Card and Gift Shops Industry Terminology

A2/A7 Envelope Sizes

Standard envelope formats widely used for greeting cards and invitations, critical for sizing card designs and packaging. A2 is 4.375 x 5.75 inches and fits 4.25 x 5.5 inch cards; A7 is 5.25 x 7.25 inches and fits 5 x 7 inch cards.

Do we need A2 or A7 for this design?; Please order 2,000 A7 kraft envelopes; Resize artwork to fit an A2 panel.

AOV (Average Order Value)

Average revenue per transaction, calculated as total revenue divided by number of orders; used for pricing, promotion, and upsell planning.

Run a gift-wrap upsell to lift AOV; Our AOV rose from $24 to $31 after bundling; Free shipping threshold set at 120% of AOV.

Assortment Planning

The strategic selection of product breadth and depth across categories, occasions, and price tiers to meet demand and brand goals.

We need deeper birthday cards and fewer blank notes; Balance price points: good-better-best; Expand indie maker candles for Q4 assortment.

Backorder

Customer or store orders accepted for items currently out of stock that will be fulfilled when inventory arrives.

That mug is on backorder until next month; Offer a substitute to avoid backorders; Backorders are hurting our holiday fill rate.

BOPIS (Buy Online, Pick Up In Store)

An omnichannel service where shoppers place orders online and collect them in-store, improving convenience, speed, and store traffic.

Enable BOPIS for last-minute gift cards; Allocate inventory for BOPIS orders; Promote BOPIS cutoff times before Valentine’s Day.

COGS (Cost of Goods Sold)

Direct costs to acquire or produce the merchandise sold (e.g., wholesale cost, materials, inbound freight), used to calculate margin.

Foil cards have higher COGS than digital prints; Keep COGS under 50% to maintain keystone; Freight-in must be included in COGS.

Consignment

A retail arrangement where vendors retain ownership of goods and are paid only when items sell, common with local makers.

Local artists can stock on consignment at 60/40; Reconcile consignment sales monthly; Unsold consignment items are returned after 90 days.

CRM (Customer Relationship Management)

Systems and processes to manage customer data, preferences, and communications for targeted marketing and loyalty.

Tag VIPs in the CRM for early access; Send birthday promos via the CRM; Sync POS emails to the CRM for segmentation.

Cross-Merchandising

Displaying complementary products together to increase basket size and impulse purchases.

Cross-merch cards with wrap and ribbons; Place candles next to matches and trays; Bundle journals near pens for add-ons.

Die-Cut

A finishing technique where paper is cut into custom shapes with a steel rule die, adding interest to cards and tags.

Offer die-cut cards shaped like cupcakes; The die-cut edge increases unit cost; Ensure cello sleeves fit die-cut silhouettes.

Drop Shipping

Fulfillment model where the supplier ships orders directly to the customer on the retailer’s behalf, reducing inventory holding.

The vendor can drop ship personalized gifts; Add a drop-ship fee to cover packing; We’ll test drop ship for oversized prints.

EMV (Chip Card Standard)

Global standard for smart payment cards (chip) and terminals that authenticate transactions and shift fraud liability.

Our POS must support EMV dip and tap; EMV compliance reduces fraud liability; Replace the magstripe-only reader with EMV.

Endcap

Prime display at the end of an aisle used to highlight seasonal, promotional, or new items to maximize visibility and sales.

Reserve the front endcap for Mother’s Day; Create an endcap color story; Endcap rotation boosts new line visibility.

Fair Trade

Goods certified as ethically produced with fair wages and sustainable practices, valued by conscientious shoppers.

Stock Fair Trade baskets with artisan stories; Label Fair Trade items in signage; Customers ask for Fair Trade chocolate.

Foil Stamping

A printing finish that applies metallic or pigmented foil to paper using heat and pressure for a reflective, premium look.

Premium cards use gold foil stamping; Add holographic foil for holiday; Foil stamping requires higher MOQs.

