The definitive reference for ecommerce, ERP, EDI, iPaaS, fulfillment, and Amazon marketplace terminology — 156+ terms across 8 domains, written for operators and IT leaders.
Modern commerce runs on a stack of overlapping acronyms — EDI, iPaaS, OMS, WMS, ERP, 3PL, AS2, EDIFACT, SKU, ASN. This glossary defines the vocabulary your team needs to scope integrations, evaluate vendors, onboard retailers, and run operations across ecommerce, fulfillment, and finance systems. Every definition is written from an operator's perspective — what the term means, why it matters, and where it sits in the broader integration stack.
The language of online selling — from catalog management to fulfillment, marketplace dynamics, and the metrics that drive ecommerce P&L decisions.
A shopping session where a customer adds items to an online cart but leaves without completing the purchase. Abandoned cart recovery — through automated email sequences or retargeting — is one of the highest-ROI tactics in ecommerce. Industry averages show 70%+ cart abandonment rates.
Read full definitionThe average dollar amount spent per transaction on a given channel or store. AOV is a primary lever for revenue growth alongside conversion rate and traffic volume. Merchants improve AOV through bundling, upsells, and free-shipping thresholds.
Read full definitionThe buying and selling of goods and services between businesses conducted through digital channels. B2B ecommerce typically involves complex pricing structures, account-based access, purchase order workflows, credit terms, and multi-user account management — all of which require tighter integration with ERP and OMS systems than standard B2C stores.
Read full definitionBusiness-to-consumer online retail, where brands sell directly to individual shoppers. B2C ecommerce prioritizes conversion rate optimization, customer acquisition cost, and lifetime value as core metrics.
Read full definitionThe prominent "Add to Cart" section on marketplace product pages (notably Amazon) that routes the sale to a specific seller. Winning the Buy Box requires competitive pricing, strong fulfillment metrics, and seller health scores. It is the primary driver of marketplace revenue for most brands.
Read full definitionThe process of creating, organizing, and maintaining product data — including titles, descriptions, images, pricing, variants, and attributes — across one or more sales channels. Inconsistent catalog data is a leading cause of integration failures and poor conversion rates.
Read full definitionThe percentage of website visitors or sessions that result in a completed purchase. Ecommerce conversion rates typically range 1–4%. Even small CVR improvements compound significantly at scale.
Read full definitionSelling products to customers in foreign countries, requiring management of currency, tax compliance, duties, customs documentation, and localized payment methods. Cross-border commerce exposes operational complexity in fulfillment and ERP systems.
Read full definitionThe total net revenue a business can expect from a single customer over the course of their relationship. LTV is the foundational metric for determining sustainable customer acquisition spend and informing retention strategy.
Read full definitionA model in which a brand sells directly to end consumers, bypassing retailers, distributors, or marketplace intermediaries. D2C brands control the customer relationship and data but must build their own acquisition and fulfillment infrastructure.
Read full definitionA fulfillment model where the seller does not hold inventory. Instead, orders are forwarded to a supplier who ships directly to the customer. Dropshipping reduces capital requirements but creates margin pressure and dependency on supplier reliability and data accuracy.
Read full definitionAn automated pricing strategy that adjusts product prices in real time based on demand signals, competitor pricing, inventory levels, or customer segments. Common in marketplace selling and travel commerce.
Read full definitionA standardized protocol for exchanging structured business documents — such as purchase orders, invoices, and advance ship notices — between trading partners electronically. EDI remains the dominant standard in retail supplier relationships and is a common integration requirement for brands selling into major retailers.
Read full definitionAn ecommerce architecture that decouples the front-end (customer-facing UI) from the back-end commerce engine. This gives developers freedom to build custom experiences on any device while maintaining a centralized commerce core for pricing, inventory, and orders.
Read full definitionThe operational and financial discipline of tracking stock levels, purchase orders, reorder points, and product availability across locations and channels. Poor inventory management is the most common cause of overselling, stockouts, and fulfillment errors.
Read full definitionAn online platform where multiple third-party sellers list and sell products. Major marketplaces include Amazon, Walmart, eBay, and Wayfair. Selling on marketplaces introduces channel-specific rules for listing, pricing, fulfillment, and payments.
Read full definitionSelling products across multiple independent sales channels — such as a branded website, Amazon, and wholesale portals — typically without a unified customer or inventory view. Often a precursor to omnichannel strategy.
Read full definitionA unified commerce strategy in which inventory, customer data, pricing, and fulfillment are synchronized across all sales channels — online, in-store, mobile, and wholesale. True omnichannel requires deep integration between ecommerce platforms, ERP, and OMS systems.
Read full definitionSoftware that centralizes the tracking, routing, and fulfillment of customer orders across multiple channels, warehouses, and fulfillment partners. An OMS is the operational hub connecting ecommerce storefronts to fulfillment and finance systems.
