BUYING BASICS
The team responsible for sourcing the right products at the right time.
Who is the Buying Team?
The process of keeping the right amount of stock to meet demand without overstocking.
What is inventory control?
This team is typically responsible for proposing new items.
Who are category buyers?
Product evaluation is done regularly to determine this.
What is performance / profitability?
This term refers to the price at which a supplier sells goods to a retailer.
What is wholesale price?
The agreement outlining purchase details between buyer and seller.
What is a purchase order?
This ratio measures how often inventory is sold and replaced.
What is inventory turnover?
This type of product fills a gap in an existing assortment.
What is a complementary product?
A product that sells well and has consistent demand.
What is a fast-moving product?
This trade term means that the buyer is responsible for shipping costs and insurance.
What is FOB (Free on Board)?
Buyers often work closely with this department for pricing.
What is the Finance or Merchandising Department?
The ideal inventory condition—not too high, not too low.
What is optimal inventory level?
A newly launched product with high growth potential.
What is a breakout product?
Customer returns and complaints are a red flag during this.
What is product evaluation?
This term refers to the number of days a buyer has to pay for goods after receipt.
What is payment term / credit term?
The term for items bought in bulk to save cost.
What is volume buying / bulk purchase?
Overstocked items are also referred to as this.
What is dead stock / slow-moving inventory?
The process of verifying whether a new product fits our strategy.
What is product vetting / screening?
What is product evaluation?
What is a product matrix / comparison chart?
A commonly used trade term that includes delivery to a specific location at the seller’s cost.
What is DDP (Delivered Duty Paid)?
A product that brings customers into the store.
What is a traffic driver / loss leader?
The stock level that triggers a new order to prevent stockout.
What is reorder point?
This key metric shows how fast a new product sells in its first few weeks.
What is sell-through rate?
Removing a product from the shelf due to poor performance.
What is delisting / product phase-out?
The term used for discounts given for early payment of invoices.
What is a cash discount?