Ecommerce Glossary

“Above the fold”: refers to the portion of a webpage that is visible without scrolling. It typically includes a site’s most important content and is crucial for capturing a user’s attention. Mobile devices have shifted the definition, but the principle remains the same: prioritize key content at the top.

Affiliate marketing: is a type of online marketing in which a business rewards affiliates for promoting their products or services. Affiliates earn a commission for each sale they generate through their unique tracking links. This allows businesses to expand their reach while affiliates can earn income through their website or social media channels.

Amazon Brand Registry: is a program designed to help brand owners protect their intellectual property and create an accurate representation of their brand on Amazon. It provides access to a suite of tools and features, including enhanced brand content, predictive automation, and global search. The program helps brands to gain more control over their product listings and presence on Amazon.

Amazon Dropshipping: is a business model where sellers list products on Amazon but fulfill orders using a third-party supplier. The seller doesn’t hold inventory and only orders items from the supplier when a customer makes a purchase. While technically allowed on Amazon, it’s a complex model that comes with various risks and challenges.

Amazon Marketplace: Amazon Marketplace is an online platform that allows third-party sellers to sell their products alongside Amazon’s own offerings. The platform provides tools and resources to help sellers list their products, fulfill orders, and manage their businesses on Amazon. With over 2.5 million active sellers, the Marketplace is a significant source of revenue for Amazon.

Attribution model: An attribution model is a set of rules that determines how credit for a conversion is assigned to different marketing touchpoints. It helps marketers understand which channels and tactics are driving the most significant impact on their business. Common attribution models include first-touch, last-touch, and multi-touch models, among others.

Average order value: Average order value (AOV) is a metric that represents the average amount of money spent by a customer per order. It’s calculated by dividing the total revenue generated by the number of orders placed. Increasing AOV is a common strategy for growing revenue and profitability, often achieved through cross-selling and upselling.

Below the fold: refers to the portion of a webpage that is not immediately visible when the page loads and requires scrolling to access. Content placed below the fold may receive less attention and engagement from users. It’s essential to balance above and below the fold content and ensure that critical information is presented upfront.

BigCommerce: is an e-commerce platform that enables businesses to create and manage online stores. It offers a range of features, including website design, payment processing, order management, and marketing tools. BigCommerce is known for its scalability, making it an excellent option for growing businesses looking to expand their online sales channels.

Blog: A blog is a website or section of a website that features regularly updated content, often in the form of written articles or posts. It can cover a wide range of topics and can be used for personal, professional, or business purposes. Blogs often include features for readers to comment and engage with the content.

Bounce rate: is a web analytics metric that measures the percentage of visitors who leave a website after viewing only one page. It can indicate a lack of engagement or relevance with the content, although there may be other factors at play. A high bounce rate can be an opportunity to improve website design, content, or navigation.

Brick and Mortar: refers to physical, physical retail stores or business locations that customers can visit in person. This term is often used to distinguish traditional, physical retail establishments from e-commerce or online-only businesses. Brick and mortar stores offer customers the opportunity to see, touch, and experience products before making a purchase.

Bundling: refers to the practice of selling two or more products or services as a single combined package. By offering products together, companies can increase sales, offer convenience to customers, and potentially earn more revenue than they would selling each item separately.

Business to business (B2B): refers to transactions that occur between two businesses. In this type of commerce, a company sells products or services to another company or organization rather than selling directly to consumers. B2B transactions often involve larger quantities of goods, longer sales cycles, and more complex negotiations than B2C transactions.

Business to Consumer (B2C): refers to the sale of goods and services directly to consumers. In this type of commerce, businesses market and sell products or services to individual customers, rather than other businesses or organizations. B2C transactions typically involve smaller quantities of goods and services, shorter sales cycles, and simpler purchase decisions than B2B transactions.

Buy Box: The Buy Box is a section on Amazon’s product detail page where customers can directly add items to their cart. It’s awarded to one seller at a time based on factors such as product availability, price, and fulfillment speed. Winning the Buy Box is essential for third-party sellers to maximize sales on Amazon.

Buyer persona: A buyer persona is a semi-fictional representation of a company’s ideal customer based on market research and real data about existing customers. It includes demographic information, purchasing behavior, motivations, and pain points. Buyer personas help companies create targeted marketing strategies and improve product development to better meet the needs of their customers.

Call To Action: A Call To Action (CTA) is a prompt designed to encourage a user to take a specific action, such as buying a product, filling out a form, or subscribing to a newsletter. CTAs are often displayed as buttons or links on websites, emails, or advertisements and can be essential in guiding customers towards conversion.

Cart abandonment rate: is the percentage of online shoppers who add items to their online shopping cart but leave the website before completing the purchase. The rate is calculated by dividing the number of completed purchases by the number of initiated purchases. Reducing cart abandonment is a crucial goal for e-commerce businesses.

