Glossary

RFID and retail inventory glossary

This glossary explains the RFID and retail inventory terms you will meet when moving a store or warehouse to RFID, from unique identifiers and read range to cycle counts, shrinkage and weighted average cost. Each definition is short, written in plain English, and links to the Orixya page where the concept is used in practice.

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Last updated: September 28, 2026

How should I use this glossary?

Use it as a reference while reading our guides or talking to hardware suppliers. Terms are grouped loosely from tags and readers, to counting, to accounting. If a term you need is missing, contact us and we will add it.

EPC (Electronic Product Code): The unique identifier stored on a UHF RFID tag, linking it to one individual item and its product and variant. Where a barcode identifies a product type, this identifier points to one specific piece, which is what lets RFID count and locate individual items. Learn more
TID (Tag Identifier): A read-only serial number burned into the RFID chip by its manufacturer. Unlike the rewritable unique identifier, it cannot be changed, so it is useful for verifying that a tag is genuine or for tracing a tag after its identifier is rewritten. Learn more
UHF RFID (RAIN RFID): Ultra-high-frequency RFID, also branded RAIN RFID. Passive UHF tags need no battery and can be read in bulk from a distance, which makes them the standard for retail apparel inventory. Learn more
HF / NFC: High-frequency RFID, including NFC used by phones and payment cards. It reads only at very short range, one tag at a time, so it suits tap interactions and access cards rather than counting a store. Learn more
Inlay: The working part of an RFID tag: a small chip bonded to an antenna on a thin film. The inlay is embedded into hang tags, sewn-in care labels or adhesive stickers. Learn more
Hang tag vs label: A hang tag is attached to the garment and removed after purchase; a label is sewn in or stuck on. Hang tags are the usual starting point for retailers because they can be applied in the store without changing supplier production. Learn more
Read range: The distance at which a reader can read a tag. It depends on the reader, antenna power, tag design and surroundings; metal and liquids shorten it. Longer range is not always better, since it can read tags in the next room. Learn more
RSSI: Received Signal Strength Indicator: how strong a tag’s reply is at the reader. Locate mode uses rising RSSI to guide you toward a specific item, beeping faster as you get closer. Learn more
Antenna power: The transmit power of a reader. Higher power reads farther; lower power keeps reads focused on the rack in front of you. Counting and locating usually need different settings. Learn more
Fixed reader: An RFID reader mounted in place with one or more antennas, reading tags that pass or sit within its field without anyone pulling a trigger. Typical spots are receiving bays, stock-room doors and dispatch points. Orixya works with standard UHF RAIN RFID readers; we help you choose. Learn more
RFID gate: A pair of antennas at a doorway, often called a portal, that reads tags as goods pass through. Gates record items entering or leaving a location automatically, for example cartons moving through a dock door. Learn more
Encoding / commissioning: Writing a unique identifier to a blank tag and linking it to a product and variant in the system. It can happen at print time on an RFID printer or later with a handheld reader. Learn more
Cycle count: Counting part of your inventory on a regular schedule instead of everything once a year. RFID makes frequent cycle counts practical because a store area can be read quickly. Learn more
Stocktake: A full physical count of all inventory at a location, traditionally done once or twice a year, often with the store closed. With RFID, a full stocktake becomes a routine sweep. Learn more
Shrinkage: Inventory that is recorded in the system but no longer physically exists, through theft, damage, errors or unrecorded movements. Item-level counts reveal it early, while it can still be investigated. Learn more
Misplaced item: An item found in one location while the system records it at another. It usually signals an unrecorded transfer rather than a loss, so it should be relocated, not written off. Learn more
Par level (reorder threshold): The minimum quantity you want on hand for a product or variant. When stock falls to it, a low-stock alert tells you to reorder or transfer. Learn more
Variant / SKU: A variant is one specific version of a product, such as a shirt in medium and black. Each variant usually has its own SKU so stock, sales and reorders are tracked at that level. Learn more
Weighted average cost (WAC): An inventory costing method where each unit’s cost is the average of what you paid across purchases, weighted by quantity. It gives a stable cost for margin reporting as purchase prices change. Learn more
COGS (cost of goods sold): The cost of the items you sold in a period. Subtracting COGS from sales revenue gives gross margin, so accurate COGS depends on accurate inventory costs. Learn more
Double-entry accounting: Bookkeeping in which every transaction is recorded as equal debits and credits in at least two accounts, so the books always balance. It is the basis of financial statements and audits. Learn more
Markdown: A planned price reduction, such as an end-of-season sale. A markdown campaign applies the sale price for a set period across channels and records the discount separately in the books. Learn more
Multi-currency / dual currency: Accepting payments in more than one currency on one till, for example US dollars alongside a local currency, with each payment recorded in its own currency so the drawer and the books can be reconciled. Learn more

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How should I use this glossary?

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