed dispatch queue prioritises by SLA, shows courier routing at a glance, and supports keyboard-first interaction.
- Dropshipping
- A fulfilment model where the seller never holds the inventory — orders are forwarded to a supplier (usually in China) who ships direct to the customer. Low capital, but stock accuracy and shipping times are tough. Platforms that support dropshipping well handle supplier integration natively.
E
3 terms- EAN (European Article Number)
- 13-digit barcode used across Europe for retail products. Functionally equivalent to UPC. Most UK products with barcodes have an EAN. Marketplaces often require EAN for listing creation.
- eBay
- Long-established UK marketplace. Still the dominant long-tail channel for used and collectible goods, and a meaningful channel for many SMB UK sellers. eBay's Trading API and REST Inventory API both exist — platforms need to support both because legacy listings only work with Trading.
- Evri (formerly Hermes)
- UK courier specialising in cheap small-parcel delivery. Rebranded from Hermes in 2022. Cheapest courier for most small parcels under 2kg. Service levels vary by region.
F
4 terms- FBA (Fulfillment by Amazon)
- Amazon's fulfilment service. You ship stock to Amazon's warehouses, Amazon handles picking, packing, shipping, and customer service. Expensive but drives the Amazon algorithm — non-FBA listings often lose the Buy Box.
- FBM (Fulfillment by Merchant)
- Amazon orders you fulfil yourself (not via FBA). Your stock, your warehouse, your dispatch. Cheaper than FBA but requires your own operation.
- FIFO (First In, First Out)
- Stock valuation and picking method where the oldest inventory is used first. Standard for food, cosmetics, and anything with a best-before date. Contrasts with LIFO (Last In, First Out) and weighted average.
- FX / Multi-Currency
- Orders denominated in currencies other than GBP (typically EUR and USD for UK sellers). Your inventory platform must record the order currency correctly and pass it to accounting for correct FX gain/loss posting. Frequent area where cheap integrations break.
G
2 terms- GDPR (UK GDPR)
- Data protection regulation governing personal data in the UK. Post-Brexit, the UK has its own GDPR distinct from EU GDPR (though largely aligned). Applies to all UK ecommerce sellers handling customer data. Data residency matters for some B2B contractual relationships.
- Groupon
- Discount marketplace, still significant for certain UK product categories (experiences, homeware, beauty). Integration depth varies by inventory platform.
H
2 terms- HMRC (Her Majesty's Revenue and Customs)
- UK tax authority. Relevant to ecommerce sellers for VAT registration, Making Tax Digital (MTD) submissions, and import/export customs.
- HS Code (Harmonised System)
- International product classification code used for customs declarations on exports. Required for any order shipping outside the UK. Your inventory platform should carry HS codes per SKU.
I
1 term- IOSS (Import One-Stop Shop)
- EU VAT scheme for goods under €150 sold to EU consumers from outside the EU. Registered UK sellers collect EU VAT at checkout and submit via IOSS. Simplifies customs clearance at the EU border.
J
1 term- JIT (Just-in-Time)
- Inventory model where stock arrives from suppliers shortly before it's needed, minimising holding cost. Contrasts with buffer stock. JIT only works if supplier lead times are reliable — uncertainty kills it.
K
1 term- Kit / Kitted SKU
- A SKU that represents a bundle of other SKUs, assembled on-demand or pre-kitted. Example: a gift set containing three individual products each with their own SKU. The kit SKU's stock is calculated from the component SKUs' stock.
L
3 terms- Landed Cost
- The true cost of inventory including product cost, shipping, duties, customs, and any other fees. Used for accurate margin calculation and stock valuation. Often overlooked — selling at cost plus markup without accounting for landed cost underprices.
- LIFO (Last In, First Out)
- Stock valuation and picking method where the newest inventory is used first. Rare in UK ecommerce (FIFO is standard for anything with a shelf-life).
- Linnworks
- UK-based multi-channel order management platform. Established player; per-user pricing typically applies. See our switch-from guide for a comparison with MaxInvent.
M
6 terms- Magento (Adobe Commerce)
- Open-source and enterprise ecommerce platform, rebranded to Adobe Commerce at the enterprise tier. Powerful and flexible, but heavy. Typically used by larger UK sellers who've outgrown Shopify's customisation limits.
- MAP (Minimum Advertised Price)
- The lowest price at which a brand allows its products to be advertised or sold. Enforced via contractual agreements with resellers. If you sell branded goods across multiple channels, your pricing must comply with each brand's MAP.