Chargebacks: A chargeback occurs when a customer disputes a charge with their bank, and the bank forcibly reverses the transaction. Chargebacks are often initiated for reasons such as fraud, incorrect billing, or failure to receive goods or services. Businesses that experience high chargeback rates may face financial penalties and reputational damage.

Content Management System: A Content Management System (CMS) is a software application used to create, manage, and publish digital content, typically on websites. A CMS enables users to create and edit content without requiring knowledge of coding or web development. Common CMSs include WordPress, Drupal, and Joomla.

Conversion: In digital marketing, conversion refers to the process of turning a visitor into a paying customer or taking a desired action, such as filling out a form, subscribing to a newsletter, or downloading a file. A high conversion rate is a key metric for businesses looking to drive revenue and achieve their marketing goals.

Conversion Rate: Conversion rate is the percentage of website visitors who complete a desired action, such as making a purchase, filling out a form, or subscribing to a service. The conversion rate is calculated by dividing the number of conversions by the total number of visitors and is a key metric in digital marketing.

Conversion rate optimization: Conversion rate optimization (CRO) is the process of improving the percentage of website visitors who complete a desired action, such as making a purchase or filling out a form. CRO involves analyzing user behavior, identifying areas for improvement, and testing and refining changes to the website to increase conversions.

Cookies: are small text files that websites store on a user’s device to remember information about their preferences and activities on the site. Cookies can store login information, shopping cart contents, and browsing history, among other data. Cookies enable personalized experiences and targeted advertising, but also raise privacy concerns.

Cost of Goods Sold (COGS): is the direct cost of producing or purchasing the goods sold by a company. COGS includes the cost of materials, direct labor, and overhead expenses related to production. COGS is subtracted from revenue to calculate gross profit, a key metric for evaluating business profitability.

Coupon: A coupon is a document or code that entitles the holder to a discount on a product or service. Coupons are commonly used in marketing to attract new customers, increase sales, and reward loyal customers. Coupons can be distributed through physical or digital channels, such as newspapers, websites, or email.

Cross-selling: is the practice of offering customers additional products or services that complement or enhance a product they are already purchasing. Cross-selling can increase sales revenue, improve customer satisfaction, and strengthen customer loyalty. Cross-selling opportunities can be identified through data analysis and personalized marketing strategies.

Customer lifetime value (CLV): is the total amount of revenue a customer is expected to generate over the course of their relationship with a company. CLV takes into account factors such as purchase history, customer retention rates, and referral value. CLV is a key metric for evaluating the long-term profitability of a business.

Customer Returns: occur when a customer returns a product to the seller for a refund or exchange. Customer returns can result from a variety of reasons, such as receiving damaged or defective items, or simply changing their mind about a purchase. Managing customer returns is a key aspect of customer service and can impact business profitability.

Cyber Monday: is a shopping event that takes place on the Monday after Thanksgiving in the United States. It’s an online version of Black Friday, offering significant discounts on products from various retailers. Many people use Cyber Monday to purchase holiday gifts, electronics, and other items at discounted prices.

Discount code: A discount code, also known as a promo code or coupon code, is a unique combination of letters and/or numbers that customers can apply during checkout to receive a discount or special offer on a product or service. Discount codes are often provided by retailers as a marketing tool to incentivize purchases and reward customer loyalty.

Domain: A domain is the name of a website that identifies its internet address. It typically consists of two parts: a unique name and a domain extension, such as .com, .org, or .edu. Domains make it easier for people to remember and find websites, and they are registered and managed by domain name registrars.

Domain Name: A domain name is a unique name that identifies a website on the internet. It is composed of a name and an extension, such as .com, .org, or .net. Domain names are used to help people find and remember websites, and they are registered and managed by domain name registrars.

Dropshipping: is a business model in which a retailer does not keep products in stock, but instead transfers customer orders and shipment details to the manufacturer or supplier, who then ships the goods directly to the customer. The retailer earns a profit on the difference between the wholesale and retail price.

eBay: is an online marketplace that allows individuals and businesses to buy and sell new or used items, from electronics and clothing to cars and collectibles. It operates globally and provides a platform for millions of buyers and sellers to transact with each other.

eCommerce: short for electronic commerce, refers to the buying and selling of goods or services over the internet. This includes online retail stores, digital marketplaces, and auction sites. eCommerce has grown rapidly in recent years, with more and more people turning to online shopping for convenience and accessibility.

Email Marketing: is the practice of sending commercial messages to a group of people via email. It’s a popular marketing channel used by businesses to promote their products, services, or brand. Email marketing can be highly targeted and personalized, making it an effective way to reach and engage with customers.