Read full definitionA technology service that authorizes and processes payment transactions between buyers and sellers. Payment gateways handle encryption, fraud screening, and communication with card networks. Examples include Stripe, Braintree, and Authorize.Net.
Read full definitionA centralized system for collecting, managing, and distributing product data to all sales channels and marketing touchpoints. PIM systems are essential for brands managing large, complex catalogs across multiple channels.
Read full definitionA structured process by which a customer is issued authorization to return a product to the seller. RMA workflows include condition assessment, refund or exchange logic, and restocking — all requiring integration between OMS and ERP.
Read full definitionA unique identifier assigned to a specific product variant — defined by attributes such as size, color, or configuration. SKU management is foundational to accurate inventory tracking, fulfillment, and financial reporting.
Read full definitionThe customer-facing digital interface of an ecommerce operation. Major SaaS storefront platforms include Shopify, BigCommerce, WooCommerce, and Magento.
Read full definitionThe operational layer that moves products from warehouse to customer — including 3PL models, carrier concepts, and the systems that orchestrate it all.
An external provider that manages warehousing, pick-and-pack, and shipping on behalf of a brand. 3PLs require real-time inventory and order data from the merchant's ecommerce and OMS systems to operate accurately. Choosing the right 3PL and ensuring clean data integration is one of the highest-leverage operational decisions a growing brand makes.
Read full definitionAn orchestration layer above 3PLs — a provider that manages multiple logistics partners, carriers, and 3PLs on behalf of a brand. 4PLs take ownership of the entire supply chain rather than individual warehousing or shipping operations.
Read full definitionAn electronic notification (EDI 856) sent by a supplier to a buyer before or at the time of shipment, detailing contents, packaging, and carrier information. ASN accuracy is a critical compliance requirement for most major retail partners and a common source of chargebacks when errors occur.
Read full definitionA transportation company that physically moves shipments from origin to destination. Common parcel carriers include UPS, FedEx, USPS, and DHL. LTL and FTL freight carriers handle larger commercial shipments. Carrier selection, rate negotiation, and performance monitoring directly impact fulfillment cost and customer satisfaction.
Read full definitionA fulfillment technique where inbound shipments from suppliers are unloaded and immediately transferred to outbound vehicles with minimal or no storage time in between. Cross-docking reduces handling costs and speeds delivery but requires precise scheduling and real-time data synchronization.
Read full definitionA pricing method used by carriers to charge based on a package's size (volume) rather than its actual weight, when the dimensional weight exceeds the actual weight. Calculated as length × width × height divided by a carrier-specific divisor. DIM weight optimization — through right-sizing packaging — directly reduces shipping costs.
Read full definitionAmazon's fulfillment service where sellers send inventory to Amazon's fulfillment centers, and Amazon handles storage, pick-and-pack, shipping, and customer service for those orders. FBA products are Prime-eligible and benefit from Amazon's logistics network, but FBA fees and inventory placement complexity require careful margin management.
Read full definitionAn Amazon selling model in which the seller stores, picks, packs, and ships orders independently — rather than using Amazon's FBA network. FBM gives sellers more control over inventory and branding but requires meeting Amazon's shipping speed and reliability standards to remain competitive.
Read full definitionA freight shipping mode in which a single shipment fills an entire truck trailer. FTL is cost-effective for large volumes and faster than LTL because there are no intermediate stops. Used for B2B replenishment, inbound to 3PLs, and Amazon inbound shipments.
Read full definitionA freight mode where multiple shippers share space on a single truck. LTL is used when a shipment is too large for parcel but too small to fill a full trailer. LTL pricing is based on freight class, weight, and distance. Transit times are longer than FTL due to multiple stops and terminal handling.
Read full definitionAmazon's service that allows sellers to use their FBA inventory to fulfill orders from non-Amazon channels — such as Shopify, BigCommerce, or their own website. MCF enables a single inventory pool to serve multiple sales channels, simplifying operations but adding per-unit fees.
Read full definitionThe warehouse process of selecting (picking) specific items from storage locations and packaging (packing) them for shipment to the customer. Pick-and-pack efficiency — measured in units per hour and error rate — is one of the primary cost drivers in fulfillment operations.
Read full definitionDocumentation or electronic confirmation that a shipment was received by the consignee. POD may include a signature, photo, or carrier scan event. Required for dispute resolution, chargeback defense, and accounts receivable processes.
Read full definitionThe warehouse process of moving received inventory from the receiving dock to designated storage locations. Efficient putaway is controlled by WMS logic and directly impacts pick efficiency and inventory accuracy.
Read full definitionThe set of processes and systems involved in receiving, inspecting, grading, restocking, or disposing of returned merchandise. Effective reverse logistics requires integration between the carrier, WMS, OMS, and ERP to accurately update inventory and trigger refunds or replacements.
