Encyclopedia

Backorder

A backorder is an order for an item that is not in stock but one that you assure the customer of fulfilling at a later date. The customer is allocated a shipping date until which they’re willing to wait. Consider … Read More

Brand Equity

Brand equity is a phrase used to describe the value of a brand. It refers to the value premium derived by a business from selling its products or services compared to other generic alternatives. Brands that make their products memorable … Read More

Dead Stock

Dead stock comprises unsold products lying in your store or warehouse for a longer-than-expected time. Unsold goods are detrimental to the business since they consume space, increase warehouse holding costs, both of which add up to a bad investment. Recovering … Read More

Distribution Channels

A distribution channel is a string of intermediaries or businesses through which a product or service passes before the final consumer receives it. Channels of distribution can include retailer players, wholesalers, and distributors. Oh heck, even the internet could form … Read More

Gross Profit

Gross profit is the amount the business remains with after deducting the cost of providing its services or making and selling its products. Gross profit is normally reflected on a company’s income statement and is calculated by reducing the cost … Read More

Inventory

Inventory is a term used to account for the raw materials, parts or finished products that a business sells or uses for production. Entrepreneurs ought to learn inventory management as part of their business skills to be able to foresee … Read More

Inventory List

Inventory management is key to ensuring that your business runs smoothly and efficiently. An inventory list can help you achieve this. An inventory list is a complete and itemized list of your company’s stock. It allows you to see what … Read More

Invoice

An invoice is a formal document used by businesses to list all the products and services sold to their customers. The document signifies a written obligation by the client to pay the business for the supplied products or services. As … Read More

Pricelist

Nowadays, customers are conscientious when it comes to how they spend their money. For most goods and services there are plenty of options to choose from, and that makes competitive and readily available price lists more important than ever. A … Read More

Private Label

There are multiple private label definitions but at its simplest, a private label is a product sold under the name of a retailer and produced by a contractor or third-party manufacturer. In a private label transaction, the retailer recommends to … Read More

Purchase Contract

A purchase contract, or purchase agreement, is a legally binding contract between a purchaser (e.g. a retailer) and a seller (e.g. a wholesaler). The contract transfers the ownership of products from a seller to a buyer and outlines the different … Read More

Purchase Order

A purchase order (PO) is an official business document issued by a buyer to a seller promising to buy some specified good at a certain price soon. This grants the buyer the advantage of placing an order without having to … Read More

Retail

Retail is a form of sale that occurs when a business called a retailer sells a product to the final consumer for their personal use. Retail transactions can take place both online and offline, with the determining aspect being that … Read More

ROI

Return on Investment (ROI) is the amount of money received by an investor from a business venture. The venture could be an investment in real estate, stocks, or a startup. In the eCommerce arena, the net profit represents a return … Read More

SKU

SKU is a code for a specific product of inventory used to identify it from lists, order forms, or invoices. A SKU is mainly associated with inventory management functions. If you’ve just ventured into a line of business requiring inventory, … Read More

Stockist

A stockist is a person or business that sells stock on behalf of another company. Stockists typically sell products of other companies to the retailers. The company whose goods are stocked allows a certain margin of profit for the stockist … Read More

Upselling

We’ve always come across people wondering: “what does upselling mean?” Well, we hope that by the end of this post, you’ll have grasped the upselling definition and how to apply it in your business. At the very basic, upselling is … Read More

Wholesaler

A wholesaler is a business or individual that purchases products from manufacturers and sells the same to the retailers.A wholesaler typically has retailers as clients, selling its products in bulk for a lower price per unit. The retailer then acts … Read More