Whether you’re a seasoned boutique owner or just getting started, understanding wholesale and retail lingo is essential. From inventory management to sales reporting, the industry is packed with specialized terms and acronyms that can be overwhelming—especially when making important buying decisions.
That’s why we’ve created a free, easy-to-reference guide to help you decode the most important wholesale and retail terms every boutique owner should know! Download it here.
In the meantime, here’s a sneak peek at some of the must-know terms that will help you navigate wholesale buying, track sales performance, and optimize your business growth like a pro.
Essential Wholesale & Retail Terms & Acronyms
MOQ (Minimum Order Quantity) – The smallest amount of product a vendor requires you to purchase in one order.
SKU (Stock Keeping Unit) – A unique identifier assigned to each product variant in your inventory.
GMROI (Gross Margin Return on Investment) – A key metric that measures your profit return on the cost of inventory.
Turnover Rate – The number of times inventory is sold and replaced within a given period. A higher turnover rate means products are moving quickly!
Drop Shipping – A retail fulfillment method where a store doesn’t keep products in stock but instead transfers customer orders directly to a supplier.
Pre-Pack – A wholesale order that includes a predetermined mix of sizes, styles, or colors, rather than allowing retailers to select individual units.
Net Terms – A payment agreement that allows retailers to pay for orders within a set period (e.g., Net 30 means payment is due in 30 days).
Sales & Financial Terms
COGS (Cost of Goods Sold) – The direct costs of producing or purchasing the goods you sell.
AOV (Average Order Value) – The average amount a customer spends per order.
Sell-Through Rate – The percentage of inventory sold in a given time period, helping you measure how well your products are performing.
Margins – The difference between the cost of a product and its selling price, expressed as a percentage. Higher margins = better profitability!
Net Profit vs. Gross Profit – Gross profit is revenue minus COGS, while net profit is what’s left after deducting all expenses.
Marketing & E-Commerce Terms
CTR (Click-Through Rate) – The percentage of people who click on a link in an email, ad, or social media post.
Cart Abandonment Rate – The percentage of shoppers who add items to their cart but leave before completing a purchase.
SEO (Search Engine Optimization) – The practice of optimizing your website and content to rank higher in search engine results.
ROAS (Return on Ad Spend) – A metric that measures the revenue generated for every dollar spent on advertising.
UGC (User-Generated Content) – Content created by customers or fans that promotes your brand (like customer photos or reviews).
MAP (Minimum Advertised Price) – The lowest price a retailer is allowed to advertise a product for, as set by the brand or manufacturer.
Get the Full List For FREE!
Mastering retail terminology doesn’t have to be overwhelming. We’ve put together a free downloadable guide with all the must-know retail terms and acronyms so you can feel confident in every conversation, report, and buying decision.
Grab your free copy now!
By knowing these terms, you’ll be able to navigate wholesale orders, track key performance metrics, and make smarter business decisions.
Recent Posts:
- Smart Buying Strategies for 2026
If there’s one thing we know heading into 2026, it’s this: buying inventory isn’t getting any simpler, but it can get smarter. Between shifting customer behavior, rising shipping costs, and tighter margins, boutique owners are being asked to do more with less. The good news is that a few intentional buying strategies can go a long way in protecting your cash flow and boosting profitability. - How to Increase Your AOV (Average Order Value) in 2025As a retailer, increasing your average order value (AOV) is one of the most effective ways to grow your business. AOV represents the average amount of money that customers spend on each purchase, and it’s a crucial metric for understanding your store’s profitability. In this blog post, we’ll explore some strategies that retailers can use to increase their AOV.
- What’s a Good Margin? Understanding Wholesale Markups That Actually WorkPricing your products can feel like a game of strategy—and let’s be real, it’s one of the most important decisions you make as a retailer. Set your prices too high, and customers walk. Set them too low, and your profit disappears. So what’s the sweet spot? Let’s talk about margins and markups—what they really mean, … Continued
- Why USA-Made Wholesale Products Are a Smart Choice for BoutiquesIn an ever-changing retail environment marked by global shipping delays, rising costs, and shifting consumer priorities, boutique owners are rethinking their buying strategies. One increasingly popular solution? Sourcing USA-made wholesale products. Domestic manufacturing offers more than just peace of mind—it brings real business advantages like tariff-free pricing, faster turnaround times, and products that align with today’s demand for transparency and sustainability. Hubventory makes it easier than ever to discover and shop these American-made finds.
- Smart Buying Strategies for 2025: How to Stay ProfitableWholesale buying isn’t just about filling racks—it’s about making strategic, data-backed decisions that serve your customers, strengthen vendor relationships, and ultimately boost profitability. In our recent webinar, The Boutique Hub’s Director of Wholesale Samantha Conner tackled the most common challenges boutique owners face and outlined a smart, customer-first approach to buying that drives results. Here are the best takeaways!
