B2B wholesale glossary: 38 trade terms in plain English
Prices and discounts
Price list
A price list is a supplier's list of products with prices and the basic terms of sale: SKU, pack size, availability. In wholesale it is the main document a customer picks products from and builds an order with.
Most wholesale price lists live in Excel: one row per product, columns for SKU, name, photo, case pack and several prices for different customer groups. Every price change means sending the file again, so several versions circulate at once. Always put the date at the top.
Example (made-up figures): a 640-item price list with "wholesale", "dealer" and "RRP" columns; the buyer finds the SKUs they need and copies the rows into an order form.
A ready structure: free wholesale price list template. Check yours with the price list checker.
Wholesale price
The wholesale price is the unit price when goods are bought in bulk for resale or business use. It is lower than the retail price because the buyer takes volume and carries the cost of selling.
There are often several wholesale prices, depending on order volume, customer status or sales channel. The gap between the wholesale and the retail price is the retailer's markup, which pays for rent and staff and leaves a profit.
Example (made-up figures): a shop buys at $12.00 and sells at $18.00: a $6.00 markup, or 50% on cost.
RRP (recommended retail price)
RRP, also called MSRP or SRP, is the price for the end consumer that the manufacturer or supplier recommends. It is a guide, not an obligation: a retailer may sell above or below it.
Suppliers show RRP next to the wholesale price so that the buyer sees their margin at once. For the supplier it keeps shelf prices consistent across shops and marketplaces, so shoppers don't see the same product at wildly different prices.
Example (made-up figures): wholesale $24.00, RRP $34.90: the retailer earns $10.90 per unit, about 45% on cost.
MAP (minimum advertised price)
MAP is the lowest price at which a reseller may advertise a product, set by the brand or supplier. It protects the price level and the margin of the whole dealer network.
MAP usually applies to advertised prices online and in catalogs rather than to the final checkout price, and the rules depend on local competition law. Breaking MAP can cost a dealer their discount or their supply. In some countries a similar rule is called a minimum retail price.
Example (made-up figures): MAP $29.90: an online store lists the item at $25.00, the supplier sends a warning and, after a second breach, moves the store to a lower discount tier.
Dealer price (trade price)
The dealer price is a special price for official dealers or trade partners, usually lower than the standard wholesale price. In return the dealer takes on volume commitments, a full range or a sales territory.
The dealer price is often a separate column in the price list or a separate price tier in the accounting system. Dealers should not see each other's terms, so the price list goes to each one personally.
Example (made-up figures): standard wholesale $10.00, dealer price $9.20 (8% lower) on a commitment of $5,000 a month.
Price tier (price level)
A price tier is a set of prices for one group of customers: retail, wholesale, dealer, key account. Each customer is assigned a tier and sees only the prices for that tier.
In accounting and ERP software tiers are stored as separate price types. In practice one product carries 2–5 prices, and a manager has to remember who gets which. A catalog that shows each customer only their own tier removes that guesswork.
Example (made-up figures): Tier A for shops, Tier B (−5%) for chains, Tier C (−10%) for distributors: the same product shows three different prices to three customers.
How a private catalog handles this: 7 things a wholesale catalog needs.
Customer-specific discount
A customer-specific discount is a percentage or fixed reduction agreed with one particular customer, on top of or instead of their price tier.
Personal discounts are often set by brand or category rather than across the board. The risk is that they live in a manager's memory or a separate spreadsheet, so the customer sees one price in the file and is invoiced another.
Example (made-up figures): a customer gets −7% on brand X and −3% on everything else; on an order of $2,000 (half brand X) the discount is $100.
Volume discount (tiered pricing)
A volume discount lowers the unit price as the order quantity or the customer's total purchases grow. When it builds up over a period it is called a cumulative or rebate discount.
Typical forms: price breaks by quantity in one order (1–9, 10–49, 50+), or a rebate paid at the end of a quarter on total purchases. Thresholds must be easy to read, otherwise customers don't aim for them.
Example (made-up figures): up to $3,000 a quarter: no discount; $3,000–$7,000: 3%; over $7,000: 5% back as credit on the next order.
Repricing (price update)
Repricing is a change of selling prices across the range or for part of it, for example after a supplier's price increase or a currency move.
