The E-commerce Bible: 100 Vocabulary Terms Every Seller Should Know
Table of Contents
Why E-commerce Vocabulary is Crucial for Sellers
The Foundations: Basic Terms Every Online Seller Should Know
Advanced Terminology: Dive Deeper into the E-commerce World
Tips on How to Effectively Use This E-commerce Vocabulary
Navigating Technical Terms: The Backend of E-commerce
Beyond Selling: E-commerce Terms for Marketing and Expansion
Real-world Applications: How Top Sellers Use E-commerce Vocabulary to Their Advantage
Final Thoughts
Ecommerce Glossary Terms
In our rapidly digitalizing world, e-commerce dominates the retail landscape. For sellers eager to thrive, understanding e-commerce’s unique lexicon is paramount. This comprehensive glossary doesn’t just offer definitions but also provides context, making it an indispensable tool for every aspiring online entrepreneur.
Why E-commerce Vocabulary is Crucial for Sellers
Ever since the dawn of e-commerce, its lexicon has grown, shaping how business is conducted online. A survey from Retail e-Commerce found that businesses well-versed in e-commerce terminology saw a 15% increase in efficiency. Mastery of these terms ensures not only clear communication but also a deeper insight into strategies that can set a business apart in this dynamic marketplace.
The Foundations: Basic Terms Every Online Seller Should Know
Every e-commerce mogul started by grasping foundational terms:
Shopping Cart: More than just a tool, it’s the pivot point between browsing and buying. Imagine an online store where users can’t save items to purchase!
SKU (Stock Keeping Unit): Beyond a mere code, understanding SKUs can be pivotal for inventory management.
Dropshipping: This term has reshaped how many sellers operate, cutting down on inventory costs and risks.
For those new to e-commerce, these are your essential first steps.
Advanced Terminology: Dive Deeper into the E-commerce World
Beyond foundational terms lies an ocean of advanced terminology. For instance:
Dynamic Pricing: Seen how Amazon’s prices fluctuate? That’s dynamic pricing in action, driven by demand, competition, and more.
Affiliate Marketing: Bloggers promoting your product could be using this model, expanding your reach without upfront ad costs.
Geotargeting: Ever noticed ads relevant to your location? That’s geotargeting at work, enhancing ad relevance.
These terms can elevate your e-commerce game from novice to expert.
Tips on How to Effectively Use This E-commerce Vocabulary
Mastering e-commerce jargon isn’t just about knowing definitions—it’s about application. Boost your SEO with terms like “Flash Sale” or “E-commerce Analytics.” Enhance customer trust by using accurate terms in interactions. Foster stronger ties with suppliers by demonstrating you speak their language.
A slick online store is backed by technical juggernauts. Know these terms to ensure a seamless user experience:
API: Think of it as a bridge connecting different software tools.
PCI Compliance: It’s not just about security, but also about customer trust.
SSL: Beyond encryption, it’s the padlock icon that assures users of safety.
Dive into these backend terms to ensure a smooth-sailing e-commerce venture.
Beyond Selling: E-commerce Terms for Marketing and Expansion
Sales are just one facet of e-commerce. Explore terms like “Segmentation” to tailor your marketing, and use “A/B Testing” to refine strategies. Delve into the world of “Retargeting Campaigns” to draw back potential customers.
Real-world Applications: How Top Sellers Use E-commerce Vocabulary to Their Advantage
Take a leaf out of top sellers’ playbooks. Sarah, an online jewelry seller, amplified her reach through “Affiliate Links,” partnering with beauty influencers. Jason’s dive into “E-commerce Analytics” personalized his outreach, doubling sales in a year. Their stories underline the power of the right terminology.
Final Thoughts
E-commerce, with its sprawling digital landscape, represents both challenges and opportunities. It’s a world where those equipped with the right knowledge have the potential to navigate complexities with ease and capitalize on emerging trends. Understanding the terminology is akin to possessing a map in this vast territory. It’s not merely about knowing the definitions but internalizing them to foresee shifts, respond to consumer behaviors, and innovate proactively. As digital storefronts continue to reshape modern commerce, a grasp on this evolving lexicon ensures that sellers are not just participants but pioneers, forging ahead and shaping the next chapter of online retail.
Ecommerce Glossary Terms
3D Secure – A security protocol that enhances online purchase security by requiring additional authentication steps for online transactions.
A/B Testing – The process of comparing two versions of a webpage or app to see which one performs better.
Abandoned Cart – Refers to a potential customer who starts the process of buying a product but does not complete the purchase.
Ad Retargeting – Online advertising strategy aimed at targeting users who have previously visited a website or shown interest in a product.
Affiliate Link – A URL used to track traffic sent to a business’s site from affiliate marketing efforts.
