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.

Logistics & Shipping

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...

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Logistics & Shipping

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...

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Logistics & Shipping

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...

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Inventory Management

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...

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Inventory Management

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...

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Inventory Management

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...

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Inventory Management

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...

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Inventory Management

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...

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Protocol & Marketplaces

Marketplace Stockout Penalties

Stockout penalties are monetary fines, seller tier downgrades, and listing suppression actions imposed by marketplaces like Amazon and Fl...

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Protocol & Marketplaces

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...

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Financials

Marketplace Payment Reconciliation

Marketplace payment reconciliation is the accounting process of verifying that actual bank deposits from platforms like Amazon, Flipkart,...

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Financials

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 ...

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Fulfillment

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...

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Fulfillment

Dark Store Fulfillment

Dark store fulfillment is the distribution model of using compact, urban micro-warehouses (closed to walk-in retail) located within dense...

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Fulfillment

Omnichannel Fulfillment

Omnichannel fulfillment is a retail strategy that unifies inventory across physical retail stores, regional warehouses, 3PL hubs, and onl...

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Inventory Management

Multi-Location Inventory (Multi-Node WMS)

Multi-location inventory refers to maintaining, tracking, and allocating stock across multiple physical warehouses, fulfillment centers, ...

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Fulfillment

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 ...

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Fulfillment

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...

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Fulfillment

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...

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Logistics & Shipping

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...

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Logistics & Shipping

Pincode Serviceability Matrix

A pincode serviceability matrix is a carrier operational database defining which postal codes can be serviced for prepaid delivery, COD c...

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Logistics & Shipping

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: ...

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Logistics & Shipping

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...

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Protocol & Marketplaces

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...

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Fulfillment

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...

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Inventory Management

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...

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Inventory Management

Inventory Shrinkage

Inventory shrinkage is the reduction in physical inventory counts compared to recorded book balances caused by theft, damage, misplacemen...

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Financials

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...

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Financials

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 ...

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Protocol & Marketplaces

ONDC Protocol (Beckn)

The Open Network for Digital Commerce (ONDC) is an Indian government initiative establishing an open, interoperable network protocol (Bec...

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Fulfillment

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...

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Fulfillment

B2B Distributor Order Management

B2B distributor order management is the operational process of receiving, validating, invoicing, and fulfilling wholesale bulk orders fro...

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Fulfillment

Reverse Logistics Quality Inspection

Reverse logistics quality inspection is the structured warehouse process of receiving customer returns, verifying contents against the or...

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Protocol & Marketplaces

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...

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Fulfillment

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, ...

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Fulfillment

Warehouse Bin & Location Mapping

Warehouse bin mapping is the systematic alphanumeric addressing system (Zone-Aisle-Rack-Shelf-Bin) that assigns every individual inventor...

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Inventory Management

SKU Rationalization

SKU rationalization is the analytical merchandising process of evaluating product profitability and sales velocity to decide which SKUs t...

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Logistics & Shipping

Courier Manifest Generation

A courier manifest is an official handover document listing all consignment AWB numbers, package counts, weights, and destination pincode...

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Logistics & Shipping

Proof of Delivery (POD)

Proof of Delivery (POD) is verification confirming that a consignment was successfully delivered to the recipient, documented via custome...

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Logistics & Shipping

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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