The pain point is not the new prices but delivering them: every customer needs the new version, and old files keep circulating. If the catalog updates from one master file, everyone sees the same prices on the same day.
Example (made-up figures): a supplier raises prices by 6% from the 1st of the month; 120 customers must stop ordering at old prices on the same day.
Orders and logistics
MOQ (minimum order quantity) and minimum order value
MOQ is the smallest quantity of a product a supplier will sell in one order; the minimum order value is the smallest total for the whole order. Both make small orders worth shipping.
Below the minimum the supplier either refuses the order, adds a handling fee or asks the buyer to add more items. A catalog that shows how much is left to the minimum saves a round of messages.
Example (made-up figures): minimum order $300: a buyer's cart is at $255, the catalog shows "$45 to the minimum" and the buyer adds two more cases.
Case pack (order multiple)
A case pack is the number of units in one shipping box; the order multiple is the step in which a product can be ordered, usually equal to the case pack.
If a product ships 12 to a box, an order for 10 creates a problem in the warehouse: open the box, or ship 12 and argue. Showing the case pack in the price list and enforcing it in the cart prevents this.
Example (made-up figures): mugs come 6 to a case: the buyer can order 6, 12 or 18, but not 8.
Reorder (repeat order)
A reorder is an order for products the customer has bought before, usually on a regular cycle. In wholesale reorders make up most of the volume.
The easier it is to repeat the last order, the less likely the customer is to drift to a competitor. Gaps in the usual reorder rhythm are an early sign of churn.
Example (made-up figures): a shop reorders every 2–3 weeks; when 5 weeks pass without an order, the sales rep calls.
Backorder and short shipment
A short shipment is when fewer units are delivered than ordered; a backorder is the part of an order that will be shipped later when stock arrives.
Short shipments are common when stock data is out of date. They must be reflected in the invoice and the customer must know in advance, otherwise the gap turns into a dispute about payment.
Example (made-up figures): ordered 40, delivered 34: 6 units go on backorder and the invoice is for 34.
Returns (RMA)
A return sends goods back to the supplier because of a defect, wrong delivery or agreed terms. An RMA (return merchandise authorization) is the supplier's approval and reference for that return.
Return terms belong in the agreement: what can be returned, within how many days, at whose shipping cost. A return reduces what the customer owes, so it must be reflected in accounts receivable.
Example (made-up figures): a customer returns 5 damaged units at $8.00; their balance drops by $40.
Stock levels (availability)
Stock levels are the quantities of each product available to sell right now. In a price list they are often shown roughly: "in stock", "low", "on order".
Out-of-date stock causes most short shipments and cancelled orders. Even a simple availability column saves buyers from ordering what isn't there.
Example (made-up figures): the price list says "in stock", the warehouse has 3 units, the customer orders 20.
Dropshipping
Dropshipping is a model where the reseller sells a product without holding stock, and the supplier ships it directly to the end customer under the reseller's name.
The reseller earns the difference between their retail price and the supplier's price. Dropshippers need product photos, descriptions and up-to-date stock more than anyone, because they don't see the goods themselves.
Example (made-up figures): supplier price $15.00, the reseller sells at $24.00 and keeps $9.00 minus their advertising costs.
Payments and credit
Prepayment (cash in advance)
Prepayment means the customer pays before the goods are shipped, in full or in part. It is the default for new customers and small orders.
Suppliers usually send a pro forma invoice, wait for payment and then ship. Prepayment removes credit risk but slows the first orders down.
Example (made-up figures): a new customer pays 100% of a $600 order; after three on-time orders they move to 14-day terms.
Net terms (payment terms)
Net terms set how many days the customer has to pay after delivery or invoice: Net 15, Net 30, Net 60. It is effectively short-term credit from the supplier.
Terms help the customer sell the goods before paying for them, but they tie up the supplier's cash. Some suppliers offer an early-payment discount, for example "2/10 net 30": 2% off if paid within 10 days.
Example (made-up figures): a $5,000 invoice on Net 30, delivered on the 1st, is due on the 31st; paid by the 10th under 2/10, it costs $4,900.
Accounts receivable
Accounts receivable is the money customers owe the supplier for goods already delivered. It is shown by customer and by age: current, overdue up to 30 days, 30–60, over 60.