Read full definitionAn Amazon program allowing qualified sellers to display the Prime badge on orders they fulfill themselves — without using FBA — by meeting Amazon's strict two-day delivery, cancellation rate, and tracking requirements. SFP gives brands Prime visibility while maintaining control of their own fulfillment operation.
Read full definitionA formal commitment between a fulfillment provider and a merchant defining performance standards — such as order cut-off times, same-day ship rates, accuracy rates, and damage rates. SLA compliance is measured through WMS and OMS reporting and directly impacts customer satisfaction and marketplace seller metrics.
Read full definitionThe strategic placement of products in warehouse storage locations to minimize pick travel time and improve throughput. High-velocity SKUs are slotted near packing stations; slow-movers are placed in less accessible locations. Slotting optimization is managed by WMS algorithms.
Read full definitionSoftware that controls and optimizes warehouse operations including receiving, putaway, picking, packing, and shipping. WMS platforms integrate with ecommerce and ERP systems to maintain accurate inventory visibility and fulfill orders efficiently. Examples include Manhattan Associates, HighJump, and ShipBob's native WMS.
Read full definitionA carrier cost-reduction strategy in which a seller consolidates parcels and injects them into a carrier's network closer to the delivery destination, bypassing upstream sortation zones. Zone skipping reduces per-parcel shipping cost but requires regional inventory positioning or 3PL network coverage.
Read full definitionThe essential vocabulary for brands selling on Amazon and major marketplaces — from performance metrics to program names and seller operations.
The ratio of Amazon ad spend to attributed ad revenue, expressed as a percentage. ACOS = Ad Spend ÷ Ad Revenue × 100. A lower ACOS indicates more efficient advertising. Target ACOS varies by margin profile and growth stage — profitability-focused sellers typically target below their gross margin percentage.
Read full definitionAmazon's unique 10-character alphanumeric identifier assigned to every product listed in its catalog. ASINs are the primary unit of catalog management on Amazon. A parent ASIN represents a product family; child ASINs represent individual variants (size, color). ASIN mapping is a critical step in any Amazon integration project.
Read full definitionA ranking assigned by Amazon to products within each category, updated hourly based on recent and historical sales velocity. A lower BSR number indicates higher sales volume. BSR is used as a proxy for demand and competitive position when evaluating product opportunities.
Read full definitionThe charges Amazon assesses on sellers using Fulfillment by Amazon, including fulfillment fees (per unit, based on size and weight), monthly storage fees (per cubic foot), and long-term storage fees (for inventory aged over 365 days). Accurate FBA fee modeling is required for profitability analysis on any Amazon SKU.
Read full definitionAn Amazon score (0–1000) that measures how efficiently sellers manage their FBA inventory. A low IPI score (below 400) can result in storage capacity limits at Amazon fulfillment centers. Factors include excess inventory percentage, sell-through rate, stranded inventory, and in-stock rate.
Read full definitionA metric used by various marketplace platforms (including Walmart) to measure the completeness and quality of a product listing — including title, description, bullet points, images, and attributes. Higher LQS correlates with better search visibility and conversion rates.
Read full definitionAn Amazon seller health metric measuring the percentage of orders that receive negative feedback, an A-to-Z Guarantee claim, or a credit card chargeback. Amazon's threshold is below 1%. Exceeding this threshold can result in account suspension. ODR is a core metric in any Amazon seller performance dashboard.
Read full definitionAmazon's advertising model in which sellers pay only when a shopper clicks their ad. Amazon PPC ad types include Sponsored Products, Sponsored Brands, and Sponsored Display. PPC campaign management — including bid optimization, keyword targeting, and negative keyword pruning — is a core competency for competitive Amazon selling.
Read full definitionThe inverse of ACOS, expressing ad revenue generated per dollar of ad spend. ROAS = Ad Revenue ÷ Ad Spend. A ROAS of 5× means $5 in revenue for every $1 spent. ROAS is the preferred metric when benchmarking across channels beyond Amazon.
Read full definitionAmazon's web interface for third-party sellers (3P) to manage listings, inventory, orders, advertising, and account health. Seller Central is the primary portal for FBA and FBM sellers. APIs for Seller Central are accessed through the SP-API (Selling Partner API).
Read full definitionAmazon's invite-only portal for first-party (1P) suppliers — brands that sell wholesale to Amazon directly. Vendor Central involves purchase orders, coops, chargebacks, and AVS (Amazon Vendor Services). 1P vendors lose pricing control but gain access to Amazon's marketing programs and Vendor-only ad formats.
Read full definitionAmazon's modern REST API suite replacing the legacy MWS (Marketplace Web Service). SP-API provides programmatic access to orders, inventory, catalog, fulfillment, reports, and finances for Seller Central accounts. SP-API integration is required for any automated Amazon operations at scale.
