3PL (Third-party logistics)

A 3PL provider (such as ShipBob) allows ecommerce companies to outsource logistics processes, including the warehousing, picking, packing, and shipping of orders.

Batch fulfillment

Fulfilling a large number of orders all at once. For example, crowdfunding campaign rewards are often shipped through batch fulfillment at the end of the campaign.


The storage bin is the smallest available unit of space in a warehouse. A standard bin size is 18" x 11" x 7".


Product bundling refers to grouping two or more related products together under one SKU (so only one item is added to the card), often at a lower price than it would cost to purchase these items individually.


The business used for delivery, such as USPS, UPS, FedEx, and DHL.


At ShipBob, the platform from which merchants can connect to their ecommerce platform, manage orders, see live status updates, access advanced reporting, get in touch with ShipBob Customer Success, manage returns, and more.

Dimensional weight (DIM)

An estimated weight calculated from the length, width, and height of a package, using the longest point on each side. This weight can be used to calculate shipping costs for a package.

DDU (Delivery duty unpaid)

When shipping across borders, this simply means that it is the customer's responsibility to pay for any of the destination country's customs charges, duties, or taxes.

DDP (Delivery duty paid)

DDP shipping is a delivery agreement between buyers and sellers that places all risks, costs, and responsibilities associated with the transportation of goods on the seller up until the buyer receives them. With DDP, buyers aren’t liable for the actual shipping costs, so it makes them more likely to purchase products without fear of being scammed or having to pay high taxes.

Kitting and assembly

A grouping of several different items listed, purchased, and shipped under one SKU. For example, a variety pack consisting of three different items that are otherwise sold separately. ShipBob offers kitting services, in which our fulfillment center team “kits” together the items into a single shipment when an order for a bundle or variety pack is placed.

Service-level Agreement (SLA)

A contract between a logistics service provider and a customer that specifies, usually in measurable terms, what services the logistics service provider will furnish.

WRO (Warehouse Receiving Order)

A form completed ahead of time provided for each shipment from the client to the 3PL to let the 3PL’s receiving department know what exactly is being sent to the warehouse(s).


A flat transport structure used to ship and store goods in large quantities. Pallets stably support goods while being lifted by a forklift. Typical pallet dimensions (height varies):

48” L X 40” W X #” H

48” L X 48” W X #” H

48” L X 96” W X #” H

Reorder point

The stock level for a certain product at which inventory must be reordered to keep enough inventory in stock for orders placed in the near future. With ShipBob, you can set automatic reorder notifications to remind you when it’s time to replenish items. Choosing the right reorder notification point will ensure that there is time to send and restock more inventory before orders are put on hold for lack of inventory.


The standard shelf size is 42" x 12" x 23".

Shipping zones

The geographical areas that carriers ship to, spanning from Zone 1 to Zone 8. Zone 1 is the closest area to the fulfillment center from which the order is shipped, while Zone 8 is the furthest. Transit times and prices may increase as the zone number increases.

SKU (Stock-keeping unit)

A unique code that identifies a product based on its characteristics, such as brand, style, color, and size. For example, a small red shirt would have a different SKU from a medium red shirt.

Split shipment

When a single order containing multiple products is sent in separate shipments. This means the customer receives more than one package even though they ordered everything together.

Spot Check

Spot checking means choosing a specific product, counting the number of units on hand, and comparing it to the number of units listed in the system. This can be a more manageable way to keep inventory audits under control in between full physical inventory audits.

Storage fees

Also called warehousing fees. The cost to store inventory in a 3PL’s warehouse or fulfillment center. For example, ShipBob charges a different rate each month for bin space vs. pallet storage.


The practice or process storing of products in a warehouse. A 3PL can be a cost-effective alternative to a traditional warehousing model by allowing merchants to pay only for the space they use.

Work Orders

Work orders are your way to request inventory-related tasks from our operations team. In ShipBob, we have 4 types of work orders:

  • Kitting: Create ready-to-ship kits. Kits are placed back into storage. (many SKUs >> one SKU)

  • De-Kitting: Break down a kitted product to its individual items (one SKU >> many SKUs). Only previously built kits.

  • Breakdown Case: Breakdown inventory from a case into single units (one SKU >> one SKU).

  • Disposal/Donation: Dispose of inventory on hand/Donate to charitable organizations.

ShipBob Dashboard terms

On hold

Orders will be automatically assigned with On-Hold status in the dashboard for any of the following reasons:

  • Invalid Address

  • Credit Card Declined

  • Customs Information Missing

  • Dangerous Goods: International shipments

  • Packaging Preference not set

  • Reserve Date Not Met (only relevant for B2B/External Transfer Orders)

  • Required Label Not Uploaded (only relevant for B2B/External Transfer Orders)

More information here.


Orders in Exception are orders that ShipBob is not able to currently fulfill. The most common reasons for orders to be in exception status are lack of inventory in stock or SKU IDs that need to be merged.

More information here.

Orders Fulfilled

Number of orders in completed status.

Average Fulfillment Cost

Average fulfillment cost according to order invoice.

Average Days to Fulfill

Average number of days from the time the order was imported to ShipBob until it was labeled.

Average Days in Transit

Average number of days from the time the label was purchased until the order was delivered.

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