Complete List of eCommerce Glossary

Welcome to our comprehensive list of ecommerce terms. Stay informed and up-to-date in the fast-paced world of online retail with clear definitions and explanations of key concepts. Empower yourself with the latest ecommerce vocabulary, insights, and knowledge to navigate and succeed in the digital marketplace.

A-B

A/B Testing

Comparing two versions of a webpage to see which performs better in driving conversions.

Affiliate Marketing

A marketing strategy where affiliates earn commissions for promoting products through trackable links.

API (Application Programming Interface)

A set of protocols for building software and enabling integration between different platforms.

Attribution Model

A method used to determine how credit for sales and conversions is assigned to different touchpoints in the customer journey.

Attribution Model

A method used to determine how credit for sales and conversions is assigned to different touchpoints in the customer journey.

Average Order Value (AOV)

The average amount customers spend per transaction.


B2B (Business to Business)

A model where businesses sell products or services to other businesses.

B2C (Business to Consumer)

Selling products directly to individual consumers.

Bounce Rate

The percentage of visitors who leave a site after viewing only one page.

Brick and Mortar

A business with a physical storefront.

Bundling

Selling multiple products together at a discounted price.

Buyer Persona

A profile representing a typical customer’s goals, habits, and pain points.

C-D

Call-to-Action (CTA)

An element prompting users to take a specific action, like "Buy Now."

Cart Abandonment

When shoppers add items to their cart but don’t complete the purchase.

Checkout Process

Steps customers go through to complete a purchase, from cart to payment.

Conversion Rate

The percentage of visitors who complete a desired action, like making a purchase.

Cross-selling

Recommending additional products related to the current purchase.

Customer Journey

The steps a customer takes from first interaction to final purchase.

Customer Lifetime Value (CLV)

The total revenue a business can expect from a single customer over their relationship.

Customer Retention

Efforts to keep customers returning for future purchases.

Customer Relationship Management (CRM)

Technology used to manage interactions with current and potential customers.

Conversion Funnel

The journey a customer takes from awareness to making a purchase.


Direct-to-Consumer (D2C)

A model where brands sell directly to customers, bypassing third-party retailers.

Discount Code

A code offering customers a price discount or special offer.

Dropshipping

A fulfillment model where a third party handles stock and shipping.

Dynamic Pricing

Pricing strategy that automatically adjusts prices based on real-time supply and demand.

E-F

Ecommerce

The buying and selling of goods and services online.


Frictionless Checkout

Optimizing the checkout process to reduce steps and remove obstacles to completing a purchase.

Fulfillment

The process of preparing and shipping an order to the customer.

G-H

Gross Merchandise Value (GMV)

The total value of merchandise sold over a period through a marketplace.


Headless Commerce

Separating the front-end user experience from the back-end e-commerce system.

Heatmap

A visual representation of how users interact with a webpage, showing where they click, scroll, and linger.

I-J

Inventory Management

Tracking and managing stock levels for sales and fulfillment.

K-L

KPI (Key Performance Indicator)

A measurable value that indicates how effectively a business is achieving key objectives.


Landing Page

A specific page designed to capture visitor interest and drive conversions.

Logistics

Managing the flow of goods from production to customer delivery.

M-N

Marketplace

A platform where multiple vendors sell products, like Amazon or Etsy.

Mobile Commerce (M-Commerce)

Buying and selling products through mobile devices.

Mobile Commerce (M-Commerce)

Buying and selling products through mobile devices.

Multichannel Retailing

Selling products through multiple sales channels, like marketplaces, social media, and brick-and-mortar stores.

O-P

Omnichannel

A seamless shopping experience across multiple channels, like online and in-store.

Order Management System (OMS)

Software for tracking sales, orders, inventory, and fulfillment.


Payment Gateway

A service that securely processes credit card payments for online purchases.

Payment Processor

A service that handles transactions between buyers and merchants, separate from the payment gateway.

Personalization

Customizing the shopping experience based on user data and preferences.

Product Information Management (PIM)

Centralized management of product details for accurate and consistent display.

Product Page

A webpage showing details, images, and price for a specific product.

Purchase Frequency

How often a customer makes a purchase in a given time frame.

Q-R

QR Code

A machine-readable code used to provide quick access to product or promotional information.


Recommendation Engine

Technology suggesting products based on user behavior and preferences.

Responsive Design

Ensuring a website adjusts for optimal display on different devices.

Return Policy

Guidelines for customers returning products.

ROAS (Return on Advertising Spend)

A marketing metric measuring the revenue generated for each dollar spent on advertising.

S-T

Search Engine Optimization (SEO)

Techniques to increase a website's visibility on search engines.

Shopping Cart

An online feature that holds selected items for purchase.

SKU (Stock Keeping Unit)

A unique identifier for each product or variant in inventory.

Social Commerce

Using social media platforms to facilitate purchases.

SSL (Secure Sockets Layer)

A security protocol ensuring encrypted data transmission on websites.


Third-Party Logistics (3PL)

Outsourced services for warehousing, fulfillment, and distribution.

U-V

Upselling

Encouraging customers to purchase a higher-end product or add-ons.

User Experience (UX)

The overall experience and usability of a website for users.

User-Generated Content (UGC)

Content created by customers, such as reviews, photos, and videos, often used for marketing.Webrooming - When consumers research products online before purchasing them in a physical store.


Voice Search

Using voice commands to search for products online.

W

Wish List

A feature allowing customers to save items they’re interested in for future reference.

Z

Zero-Party Data

Information that customers intentionally share with a brand, such as preferences or feedback.

1

1-Click Checkout

A feature allowing customers to complete a purchase with a single click by using saved payment and shipping details.

First-Party Logistics (1PL)

A logistics model where the business (often the manufacturer or retailer) manages its own transportation and distribution of goods. In 1PL, all aspects of the logistics process are handled internally, with no outsourcing to third parties.

2

Second-Party Logistics (2PL)

A logistics model where a business contracts a carrier or transportation company to move goods between locations. In 2PL, services are generally limited to transportation without additional warehousing, inventory, or supply chain management.

24/7 Customer Support

Round-the-clock customer service availability to assist users at any time of the day, crucial for enhancing the customer experience and satisfaction.

2-Factor Authentication (2FA)

A security measure that requires two verification steps to access an account, is commonly used to protect sensitive information in e-commerce accounts.

3

3PL (Third-Party Logistics)

Outsourced logistics services, including warehousing, fulfillment, and distribution, are used by e-commerce businesses to manage supply chain operations.

301 Redirect

A permanent redirect from one URL to another, ensures users and search engines are directed to the correct page when the URL has changed.

302 Redirect

A temporary redirect from one URL to another is often used for short-term campaigns or tests without affecting search engine rankings.

360-Degree Product View

An interactive feature that allows customers to view products from all angles, enhancing the online shopping experience.

4

404 Error

A common error code that appears when a webpage can’t be found. It's essential to handle 404s to maintain a smooth user experience.

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