Reference

Fulfillment & E-commerce
Logistics Glossary

Short, practical definitions of the 10 terms every DTC operator and 3PL buyer should know. Written for founders evaluating fulfillment partners in Ukraine and the EU.

Fulfillment

The logistics layer between a customer clicking "buy" and the order arriving at their door. Includes receiving, storage, picking, packing, shipping, and returns.

Outsourcing fulfillment means handing physical operations to a 3PL and paying per activity (per-order handling, per-cubic-meter storage). For brands shipping into the EU, Ukraine-based fulfillment beats German or Czech 3PLs on landed cost by 40–60%. Full breakdown in the What is Fulfillment pillar. Rates — pricing page.

3PL (Third-Party Logistics)

An external logistics provider running warehouse and shipping operations for an online store or B2B seller.

The "third party" sits between the manufacturer/seller and the end customer. The PL hierarchy: 1PL — the seller self-ships; 2PL — a hired carrier; 3PL — full warehouse + shipping outsourcing; 4PL — a manager coordinating multiple 3PLs. For DTC brands entering the EU via Ukraine, a local 3PL is the baseline infrastructure. See 3PL logistics in Ukraine.

FBA / FBO / FBS

Three models for how a seller splits inventory and fulfillment with a marketplace.

FBA (Fulfillment by Amazon)
The original Amazon program — inventory lives on Amazon's warehouses, Amazon picks and ships. See the FBA history on Wikipedia. The term is often used generically for "fulfilled by the marketplace."
FBO (Fulfillment by Operator)
Inventory stored and shipped by a marketplace operator or a 3PL partner. In Ukraine: Rozetka FBO, Prom.ua FBO, Kasta FBO.
FBS (Fulfillment by Seller)
Inventory stays at the seller's warehouse; the marketplace only routes orders; the seller picks, packs, and hands to a carrier. Works when you already have warehouse capacity.

RealFBS — a hybrid: your 3PL (e.g. MTP Group) fulfills to marketplace standards, but shipping moves through marketplace logistics. The practical middle ground for most SMB sellers.

Pick and Pack

Picking items from warehouse bins and packing them for shipment. The primary billable event in fulfillment pricing.

Picking: a picker works a WMS-optimized route, scans barcodes at each bin, and the system blocks mis-picks at the scanner. Modern approaches: voice-picking, pick-by-light, batch-picking (combining multiple orders in one tour).

Packing: right-size carton selection, protective fill (bubble wrap, paper void fill), carrier label printing, inserts (invoices, thank-you cards, promo codes). MTP Group's pick accuracy runs at 99.7%.

WMS (Warehouse Management System)

Software that runs a warehouse: bin-level addressable storage, pick routing, real-time inventory, analytics.

Without a WMS, a warehouse runs on the floor manager's memory — it cannot scale. With a WMS, every SKU has a bin address, every movement is barcode-scanned, and integrations push real-time stock into Shopify, WooCommerce, BigCommerce, Rozetka, Prom.ua via API or webhook. MTP Group operates a proprietary WMS with out-of-the-box connectors for all major Ukrainian marketplaces and international e-commerce platforms.

SKU (Stock Keeping Unit)

A unique identifier for one product variant. One SKU = one concrete product in one size/color/packaging.

Example: a "Basic White T-shirt" available in 3 sizes × 4 colors = 12 SKUs. Each SKU tracks its own stock level, velocity, return rate. On packaging, SKUs appear as barcodes (EAN-13, Code 128, GTIN). Clean SKU hygiene is the foundation for accurate inventory, correct pick tickets, and honest ABC-XYZ analysis.

SLA (Service Level Agreement)

Contractual guarantees from the fulfillment operator: cutoff time, pick accuracy, response time, returns handling.

Typical fulfillment SLAs: cutoff (when an order still ships today), pick-to-ship time, pick accuracy (%), manager response time, returns turnaround. MTP Group operates a 15:00 same-day cutoff, four daily carrier pickups, 99.7% pick accuracy, and a 15-minute response window during business hours.

Cross-docking

A logistics model where goods move directly from the inbound dock to an outbound truck without warehouse storage.

Used for fast-moving categories (grocery, seasonal goods) where storage is unnecessary. Shortens lead time but demands precise inbound/outbound scheduling. For most DTC brands, classic fulfillment with storage is the right default; cross-docking is an edge case.

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