Read full definitionAmazon's legacy API for seller data access, now fully superseded by SP-API. MWS has been deprecated — sellers and integrators must migrate to SP-API. Any integration built on MWS should be treated as technical debt requiring migration.
Read full definitionAmazon's feature allowing brand-registered sellers to add rich media content — comparison charts, lifestyle images, and enhanced descriptions — to product detail pages. A+ Content typically improves conversion rates by 3–10% and is available at no additional cost to brand-registered sellers.
Read full definitionFinancial penalties issued by Amazon to Vendor Central suppliers for non-compliance with purchase order, routing, labeling, or ASN requirements. Amazon chargebacks can be a significant revenue drain for 1P vendors and typically require an integrated EDI and compliance monitoring operation to manage effectively.
Read full definitionFBA inventory stored at Amazon fulfillment centers that is not actively listed for sale — typically because the associated listing was deleted, suppressed, or is in an error state. Stranded inventory accumulates storage fees without generating revenue and negatively impacts IPI score. Regular monitoring and remediation is required.
Read full definitionA product listing that Amazon has removed from search results due to incomplete or non-compliant content — such as missing required attributes, images below minimum resolution, or prohibited terms. Suppressed listings generate no revenue despite active inventory and require immediate remediation.
Read full definitionAmazon's program that grants brand owners additional tools and protections on the platform, including A+ Content, Sponsored Brands ads, Brand Analytics, and IP-based listing protection. Brand Registry requires a registered trademark and is a prerequisite for most brand-building programs on Amazon.
Read full definitionAmazon's invitation-only reviewer program that provides free products to trusted reviewers in exchange for honest reviews. Vine is one of the few compliant methods for generating early reviews on new product launches. It requires Brand Registry enrollment and has per-enrollment fees.
Read full definitionAmazon's unique barcode identifier for FBA inventory, assigned to each seller-ASIN combination. FNSKU labels are applied to products before they are sent to Amazon fulfillment centers and allow Amazon to attribute inventory to specific sellers in a commingled warehouse environment.
Read full definitionAmazon's capacity constraint that limits how much FBA inventory a seller can hold across fulfillment centers at any given time. Restock limits are allocated by storage type (standard, oversize, apparel, footwear) and are influenced by IPI score and historical sales velocity. Managing within restock limits requires careful sell-through planning.
Read full definitionThe numbered transaction sets that form the language of EDI — from purchase orders to invoices, ASNs to warehouse instructions.
The electronic invoice sent from a supplier to a buyer, replacing a paper invoice. The 810 includes line-item detail, quantities, unit prices, terms, and total amounts. Discrepancies between the 810 and the original 850 Purchase Order are a leading cause of payment delays and chargebacks.
Read full definitionSent from buyer to supplier to communicate that a payment has been made or is scheduled, along with the invoices it covers. The 820 enables automated cash application in the supplier's AR module, eliminating manual remittance matching.
Read full definitionA forecast document sent from a buyer to a supplier outlining anticipated purchase volumes over a planning horizon. The 830 allows suppliers to plan production and inventory ahead of formal purchase orders — common in manufacturing and automotive supply chains.
Read full definitionTransmits a supplier's product catalog — including item numbers, descriptions, pricing, and availability — to a trading partner. The 832 keeps buyer systems current with supplier catalog changes without manual re-entry, and is common for distributors and wholesalers.
Read full definitionCommunicates current inventory levels from a supplier or warehouse to a trading partner. The 846 enables demand planning, available-to-promise logic, and replenishment triggers — and is used in drop-ship and vendor-managed inventory (VMI) programs.
Read full definitionThe foundational EDI transaction: a formal order sent from a buyer to a supplier specifying items, quantities, prices, ship-to addresses, and required delivery dates. Every downstream EDI transaction — the 855 acknowledgment, 856 ASN, 810 invoice — traces back to the originating 850.
Read full definitionSent by the supplier in response to an 850 to confirm receipt, acceptance, or rejection of the purchase order. The 855 may confirm as-submitted, flag changes (backorders, substitutions), or reject entirely. Many retail compliance programs require a 855 within hours of PO receipt.
Read full definitionSent by the supplier before or at shipment to notify the buyer of exact contents, packaging structure, and carrier information. The ASN enables automated receiving — including carton-level scanning and three-way match. ASN compliance is mandatory for most major retailers and a common source of chargebacks when errors occur.
Read full definitionSent by the buyer to modify a previously issued 850 — updating quantities, delivery dates, pricing, or addresses. Suppliers must reconcile 860s against open orders in their ERP or OMS and respond with a 865 acknowledgment.
Read full definitionThe supplier's response to a buyer-initiated 860, confirming acceptance, partial acceptance, or rejection of the requested modifications.
