Computer Retailers Industry Terminology

Accessory Attach Rate

A retail metric showing the average number of accessories or services sold per primary device (e.g., peripherals per PC). Indicates cross-sell effectiveness and impacts basket profitability.

Train associates to boost the accessory attach rate on gaming laptops with headsets and mice

AOV (Average Order Value)

The average revenue per transaction, calculated as total revenue divided by number of orders. Used to gauge basket size and merchandising effectiveness.

Upselling RAM upgrades increased AOV by 12%

ASP (Average Selling Price)

The average price realized per unit sold across a product mix. Monitors pricing trends, promotional impacts, and product mix shifts.

GPU ASP declined as entry-level models came back in stock

BNPL (Buy Now, Pay Later)

A financing option allowing customers to split payments into installments, typically interest-free, at the point of sale. Can increase conversion and basket size but requires risk and fee management.

Adding BNPL at checkout reduced cart abandonment

BOPIS (Buy Online, Pick Up In Store)

An omnichannel fulfillment method where customers purchase online and collect items in-store. Improves convenience, reduces shipping costs, and can increase add-on sales.

BOPIS orders must be ready in under 30 minutes

COGS (Cost of Goods Sold)

Direct costs attributable to the products sold (e.g., purchase price, freight). Used to compute gross margin and assess profitability.

Include inbound freight in COGS for accurate margin

CLV (Customer Lifetime Value)

The projected net profit a retailer expects from a customer over the entire relationship. Guides investment in acquisition, retention, and loyalty programs.

Memberships can lift CLV via repeat accessory purchases

DDR5

The fifth generation of Double Data Rate SDRAM used in modern PCs, offering higher bandwidth and efficiency than DDR4. Impacts performance, compatibility, and price points.

Verify DDR5 compatibility in the motherboard spec

Demand Planning

The forecasting process used to align inventory levels with expected customer demand, factoring seasonality, promotions, and new product introductions.

Adjust Q4 demand plan for gaming laptops after new GPU launch

EMV

A global standard for chip-based payment cards and terminals, reducing fraud for card-present transactions and shifting certain liabilities to non-compliant parties.

All POS terminals must be EMV chip-enabled

EOL (End of Life)

The stage when a manufacturer ceases production or sales of a product. Retailers must manage sell-through, markdowns, and assortment transitions.

Plan markdowns ahead of the laptop’s EOL date

Extended Warranty (Protection Plan)

An optional service agreement extending coverage beyond the manufacturer’s warranty, often including accidental damage protection and on-site service.

Position ADP as a value add for student laptops

Facing

The number of product units or spaces facing the shopper on a shelf. Impacts visibility, perceived availability, and sales velocity.

Increase facings on top-selling mice to prevent outs

Form Factor

The physical size and configuration standard of hardware (e.g., ATX motherboards, SFF desktops, 2-in-1 laptops). Influences compatibility and merchandising.

Stock both ATX and mATX cases for builders

GMROI

Gross Margin Return on Inventory Investment: gross margin dollars generated per dollar of average inventory. Measures how efficiently inventory earns profit.

Cables have high GMROI despite low ASP

GPU

Graphics Processing Unit, a specialized processor for rendering and compute tasks. A key performance driver and margin category in computer retail.

Highlight CUDA cores and VRAM on PDPs

Halo Effect

The positive spillover in perception and sales from a standout product or brand to related items or categories.

Flagship gaming rigs create a halo effect for mid-range

Headless Commerce

An e-commerce architecture where the front-end experience is decoupled from back-end systems, enabling flexible UX, faster experiments, and omnichannel experiences.

Use headless to power fast PDPs and native apps

In-Stock Rate

The percentage of time a product is available for sale when customers want it. Critical for sales, customer satisfaction, and digital conversion.

Raise in-stock rate on Chromebooks before back-to-school

Inventory Turn

How many times inventory is sold and replaced over a period, often calculated as COGS divided by average inventory. Indicates inventory efficiency.

Accessories target 10x annual turns

JIT (Just-in-Time)

An inventory strategy that minimizes on-hand stock by timing deliveries close to when items are needed, reducing carrying costs and obsolescence risk.

Shift certain SKUs to JIT via distributor dropship

Kitting

The process of bundling multiple items into a single SKU for sale or fulfillment efficiency. Used for bundles, promos, and streamlined picking.

Create a back-to-school kit with laptop, sleeve, and mouse

Last-Mile Delivery

The final step of delivery from a local node to the customer’s location. A major driver of cost, speed, and customer satisfaction.

Offer same-day last-mile on high-ASP laptops

Long Tail

A strategy emphasizing a large assortment of niche SKUs that individually sell infrequently but collectively generate meaningful sales online.

Expand long-tail components online via dropship

MAP (Minimum Advertised Price)

A brand’s policy setting the lowest price a retailer may advertise for a product. Violations can risk co-op funds or supply allocation.