Gross Margin

The difference between retail price and COGS, expressed in dollars or percent, indicating profitability per item.

Maintain 55% gross margin on cards; Margin dollars matter more than volume; Check freight impact on gross margin.

GWP (Gift-With-Purchase)

A promotion where a free gift is offered when customers buy a qualifying product or spend threshold to increase conversion and AOV.

Free ribbon with any wrap roll GWP; Set a $40 threshold for the GWP; Track redemption to gauge GWP lift.

Hang Tag

A product tag attached by string or fastener carrying brand, price, size, SKU, and barcode information.

Include SKU and price on hang tags; Use branded hang tags for candles; Hang tags must scan at POS.

Holiday Calendar

A schedule of key retail dates (Valentine’s, Mother’s Day, Graduation, Holiday) used to time buying, promotions, and staffing.

Lock buys 120 days ahead of Valentine’s; Map calligraphy workshops to the holiday calendar; Ramp staffing for Q4 per calendar.

Impulse Zone

Space near checkout curated with small, high-margin items designed to drive last-minute add-on purchases.

Stock the impulse zone with mini cards; Add lip balms and keychains near POS; Use clip strips for impulse add-ons.

Inventory Turnover

The rate inventory is sold and replaced over a period, typically COGS divided by average inventory; indicates efficiency.

Target 4–6 turns on core gifts; Slow turns signal markdowns; Raise turns by tightening on-hand targets.

Keystone Pricing

A common retail rule of thumb of doubling wholesale cost (about 50% gross margin) to set retail prices.

Keystone that $8 wholesale candle at $16; Exceptions for commodity items; Use 2.5x on low-cost novelties.

Kitting

Assembling multiple items into a single sellable set or bundle for convenience, differentiation, and higher AOV.

Kit notebook + pen + pouch into a gift set; Create a new SKU for the kit; Set assembly SOPs for kitting days.

Lead Time

The time from placing a purchase order to receiving goods, including production and transit; essential for planning.

The letterpress vendor has 6-week lead time; Pad lead time ahead of holidays; Factor customs into lead time.

Letterpress

A relief printing technique that debosses inked type or plates into thick paper, prized for tactile, premium cards.

Charge a premium for letterpress cards; Ensure thicker cotton stock for letterpress; Market the tactile impression.

MAP (Minimum Advertised Price)

A brand policy setting the lowest price a retailer may advertise, protecting brand value and margin across channels.

Follow the maker’s MAP of $5.95; Don’t advertise below MAP online; MAP holiday exceptions require approval.

Merchandising

The art and science of presenting products (layout, props, signage, photography) to maximize engagement and sales.

Refresh the card wall weekly; Build color stories on the front table; Use signage to tell brand stories.

MOQ (Minimum Order Quantity)

The smallest quantity a supplier will accept per order or per SKU, affecting cash flow and assortment breadth.

The candle line’s MOQ is 24 units; Negotiate a lower MOQ for first order; Consolidate SKUs to hit MOQ.

Net Terms (e.g., Net 30)

Payment arrangements allowing retailers to pay invoices a set number of days after shipment or invoice date.

We have Net 30 with that vendor; Ask for Net 60 for Q4; Early-pay discount 2/10 Net 30 offered.

Omnichannel

A unified retail approach integrating stores, e-commerce, and marketing so customers can shop seamlessly across touchpoints.

Unify inventory for web and store; Offer BOPIS and ship-from-store; Keep pricing consistent omnichannel.

Open-to-Buy (OTB)

A budget planning tool that calculates how much inventory to purchase to meet sales goals without overstocking.

Our OTB for Q3 gifts is $18k; Hold OTB for NSS finds; OTB is tight—delay reorders until sell-through improves.

PCI DSS (Payment Card Industry Data Security Standard)

Security standards governing how businesses handle cardholder data to reduce fraud and protect customers.

Complete the annual PCI SAQ; Never store raw card data; Use a PCI-compliant payment gateway.

Personalization

Customizing products or messaging to an individual (names, monograms, engraved dates), often driving premium pricing.

