6 terms
A 3PL, or third-party logistics provider, stores inventory and fulfills orders for e-commerce sellers under contract, from receiving to shipping.
Dropshipping is an e-commerce fulfillment model in which the retailer sells products it does not stock, and the supplier ships each order to the customer.
Inventory management in e-commerce is the practice of tracking, forecasting and replenishing stock so products stay available without excess capital.
A reorder point is the stock level at which a new purchase order must be placed so replenishment arrives before inventory runs out during lead time.
Safety stock is the extra inventory a store keeps above expected demand during the replenishment lead time to absorb demand and supply variability.
A stockout occurs when an online store cannot fill demand for a product from available inventory, causing lost sales, backorders or unhappy customers.