Wholesale Terms Glossary: 50 Words Every Buyer Should Know

Updated September 2026 · 9 min read

Short answer: This wholesale terms glossary defines the 50 words you’ll see most on line sheets, price lists, purchase orders, invoices, and shipping papers. Bookmark it, and when a supplier uses a term you don’t know, look it up here before you agree to anything.

Wholesale has its own shorthand. Suppliers say “MOQ,” “net 30,” and “FOB origin” like everyone knows what they mean. You don’t need to memorize all of it, but you do need to understand the terms that affect your price, your payment, and who pays when something breaks in transit.

The terms are grouped by topic so related words sit together. Definitions are plain English and describe common usage. Individual suppliers may use a term a little differently, so always check their written terms.

Wholesale terms glossary: buying and product basics

Term	What it means
Wholesale	Selling goods in bulk to businesses that resell them, usually at a lower price per unit than retail.
Wholesaler	A business that buys in bulk from manufacturers and sells smaller quantities to retailers.
Distributor	A company that buys from manufacturers and resells to retailers, often with exclusive or authorized rights in a region.
Manufacturer	The business that makes the product.
Private label	Products made by one company and sold under another company’s brand name.
White label	A generic product that several sellers can brand as their own, usually with little or no change.
OEM	Original equipment manufacturer. A factory that makes products to your design or specs.
SKU	Stock keeping unit. Your internal code for one specific product variation, like a size or color.
UPC / GTIN	The barcode number that identifies a product in stores. UPC is a common type of GTIN (Global Trade Item Number).
Line sheet	A document listing a brand’s products with photos, wholesale prices, MSRP, and order minimums.

If the difference between those first three trips you up, see wholesaler vs. distributor vs. manufacturer for a side-by-side comparison.

Pricing and profit terms

Term	What it means
Wholesale price	The price a retailer pays the supplier per unit.
MSRP	Manufacturer’s suggested retail price. What the brand recommends you charge shoppers.
MAP	Minimum advertised price. The lowest price a brand lets you advertise, under its policy.
Markup	How much you add to your cost, as a percentage of cost. A $10 item sold for $20 has a 100% markup.
Margin	Your profit as a percentage of the selling price. The same $10 item sold for $20 has a 50% margin.
Keystone	Pricing at double your wholesale cost. A common starting point in retail.
Landed cost	Your full cost per unit once the product arrives: price plus freight, duties, fees, and insurance.
Tiered pricing	Lower unit prices at higher order quantities.
COGS	Cost of goods sold. What you paid for the products you sold in a period.

Ordering and quantity terms

Term	What it means
MOQ	Minimum order quantity. The fewest units a supplier will sell you per item or per order.
Opening order minimum	The smallest dollar amount for your first order with a supplier.
Reorder minimum	The smallest amount for repeat orders. Often lower than the opening minimum.
Each (EA)	One single sellable unit.
Inner pack	A small bundle of units inside a shipping case.
Case pack	The number of units in one full shipping carton.
PO (purchase order)	The document you send to a supplier listing what you want to buy, at what price, and on what terms.
Backorder	Items you ordered that are out of stock and will ship later.
Lead time	How long it takes from placing an order to receiving it.
Drop shipping	The supplier ships directly to your customer, so you never hold the stock.

Payment and account terms

Term	What it means
Net 30	You pay the full invoice within 30 days of the invoice date. Net 60 and net 90 work the same way.
2/10 net 30	Take a 2% discount if you pay within 10 days. Otherwise the full amount is due in 30 days.
Pro forma invoice	A preliminary invoice sent before shipping, often used to request prepayment.
Deposit	Part of the order total paid up front. Common with custom or overseas orders.
Credit application	A form suppliers use to decide whether to give you payment terms.
Trade references	Other suppliers who can confirm you pay your bills on time.
Resale certificate	A state document that lets you buy inventory for resale without paying sales tax on it.
Chargeback	A deduction or fee for not following a buyer’s or supplier’s rules, or a reversed card payment.

Want terms instead of paying up front? Here’s how to get net 30 terms from suppliers. This glossary isn’t legal or tax advice. Check with your state or an accountant for tax questions.

Shipping and freight terms

Term	What it means
LTL	Less than truckload. Freight shipping where your pallets share a truck with other shippers.
FTL	Full truckload. You use the whole trailer.
Pallet	A flat platform, usually wood, that cases are stacked and wrapped on for freight.
Bill of lading (BOL)	The carrier’s receipt and shipping contract, listing shipper, receiver, and freight details.
Freight class	A category that helps set LTL freight rates, based on factors like density and handling.
Liftgate	A powered platform on a truck that lowers freight to the ground. Often an extra charge.
Freight forwarder	A company that arranges shipping for you, often across several carriers and countries.
FOB	Free on board. In domestic trade, it often signals where ownership and risk pass to you (origin or destination). In international trade it’s an Incoterms rule for sea shipments.

Import and compliance terms

Term	What it means
Incoterms	Standard trade rules published by the International Chamber of Commerce (ICC) that say who pays for and is responsible for each step of an international shipment.
EXW	Ex works. An Incoterms rule where you, the buyer, handle almost everything from the seller’s door onward.
DDP	Delivered duty paid. An Incoterms rule where the seller handles shipping, import clearance, and duties to your location.
HTS code	The Harmonized Tariff Schedule number that classifies a product and sets its U.S. duty rate.
Customs broker	A licensed professional who files import paperwork with U.S. Customs and Border Protection (CBP) for you.

For how these play out on real shipments, read Incoterms explained for small importers.

How to use this glossary when you talk to suppliers

When you hear a term you don’t recognize, ask the supplier to define it in writing. A good supplier won’t mind. A supplier who dodges the question is telling you something.

FAQ: wholesale terms glossary

What does MOQ mean in wholesale?

MOQ stands for minimum order quantity, the fewest units or smallest dollar amount a supplier will accept for an order or an item.

What’s the difference between MSRP and MAP?

MSRP is the retail price a brand suggests. MAP is the lowest price a brand allows you to advertise under its policy. Advertising at MSRP, or anywhere at or above MAP, keeps you within most policies.

What does FOB mean on a wholesale invoice?

On domestic invoices, FOB usually tells you where ownership and shipping risk transfer. “FOB origin” often means you take on the risk once goods leave the supplier. Confirm what your supplier means, since usage varies.

What does 2/10 net 30 mean?

You can take 2% off the invoice if you pay within 10 days. If not, the full amount is due within 30 days.

Sources

• International Chamber of Commerce: Incoterms 2020
• U.S. Customs and Border Protection: Basic Importing and Exporting