- ⮦Introduction
- ⮦list of terms
- ⮦Section 5
Table of Contents
Section
Introduction
Here at The Collectable we sell, buy, and trade pop culture toys and vintage collectibles. This article offers over 100 retail terms and their definitions that we often use, that may help another small business have greater success.
Terms
- SKU (Stock Keeping Unit): A unique alphanumeric code assigned to each product for inventory tracking.
- POS (Point of Sale): The location where transactions are completed, often involving digital systems for payment processing.
- Merchandising: The strategic promotion and placement of products to boost sales.
- Omnichannel Marketing: A seamless approach to marketing across multiple platforms, integrating online and offline experiences.
- Inventory Turnover: A metric that shows how often inventory is sold and replaced over a specific period.
- Assortment Planning: The process of deciding which products to offer in stores or online, ensuring a balance between variety and customer demand.
- Anchor Store: A large, well-known store in a shopping mall that attracts significant foot traffic.
- Big-Box Retailer: A retailer operating large-format stores, often offering a wide range of products.
- BOPIS (Buy Online, Pick Up In Store): A fulfillment model where customers purchase online and collect their items at a physical store.
- Cannibalization: When sales at one location decrease due to the opening of another nearby store of the same brand.
- Customer Lifetime Value (CLV): The total revenue a customer generates for a business over their lifetime.
- Markdown: A reduction in the price of a product to boost sales or clear inventory.
- Shrinkage: Loss of inventory due to theft, damage, or errors.
- Planogram: A visual representation of product placement in a store to optimize sales.
- Endcap: A display at the end of an aisle designed to showcase featured products.
- Average Transaction Value (ATV): The average amount spent by customers per transaction.
- E-commerce: The buying and selling of goods online.
- Fulfillment Center: A warehouse where online orders are processed and shipped.
- Loss Leader: A product sold at a loss to attract customers to other profitable items.
- Private Label: Products manufactured by one company but branded and sold by another.
- Retail Arbitrage: Buying products at a lower price to resell them for profit.
- Seasonal Merchandise: Products sold during specific times of the year.
- Trade Area: The geographic area from which a store draws its customers.
- Visual Merchandising: The art of creating visually appealing displays to attract customers.
- Wholesaler: A business that sells goods in bulk to retailers.
- Impulse Buy: A purchase made spontaneously without prior planning.
- Keystone Pricing: A pricing strategy where an item's price is set at twice its cost.
- Cross-Merchandising: Placing complementary products together to boost sales.
- Footfall: The number of customers entering a store over a specific period.
- Dead Stock: Inventory that remains unsold for a long time.
- Uptick: A slight increase in sales or customer interest.
- Floor Plan: The layout design of a store for optimal product placement.
- Customer Journey: The complete experience a customer has with a retailer, from first interaction to purchase.
- Dynamic Pricing: Adjusting product prices in real-time based on demand, competition, or other factors.
- FIFO (First In, First Out): Inventory management where the oldest stock is sold first.
- Gross Margin: The difference between revenue and the cost of goods sold, expressed as a percentage.
- Demographics: Statistical data about the characteristics of a retailer's target audience, such as age, gender, or income.
- Flash Sale: A short-term promotion offering products at significant discounts.
- Plan Sell-Through: The percentage of inventory sold over a specific time period.
- Hard Goods: Durable items like appliances or furniture.
- Soft Goods: Non-durable items like clothing or accessories.
- Display Fixtures: Equipment used to showcase merchandise in a store, such as shelves, mannequins, or racks.
- Bundle Pricing: Offering multiple products together at a reduced price.
- Customer Segmentation: Dividing a customer base into smaller groups based on similar characteristics or behaviors.
- Cross-Selling: Encouraging customers to buy related or complementary products.
- Upselling: Persuading customers to purchase a more expensive or upgraded version of a product.
- Chargeback: A refund initiated by a customer through their bank for a disputed transaction.
- Doorbuster: A product offered at a significant discount to draw customers into the store.
