Wholesale Terms Explained: FOB, MOQ, Pickup and More
Nov 14, 2026 · 1 min read
A plain-English glossary of the terms you will see in wholesale listings and offers, and what each one means for your total cost.
Wholesale listings use short terms that change who pays for what. Here is what they mean in practice.
MOQ (minimum order quantity)
The smallest order a supplier accepts, in units, cases or pallets. Ask whether a lower first order is possible: many suppliers agree for a trial at a slightly higher price.
Price per unit vs. price per lot
A per-unit price is multiplied by your quantity. A lot price is for the whole lot as listed, often used for overstock and liquidation.
FOB (Free on Board)
In U.S. domestic trade, "FOB [place]" usually tells you where responsibility for the goods passes to the buyer. "FOB Dallas" typically means you arrange and pay for freight from Dallas. Always confirm the exact meaning with the supplier in writing.
Pickup
You or your carrier collect the goods from the supplier's location. Check the dock hours, whether there is a loading dock and if a forklift is available.
Seller ships
The supplier arranges delivery. Ask whether the price includes freight and insurance, or if they are added.
Lead time
The time between your order and when goods are ready to ship.
Condition terms
- New: unused, original sealed packaging.
- Open box: opened, complete, not used.
- Refurbished: inspected and repaired to working condition.
- Used: previously used; ask for photos of the actual units.
Before you pay
Put price, quantity, condition, delivery terms and payment terms in one written confirmation. Gorvado connects businesses; the deal is between you and the supplier.