The older the debt, the lower the chance of collecting it in full. Tracking receivables weekly and reminding customers before the due date is far easier than chasing them after it.
Example (made-up figures): total receivables $48,000, of which $9,500 is more than 30 days overdue and spread across 6 customers.
Credit limit
A credit limit is the maximum amount a customer may owe at any one time. Once it is reached, new shipments wait until the customer pays.
The limit is set from the customer's history and volume and reviewed regularly. It keeps one customer's problems from becoming the supplier's problems.
Example (made-up figures): limit $8,000, current balance $7,200: the next order for $1,500 ships only after a $700 payment.
Average order value (AOV)
Average order value is total sales for a period divided by the number of orders. It shows how much a customer buys at once.
A low AOV means many small deliveries with high shipping and handling costs. A visible minimum order and related products in the catalog are the usual ways to raise it.
Example (made-up figures): $36,000 in sales from 120 orders: an average order of $300.
Customers and channels
Distributor
A distributor buys goods from manufacturers in bulk and resells them to retailers, dealers or businesses, usually in a defined region or category. It adds warehousing, delivery and credit to the chain.
A distributor often carries several brands and thousands of items, so its price list is large and changes often. Its customers are shops and smaller wholesalers who expect quick answers about price and stock.
Example (made-up figures): a distributor carries 12 brands and 4,000 SKUs and supplies 300 shops in three regions.
More on this: digital catalog software for wholesale distributors.
Dealer
A dealer is a company that sells a supplier's products on agreed terms, often with a special price, a territory or brand obligations. The relationship is closer than with an ordinary wholesale buyer.
Dealers get a dealer price, marketing support and sometimes exclusivity; in return they commit to volumes and to the supplier's retail price policy.
Example (made-up figures): a dealer agrees to buy at least $4,000 a month and keep the full range in stock in exchange for a 10% dealer discount.
Sales rep (field sales agent)
A sales rep visits customers on a route, takes orders, checks shelves and collects payments. In many wholesale businesses reps bring in most of the orders.
A rep's day is the route: which shops to visit, what each one usually orders and what it owes. Orders taken on paper or by phone then have to be retyped, which is where mistakes creep in.
Example (made-up figures): a rep visits 12 shops a day and takes 9 orders averaging $180.
Merchandiser
A merchandiser looks after how products are displayed in retail stores: shelf placement, price tags, stock on the shelf, promotional materials.
Merchandisers work for the brand or the distributor and report with photos from the shelf. Their reports often show where stock is about to run out before the store reorders.
Example (made-up figures): a merchandiser photographs the shelf in 20 stores a week and flags 4 where the best-selling item is missing.
B2B portal
A B2B portal is a website where business customers log in, see their prices and place orders, usually connected to the supplier's ERP or accounting system.
Portals are powerful but take time and money to set up: integration, customer accounts, product data. For a small supplier with an Excel price list it is often more than they need at the start.
Example (made-up figures): a portal project with ERP integration takes several months and a monthly fee many times higher than a simple catalog.
Options compared: best wholesale catalog software.
B2B catalog
A B2B catalog is an online catalog for business buyers: products with photos, trade prices, case packs and minimum order, and usually a cart that sends an order to the supplier.
Unlike a retail store, a B2B catalog is built around trade rules: different prices for different customers, ordering by the case, a minimum order and orders delivered as a document the supplier can process.
Example (made-up figures): a buyer opens the catalog on a phone, finds 25 items by SKU, adds them by the case and sends the order in five minutes.
Routes to one: B2B catalog from an Excel price list.
Private catalog
A private catalog is a B2B catalog that only invited customers can open: it is reached by the supplier's link and is hidden from search engines, so trade prices stay out of public view.
This is the model aiprice uses: not an online store and not a CRM, but a catalog built from the supplier's Excel price list, where each partner sees their own price by their phone number.
Example (made-up figures): the supplier sends one link to 150 trade customers; retail shoppers searching for the product never see the wholesale prices.
Try it: demo catalog.
Customer churn
Churn is the share of customers who stop buying over a period. In wholesale it rarely happens at once: orders get smaller and further apart first.