- Freight on Board (FOB): A term that indicates who pays shipping costs and assumes risk during transit.
- MAP (Minimum Advertised Price): The lowest price a retailer is allowed to advertise a product, as agreed with the manufacturer.
- Keystone Pricing: A pricing strategy where the retail price is set at double the wholesale cost.
- Net Sales: Total sales revenue minus returns, discounts, and allowances.
- Open-to-Buy (OTB): The budget allocated for purchasing new inventory.
- Phygital: The blending of physical and digital retail experiences.
- RFID (Radio-Frequency Identification): Technology used for tracking inventory and assets via tags and sensors.
- Sell-Through Rate: The percentage of inventory sold during a specific period.
- Traffic Count: The number of customers entering a store or visiting an online store.
- Vendor Managed Inventory (VMI): A system where suppliers manage the retailer's inventory levels.
- Zoning: The practice of assigning specific areas or zones within a store for particular tasks or merchandise.
- Brick-and-Mortar: Physical retail stores where customers can shop in-person.
- Consignment: A selling arrangement where products are provided to retailers, and payment is made only after the product is sold.
- Omnichannel Retailing: Providing a seamless customer experience across multiple channels, such as online, mobile, and physical stores.
- Customer Retention: Strategies to keep existing customers returning to the business.
- Margin: The difference between the selling price and the cost of a product.
- Product Mix: The total range of products offered by a retailer.
- Stockout: A situation where inventory is unavailable for purchase due to high demand or supply issues.
- Dead Inventory: Products that remain unsold and are no longer in demand.
- Inventory Management: Techniques used to track and optimize stock levels.
- KPI (Key Performance Indicator): Metrics used to evaluate the success of specific business objectives.
- LIFO (Last In, First Out): A method where the most recently added inventory is sold first, commonly used for accounting purposes.
- Conversion Rate: The percentage of visitors to a store or website who make a purchase.
- Net Promoter Score (NPS): A metric that measures customer loyalty by asking how likely they are to recommend a brand or store.
- Halo Effect: When the success of one product positively influences the sales of another within the same brand.
- Omnichannel Retail: Integrating multiple shopping channels (e.g., online, in-store, mobile) to create a seamless customer experience.
- Restocking Fee: A charge imposed on customers who return items, to cover the cost of returning them to inventory.
- POP (Point of Purchase) Display: Displays or marketing materials placed near checkout areas to encourage last-minute purchases.
- Mystery Shopper: A person hired to visit and evaluate a store's service quality, cleanliness, and customer experience.
- Anchor Pricing: The practice of showing an original price alongside a sale price to highlight the discount.
- Inventory Accuracy: The match between recorded inventory levels and physical stock.
- Inventory Holding Cost: The expense of storing and managing inventory over time.
- Backorder: Orders placed for products that are temporarily out of stock.
- Layaway: A purchasing method where customers pay for a product in installments before taking it home.
- Off-Price Retailing: Selling products at lower prices than the original retail price.
- Push Strategy: A marketing approach where products are pushed onto retailers and wholesalers to promote sales.
- Pull Strategy: A marketing approach that aims to attract customers to request products from retailers.
- Restocking Fee: A charge applied to customers returning merchandise.
- Promotional Calendar: A schedule of planned promotions and discounts throughout the year.
- Break-Even Point: The sales level at which total revenue equals total costs, resulting in no profit or loss.
- Customer Acquisition Cost (CAC): The expense incurred to attract and convert a new customer.
- Customer Touchpoints: Interactions between customers and a retailer across various platforms or channels.
- Economic Order Quantity (EOQ): The optimal amount of inventory to order to minimize costs.
- Loss Prevention: Strategies aimed at reducing theft, fraud, and other inventory losses.
- Personalization: Tailoring marketing and shopping experiences to individual customers based on their preferences or behavior.
- Promotional Pricing: Discounting products to boost sales during special campaigns or events.
- Seasonal Demand: The fluctuation in product demand based on the time of year or season.
