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Logistics Overview
Logistics Glossary
3 min read

The glossary below contains definitions of terms related to the Shipping module.

TermMeaningLearn more
Additional shipping chargeExtra costs that may be added to the shipping rates. There are four types of additional charges:
- Weight-based additional charge
- Price-based additional charge
- Additional insurance charge
- Additional shipping charge
Additional shipping charge
Cargo/Package splittingWhen the total weight calculation exceeds the limit accepted by the carrier, this feature allows you to split the items in the shopping cart and send them in more than one package.- Cargo split
- Order split and delivery split
Critical inventoryName for the low inventory alert.Critical inventory
Cubic weight factorIt is the ratio between the weight and the volume of a package. This factor helps estimate the package's mass and space required for delivery.Cubic weight factor
DeliveryIn this option, the customer receives their orders at a given address.
Delivery capacityThe maximum number of deliveries in a period of time.Delivery capacity
Delivery channelsType of delivery: shipping and pickup points. The shipping option is when the customer receives the order at the given address, usually delivered by a carrier. The pickup point is where the product will be available for the customer to pick up.
Flat rate (shipping)Base rate of the shipping rate.Shipping rates
InventoryList of SKUs in stock and their respective quantities.Inventory
Loading dockEntity that links the warehouse to a shipping policy.Loading dock
Loading dock rateAdditional cost for handling products from the warehouse to the loading dock. This value is configured in Warehouses, in the Loading dock relationship section.Filling in warehouse fields
MarketplaceStore responsible for selling the items, but not for shipping them.Marketplace
ModalClassification of the items' types to be delivered by the carriers.Modal
PackageRefers to a set of items from an order that are wrapped together. A single order can have more than one package.Order split and delivery split
Pickup pointsPhysical locations for customers to pick up their orders.Pickup points
SellerStores that are responsible for shipping the orders, but not necessarily for selling them.Seller
White label sellersA seller that is not specified for the end customer. The customer does not know which store is responsible for shipping the product, only the marketplace. Generally used for franchise accounts.White Label Sellers selection
Shipment/package groupConfiguration for grouping packages for shipment to minimize preparation and pickup time.Shipment
ShippingA package can be delivered (to the customer's address) or picked up (by the customer at a certain location).
Shipping policyIt describes prices and deadlines agreed upon by the store and the carrier.Shipping policy
Shipping rate templateA spreadsheet where you enter shipping cost options offered by a specific carrier.Shipping rate template
Shipping ratesThe costs set up in Shipping policies. Composed of the flat rate and additional shipping costs.Shipping rates
Shipping simulatorA tool for shipping simulation. It analyzes SKU availability, carriers, and pickup points.Shipping Simulator
SKUStock Keeping Unit. The basic unit of a product in the catalog (e.g., product "shirt" with SKU "blue shirt M size").SKU
SLAService Level Agreement. In VTEX logistics, it means the agreement between the store and the customer on the estimated delivery time. This estimate considers shipping and loading dock policies.SLA
Total shipping costThe final shipping cost, considering fixed, additional, and dock costs.Total shipping cost
Trade policyA set of business settings for adjusting strategies (currency, country, shipping, pricing, customers, catalogs, and payment methods).Trade policy
WarehouseThe storage location of the store's goods.Warehouse
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