Fulfillment: refers to the process of receiving, processing, and delivering orders to customers. It involves inventory management, order picking and packing, shipping, and handling returns. Fulfillment can be done in-house or outsourced to a third-party logistics provider. Efficient fulfillment is essential for providing a positive customer experience and maintaining customer loyalty.

Fulfillment by Amazon (FBA): is a service offered by Amazon that allows sellers to store their products in Amazon’s fulfillment centers. When a customer places an order, Amazon picks, packs, and ships the product on behalf of the seller. FBA also provides customer service and handles returns for orders fulfilled through the service.

Google: is a search engine that helps users find information on the internet. It was founded in 1998 and has since become the most widely used search engine in the world, processing billions of search queries every day. Google also offers a variety of other products and services, including email, cloud storage, and advertising platforms.

Google AdWords: now known as Google Ads, is an online advertising platform that allows businesses to create and display ads on Google’s search results pages and across its network of partner websites. Advertisers bid on keywords and pay for clicks on their ads, with the cost per click determined by the competition for the selected keywords.

Google Analytics: is a free web analytics service offered by Google that helps website owners track and analyze website traffic. It provides insights into user behavior and interactions on a website, including data on pageviews, bounce rate, and conversion rate. This information can be used to improve website performance and inform marketing strategies.

Google Search Console: previously known as Google Webmaster Tools, is a free web service offered by Google that helps website owners monitor and maintain their website’s presence in Google search results. It provides data on search queries, crawl errors, and site performance, and allows website owners to submit sitemaps and monitor the indexing of their site.

Gross Profit: is the revenue a company generates from sales, minus the cost of goods sold (COGS). It represents the amount of money a company has left over after paying for the direct costs of producing and delivering its products or services. Gross profit is a key performance indicator for many businesses.

Landing Page: A landing page is a web page designed to encourage a specific action, such as completing a form, making a purchase, or signing up for a newsletter. It is typically created as part of an advertising or marketing campaign and is designed to provide a targeted, focused experience for the user.

Logistics: is the process of planning, coordinating, and executing the movement of goods from one location to another. It involves activities such as transportation, warehousing, inventory management, and order fulfillment. Logistics is crucial to the success of many businesses, helping to ensure that products are delivered to customers on time and at a reasonable cost.

Margin: refers to the difference between the cost of producing a product or service and the price at which it is sold. It is usually expressed as a percentage, representing the portion of the sale price that represents profit. Margin is a key financial metric used to measure the profitability of a business.

Minimum Order Quantity (MOQ): is the smallest quantity of a product that a supplier is willing to sell to a buyer. MOQs are often set by manufacturers to ensure that the costs of production and shipping are covered. Buyers may negotiate MOQs with suppliers to get the best possible price per unit.

Niche: A niche is a specific, specialized area of a market or industry. It represents a segment of the market that has particular needs or preferences that are not met by the broader market. Niche businesses often focus on a narrow range of products or services, allowing them to compete more effectively and establish a loyal customer base.

Omnichannel: refers to a sales and marketing approach that provides a seamless, integrated customer experience across all channels and touchpoints, including online and offline. It enables customers to interact with a brand through multiple channels and devices, with consistent messaging and branding. Omnichannel strategies are becoming increasingly important as customers expect a seamless, personalized experience.

Online Marketplace: An online marketplace is a digital platform that connects buyers and sellers, enabling them to conduct transactions and exchange goods or services. Online marketplaces may specialize in a particular product category or offer a wide range of products. They may be operated by a single company or by multiple sellers.

Open rate: is the percentage of email recipients who opened a particular email. It’s a metric used by email marketers to measure the effectiveness of their email campaigns. Open rates help determine whether the email subject line and content are engaging enough to get readers to open and read the email.

Organic (Traffic): refers to website visits that come from unpaid search engine results, as opposed to traffic generated through paid advertising. This type of traffic is valuable as it indicates that the website is relevant and trustworthy, leading to higher search engine rankings and increased visibility.

Out of Stock: An Out of Stock is a term used to describe a situation where a particular product is no longer available for purchase due to inventory depletion. This can occur for various reasons such as high demand, production delays, or supply chain issues.

Outsource: is the practice of hiring an external company or individual to perform a business function or service, rather than having it done in-house. This can include tasks such as customer service, accounting, and IT support. Outsourcing allows companies to reduce costs and increase efficiency.

Pay per click (PPC): is a digital advertising model where advertisers pay each time a user clicks on one of their ads. Advertisers bid on specific keywords relevant to their business and only pay when their ad is clicked. PPC can be a highly effective way to drive traffic to a website and generate leads.

Payment Gateway: A Payment Gateway is a technology that securely transmits a customer’s payment information from an e-commerce website to a financial institution to authorize and process payments. It acts as a bridge between the merchant and the customer, ensuring the transaction is safe and efficient.

