Inventory Glossary for Online Sellers
Inventory terms in plain English, A to Z.
- ABC analysis
- Sorting SKUs into groups by sales value. A items are the few that make up most of the value; C items are the many that make up little. Used to decide how often to count each item. Planner
- ASIN
- Amazon Standard Identification Number. The 10-character ID Amazon assigns to each product page in its catalog.
- Bin location
- A short address for where an item is stored, such as A-2-3. Guide
- Bundle
- Two or more items sold together under one listing. Bundles need their own SKU and must reduce the stock of each item inside them.
- Code 128
- A barcode type that can hold letters, numbers and common symbols. Ideal for internal SKU and location labels.
- Cost of goods sold (COGS)
- What you paid for the items you sold during a period.
- Crosslisting
- Listing the same item on more than one marketplace at the same time.
- Cycle count
- Counting a small part of your inventory on a regular schedule instead of everything at once. Guide
- Dead stock
- Inventory that hasn't sold in a long time and isn't likely to sell at its current price.
- Days on hand
- How many days, on average, inventory sits before it sells. Days in the period divided by turnover.
- EAN
- A 13-digit GTIN (GTIN-13) used on products in much of the world.
- FBA
- Fulfillment by Amazon. Amazon stores, picks, packs and ships your inventory.
- FIFO
- First in, first out. Selling or shipping your oldest stock first.
- FNSKU
- Fulfillment network SKU. Amazon's barcode identifying your specific units in its warehouses. Guide
- GS1
- The nonprofit organization that manages the global barcode numbering system, including UPC and EAN.
- GTIN
- Global Trade Item Number. The number under a retail barcode that identifies a product everywhere it's sold. Guide
- Lead time
- The time from placing an order with a supplier until the stock is on your shelf, ready to sell.
- MPN
- Manufacturer part number. The brand's own code for a product, often used as a product identifier on marketplaces.
- Overselling
- Selling more units than you actually have, usually because a sale on one channel wasn't reflected on another. Guide
- Pick list
- A list of items to pull for orders, ideally sorted by location so it doubles as a walking route.
- Quiet zone
- The blank space required on either side of a barcode so a scanner can read it.
- Reorder point
- The stock level at which you place a new order. Calculator
- Safety stock
- Extra inventory held to cover higher-than-usual sales or slower-than-usual deliveries.
- Sell-through rate
- The share of items listed or received in a period that sold in that period.
- SKU
- Stock keeping unit. Your own code for a specific product variant. Guide
- Inventory turnover
- How many times inventory sells through in a period. Cost of goods sold divided by average inventory. Calculator
- UPC
- Universal Product Code. The 12-digit barcode (GTIN-12) common on products in North America.
- Variant
- A version of a product that differs by size, color, material or similar. Each variant needs its own SKU.