eCommerce Terms Glossary: Essential B2B & Wholesale Terminology Explained

Core eCommerce and B2B Terms

Understanding eCommerce terminology is essential for industrial distributors and manufacturers navigating the digital transformation of their sales channels. Here are the foundational terms every B2B professional should know:

AOV (Average Order Value): The average dollar amount spent per order. In B2B, AOV is typically much higher than B2C, often ranging from $500 to $50,000+ depending on the industry
SKU (Stock Keeping Unit): A unique identifier for each distinct product and variant in your catalog. Industrial distributors commonly manage 10,000 to 500,000+ SKUs
MOQ (Minimum Order Quantity): The smallest number of units a buyer must purchase in a single order. Common in manufacturing and wholesale to maintain production efficiency
EDI (Electronic Data Interchange): A standardized format for exchanging business documents (purchase orders, invoices, shipping notices) between trading partners electronically
ERP (Enterprise Resource Planning): Integrated software systems like SAP, Oracle, and Microsoft Dynamics that manage core business processes including finance, manufacturing, and supply chain
PIM (Product Information Management): Software that centralizes and manages all product data, descriptions, images, and specifications across sales channels
Punch-Out Catalog: A supplier's catalog that integrates directly into a buyer's procurement system (like SAP Ariba or Coupa), allowing buyers to shop the supplier's catalog without leaving their procurement tool

Mastering these terms helps teams communicate effectively with technology vendors, internal stakeholders, and customers during eCommerce initiatives.

Pricing and Payment Terms

B2B pricing and payment operate very differently from consumer eCommerce. Here are the key pricing and financial terms used in industrial distribution:

Net Terms: Payment terms that specify how many days after invoice a buyer has to pay. Common terms include Net 30 (pay within 30 days), Net 60, and Net 90. Some sellers offer early payment discounts like 2/10 Net 30 (2% discount if paid within 10 days)
Tiered Pricing: A pricing structure where the unit price decreases as order quantity increases. For example, $10/unit for 1-99 units, $8.50/unit for 100-499, $7/unit for 500+
Contract Pricing: Pre-negotiated prices for specific customers or customer groups, typically set for a defined period (quarterly or annually)
List Price vs. Net Price: List price is the published catalog price; net price is the actual price the customer pays after discounts, contract adjustments, and promotional reductions
RFQ (Request for Quote): A formal process where a buyer requests pricing from one or more suppliers for a specific set of products and quantities. Common for large orders, custom products, or project-based procurement
Credit Limit: The maximum amount of outstanding unpaid invoices a customer is allowed before new orders are held. Managed by the seller's credit department and enforced through the ERP system
Consignment: An arrangement where the supplier places inventory at the buyer's location but retains ownership until the goods are consumed or sold. Common in MRO and spare parts

Understanding these terms is critical for configuring your B2B eCommerce platform correctly and ensuring that digital orders reflect your existing pricing agreements and payment policies.

Fulfillment and Supply Chain Terms

Efficient order fulfillment is the backbone of B2B eCommerce success. Here are the key fulfillment and supply chain terms industrial companies need to understand:

ATP (Available to Promise): The quantity of a product that can be promised to a customer based on current inventory, planned production, and existing commitments. Real-time ATP checks are essential for accurate delivery promises
Lead Time: The total time from order placement to delivery. Includes processing time, manufacturing time (if applicable), and shipping time. Reducing lead time is a key competitive advantage
Drop Ship: A fulfillment method where the order is shipped directly from the manufacturer or supplier to the end customer, bypassing the distributor's warehouse. Reduces inventory carrying costs but requires tight coordination
Backorder: An order for an item that is temporarily out of stock. The order remains active and is fulfilled when inventory is replenished. Backorder handling is a critical B2B eCommerce feature
Blanket Order: A long-term purchase order that commits to buying a specified quantity over a period, with deliveries released in smaller increments. Common in manufacturing for raw materials and components
3PL (Third-Party Logistics): An outsourced logistics provider that handles warehousing, fulfillment, and shipping on behalf of the seller. Many distributors use 3PLs for regional or international fulfillment
Cross-Docking: A logistics practice where incoming shipments are directly transferred to outgoing transportation with minimal or no warehouse storage. Reduces handling costs and speeds delivery

Integrating these fulfillment capabilities into your eCommerce platform ensures accurate delivery promises and efficient order processing that meets B2B buyer expectations.

Take Action: Build Your B2B eCommerce Knowledge

Understanding eCommerce terminology is the first step toward building a successful digital commerce strategy for your industrial business. Growmax helps manufacturers and distributors put these concepts into practice with a platform that handles the full complexity of B2B transactions.

Tiered and contract pricing automatically applied based on customer profiles
Real-time ATP checks integrated with your ERP for accurate delivery promises
RFQ workflows for custom quotes and large order negotiations
EDI and punch-out catalog support for enterprise procurement integration
Net terms and credit limit enforcement built into the ordering process

Ready to go beyond terminology and build a real B2B eCommerce strategy? Explore our comprehensive guide to digital commerce for industrial manufacturers.

Start Selling Online Today

Growmax ARC is the all-in-one B2B commerce platform built for small and mid-size distributors. Get up and running in days with built-in QuickBooks/Zoho/Xero integration, customer-specific pricing, and a self-service ordering portal — all for $199/month.

Start Your Free Trial | Learn More About Growmax ARC

Continue your learning with these related articles:

Frequently Asked Questions

How does eCommerce Terms Glossary impact business growth?

eCommerce Terms Glossary directly impacts business growth by enabling faster order processing, reducing manual errors, improving customer satisfaction through self-service capabilities, and freeing up sales teams to focus on high-value activities rather than routine order taking.

What are the key challenges in wholesale distribution today?

Key challenges include managing complex pricing across customer tiers, maintaining real-time inventory visibility across locations, competing with Amazon Business and other digital marketplaces, retaining customer loyalty, and digitizing traditional sales processes without disrupting existing relationships.

Is AI practical for small and mid-size B2B businesses?

Yes. Modern B2B platforms like Growmax ARC embed AI capabilities that work out of the box without data science expertise. Start with product recommendations and demand forecasting — these deliver the highest ROI with minimal setup and work effectively even with modest data volumes.

What is B2B eCommerce and how does it differ from B2C?

B2B eCommerce involves online transactions between businesses, characterized by bulk ordering, negotiated pricing, complex approval workflows, and longer sales cycles. Unlike B2C, B2B buyers expect customer-specific catalogs, tiered pricing, and integration with ERP systems like SAP or QuickBooks.

How can B2B eCommerce increase revenue for distributors?

B2B eCommerce platforms can increase revenue by 30-50% through 24/7 order availability, automated reordering, cross-selling via product recommendations, and reduced order processing costs. Digital channels also expand geographic reach without proportional overhead increases.