Payment Gateway: A Payment Gateway is a technology that securely transmits a customer’s payment information from an e-commerce website to a financial institution to authorize and process payments. It acts as a bridge between the merchant and the customer, ensuring the transaction is safe and efficient.

PayPal: is a digital payment system that enables users to send and receive money securely online. It can be used to make purchases, pay bills, and transfer funds between bank accounts. PayPal is widely accepted by merchants worldwide and offers a convenient and fast way to make transactions.

Point-of-sale: A point-of-sale (POS) is a system used by retailers to manage sales transactions. It typically includes hardware such as a cash register, barcode scanner, and payment processor, as well as software to track sales and manage inventory. The POS is the central hub for managing a store’s revenue and operations.

Private Label: A Private Label is a product or service that is manufactured or produced by one company but is sold under another company’s brand name. This allows companies to offer a unique product without the costs and time associated with creating it from scratch.

Profit margin: is the percentage of revenue that remains as profit after all expenses have been paid. It is a measure of a company’s profitability and can be calculated by dividing net profit by revenue. A higher profit margin indicates a more efficient and profitable company.

Search engine optimization (SEO): is the practice of optimizing a website to increase its visibility and rank higher on search engine results pages (SERPs). This involves on-page and off-page techniques to improve the quality and relevance of a website’s content, structure, and performance.

Shipping: refers to the transportation of goods and commodities from one place to another. It can be done through various modes of transportation, such as sea, air, road, or rail. Shipping involves multiple processes, including packaging, documentation, and handling, and plays a vital role in global trade and commerce.

Shopify: is an ecommerce platform that allows individuals and businesses to create and manage their own online stores. It provides tools for designing, marketing, and selling products, as well as managing orders, payments, and shipping.

Shopping cart: A shopping cart is an online tool used by e-commerce websites that allows customers to select and store items they want to purchase. It functions as a virtual shopping cart and enables customers to review their items, update their quantities, and complete the checkout process.

Social Media: refers to websites and applications designed for users to create and share content or to participate in social networking. These platforms allow individuals and businesses to connect and communicate with each other on a global scale, often in real time. Popular examples include Facebook, Twitter, and Instagram.

Split Testing: also known as A/B testing, is the process of comparing two versions of a webpage, email, or ad to determine which performs better. By randomly presenting different versions to different users and measuring the results, split testing helps optimize for specific goals and improve overall performance.

Sponsored Products: is an advertising program offered by Amazon that allows sellers to promote their products on the platform’s search results and product detail pages. This program helps increase product visibility and drive sales for sellers.

Stripe: is an online payment processing platform that allows businesses and individuals to accept payments over the internet. It is a simple and secure platform that offers a variety of payment options and features, including customizable payment forms, fraud detection, and recurring payments.

Supply Chain Management: is the coordination of all activities involved in the creation and delivery of a product, from procurement of raw materials to distribution of finished goods. Its aim is to optimize the process, minimize costs, and ensure customer satisfaction.

Traffic: Website traffic refers to the amount of visitors a website receives over a given period of time. This metric is important for analyzing website performance and can be measured using tools such as Google Analytics.

Unique Selling Proposition (USP): is a marketing strategy that defines a product or service’s unique qualities that differentiate it from competitors. It helps businesses stand out and attract customers by communicating their value proposition effectively.

Upselling: is a sales technique where a seller offers customers an upgraded or more expensive version of a product or service they are already purchasing. The aim is to increase the total value of the sale and provide customers with better options.

Value Proposition: A value proposition is a statement that communicates the unique benefits that a product or service offers to its customers. It highlights the value that a customer will receive by using a particular product or service over its competitors.

Warehouse: A warehouse is a large building or facility used for the storage of goods, inventory, and raw materials. It is designed to efficiently accommodate large quantities of products, often utilizing specialized equipment such as forklifts and conveyors to move and manage inventory.

Web analytics: is the measurement and analysis of website data, with the goal of understanding user behavior and optimizing site performance. It involves tracking metrics like page views, click-through rates, and conversion rates to inform business decisions and improve user experience.

Wholesale: is the act of buying goods or products in bulk quantities at a lower price and selling them in smaller quantities at a higher price to retailers or end-users. It is a common practice in the retail industry and a way to save money while making a profit.

WooCommerce: is an open-source plugin for WordPress that enables users to easily create and manage an online store. It offers various features such as product management, payment integration, and shipping options.

WordPress: is a free and open-source content management system that allows users to create and manage websites. It’s user-friendly and customizable, with a wide range of plugins and themes available to enhance functionality and design.

WP Engine: is a managed WordPress hosting provider that offers fast and secure web hosting solutions for businesses and individuals. It provides a range of features including automatic backups, site migration, and 24/7 support, making it an ideal choice for WordPress users.