3PL & Ecommerce Fulfilment Glossary

New to working with a 3PL? This plain-English glossary explains the fulfilment and logistics terms you’ll hear most often when outsourcing ecommerce fulfilment. It was written by the team at Virago Logistics, a Melbourne 3PL.

3PL and fulfilment terms, A to Z

3PL (third-party logistics)

An outsourced provider that stores a brand’s inventory, picks and packs orders, ships them and handles returns on the brand’s behalf.

4PL (fourth-party logistics)

A provider that manages a brand’s whole supply chain, often coordinating several 3PLs, carriers and suppliers.

ASN (advanced shipping notice)

Advance notice of an inbound delivery listing the SKUs and quantities on the way, so the warehouse can plan receiving.

B2B fulfilment

Fulfilling orders for businesses such as retailers, stockists and distributors, usually in cartons or pallets.

B2C / DTC fulfilment

Fulfilling orders sent directly to consumers, usually as individual parcels.

Backorder

An order for an item that is out of stock and will be shipped once stock arrives.

Barcode

A scannable code on a product (such as an EAN or UPC) used to identify the SKU when receiving, picking and packing.

Batch or lot number

A code identifying a production run, used to trace products and manage recalls, common for beauty and TGA-listed products.

Bundle

Two or more products sold together under one SKU, picked as separate items or pre-assembled as a kit.

Carrier

The company that transports parcels or freight from the warehouse to the customer.

Cross-docking

Moving inbound stock straight to outbound transport with little or no storage time.

Cut-off time

The daily time before which orders must reach the warehouse to be dispatched the same business day.

Dimensional (cubic) weight

A freight pricing method based on a parcel’s size as well as its actual weight.

Dispatch

The point where a packed order is handed to the carrier.

Ecommerce fulfilment

The end-to-end process of receiving, storing, picking, packing and shipping online orders and handling returns.

FEFO (first expiry, first out)

A stock rotation method where items with the earliest expiry date are picked first.

FIFO (first in, first out)

A stock rotation method where the oldest stock is picked first.

Gift with purchase (GWP)

A free item added to qualifying orders, often automated with order rules.

Inbound / receiving

Accepting, counting and checking stock delivered to the warehouse before it is put away.

Inventory management

Tracking stock levels, locations and movements to keep accurate, available stock.

Kitting

Assembling several items into a ready-to-ship set, such as gift sets, launch kits or PR boxes.

Last mile

The final leg of delivery from a carrier’s depot to the customer’s door.

Linehaul

Bulk transport between cities or depots, for example Melbourne to Sydney.

Order accuracy

The percentage of orders shipped with exactly the right items and quantities.

Pallet

A flat platform used to store and move stock in bulk; storage is often priced per pallet.

Pick and pack

Selecting the correct items from warehouse locations (pick) and packing them securely for dispatch (pack).

Pick face / bin location

The shelf or bin where a SKU is stored for picking.

PR mailer / influencer gifting

Branded packages of product sent to influencers, creators or media, usually as part of a campaign.

Put-away

Moving received stock into its storage location.

Returns / reverse logistics

Receiving returned products, checking condition and restocking, refurbishing or disposing of them.

SKU (stock keeping unit)

A unique code for each product variant, such as a specific colour and size.

Stocktake / cycle count

Counting stock to confirm system quantities match what is physically on the shelf.

TGA-listed product

A therapeutic good such as a vitamin or supplement listed on the Australian Register of Therapeutic Goods (ARTG).

WMS (warehouse management system)

Software that controls warehouse stock, locations and orders. Virago Logistics uses CartonCloud.

Wholesale distribution

Supplying stock in bulk to retailers and stockists, often with retailer-specific packing and labelling rules.

Keep learning

• 3PL FAQ for ecommerce brands
• How 3PL pricing works in Australia
• When should you move to a 3PL?
• How 3PL onboarding works

Have a question we haven’t covered? Ask our team or call 1300 323 289.