Wholesale has its own vocabulary, and new sellers often discover it the awkward way, when a buyer asks about "net 30" or a "cancel date" in the middle of a first order. This glossary explains the terms you will meet most, what they mean in practice, typical values for small brands, and how to decide your own.
Quick glossary
| Term | Meaning | Typical for small brands |
|---|---|---|
| MOQ | Minimum order quantity per item | 2–12 units, or one case pack |
| Opening order minimum | Minimum value of a buyer's first order | $150–$500 |
| Reorder minimum | Minimum value of later orders | $75–$250 |
| Case pack | Units sold together as one orderable unit | 6 or 12 |
| Net 30 | Invoice due 30 days after the invoice date | After a first prepaid order |
| Pro forma / prepaid | Payment before the goods ship | First orders, new accounts |
| Lead time | Time from order to shipment | 3–10 days stock, 4–12 weeks made to order |
| Ship window | Dates during which an order may ship | Start-ship to cancel date |
| MSRP | Manufacturer's suggested retail price | Usually 2x wholesale |
| MAP | Minimum advertised price | Often equals MSRP |
Minimum order quantity (MOQ)
The MOQ is the smallest number of units of one item a buyer may order. It protects you from picking and packing single units at wholesale prices. Minimums are usually set per style (for example "4 units per style") or by case pack ("sold in sixes").
How to set it: start from how many units make the order worth handling, and from how many a store needs to make a decent display. Jewelry brands often use 2–6 per style, candle makers 6 per scent, food brands one case. Lower MOQs make it easier for new stores to try you.
Opening order and reorder minimums
The opening order minimum is the minimum total value of a store's first order, for example $250. It ensures a new account buys enough of your range to represent it properly. The reorder minimum is lower, for example $100, so stores can top up bestsellers easily.
Print both on your line sheet. Buyers who know the minimum build a qualifying order the first time.
Case packs and inner packs
A case pack is a fixed number of units sold together, such as a case of 12 jars. Larger shippers use an inner pack (for example 6 units) inside a master carton (for example 24 units). If you sell by case pack, show the price per unit and the case quantity, or the price per case, and be consistent.
Payment terms
Prepaid and pro forma
The buyer pays before you ship. A pro forma invoice is an invoice issued in advance for this purpose. Most brands ask new accounts to prepay (often by card) for the first order, and offer credit terms once a relationship exists.
Net 30, net 60
Net 30 means the full invoice amount is due 30 days after the invoice date. Net 60 gives 60 days. Credit terms help stores (they can sell some of your stock before paying), but they cost you cash flow and carry the risk of late or missing payment. Many small brands offer net 30 only after one or two prepaid orders, or after checking trade references.
Early payment discounts
2/10 net 30 means the buyer may take a 2% discount if they pay within 10 days; otherwise the full amount is due in 30 days. It encourages faster payment.
COD and card on file
Cash on delivery is common in foodservice and local distribution. Some brands keep a card on file and charge it on shipment or on the due date.
Lead time, ship windows and cancel dates
Lead time is the time between receiving an order and shipping it. For in-stock goods this is usually days; for made-to-order goods, weeks.
Seasonal industries such as fashion use ship windows. The start-ship date is the earliest a buyer wants the goods; the cancel date is the latest they will accept them. If you cannot ship by the cancel date, the buyer may cancel without penalty. Always confirm windows you can meet.
Prebook vs at-once
Prebook orders are placed months ahead for a future season and produced to order. At-once (or immediate) orders ship from stock now. Many brands run both: prebook for the main collection, at-once for core bestsellers.
Shipping terms
In domestic wholesale you will see:
- Freight prepaid and add: you pay the carrier and add the cost to the invoice.
- Free freight over a threshold: for example "free shipping on orders over $500".
- FOB origin / FOB shipping point: the buyer takes responsibility (and usually pays freight) once goods leave your premises.
- FOB destination: you are responsible until the goods arrive.
For international trade, buyers may use Incoterms, such as EXW (the buyer collects from your premises), FOB (you deliver the goods on board the vessel at the port of shipment) and DDP (you deliver to the buyer with duties paid). If you sell abroad, state the Incoterm and who pays duties and taxes.
MSRP and MAP
MSRP is the retail price you suggest. Showing it next to the wholesale price tells buyers their margin at a glance. MAP (minimum advertised price) is a policy on the lowest price a retailer may advertise, used to stop online discounting from undermining other stockists. Enforce MAP consistently or not at all, and check the competition rules in your market before introducing one.
Returns, damages and exclusivity
- Damages: ask buyers to report damage with photos within a short window (for example 48 hours to 5 days) and replace or credit.
- Returns: many brands do not accept returns of unsold stock; some allow exchanges of slow sellers to win first orders.
- Exclusivity: some stores ask to be the only stockist in an area. If you agree, define the area and the time period, and tie it to minimum purchase levels.
Credit checks and trade references
Before offering net terms, many suppliers ask new accounts to fill in a short credit application: business name and registration details, years trading, billing contact and two or three trade references (other suppliers who extend them credit). A quick call or email to those references tells you whether the store pays on time. Set a credit limit for each account, start it modestly, and raise it as the store builds a payment history with you.
A starter set of terms
If you are setting terms for the first time, this is a reasonable starting point for a small consumer brand selling to independent stores:
- Opening order minimum: $200. Reorders: $100
- Minimum 4 units per style (or one case pack)
- First order prepaid by card; Net 30 available after two orders
- Ships within 5 business days; free shipping on orders over $500
- Report damages within 5 days with photos
- MSRP is listed for every product
Adjust from there as you learn what your buyers need.
Your terms print on every line sheet and order form automatically.
Add your terms to a line sheetTerms checklist
- MOQ per item or case pack defined
- Opening and reorder minimums set
- Payment terms for new and established accounts
- Lead time or ship window you can actually meet
- Shipping and free-freight threshold
- Damage and return policy
- MSRP on every product; MAP policy if you use one
- Terms printed on your line sheet, price list and order form
Clear terms are a sign of a professional supplier. Buyers would much rather read them on the line sheet than negotiate them over email.
Written by the CatalogKite Team. Last updated . Spotted something out of date? Tell us at the email address in the footer.