- Marketplace Payout
- The net settlement paid by a marketplace to your bank account, typically on a fortnightly or monthly schedule. Payouts are gross sales minus marketplace fees — your accounting must split these correctly so sales and fees go to the right accounts.
- MOQ (Minimum Order Quantity)
- The smallest order a supplier will accept, typically when reordering inventory. Also used in B2B contexts for wholesale customers buying from you.
- MPN (Manufacturer Part Number)
- The manufacturer's own identifier for a product. Distinct from your internal SKU and from marketplace identifiers like ASIN. Required for some marketplace listings.
- MTD (Making Tax Digital)
- HMRC scheme requiring digital VAT records and submissions via approved software (Xero, QuickBooks, etc.). Compulsory for all UK VAT-registered businesses. Your inventory platform doesn't submit MTD — your accounting software does.
O
4 terms- OAuth
- Standard authentication protocol used by most modern APIs (eBay, Amazon SP-API, TikTok Shop). Lets your inventory platform access your marketplace account without storing your password. Tokens typically expire and require automatic refresh.
- OnBuy
- UK-based marketplace positioning itself as an alternative to Amazon. Growing steadily. Marketplace integration depth varies by inventory platform.
- Order Splitting
- See auto-split. Manual order splitting is what you do before auto-split; auto-split is the automation.
- Oversell / Overselling
- Selling stock you don't have because different channels went out of sync. The primary failure mode of multi-channel inventory. Amazon penalises consistently; eBay cancels and refunds. Prevention via real-time sync and per-channel buffers.
P
5 terms- Pick Accuracy
- The percentage of orders picked correctly on first attempt. Paper-based picking typically caps at 97%. Barcode-scanned picking achieves 99.8%+. The difference shows up as returns and refunds — at high volume, the cost of accuracy gains is trivial vs the savings.
- Pick-and-pack
- The warehouse process of selecting (picking) items from their locations and putting them into a parcel (packing) for dispatch. Usually barcode-driven with mobile scanners. Where most fulfilment errors originate.
- Plural SKU (Parent SKU)
- A SKU that has variants — different sizes, colours, flavours — each with its own child SKU. The parent SKU groups them for listings and reporting, but stock lives on the children.
- PO (Purchase Order)
- A formal order placed with a supplier for new inventory. Tracks what's coming in, when, at what cost, from whom. Your inventory platform should let you receive partial PO deliveries and handle supplier invoice mismatches.
- POS (Point of Sale)
- In-store retail checkout system. Relevant to UK sellers who also have physical retail alongside ecommerce. Platforms like Brightpearl and Shopify POS handle this; some inventory-first platforms don't.
R
6 terms- Rate Shopping
- The process of comparing courier rates per order and picking the cheapest (or fastest, or most suitable) carrier automatically. Good inventory platforms do this per order, per child order of a split, and per routing rule.
- Reconciliation
- Matching what your system says happened against what actually happened. Three common types: stock (physical count vs platform count), accounting (bank vs ledger), and courier (labels billed vs labels shipped).
- Reserved Stock / Stock Reservation
- Stock committed to future orders or a specific time window (e.g. a livestream) rather than free for open sale. Critical for livestream sellers and pre-order workflows. Your platform must handle released reservations correctly when time windows expire.
- Returns Management
- The workflow for processing customer returns: inspection, restock or write-off, refund, marketplace state update, reason tracking. At 3-5% return rate (eBay/Amazon) it's routine; at 15-20% (TikTok Shop fashion/beauty) it dominates dispatch time.
- Reverse Logistics
- The full supply chain flow of returns — from customer back through courier, warehouse, restocking, vendor disposition, and final state (restock, refund, liquidate). A formal term for industrial-scale returns management.
- Royal Mail
- UK's oldest and most recognisable courier. Dominant for small parcels, letters, and tracked/signed services. Business accounts with discounted rates via OBA (Online Business Account) or Royal Mail Pro Shipping.
S
7 terms- Sales Channel
- A distinct platform or marketplace where you sell. eBay, Amazon, TikTok Shop, your Shopify store, Etsy — each is a sales channel. Each typically requires its own API connection, its own listings, and its own stock allocation rules.
- Sellbrite
- US-based multi-channel listing tool, owned by GoDaddy. Free tier up to 30 orders/month. Scales expensively beyond that. UK market coverage is narrower than UK-native tools.
- Shopify
- Canadian ecommerce platform, dominant for UK DTC. Best-in-class for single-channel storefronts with extensive app ecosystem. Multi-channel inventory beyond Shopify's own channels typically requires a dedicated inventory platform.