Read full definitionSent from a seller or distributor to a 3PL or warehouse to authorize and direct the picking, packing, and shipment of an order. The 940 is the electronic equivalent of a warehouse pick ticket and is a critical integration point between OMS and WMS systems.
Read full definitionNotifies a warehouse or 3PL that an inbound inventory shipment is en route from another location or supplier. Similar in function to the 856 ASN but specific to warehouse-to-warehouse or supplier-to-3PL inventory transfers.
Read full definitionSent by a warehouse or 3PL confirming receipt of an inbound inventory shipment. The 944 enables accurate inventory reconciliation between the WMS and the seller's ERP or OMS.
Read full definitionSent by a 3PL or warehouse confirming an order has shipped, including carrier details, tracking numbers, and item quantities. The 945 triggers customer notification, invoice generation, and inventory deduction in the seller's systems.
Read full definitionA technical receipt confirming that an EDI transmission was received and syntactically valid. The 997 does not confirm business acceptance — only that the document was structurally readable. A missing 997 is a common indicator of EDI connectivity or mapping issues.
Read full definitionThe X12 5010 successor to the 997, providing more granular acknowledgment status at the transaction set level. Required by HIPAA-compliant trading partners and increasingly adopted in retail and logistics EDI programs.
Read full definitionSent by a shipper to a motor carrier or freight broker to tender a load for pickup and delivery. Initiates the freight booking process and includes origin, destination, commodity details, and service requirements.
Read full definitionThe freight invoice sent from a carrier to the shipper after delivery, detailing charges for transportation services rendered. The 210 enables automated freight audit and payment processes.
Read full definitionSent by a carrier to provide real-time shipment status updates — pickup confirmation, in-transit events, and delivery confirmation. The 214 feeds customer-facing tracking and exception management workflows.
Read full definitionSent by a supplier to a buyer requesting preferred routing, carrier, and shipping method information before an order is shipped. Common in retail supplier relationships where the buyer controls carrier selection.
Read full definitionThe buyer's response to a 753, providing the supplier with the approved carrier, service level, and routing information to use for the shipment.
Read full definitionThe data structures and international standards that define how EDI and B2B documents are formatted — from ANSI X12 to XML, cXML, and GS1.
The dominant EDI standard in North America, maintained by the Accredited Standards Committee X12. X12 documents use a structured segment-and-element syntax with fixed delimiters. Transaction sets are numbered (850, 856, 810) and versioned (4010, 5010). Required for most US retail, grocery, healthcare, and logistics trading relationships.
Read full definitionThe international EDI standard developed by the United Nations, predominant in Europe, Asia, and global trade. EDIFACT uses a similar segment-based structure to X12 but with different message types (ORDERS, DESADV, INVOIC) and syntax rules. Organizations with both North American and international partners must support both standards.
Read full definitionThe most widely deployed version of the ANSI X12 standard in retail and logistics. While technically superseded by 5010, many large retailers and trading networks still mandate 4010 compliance. Migration from 4010 to 5010 requires updated segment maps and acknowledgment handling.
Read full definitionThe current version of the ANSI X12 standard, required for HIPAA EDI compliance and increasingly adopted in retail and logistics. 5010 introduced the 999 Functional Acknowledgment and tightened data element requirements compared to 4010.
Read full definitionA human-readable, tag-based markup language widely used for B2B document exchange. XML is the basis for non-traditional EDI integrations — including cXML, xCBL, OAGIS, and custom supplier schemas. XML documents are larger than EDI flat files but easier to validate with XSD schemas and parse with standard libraries.
Read full definitionAn XML-based standard developed by Ariba (now SAP Ariba) for catalog, purchase order, and invoice exchange through eProcurement platforms. cXML is the native format of the SAP Ariba Network and is commonly required for suppliers selling to enterprise buyers using Ariba or Coupa.
Read full definitionA lightweight, human-readable data format that has become the dominant standard for API-based B2B integrations. While not a traditional EDI format, JSON is increasingly used by modern commerce platforms and logistics APIs as a replacement for or complement to legacy EDI.
Read full definitionA data exchange format where records are structured as rows with fields occupying fixed character positions — no delimiters. Common in legacy ERP systems and older retail supplier integrations. Flat files require precise field-position mapping and are unforgiving of formatting errors.
Read full definitionA simple tabular data format where fields are separated by commas and records by line breaks. CSV is widely used for catalog uploads, inventory feeds, and bulk data transfers with platforms that do not support API or EDI connectivity. CSV lacks structure enforcement, making validation the responsibility of the receiving system.
Read full definitionAn XML-based business document standard for ERP-to-ERP and ERP-to-commerce integration. OAGIS defines schemas for Purchase Orders, Invoices, Inventory, and other objects — and is supported natively by Oracle and several enterprise ERP vendors.