Offer monogramming on journals; Personalized name ornaments sell out; Add custom message options online.

Planogram

A schematic that specifies product placement, facings, and spacing on shelves or fixtures to optimize sales and replenishment.

Follow the planogram for the card wall; The planogram calls for 4 facings per style; Update planograms each season.

POS (Point of Sale)

The system that processes transactions, manages inventory, and captures customer data in-store and online.

Upgrade the POS for contactless payments; Tie POS to inventory in real time; Track UPT and AOV in POS reports.

Prop 65 Warning

California law requiring warnings if products expose users to certain chemicals; impacts labeling for candles, ceramics, inks, etc.

Add Prop 65 labels to candles; Post in-store Prop 65 signage; Vendor provides Prop 65 documentation.

Reorder Point (ROP)

The inventory level that triggers a new purchase order, factoring demand during lead time and safety stock.

Set ROP for top 100 SKUs; ROP = demand during lead time + safety stock; Raise ROP before Mother’s Day.

Seasonality

Recurring demand patterns tied to holidays, weather, and school calendars that shape buys, staffing, and promotions.

Q4 is peak for candles and wrap; Valentine’s cards need early buys; Adjust staffing for seasonal surges.

Sell-Through Rate

The percentage of received inventory sold over a period, used to evaluate product performance and buying decisions.

Target 70% sell-through by week 6; Mark down items under 30% sell-through; Compare sell-through by vendor.

SEO (Search Engine Optimization)

Techniques to improve organic search visibility of store and product pages, driving traffic and sales.

Optimize product titles with occasion keywords; Add local SEO for ‘gift shop near me’; Use schema for products.

SKU (Stock Keeping Unit)

A unique identifier for each distinct product variant used for inventory tracking, pricing, and reporting.

Assign unique SKUs to each card design; Avoid duplicate SKUs across vendors; Count SKUs to manage assortment breadth.

Slatwall

Grooved wall panels that accept shelves and hooks, offering flexible vertical merchandising space.

Add slatwall behind the cash wrap; Use shelves and hooks on slatwall; Rearrange slatwall for seasonality.

Spinner Rack

A rotating floor fixture commonly used for greeting cards, postcards, keychains, and small gifts to maximize display in small footprints.

Place a spinner rack near the door; Load spinner with postcards and gift tags; Track spinner facings by bestsellers.

Ticketing & Tagging

The process of labeling merchandise with prices, barcodes, and security tags to enable scanning and loss prevention.

Price and barcode new arrivals before floor set; Apply theft tags to high-shrink items; Standardize ticket placement.

Tiered Pricing

Price levels that change based on quantity purchased or customer segment to encourage larger baskets or reward loyalty.

Offer tiered pricing: 1 for $5 or 5 for $20; Wholesale tiered by order size; Member tiers unlock better pricing.

Trend Forecasting

Researching and predicting future styles, colors, and themes to inform buys and product development.

Plan 2026 lines from trend reports; Order colors aligned with forecasted palettes; Follow NSS trend talks.

UPC (Universal Product Code)

A standardized 12-digit barcode used in North America to identify products for scanning and inventory control.

Request UPCs for each candle scent; Scan UPCs at receiving; Assign store UPCs to maker items.

UPT (Units Per Transaction)

Average number of items sold per transaction; a key metric for add-on selling and merchandising effectiveness.

Goal is 2.3 UPT this month; Train staff on add-on questions to grow UPT; Merch spinners near POS to lift UPT.

Visual Merchandising

The creative presentation of products and spaces (windows, tables, color stories, lighting) to attract and guide shoppers.

Create a focal table for new arrivals; Use odd-number groupings; Refresh windows biweekly.

Wholesale

Purchasing goods from suppliers at a discounted price for resale at retail, typically governed by MOQs and payment terms.

We buy at 50% wholesale and keystone; Meet vendor MOQs on wholesale orders; Evaluate wholesale terms before onboarding.