- SKU (Stock Keeping Unit)
- Your internal product identifier. Every unique variant gets its own SKU — Red-Medium-T-Shirt has a different SKU from Red-Large-T-Shirt. Good SKU discipline is the foundation of functional inventory; bad SKU discipline creates ghosts.
- SLA (Service Level Agreement)
- A commitment to a quality or time standard. In ecommerce, relevant for marketplace dispatch SLAs (TikTok Shop 48h, Amazon Prime 1-2 day) and your inventory platform's support SLAs.
- SP-API (Amazon Selling Partner API)
- Amazon's current-generation API for sellers. Replaced the older MWS API in 2022-23. Used for orders, listings, inventory, reports, and everything else Amazon-related. Rate-limited per endpoint.
- Stock Out / Stock Available
- Stock out: you have zero of that SKU available. Stock available: you have some, probably but not certainly more than one. What "available" means depends on allocation and reservation logic.
T
4 terms- Temu
- Rapidly growing low-price marketplace owned by PDD Holdings. Went live in UK in 2023. Subsidises courier rates via their seller portal. Only MaxInvent currently offers direct Temu courier label purchase in the UK.
- Tenant Isolation
- In multi-tenant SaaS (like inventory platforms), the architectural pattern where each customer's data lives in a physically separate database, not intermingled with other customers' data. Matters for GDPR, enterprise data agreements, and security.
- Tiered Pricing
- Pricing that changes with quantity — "1-49 units: £3.20, 50-199: £2.90, 200+: £2.65." Standard for B2B/wholesale. Also applies to unit/layer/pallet pricing for warehouse-scale buyers.
- TikTok Shop
- Social commerce platform inside TikTok. UK growth driven largely by livestream selling. High return rates (15-20% for fashion/beauty). Strict dispatch SLAs.
U
3 terms- UK Data Residency
- The requirement or preference that customer and business data is physically stored within the UK. Post-Brexit, a contractual requirement for some B2B relationships. AWS London (eu-west-2) is the standard UK hosting region.
- UPC (Universal Product Code)
- 12-digit barcode used in North America. Functionally equivalent to EAN. Amazon US listings often use UPC; Amazon UK uses EAN more often.
- UPS Token
- A value (often an OAuth access or refresh token) that allows an application to act on behalf of a user. Stored by your inventory platform for every marketplace and courier connection. Must be refreshed periodically — if a token silently expires, sync breaks.
V
2 terms- VAT (Value Added Tax)
- UK consumption tax. Standard rate 20%, reduced 5%, zero-rated for specific categories (children's clothes, food, books). Must be applied correctly per SKU at the line level — simple mistakes here snowball at year-end.
- Veeqo
- Inventory and shipping platform, acquired by Amazon in 2021. Free tier available. Strong for Amazon-heavy sellers; more limited for Temu/TikTok-heavy operations. See our switch-from guide for details.
W
3 terms- Warehouse Management System (WMS)
- Software that manages warehouse operations: putaway, locations, picking paths, packing stations, inventory audits. Some inventory platforms bundle WMS functionality; larger operations use dedicated WMS systems (Manhattan, Körber) on top of their inventory platform.
- Webhook
- A mechanism for one system to notify another of an event as it happens, rather than the receiver polling for changes. Faster than API polling. Used by marketplaces (notify inventory of a new order) and by inventory platforms (notify external systems of stock changes).
- WooCommerce
- Free, open-source ecommerce plugin for WordPress. Popular for UK SMBs who want Shopify-style functionality without Shopify's monthly fee. Requires self-hosting and more technical management.
X
1 term- Xero
- UK market-leading cloud accounting platform. Preferred by most UK ecommerce sellers due to MTD compliance and ecommerce-friendly integrations. Two-way inventory integration with Xero is where accounting reconciliation pain lives or dies.
Y
1 term- Yodel
- UK courier. Mid-market in price and service. Used for parcels where Evri is too slow and DPD too expensive.
Z
2 terms- Zapier
- No-code automation tool that connects apps without writing code. Useful for low-volume workflows. Not reliable enough for production inventory sync at scale — use native API integrations for anything mission-critical.
- Zoho Inventory
- Inventory platform by Zoho, aimed at SMBs. Low price point. Limited UK-specific marketplace depth but solid baseline features.
Missing a term?
We add to this glossary whenever a new marketplace, courier, or inventory concept becomes relevant to UK sellers. If something you'd expect isn't listed, let us know and we'll add it.