Scrub the site for MAP violations on premium monitors

Markdown

A price reduction from the regular retail price to accelerate sell-through, manage aging inventory, or respond to competition.

Schedule markdowns pre-EOL to clear inventory

NPI (New Product Introduction)

The process and timeline for launching a new product, including allocation, merchandising, training, and marketing coordination.

Align NPI dates with store resets and ad flights

NVMe

A high-performance storage protocol for SSDs that connects via PCIe, offering much faster speeds and lower latency than SATA-based drives.

Promote NVMe vs SATA SSD speeds on PDPs

OEM License

A software license sold to system builders for preinstallation on devices, typically non-transferable and tied to original hardware.

Clarify OEM Windows licenses are tied to the device

Omni-Channel

A seamless retail approach integrating online, mobile, and store experiences (pricing, inventory, service) so customers can shop across channels effortlessly.

Unify pricing and promos across omni-channel touchpoints

PCI DSS

A set of security standards for organizations that handle cardholder data, aiming to protect against fraud and data breaches.

Annual PCI DSS scans due next month

POS (Point of Sale)

The hardware and software used to complete sales transactions in-store; also refers to transactional and item-level sales data.

Upgrade POS to support tap-to-pay and EMV

QOH (Quantity On Hand)

The recorded count of units physically in inventory at a location. Critical for availability, replenishment, and accurate promises to customers.

QOH variance indicates shrink or receiving errors

RFID

Radio Frequency Identification technology for tagging and wirelessly identifying items. Improves inventory accuracy, visibility, and loss prevention.

Use RFID cycle counts to raise in-stock accuracy

RMA (Return Merchandise Authorization)

A formal process that authorizes and tracks product returns to the retailer or vendor, often with specific reason codes and workflows.

Issue an RMA for the DOA motherboard

Reverse Logistics

The operations involved in moving goods from customers back to the retailer or manufacturer, including returns, repairs, refurbishing, and recycling.

Streamline reverse logistics for holiday returns

Sell-In vs Sell-Through

Sell-in is shipments from vendor to retailer; sell-through is sales to end customers. Healthy sell-through validates demand and prevents channel inventory build-up.

Vendor sell-in was strong, but sell-through lagged

Shrink

Inventory loss from theft, damage, administrative errors, or vendor discrepancies. Reducing shrink protects gross margin.

Lock high-shrink SKUs like GPUs in secure fixtures

SKU (Stock Keeping Unit)

A unique identifier for each distinct product and variation a retailer sells. Enables inventory tracking, pricing, and analytics.

Normalize SKU attributes in the item master

Thunderbolt 4

A high-speed connectivity standard supporting data, video, and power over USB-C with strict certification and 40Gbps bandwidth.

Merch list TB4 ports on premium laptops

Trade-In

A program allowing customers to exchange used devices for store credit or cash. Drives upgrades, reduces e-waste, and supports affordability.

Boost trade-in credits to drive upgrade cycles

UPC (Universal Product Code)

A standardized retail barcode used to identify products for scanning at POS and in logistics. Essential for accurate transactions and inventory records.

Scan UPC to speed POS and receiving

USB-C Power Delivery (USB-C PD)

A specification allowing higher power delivery over USB-C, enabling fast charging and powering of laptops and peripherals with negotiated power profiles.

Stock 100W USB-C PD chargers for creator laptops

VAR (Value-Added Reseller)

A reseller that enhances products with services, customization, or integration, often selling into SMB and enterprise customers.

Our VAR desk handles SMB quotes and installs

VMI (Vendor-Managed Inventory)

An arrangement where the supplier monitors sales and inventory and replenishes stock for the retailer according to agreed targets.

Shift top keyboards to VMI to raise in-stock

Wi‑Fi 6E/7

Latest Wi‑Fi standards offering higher throughput, lower latency, and expanded spectrum (6GHz for 6E; further enhancements in Wi‑Fi 7). Key for networking category upgrades.

Feature Wi‑Fi 7 routers in premium endcaps

WMS (Warehouse Management System)

Software that manages warehouse operations, including receiving, put-away, picking, packing, and shipping, with inventory location and labor optimization.

WMS wave picking sped up BFCM orders

x86 Architecture

A widely used CPU instruction set architecture for PCs and servers. Determines software compatibility and performance characteristics.

Explain x86 vs ARM trade-offs to shoppers

Year-over-Year (YoY) Growth

A comparison of a metric to the same period in the previous year, used to evaluate true growth while controlling for seasonality.

Monitor YoY comps for gaming during Q4

Zero Inventory Model

A retail strategy minimizing owned stock by relying on dropship, marketplaces, or just-in-time supply, reducing carrying costs and obsolescence risk.

Use a zero inventory model plus dropship for long-tail parts