Affiliate Marketing – A performance-based marketing strategy where businesses reward partners (affiliates) for driving traffic or sales through the affiliate’s marketing efforts.
API (Application Programming Interface) – A set of routines, protocols, and tools that allows software applications to communicate with one another.
Average Order Value (AOV) – The average amount of money each customer spends per order.
Backorder – An item that is not in stock but can still be ordered. It will be shipped when it becomes available.
Behavioral Targeting – Online marketing strategy that targets users based on their previous behavior, such as site visits, search history, etc.
B2B (Business-to-business) – Transactions or business strategies geared towards selling products or services to other businesses rather than individual consumers.
B2C (Business-to-consumer) – Transactions or business strategies aimed at selling directly to end consumers.
Bounce Rate – The percentage of visitors who enter a website and then leave (“bounce”) rather than continuing to view other pages within the same site.
Call to Action (CTA) – An instruction to the audience to provoke a response, typically in the form of a button or link.
Chargeback – A return of funds initiated by the cardholder with their credit card company, typically due to fraudulent activity.
Checkout Flow – The series of steps a customer goes through when checking out online.
Churn Rate – The percentage of customers or subscribers who stop using a product or service over a certain time frame.
CMS (Content Management System) – Software that allows users to create, manage, and modify content on a website without specialized technical knowledge.
Content Marketing – A strategy that focuses on creating and distributing valuable, relevant, and consistent content to attract and retain a targeted audience.
Conversion Rate – The percentage of users who take a desired action, such as making a purchase.
Conversion Rate Optimization (CRO) – The process of increasing the percentage of visitors who complete the desired action on a website.
Cost Per Acquisition (CPA) – The cost of acquiring a new customer.
Cost Per Click (CPC) – The amount paid for each click in a pay-per-click (PPC) advertising campaign.
Cross-Selling – The practice of selling additional products or services to an existing customer based on their purchase.
Customer Acquisition Cost (CAC) – The cost associated with convincing a customer to buy a product/service.
Customer Lifetime Value (CLV) – The total value of a customer to a business over the entirety of their relationship.
Digital Wallet – A system that stores payment information and passwords for numerous payment methods and websites.
Dropshipping – A retail method where the store doesn’t keep the products in stock. Instead, when a product is sold, it purchases the item from a third party and has it shipped directly to the customer.
Dynamic Pricing – Adjusting prices continuously based on algorithms that take into account competitor pricing, demand, and other external factors in the market.
Ecommerce Analytics – The gathering and analysis of data relevant to an online store, used to understand customer behavior and improve sales.
Ecommerce Platform – Software technology solution that allows businesses to build online storefronts to sell products and services.
Email Marketing – The use of email to promote products or services while developing relationships with potential customers or clients.
Flash Sale – A sale that offers significant discounts but for a very short period.
Fulfillment – The process of completing an order and delivering it to a customer.
Geotargeting – The practice of delivering content to users based on their geographic location.
Google AdWords – Google’s online advertising program that allows advertisers to display their ads on Google’s network.
Influencer Marketing – Using key leaders to amplify your brand’s message to a larger market. Brands may collaborate with influencers for promotion.
Inbound Marketing – Strategies focused on attracting customers through relevant and helpful content, adding value at every stage in the customer’s buying journey.
Inventory Management – The supervision of non-capitalized assets, or inventory, and stock items.
Keyword – A word or phrase that describes the contents of a web page, used in search engine optimization to rank pages in search results.
Landing Page – A specific webpage where visitors are directed upon clicking on an ad or a search engine result link, often designed with a specific goal in mind.
Lead Magnet – An incentive, often in the form of a digital download, offered in exchange for a person’s contact information.
Live Chat Support – Online customer support service that allows visitors to get real-time assistance.
Loyalty Program – A marketing strategy designed to encourage customers to continue to shop or use services associated with a business.
Marketplace – An online platform where goods or services are bought and sold by multiple third parties, and transactions are processed by the marketplace operator.
Merchandising – The promotion and display of products to stimulate interest and entice customers to make a purchase.
Mobile Commerce (or ‘m-commerce’) – Buying and selling of goods and services through mobile devices.
Multi-Channel Marketing – Interacting with potential customers on various platforms, including email, websites, social media, and more.
Native Advertising – A type of advertising that matches the platform it’s on but is labeled as “sponsored”.
Omnichannel – A multichannel approach to sales that seeks to provide a seamless shopping experience, whether the customer is shopping online, in a physical store, or through other channels.
Organic Traffic – Visitors who come to a website as a result of unpaid search results.
Order Confirmation – A message sent to the customer acknowledging the receipt of their order.
Out of Stock – A product that is no longer available for purchase.
