Wholesale sourcing has its own vocabulary — half borrowed from logistics, half from finance, half manufacturer jargon. Below is a working reference of the terms operators run into most often. Sorted by topic; deep-link any heading.
Pricing terms
MAP — Minimum Advertised Price. The lowest price a manufacturer allows a reseller to publicly advertise a product for. Resellers can offer lower prices in-cart, via coupon, or in a private quote, but the listed price has to be at or above MAP. MAP policies are enforced by brands; violations can result in being cut off as an authorized reseller.
MSRP — Manufacturer's Suggested Retail Price. The price the brand recommends for retail sale. It's a suggestion, not a requirement — most retailers price below MSRP, especially online. Useful as a comparison anchor for what discount percentage a wholesale quote actually represents.
Wholesale price. The price a reseller pays a distributor or manufacturer. Typically 40-60% off MSRP for branded consumer goods, lower for commodity items. Often gated behind a reseller agreement, business verification, or minimum-volume commitment.
Delivered price. The all-in cost per unit including the product, freight, and any handling. The number that actually matters for budgeting. "Wholesale price" without freight context is incomplete; always confirm whether a quote is FOB origin (you pay freight) or delivered.
Tiered pricing. A pricing structure where the per-unit cost decreases as order volume increases. Typical with established replenishment customers; less common on one-off buys.
Order & volume terms
MOQ — Minimum Order Quantity. The smallest order a supplier will accept. Can be per SKU (e.g., 100 units minimum on this specific model), per category, or per order (e.g., $5,000 minimum order regardless of mix). For closeouts and liquidation, MOQ is typically dictated by how the inventory is packaged: partial pallet, full pallet, or truckload.
SKU — Stock Keeping Unit. A unique identifier for a specific product variant. "Samsung TV" is a brand; "QN85DS-A43" is a SKU. The more specific the SKU on a request, the faster and tighter the quote.
Case pack. The unit count per shipping case. Small appliances often come in case packs of 4, 6, or 12; electronics vary widely. Important because suppliers usually won't break case packs.
Pallet. A standardized shipping platform (typically 40" × 48" in the US) that inventory is loaded onto. A "pallet quantity" varies by product — a pallet of TVs might be 24 units; a pallet of small appliances might be hundreds. Freight is usually priced per pallet for LTL shipments.
Truckload (TL or FTL). A full truck's worth of inventory — typically 24-30 pallets depending on product dimensions. Truckload pricing is per-truck rather than per-pallet, often resulting in lower per-unit freight cost than LTL.
Lead time. The time from a confirmed order to delivery on your dock. Often broken into supplier lead time (production / picking) plus freight lead time. Both can vary by category and supplier; always confirm the lead-time assumption in the quote.
Backorder. An order accepted before the supplier has the inventory ready to ship. Lead time extends until the inventory arrives. Useful when timing isn't urgent and the price advantage of pre-committing is real; risky when the supplier's "in production" timeline isn't firm.
Shipping & freight terms
FOB — Free On Board. Defines where ownership and freight responsibility transfer from seller to buyer. "FOB Origin" means you take ownership (and pay freight) the moment the inventory leaves the supplier's dock. "FOB Destination" means the supplier owns it (and pays freight) until it arrives at your dock. The distinction matters for insurance, damage claims, and quote comparison.
DDP — Delivered Duty Paid. An international shipping term where the seller covers all costs (freight, duties, taxes) up to the buyer's door. The buyer's-favorite term — fewer surprises.
EXW — Ex Works. The opposite extreme. Buyer is responsible for everything from the moment the inventory is made available at the supplier's premises — including pickup, export documentation, freight, customs, and delivery. Seller-favorite term.
LTL — Less Than Truckload. A freight method for cargo too big for parcel (UPS, FedEx) but too small to fill a full truck. Most pallet-quantity wholesale orders ship LTL. Cheaper per shipment than full truckload, more expensive per pound.
Bill of Lading (BOL). The official shipping document for a freight shipment. Lists what's being shipped, who's shipping it, where it's going, and the terms of carriage. Required for LTL and TL freight; useful for filing claims if anything goes wrong.
ASN — Advance Shipping Notice. A document the supplier sends ahead of (or with) a shipment, detailing exactly what's in it: SKUs, quantities, serial numbers, weights, pallet count. Speeds up receiving and discrepancy resolution. Standard for replenishment buyers; less common on one-off orders.
