E-Commerce Operations &
Logistics Glossary
40 authoritative definitions, calculations, numerical examples, and margin optimization strategies for Indian D2C brands, warehouse operators, and e-commerce leaders.
Return to Origin (RTO)
Return to Origin (RTO) refers to an undelivered parcel that is returned back to the seller or fulfillment warehouse after failed delivery...
Non-Delivery Report (NDR)
A Non-Delivery Report (NDR) is a real-time notification generated by a courier service when a delivery attempt fails due to buyer unavail...
Air Waybill (AWB)
An Air Waybill (AWB) is a unique tracking number and shipping document issued by a courier company that acts as a receipt of goods and en...
First-Expired, First-Out (FEFO)
First-Expired, First-Out (FEFO) is a warehouse inventory management method where products with the earliest expiration dates are allocate...
First-In, First-Out (FIFO)
First-In, First-Out (FIFO) is an inventory valuation and fulfillment method where the oldest acquired stock is assumed to be sold and dis...
Safety Stock Formula
Safety stock is surplus inventory held by a retailer as a protective cushion against supply chain delivery delays or sudden surges in con...
Reorder Point (ROP) Formula
The Reorder Point (ROP) is the specific inventory level that signals when a merchant must place a new purchase order with manufacturers t...
Dead Stock (Obsolete Inventory)
Dead stock refers to unsold merchandise that has remained in storage for an extended period (typically 90–180+ days) with zero sales velo...
Marketplace Stockout Penalties
Stockout penalties are monetary fines, seller tier downgrades, and listing suppression actions imposed by marketplaces like Amazon and Fl...
Marketplace Buy Box
The Buy Box is the prominent "Add to Cart" or "Buy Now" button on Amazon and Flipkart product detail pages where multiple sellers compete...
Marketplace Payment Reconciliation
Marketplace payment reconciliation is the accounting process of verifying that actual bank deposits from platforms like Amazon, Flipkart,...
Cash on Delivery (COD) Remittance
COD remittance is the financial transfer of cash collected by courier delivery agents from end customers back to the e-commerce merchant ...
Split Shipment
A split shipment occurs when a single multi-item customer order is divided into two or more separate consignments and dispatched from dif...
Dark Store Fulfillment
Dark store fulfillment is the distribution model of using compact, urban micro-warehouses (closed to walk-in retail) located within dense...
Omnichannel Fulfillment
Omnichannel fulfillment is a retail strategy that unifies inventory across physical retail stores, regional warehouses, 3PL hubs, and onl...
Multi-Location Inventory (Multi-Node WMS)
Multi-location inventory refers to maintaining, tracking, and allocating stock across multiple physical warehouses, fulfillment centers, ...
Barcode Scan-to-Ship Verification
Barcode scan-to-ship is a warehouse quality-control workflow where pack-station operators must scan the product barcode and shipping bin ...
Batch Picking (Multi-Order Picking)
Batch picking is a warehouse fulfillment strategy where a worker picks items for multiple customer orders simultaneously in a single walk...
Zone Picking (Pick and Pass)
Zone picking is a warehouse fulfillment methodology where workers are assigned to specific designated physical zones of a warehouse, pick...
Volumetric Weight (Dimensional Weight)
Volumetric weight is a pricing technique used by courier companies to calculate shipping charges based on the parcel package volume rathe...
Pincode Serviceability Matrix
A pincode serviceability matrix is a carrier operational database defining which postal codes can be serviced for prepaid delivery, COD c...
Courier Rate Card
A courier rate card is a contractual pricing agreement detailing freight charges per weight slab (e.g. 500g, 1kg) across delivery zones: ...
Courier Weight Discrepancy & Dispute
A courier weight dispute arises when a logistics partner bills a merchant for a higher package weight than what was physically packed, re...
Marketplace SLA Breach
A marketplace SLA breach occurs when a seller fails to pack, generate manifests, or hand over shipments to the marketplace courier within...
Order Fulfillment Cycle Time (OFCT)
Order Fulfillment Cycle Time is the total elapsed time from when a customer places an order on a website or marketplace to when the packa...
Inventory Turnover Ratio (ITR)
Inventory Turnover Ratio measures the number of times a business sells and replaces its inventory over a specified period (typically annu...
Inventory Shrinkage
Inventory shrinkage is the reduction in physical inventory counts compared to recorded book balances caused by theft, damage, misplacemen...
e-Way Bill Thresholds & Generation
An e-Way bill (Electronic Way Bill) is a mandatory compliance document generated on the government GST portal for inter-state or intra-st...
GST HSN Code Classification
Harmonized System of Nomenclature (HSN) codes are standardized 6-to-8 digit commodity codes used under the Indian GST system to classify ...
ONDC Protocol (Beckn)
The Open Network for Digital Commerce (ONDC) is an Indian government initiative establishing an open, interoperable network protocol (Bec...
Quick Commerce (10-Minute Fulfillment)
Quick commerce (q-Commerce) is a hyper-fast e-commerce fulfillment model delivering groceries, personal care, and essentials to consumers...
B2B Distributor Order Management
B2B distributor order management is the operational process of receiving, validating, invoicing, and fulfilling wholesale bulk orders fro...
Reverse Logistics Quality Inspection
Reverse logistics quality inspection is the structured warehouse process of receiving customer returns, verifying contents against the or...
FBA vs. FBM (Fulfillment by Amazon vs. Merchant)
Fulfillment by Amazon (FBA) is where Amazon stores, packs, and ships orders, while Fulfillment by Merchant (FBM) is where the seller fulf...
Dropshipping vs. Centralized OMS
Dropshipping is a retail fulfillment model where a store does not keep goods in stock, transferring orders to third-party manufacturers, ...
Warehouse Bin & Location Mapping
Warehouse bin mapping is the systematic alphanumeric addressing system (Zone-Aisle-Rack-Shelf-Bin) that assigns every individual inventor...
SKU Rationalization
SKU rationalization is the analytical merchandising process of evaluating product profitability and sales velocity to decide which SKUs t...
Courier Manifest Generation
A courier manifest is an official handover document listing all consignment AWB numbers, package counts, weights, and destination pincode...
Proof of Delivery (POD)
Proof of Delivery (POD) is verification confirming that a consignment was successfully delivered to the recipient, documented via custome...
Transit Damage Claims & Insurance
Transit damage claims are formal compensation requests filed by a merchant with a courier or insurance company when goods are physically ...
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