Payment Gateway – A technology used by merchants to accept debit or credit card purchases from customers.
PCI Compliance – Adherence to the Payment Card Industry Data Security Standard (PCI DSS), which sets standards to secure credit card transactions.
Personalization – The action of designing or producing something to meet someone’s individual requirements.
Plugin – A piece of software that adds specific features to a larger software application.
Point of Sale (POS) – The place where sales transactions are completed; where payment is made.
PPC (Pay-per-click) – An online advertising model where advertisers pay a fee each time their ad is clicked.
Print on Demand – A system where copies of a product are only produced as and when they are ordered.
Product Feed – A list of products, typically used to distribute on other sites or platforms.
Product Option – Variations of a product such as size, color or other differntiating characteristics.
Product Recommendation Engine – Software or algorithms used by online platforms to suggest specific products to users based on their browsing or purchase history.
Product Variant – A specific version of a product that can be differentiated from others based on its features, such as size or color.
Push Notification – Messages sent by apps to a user’s device, often to notify them of updates or other relevant information.
Real-time Carrier Shipping – A feature that pulls shipping rates in real time from a carrier, ensuring that customers are charged accurate shipping costs during checkout.
Remarketing – The practice of showing ads to individuals who have previously visited your website, typically used to encourage them to return and complete a purchase.
Responsive Checkout – A checkout process that adapts its display and functionality depending on the device a customer is using, ensuring a seamless shopping experience.
Responsive Design – A web design approach aimed at making sites and pages viewable on various devices and screen sizes.
Retargeting Campaign – An online advertising campaign that focuses on re-engaging users who have previously interacted with a brand or website.
Return on Investment (ROI) – A measure of the profitability of an investment, calculated by dividing the net profit by the cost of the investment.
Return Policy – A set of rules provided by businesses regarding how and under what circumstances they will accept returns of purchased goods and compensate the buyer.
Retention Rate – The percentage of customers or subscribers who continue to use a product or service over a certain time frame.
Sales Channel – A means of selling products, which can include physical storefronts, online stores, or third-party marketplaces.
Sales Funnel – A model describing the stages a potential customer goes through, from first learning about a product or service to making a purchase.
Search Engine Marketing (SEM) – A form of online marketing involving the promotion of websites by increasing their visibility in search engine results through paid advertising.
Search Engine Optimization (SEO) – The process of optimizing a website to improve its visibility in organic search engine results.
Segmentation – The process of dividing a larger target market into smaller, more homogenous groups based on characteristics such as demographics or behavior.
SERP (Search Engine Results Page) – The page displayed by search engines in response to a user’s search query, listing the most relevant websites.
Side Hustle – A secondary job or profession undertaken in addition to one’s main job, often pursued out of interest or to supplement income.
Shopping Cart – An online tool where online shoppers place items they intend to purchase.
SKU (Stock Keeping Unit) – A unique code or number assigned to each distinct product or service in inventory.
Social Commerce – The process of selling products or services directly through social media platforms.
Social Proof – The concept where people assume the actions of others in an attempt to reflect correct behavior in a given situation, e.g., product reviews or testimonials.
Split Testing – Another term for A/B testing, where two versions of a web page or app are compared to see which one performs better.
SSL (Secure Sockets Layer) – A protocol for establishing encrypted links between a web server and a browser, ensuring data privacy.
Subscription Commerce – A business model where customers pay a recurring price at regular intervals for access to a product or service.
Third-Party Logistics (3PL) – A service where a company’s logistics operations, such as warehousing, transportation, and fulfillment, are outsourced to another company.
Transaction Fee – A fee charged for processing a business transaction, such as a sale or a refund.
Universal Product Code (UPC) – A unique 12-digit number assigned to retail merchandise that identifies both the product and the vendor that sells the product.
Upselling – The practice of encouraging customers to purchase a comparable higher-end product than the one they are considering.
User Experience (UX) – The overall experience of a person using a product or service, especially in terms of how easy or pleasing it is to use.
User Interface (UI) – The space where interactions between humans and machines occur, mainly focusing on display and control elements.
Virtual Assistant – Software that can perform tasks or services for an individual, often powered by artificial intelligence; or a person who provides administrative support to clients remotely.
Virtual Reality Shopping – The use of virtual reality technology to create a simulated environment for online shopping.
Web Analytics – The measurement, collection, analysis, and reporting of internet data for the purpose of understanding and optimizing web usage.
Wholesaling – The selling of goods in large quantities to be retailed by others.
Wishlist – An online tool where users can store and keep track of products they would like to purchase in the future.
Zero Stock Check – A process or system that ensures products do not run out of stock or helps in alerting when stock levels are critically low.
3PL (Third-Party Logistics) – Refer to the “Third-Party Logistics” definition above.
