This blog was updated on 26 May 2025, for more information connect with our team: https://www.easystore.co/contact 

The Ultimate Glossary of Retail Terms Every Merchant Should Know

Whether you're just entering the retail space or looking to sharpen your knowledge, understanding key retail terminology is essential. This glossary of must-know terms will help you navigate the evolving retail landscape with confidence and clarity.

Bundled Pricing

Selling products or services together at a lower combined price than if purchased individually. Common in package deals, meal combos, and subscription plans. It helps increase profits by promoting slower-moving items.

Buy Now, Pay Later (BNPL)

A payment option that lets customers buy immediately and pay in installments. BNPL is especially popular for high-ticket or luxury items.

Buy Online, Pickup In Store (BOPIS)

A hybrid shopping method where customers buy online and collect the items at a physical store. BOPIS reduces shipping costs and shortens waiting time.

Chargeback

The return of funds to a customer after disputing a charge, usually via their bank or credit card provider. This serves as a form of consumer protection.

Cloud POS

A web-based Point of Sale system that processes transactions via the internet. It allows for real-time updates and remote management.

Contactless Payments

Payments made using NFC technology (e.g. Apple Pay), allowing customers to pay without physically touching the terminal.

Consumer Packaged Goods (CPG)

Everyday-use items with short shelf lives, such as food, beverages, personal care products, and cleaning supplies.

Conversion Rate

The percentage of store visitors who complete a purchase. It's a key metric in evaluating sales performance.

Cross Merchandising

Placing related items from different categories together to encourage bundled purchases (e.g. chips displayed next to soda).

CRM (Customer Relationship Management)

Software that stores and manages customer data to improve engagement, loyalty, and marketing effectiveness.

Consignment Merchandise

Products supplied to a retailer but only paid for once sold. Retailers share a portion of the revenue with the supplier.

Dead Stock

Inventory that has never sold or hasn’t moved in a long time. Also known as dead inventory.

Desktop Terminal (POS)

A stationary checkout system including monitors, scanners, receipt printers, and POS software used to manage sales and inventory.

Dropshipping

A retail model where the seller doesn’t hold inventory. Instead, suppliers ship products directly to customers.

Flash Sales

Short-term promotions with limited quantities aimed at creating urgency and driving quick purchases.

Footfall

The number of people entering a retail space. It’s used to measure in-store traffic and marketing effectiveness.

Forecast

An estimate of future product demand based on past trends, seasonality, and market data.

Franchise

A licensing model where an individual or company operates a business using another company's branding and operating model.

Fulfillment

The process of preparing and shipping orders to customers. A critical component of logistics and customer satisfaction.

Gross Margin

A profitability metric calculated as (Revenue – Cost of Goods Sold) / Revenue, shown as a percentage.

Inventory Management

The process of tracking stock levels, ordering, and storage. Often managed through POS or inventory software.

Inventory Turnover

The rate at which inventory is sold and replaced over a certain period. High turnover indicates strong sales performance.

Membership Tiering

Loyalty program strategy that categorizes customers into different tiers based on spending behavior, offering personalized rewards.

Merchandising

The strategic display and promotion of products to drive sales, both online and in-store.

Mobile Terminal (POS)

A portable POS device used to process transactions in flexible environments like pop-up shops or outdoor markets.

Net Profit

The income remaining after all expenses, taxes, and costs have been deducted from total revenue.

Net Profit Margin

The percentage of revenue remaining after all expenses are deducted. Calculated as (Net Profit / Revenue) x 100.

Net Sales

Total sales revenue after accounting for returns, discounts, and allowances.

Omnichannel Retail

A sales strategy that integrates all customer touchpoints—physical stores, websites, apps, and social platforms—for a seamless experience.

Online Merge Offline (OMO)

An advanced integration of online and offline shopping, allowing customers to move fluidly between digital and physical touchpoints.Find out more about how EasyStore can support your OMO strategy here.

Online-to-Offline (O2O)

A model that encourages customers to transition from online engagement to in-store actions—or vice versa—creating a holistic shopping journey.

Point of Sale (POS) System

A system used to complete sales and track transactions, typically consisting of hardware and software.More about EasyStore’s POS solutions here.

Pop-Up Shop

Temporary retail spaces set up to promote products, test markets, or boost brand visibility.

Product Life Cycle

The stages a product goes through—from launch to decline—affecting pricing, marketing, and inventory decisions.

Quantity Discount

A pricing strategy where the cost per unit decreases when items are purchased in larger quantities.

Revenue per Square Foot

A retail efficiency metric calculated by dividing total revenue by total floor area. It helps assess how effectively space is used.

Showrooming

A practice where customers browse products in-store but purchase them online, often at a lower price.

SKU (Stock Keeping Unit)

A unique identifier for each product, used internally for inventory tracking and management.

Social Commerce

The buying and selling of products directly through social media platforms like Instagram, Facebook, or TikTok.

Store Loyalty

Customer preference for a particular store, often driven by consistent service, product range, and loyalty rewards.

Supply Chain Management

The end-to-end coordination of materials, production, and logistics to deliver products efficiently and cost-effectively.

Unified Commerce

A fully integrated retail strategy that merges all platforms—online, offline, and mobile—into one system. This creates real-time inventory accuracy and consistent customer experiences.

Unified Customer Experience (UCX)

A strategy that delivers personalized, consistent interactions across all customer touchpoints.

Unified Loyalty Program

A centralized system that tracks customer activity both online and in-store, offering rewards like points, discounts, or gifts based on loyalty tiers.

Visual Merchandising

The strategic arrangement of products and displays to attract customers and boost conversions, starting from storefront to checkout.

Warehouse Management System

Software used to manage and optimize warehouse operations, including receiving, picking, packing, and shipping.

Wholesale

Selling goods in bulk to intermediaries who then resell them to end consumers or businesses.

Make Customers Love Buying From You

EasyStore empowers your brand to prioritize customers and enhance their experience, creating a unified customer experience (UCX) that makes customers love buying from you.

Over 50,000 brands have grown their businesses by embracing unified customer experiences (UCX) strategy through EasyStore across multiple sales channels - online store, retail outlets, marketplaces, and social media, ensuring consistency in product and service offerings for a seamless shopping journey.