Read full definitionAn XML-based global standard for B2B integration in high-tech, semiconductor, and electronics industries. RosettaNet defines Partner Interface Processes (PIPs) — standardized document exchanges for procurement, order management, and inventory. Common among contract manufacturers and electronics distributors.
Read full definitionA global framework for supply chain data — including barcodes (UPC, EAN), RFID (EPC), and electronic messaging. GS1 GTINs (Global Trade Item Numbers) are the universal product identifiers in retail EDI and catalog exchanges. GS1 compliance is mandatory for suppliers in major grocery, retail, and healthcare networks.
Read full definitionThe outer wrapper of an X12 EDI transmission. The ISA (Interchange Control Header) identifies the sender and receiver at the interchange level. The GS (Functional Group Header) groups related transaction sets. ISA/GS identifiers and qualifier codes must be precisely configured in both sending and receiving systems.
Read full definitionThe EDIFACT equivalent of the X12 ISA/GS envelope. UNB (Interchange Header) identifies the sender and receiver. UNH (Message Header) identifies the message type. Correct UNB/UNH configuration is required for EDIFACT document routing and acknowledgment.
Read full definitionA code value within an EDI segment specifying the meaning of an accompanying data element. For example, in a DTM (Date/Time Reference) segment, qualifier '002' means 'Delivery Requested' while '011' means 'Shipped'. Incorrect qualifier usage is one of the most common EDI mapping errors and can cause silent data corruption.
Read full definitionThe transmission protocols, security standards, and network infrastructure that move EDI and API data between trading partners reliably and securely.
The most widely adopted protocol for direct, secure EDI transmission over the internet. AS2 uses HTTP/HTTPS with digital signatures (non-repudiation), encryption, and MDN delivery confirmations. Mandated by most major US retailers — including Walmart, Target, Home Depot, and Amazon Vendor Central — and requires exchanging X.509 certificates with each trading partner.
Read full definitionThe successor to AS2, built on the OASIS ebMS 3.0 standard and SOAP/HTTP. AS4 adds improved reliability, large payload support, and flexible security profiles. Increasingly required in European and global trade networks, including the Peppol network for government e-invoicing across the EU and beyond.
Read full definitionThe original AS standard for secure EDI over SMTP (email). AS1 predates AS2 and is largely obsolete in modern trading networks, though it may still appear in legacy supplier connectivity requirements.
Read full definitionA secure file transfer protocol that encrypts both authentication and data transfer channels using SSH. SFTP is one of the most common EDI transmission methods — particularly for batch file-based trading relationships, 3PL connectivity, and legacy ERP integrations. Unlike AS2, SFTP does not provide built-in message-level acknowledgment or non-repudiation.
Read full definitionFTP (File Transfer Protocol) is the original unsecured file transfer standard — largely deprecated due to lack of encryption. FTPS adds TLS/SSL encryption. Some legacy trading partners still require FTPS, but SFTP is the preferred successor for all new implementations.
Read full definitionHTTP Secure with TLS encryption is the universal transport for modern API-based B2B integrations. REST APIs over HTTPS are now the dominant connectivity method for marketplace, ecommerce, and SaaS-to-SaaS integrations — enabling real-time, event-driven data exchange. HTTPS APIs are displacing traditional EDI in new trading relationships while coexisting with EDI in established retail networks.
Read full definitionAn XML-based messaging protocol for structured data exchange over HTTP. SOAP was the dominant web services standard in enterprise integrations of the 2000s. Many legacy ERP systems, banking platforms, and enterprise middleware still expose SOAP endpoints, requiring WSDL contracts.
Read full definitionA third-party network that hosts EDI mailboxes, routes documents between trading partners, handles format translation, and provides audit trails. VANs were the dominant EDI infrastructure for decades. Major VANs include OpenText, SPS Commerce, and TrueCommerce. VAN per-transaction fees can be significant — modern iPaaS platforms offering direct AS2/SFTP connectivity can substantially reduce VAN dependency.
Read full definitionA global network and standards framework for electronic document exchange in government procurement. Peppol uses AS4 for transport and BIS specifications for document formats. Mandatory for government supplier invoicing in most EU member states, as well as Singapore, Australia, and New Zealand.
Read full definitionAn acknowledgment returned by an AS2 receiver confirming that a transmitted document was received and decrypted successfully. MDNs can be synchronous or asynchronous. A missing or negative MDN indicates a connectivity, certificate, or decryption failure requiring immediate investigation.
Read full definitionThe cryptographic protocol securing data in transit — the 'S' in HTTPS and the encryption layer in FTPS and AS2/AS4. TLS replaced the deprecated SSL protocol. TLS 1.2 is the current minimum; TLS 1.3 is preferred. Trading partners increasingly reject connections using TLS 1.0 or 1.1.