The cheapest way to fight churn is to notice it early: a customer who usually orders every two weeks and has been silent for a month needs a call now, not at the end of the quarter.
Example (made-up figures): of 200 active customers, 14 placed no order this quarter: a 7% churn rate.
Documents and records
Delivery note (packing slip)
A delivery note lists the goods shipped to the customer: items, quantities and sometimes prices. The customer signs it on receipt, confirming what actually arrived.
The delivery note is the basis for the invoice and for any claims about short or damaged deliveries. Its lines should match the order, and any difference should be agreed before shipping.
Example (made-up figures): an order for 30 lines ships as a delivery note for 28 lines; 2 lines are out of stock and are marked as backorder.
Invoice and pro forma invoice
An invoice is the supplier's request for payment for goods delivered; a pro forma invoice is a preliminary invoice sent before shipment, typically for prepayment.
Invoice requirements (tax numbers, VAT and so on) depend on the country. In wholesale the invoice references the order and the delivery note so that payments can be matched to shipments.
Example (made-up figures): a pro forma for $1,200 is paid, the goods ship, and the final invoice is issued for the delivered $1,150 with $50 credited.
SKU (item code)
A SKU (stock keeping unit), item code or article number is the supplier's unique code for a product. It lets orders, stock and invoices refer to exactly one item.
One SKU must mean one product. Duplicate or missing SKUs are among the most common price list errors, and they are what turns orders into guesswork.
Example (made-up figures): two products share SKU P-102 after a copied row; orders for P-102 ship the wrong item twice a month.
Find duplicates in seconds: price list checker.
Barcode (EAN / UPC / GTIN)
A barcode is the product's number in a global system: EAN-13 in most of the world, UPC in North America, both covered by the GTIN standard. It is printed on the packaging and scanned at the till and in the warehouse.
Unlike a SKU, which is the supplier's own code, the barcode identifies the same product across every supplier and shop. Retail chains often require it in the price list.
Example (made-up figures): a shop scans the barcode at goods-in and the item matches the order line automatically.
Product master data
Product master data is the full, structured list of products in the accounting or ERP system: codes, names, units, groups, barcodes and other attributes.
Every order, invoice and stock movement refers to it. If the price list and the master data use different codes or names, every order has to be matched by hand.
Example (made-up figures): the master data holds 2,300 active items; the price list sent to customers shows 1,900 of them.
Assortment matrix
An assortment matrix defines which products each store or customer type should carry, often by format, size or region.
Suppliers use it to agree a must-have range with chains and dealers. Gaps against the matrix are easy sales: the customer already agreed to carry these items.
Example (made-up figures): the matrix for small shops lists 80 items; a shop carries 61, so a rep offers the missing 19.
ABC analysis
ABC analysis ranks products or customers by their share of sales: A is the small group that brings most of the revenue, B the middle, C the long tail.
It shows where to focus: A items must never run out, C items may need to be dropped or sold on order only. The same applies to customers.
Example (made-up figures): 20% of SKUs bring 75% of sales (A), the next 30% bring 20% (B), the remaining 50% bring 5% (C).
Accounting software and ERP
Accounting software and ERP systems record sales, stock, payments and documents. Which one a supplier uses depends on the country: QuickBooks, Xero, Sage, Odoo, SAP Business One, or 1C and BAS in Ukraine.
The ERP holds the master data, prices and stock; the catalog shows them to customers. The simplest link between the two is a file: the catalog sends the order as a spreadsheet and the ERP imports it.
Example (made-up figures): a supplier exports the price list from its ERP to Excel once a week and imports customer orders back as files.
Order import from Excel
Order import loads a customer's order from an Excel file into the accounting or ERP system, without typing each line by hand.
Import works when the file has stable columns (SKU or barcode, quantity, price) and the same codes as the master data. The point is that nobody retypes the order and nobody mistypes a quantity.
Example (made-up figures): a 60-line order takes a sales assistant about 20 minutes to type in and about a minute to import.
This is how aiprice delivers orders: an Excel file ready to import (no direct ERP integration is needed).
Open the demo catalog →
Read next: Free price list checker · Wholesale price list template · How to send a price list to customers · 7 things a wholesale catalog needs · About aiprice