- Drop Shipping: A retail model where products are shipped directly from the supplier to the customer without the retailer holding inventory
- Pre-Order: Allowing customers to purchase items in advance of their official release.
- Retailtainment: Combining retail shopping with entertainment experiences to engage customers.
- Chargeback Fee: An additional cost incurred by retailers when a bank processes a chargeback request from a customer.
- Markdown Allowance: A discount provided by suppliers to retailers for reducing the price of products.
- RFID Tags: Radio-Frequency Identification tags used for tracking inventory and improving logistics.
- Showrooming: When customers view products in-store but purchase them online, often from a different retailer.
- Traffic Conversion: The percentage of visitors to a store or website who become paying customers.
- Retail Price: The price at which products are sold to consumers.
- Trade Margin: The difference between the cost price and the selling price.
- Store Layout: The physical arrangement of products and fixtures to optimize customer flow and sales.
- Customer Churn Rate: The percentage of customers who stop doing business with a retailer over a specific period.
- Promotional Allowance: Discounts provided by manufacturers to retailers for running promotions.
- Market Basket Analysis: A technique to understand customer buying habits by analyzing groups of items purchased together.
- Cold Zone: Areas within a store where customer traffic is low, requiring strategic merchandising.
- Hot Zone: High-traffic areas in a store where premium products or promotions are placed.
- Planogram Compliance: Ensuring products are placed in accordance with predetermined planograms.
- Stock Rotation: The practice of organizing inventory so older stock is sold before new arrivals.
- Upselling: Encouraging customers to purchase a more expensive or upgraded version of a product.
- Downselling: Recommending a less expensive alternative to match a customer's budget or needs.
- Cross-Docking: A logistics practice where goods are directly transferred from receiving to shipping without long-term storage.
- Retail Analytics: The use of data and insights to improve retail operations and decision-making.
- Time on Site (TOS): The average amount of time a customer spends on a retailer's website.
- Loyalty Program: A strategy to reward repeat customers with discounts, points, or exclusive offers.
- Freemium Model: Offering basic services for free while charging for premium features or content.
- Geofencing: Using GPS technology to target advertisements or notifications to customers within a specific geographic area.
- Endcap Display: Special product displays placed at the ends of store aisles to capture attention.
- Virtual Inventory: Stock that is not physically available but can be sold and fulfilled via suppliers or warehouses.
- Flagship Store: The primary store in a retail chain, often located in a prominent area to showcase the brand.
- Loyalty Program: Rewards offered to customers to encourage repeat business and enhance retention.
- Bait-and-Switch: A deceptive practice where customers are lured with a low-price item but redirected to a higher-priced alternative.
- Inventory Carrying Cost: The total expense of holding and storing inventory, including warehousing, insurance, and depreciation.
- Time-to-Market: The duration it takes for a product to go from conception to availability for purchase.
- Product Lifecycle: The stages a product goes through, from introduction to growth, maturity, and decline.
- Vendor: A supplier that provides goods or services to retailers.
- Customer Advocacy: Efforts to encourage customers to actively promote a brand through word-of-mouth or online reviews.
- Trade Credit: An agreement where suppliers allow retailers to pay for goods after receiving them.
- Customer Acquisition Cost (CAC): The cost associated with attracting a new customer to your business.
- Price Elasticity: The measure of how demand for a product changes in response to price adjustments.
- Retail Shrinkage: The loss of products due to theft, damage, or administrative errors.
- Omnichannel Strategy: An integrated approach to providing a seamless customer experience across multiple channels.
- Stock Turnover: The rate at which inventory is sold and replaced within a given period.
- Dynamic Pricing: Adjusting product prices based on demand, competition, or other factors in real-time.
- Click-and-Collect: A service where customers buy online and pick up their items in-store.
- Margin Management: Strategies for maintaining a profitable difference between costs and selling prices.
- Promotional Bundle: Offering multiple related products together at a discounted price.
- Vendor Compliance: Ensuring suppliers adhere to agreements and quality standards.