Read full definitionA public key certificate used to authenticate trading partners and encrypt/sign data in AS2 and AS4 connections. Each AS2 trading partner relationship requires exchanging X.509 certificates. Certificate expiration — typically every one to three years — is a common cause of sudden AS2 connectivity failures.
Read full definitionA unique nine-digit identifier assigned by Dun & Bradstreet to identify a specific business entity. Widely used in EDI ISA envelopes as trading partner identifiers and required for supplier onboarding with major retailers, government agencies, and global supply chain networks.
Read full definitionA GS1-standard 13-digit identifier for physical locations — warehouses, stores, ship-to addresses, and corporate entities. GLNs uniquely identify origin and destination locations in EDI transactions. Required for EDI compliance with grocery retailers, healthcare trading partners, and GS1-compliant supply chains.
Read full definitionA financial penalty assessed by a retailer against a supplier for EDI non-compliance — including late or missing ASNs, format errors, barcode failures, or packaging violations. EDI chargebacks can represent a significant percentage of supplier revenue and are a primary driver of investment in EDI automation and compliance monitoring.
Read full definitionA formal agreement between two organizations defining the terms, formats, document types, protocols, timing requirements, and compliance penalties for their EDI relationship. TPAs are the legal and operational foundation of every EDI connection.
Read full definitionReal-time HTTP POST notifications sent when a business event occurs — order placed, shipment created, inventory changed. Webhooks are the modern, API-native alternative to EDI polling and batch files for platforms that support them. They require a publicly accessible HTTPS endpoint with proper authentication.
Read full definitionThe authorization framework used by modern commerce and logistics APIs to grant scoped, time-limited access without sharing credentials. B2B API integrations increasingly require OAuth 2.0, typically using the Client Credentials grant type for server-to-server authentication.
Read full definitionMIME (Multipurpose Internet Mail Extensions) defines how non-text content is encoded for transmission over HTTP and email. AS2 uses S/MIME (Secure MIME) to wrap, digitally sign, and encrypt EDI payloads before transmission, providing both data integrity and confidentiality.
Read full definitionAn international framework of XML-based standards for B2B data exchange developed by OASIS and the UN. AS4 is built on the ebMS 3.0 messaging layer. ebXML is the foundation for government e-invoicing networks across Europe and Asia.
Read full definitionThe vocabulary of connected systems — APIs, connectors, data mapping, and the integration architecture that links commerce platforms to operations.
A defined set of protocols that allow software applications to communicate with each other. APIs are the foundation of modern integration — enabling ecommerce platforms, ERPs, marketplaces, and logistics systems to exchange data in real time.
Read full definitionA managed service that acts as the controlled entry point for API traffic, handling authentication, rate limiting, request routing, and monitoring. API gateways are critical infrastructure for organizations exposing or consuming APIs at scale.
Read full definitionAn integration pattern where data is exchanged without requiring both systems to be available simultaneously. Events are queued and processed when the receiving system is ready — making async patterns more resilient than synchronous real-time calls.
Read full definitionA pre-built integration component that handles the technical details of communicating with a specific application — including authentication, data mapping, and API call construction. Quality connectors dramatically reduce integration build time and maintenance burden.
Read full definitionThe process of defining how data fields in one system correspond to fields in another. Accurate data mapping is the most critical — and most error-prone — step in any integration project. Mismatches in data types, field names, and business logic account for the majority of integration failures.
Read full definitionConverting data from one format, structure, or schema to another as part of an integration workflow. Transformations include field renaming, data type conversion, currency normalization, and conditional logic.
Read full definitionA data integration pattern in which data is extracted from a source system, transformed into the required format, and loaded into a destination system. ETL is foundational to data warehousing, analytics pipelines, and cross-system synchronization.
Read full definitionAn integration design pattern where systems communicate by publishing and subscribing to events — discrete notifications that something occurred (e.g., 'order placed', 'inventory updated'). Event-driven architectures enable real-time, loosely coupled integrations.
Read full definitionA configured sequence of integration steps — triggers, data transformations, conditional logic, and actions — that automates a business process across two or more systems. Flows are the primary unit of work in most iPaaS platforms.
Read full definitionA property of integration operations ensuring repeated execution of the same request produces the same result without unintended side effects. Idempotent designs prevent duplicate orders, double-posted invoices, and corrupted inventory when retries occur.
Read full definitionA cloud-based platform that enables organizations to connect applications, data, and systems through a managed integration layer. iPaaS platforms provide pre-built connectors, workflow automation, data mapping tools, and monitoring — eliminating the need to build and maintain custom point-to-point integrations.
Read full definitionAn Enterprise Service Bus (ESB) is an on-premise middleware architecture common in legacy enterprise environments. iPaaS is its cloud-native successor — faster to deploy, lower in maintenance overhead, and purpose-built for connecting SaaS applications and modern APIs.