Incoterms. The international shipping-term standard published by the International Chamber of Commerce. FOB, DDP, EXW, and similar three-letter codes are all Incoterms. They define exactly where ownership transfers and who pays for what in cross-border shipping. The current version is Incoterms 2020.
Payment & commercial terms
Net-30 (or Net-15, Net-60). Payment terms where the invoice is due N days after delivery. Common for established B2B relationships; typically requires a credit application and history before being offered. New-customer first orders usually require advance payment or COD.
COD — Cash on Delivery. Payment due at the moment of delivery. Less common in modern B2B but still appears with smaller suppliers and first orders.
Letter of Credit (L/C). A bank-issued guarantee that a buyer's payment will be received on time and in full. Common for large international orders where neither party has worked with the other before. Protects both sides but adds transaction overhead.
Wire transfer. A bank-to-bank electronic payment. The default for B2B in most categories. Faster than ACH, more secure than credit card, but irreversible — verify wire instructions independently before sending, especially on first orders.
Reseller certificate (or resale certificate). A state-issued document that exempts a reseller from sales tax on inventory purchased for resale. Most suppliers require a current resale certificate on file before quoting wholesale pricing.
PO — Purchase Order. A formal document the buyer issues to the supplier authorizing the order. Includes SKUs, quantities, pricing, terms, and a unique PO number for AR/AP tracking. Larger and more established buyers issue POs against every order; smaller buyers often skip the formality and accept the quote directly.
NDA — Non-Disclosure Agreement. A confidentiality contract signed before sharing commercial information (forecasts, supplier names, pricing strategy). Mutual NDAs are standard at the early stage of a B2B relationship; one-sided NDAs raise more eyebrows than they prevent.
Quote validity. The window of time during which a supplier's quoted price is binding. Typically seven to fourteen business days. After it expires, the supplier can re-quote at current pricing — currency, freight, and supplier inventory all move. Lock in approval inside the validity window when possible.
Inventory condition terms
New / sealed retail. The product is in its original retail packaging, never opened. Manufacturer warranty typically active. Highest-confidence condition tier.
Open box. The product has been opened but is otherwise unused, or lightly used. Packaging may be damaged or missing. Sometimes manufacturer warranty still applies, sometimes not.
Manufacturer-refurbished. The product has been returned to the manufacturer, inspected, repaired if needed, and re-certified for sale. Typically carries a refurb warranty (90 days to 1 year). Often a strong value vs. new on premium-brand goods.
Scratch-and-dent. Functionally new but cosmetically imperfect — minor surface damage, dents, scratches that don't affect operation. Common in major appliances. Significant discount vs. first-quality.
Customer returns. Products returned to a retailer by an end customer, for any reason. Condition varies wildly: some are fine, some are broken. Sold by tier (A/B/C) or untiered "mixed lot." Highest-risk inventory tier; pricing reflects it.
Salvage. Inventory recovered from a damaged shipment, store damage, or insurance claim. Assumed non-functional; sold for parts or by weight.
Private-label (or white-label). Product manufactured by a third party but sold under the reseller's own brand. Common in cosmetics, supplements, home goods. The reseller controls branding and pricing; the manufacturer is invisible to the end customer. Different from wholesale-branded inventory where you're reselling someone else's brand.
Supplier-role terms
Manufacturer. The company that makes the product. Sometimes sells direct to large retailers; usually requires distributor partners for the rest of the market.
Independent distributor (or unauthorized distributor). Buys product from various sources and resells it. May or may not be selling authentic, in-warranty, first-quality inventory. Higher-risk than authorized; lower-priced sometimes.
Sourcing broker. An intermediary that matches buyer requests to a vetted supplier network. Quote-based rather than catalog-based. Useful when you need supply across multiple categories or want supplier vetting outsourced. More on what a broker actually does.
Liquidator. A company that buys distressed inventory (bankruptcy stock, customer returns, insurance salvage) and resells it. Specialized in moving large volumes of varied condition inventory.
3PL — Third-Party Logistics. A company that provides outsourced logistics services: warehousing, picking, packing, shipping, returns. Useful for resellers who don't want to operate their own warehouse. Some 3PLs specialize in B2B pallet shipments; others focus on D2C parcel fulfillment for marketplaces like Amazon and Shopify.
Gray market. Authentic product sold through unauthorized channels — often imported from regions where the brand prices lower, then resold elsewhere at a discount. The product is real, but manufacturer warranty may not apply in your region.