Read full definitionAn integration development approach using visual workflow builders and pre-configured connectors to reduce or eliminate hand-coding. Low-code iPaaS platforms enable non-developers to build integrations while still supporting custom code for complex logic.
Read full definitionThe coordination of multiple integration steps, system calls, and conditional logic into a single automated workflow. Orchestration manages sequence, dependencies, error handling, and retries across all steps in a complex business process.
Read full definitionA direct, custom-built connection between two specific systems. Simple to build initially but expensive to maintain as the number of connected systems grows — creating a fragile 'spaghetti' architecture that iPaaS is designed to replace.
Read full definitionAn integration technique where a system periodically queries another for new or changed data. Simpler to implement than webhooks but introduces latency and can generate unnecessary API calls under light load.
Read full definitionA control mechanism restricting how many API requests a client can make within a given time window. Rate limit management is critical in iPaaS platforms — particularly for high-volume ecommerce integrations running against marketplace APIs.
Read full definitionAn API architecture style using standard HTTP methods (GET, POST, PUT, DELETE) and stateless requests. REST is the dominant API pattern in modern ecommerce and SaaS applications.
Read full definitionAutomated mechanisms that re-attempt failed API calls or data transfers after a defined interval. Proper retry logic — combined with idempotency checks — is essential for building reliable integrations.
Read full definitionThe initiating event in an integration workflow — such as a new order, an updated inventory record, or a scheduled interval — that causes the workflow to execute. Triggers can be webhook-based (real-time) or polling-based (scheduled).
Read full definitionA mechanism by which a source system sends real-time HTTP notifications to a destination URL when a specific event occurs. Webhooks enable event-driven integrations and are far more efficient than polling for high-frequency data changes such as orders and inventory updates.
Read full definitionFinancial and operational system fundamentals — from chart of accounts to purchase orders, inventory valuation, and the ERP platforms that power mid-market finance.
A core ERP module managing a company's obligations to pay suppliers. AP workflows include invoice receipt, approval routing, payment scheduling, and GL posting — all of which benefit from automated integration with procurement and ecommerce systems.
Read full definitionThe ERP module tracking money owed to the business by customers. AR integrations with ecommerce platforms enable automatic invoice creation, payment matching, and real-time aging report accuracy.
Read full definitionThe foundational financial structure in an ERP — a categorized list of all general ledger accounts used to record financial transactions. COA mapping is a critical step in any ecommerce-to-ERP integration project.
Read full definitionAn ERP system delivered as a SaaS application, hosted and maintained by the vendor. Cloud ERP systems — such as NetSuite, Sage Intacct, and Acumatica — offer lower implementation costs, automatic updates, and API-first architectures that simplify integration.
Read full definitionThe direct costs attributable to producing or purchasing the goods a business sells. Accurate COGS tracking requires tight integration between inventory, purchasing, and financial systems — making ERP integration with ecommerce platforms operationally critical.
Read full definitionA unified software system integrating core business functions — including finance, inventory, procurement, manufacturing, and operations — into a single data model. ERP is the system of record for most mid-market and enterprise businesses and the primary destination for financial data from ecommerce systems.
Read full definitionThe master record of all financial transactions in an ERP, organized by account. Accurate GL posting from ecommerce activity — including sales, returns, fees, and tax — requires well-designed integration between the storefront and ERP.
Read full definitionThe fundamental unit of accounting in an ERP — a record of a financial transaction that debits one account and credits another. Automated journal entry creation from ecommerce transactions is a primary driver of integration value.
Read full definitionOracle's cloud ERP platform, widely adopted by mid-market and high-growth companies. One of the most commonly integrated ERP targets in ecommerce, with robust APIs supporting order, inventory, customer, and financial data flows.
Read full definitionA formal document issued by a buyer to a supplier, authorizing the purchase of specified goods or services at agreed terms. PO integration between procurement and ecommerce systems ensures accurate landed cost tracking and receipt reconciliation.
Read full definitionIntuit's widely used accounting platform, dominant in the SMB segment. QuickBooks integrations with ecommerce typically cover sales order syncing, customer creation, and payment recording — with Online and Desktop versions requiring different integration approaches.
Read full definitionThe accounting principle of recording revenue in the period it is earned rather than when cash is received. Complex scenarios — subscriptions, deferred revenue, multi-element arrangements — require ERP automation to comply with ASC 606.
Read full definitionA cloud financial management platform widely used by mid-market companies, nonprofits, and multi-entity organizations. Sage Intacct's dimensional accounting model and strong API make it a common integration target for ecommerce and operations platforms.
Read full definitionAn AP control requiring a vendor invoice to match both the original purchase order and the goods receipt before payment is approved. Reduces fraud and overpayment risk — and is a key integration touchpoint between procurement and ERP.
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