E-commerce Glossary Archives

Average Order Value (AOV)

Average Order Value (AOV) is a metric used in e-commerce that calculates the typical sum of all orders made with a particular merchant over a specified time. Average order value…

Average Time on Site

The average time spent on your site is the amount of time spent browsing it. A high bounce rate indicates a low average time spent on site. It implies…

Average Revenue Per User (ARPU)

The average revenue per user is the metric used by eCommerce companies to estimate the revenue-generating level of individual customers. It is used to continually track a company’s annual…

Affiliate Marketing

Affiliate marketing is a type of advertising in which publishers are compensated for promoting a retailer or advertiser’s product or service. For delivering a certain result to the store or…

Abandoned Cart

When a customer adds a product to an eCommerce site’s online shopping cart but does not go to checkout and finalize the transaction. Users may abandon if they are not…

A/B Testing

A/B testing is a technique for comparing two similar or almost identical things in a group of people, such as two distinct website layouts or a promotional deal. The purpose…

Blacklist

Blacklist in e-commerce is a list containing the location, countries, or IP addresses a store has blocked from accessing their store. A store may maintain a blacklist of customers who…

Bundling

Bundling in eCommerce is a marketing strategy where you put two products together, usually as a set to be sold at a cheaper price. This set must be cheaper compared…

Business to Customer (B2C)

A business to consumer is a company that trades directly with the last agent of the distribution chain. These are the commerce activities that happen between a business and its…

Business to Business (B2B)

Business to business refers to the exchange activities going on between two businesses rather than between a business and a customer. At the wholesale level, the transaction is done between…

A brick-and-mortar store is the physical location of a business. This is the conventional business way of having a face-to-face experience with company representatives and building customer relationships. A brick-and-mortar…

Combo

Combo is an e-commerce terminology where retailers blend different products to be put out to customers as one attractive sale. Combo is a casual e-commerce word for product bundling…

Checkout

When a customer visits an e-commerce store, it is to search for or buy a product. Check-out does not happen once, it is in stages. From the point of finding…

Cart-to-Detail Rate

This is a metric used by analytical tools like Google Analytics to measure the number of people, who after visiting an online store puts an item into their cart. Cart-to-detail…

Customer Lifetime Value

Customer Lifetime Value is the total revenue a business can expect from a single customer’s account throughout their business relationship. The more transactional a customer gets the more their expected…

Conversion Funnel

A Conversion Funnel is an eCommerce word that refers to the many phases of a buyer’s journey that lead up to a purchase. The funnel metaphor depicts the progressive drop…

Click-Through-Rate

The click-through rate (CTR) is the ratio of the number of individuals who click on a certain link or call to action to the number of times the link was…

Charge Backs

In the most basic terms, a chargeback is the retroactive cancellation and return of a transaction made on your credit or debit card. You file a chargeback request with the…

Drop Shipping

Drop shipping is a retail fulfillment strategy in which a company does not hold stock of the items it sells. When a drop shipping store offers a product, it buys…

Discount code

Discount codes are used to persuade people to buy online in the same manner that coupons from your local newspaper were utilized in the past. Discount codes are personalized or…

E-commerce Fulfillment

E-commerce fulfillment is the whole procedure that involves selecting an item, packaging, and shipping the item to customers who have ordered them. E-commerce fulfillment includes managing your inventory, sourcing for…

Engagement Rate

The engagement rate is a key indicator in social media marketing that is used to assess the effectiveness of a piece of content on a social media platform such as…

Email Marketing

Email marketing involves the usage of emails to promote, create awareness, or contact customers about a business. Email marketing might include newsletters with corporate information, sales promotions, and exclusive discounts…

E-commerce SEO

E-commerce SEO is the process of increasing the visibility of an online business on search engine results pages. E-commerce search engine optimization is a technique that focuses on increasing traffic…

Forward Pick Location

These are areas in a warehouse that are utilized solely for order…

Feedback

When an environment reacts to an activity or behavior, this is referred to as feedback. ‘Customer feedback,’ for example, refers to purchasers’ reactions to a company’s products, services, or policies.…

Growth Hacking

Growth hacking is the deliberate exploration of new growth possibilities in any stage of the customer experience, from awareness to marketing to brand ambassadors to product optimization. Growth hacking for…

Google Analytics

Google Analytics gives you data on the performance of your online store and how potential customers or customers are interacting with your website. Google Analytics can give you insight on…

Immediate Refund

A returns policy is a declaration that specifies the criteria under which a shop is ready to accept previously purchased items returned by the customer and the conditions under which…

Inventory

Inventory refers to all of the things, goods, commerce, and materials held by a company for the purpose of reselling in the market for a profit. Businesses manually do an…

Inbound Marketing

Inbound marketing is a marketing strategy that attracts your target audience and buyer personas using Content creation and development. Inbound marketing is the practice of assisting potential consumers in finding…

Keyword Ranking

In SEO, keyword rankings relate to your page’s unique position on the search results pages for a certain search query. When users input search phrases related to your page’s…

Key Performance Indicator

A key performance indicator (KPI) is a quantifiable statistic that shows how well a firm is meeting important business objectives. KPIs are used by organizations to assess their progress in…

Listing

Any goods that are offered for purchase electronically online are considered an e-commerce product listing. A company that advertises its items on its internet shop is typically looking for a…

Lead Nurturing

Lead nurturing is all about listening to prospects’ requirements and providing them with information that solves their worries about the products and services supplied by a certain company. To…

Multichannel

Multichannel is the combination of different marketing techniques to drive sales and revenue in eCommerce. Historically before the emergence of eCommerce, goods are sold basically from physical stores. Customers can…

Middle Funnel

Middle funnel is when users are aware of the most popular brands and may have signed up for email campaigns to obtain product information from these businesses. They have…

Merchant Account Provider

Merchant Account Providers enable companies to accept debit and credit cards for goods and services. This can be done in person, over the phone, or over the internet. They…

Niche

A niche market is a subset of a larger market that has distinct requirements, tastes, or identity that distinguishes it from the rest of the market. Some of the…

Net Promoter Score

Net Promoter Score (NPS) is a metric used to assess a company’s customer loyalty, contentment, and excitement. It is derived by asking consumers one question: “rate our product on a…

Native Advertising

Native advertising is a sort of advertising that corresponds to the appearance and function of the platform on which it appears. In many circumstances, it acts similarly to an advertorial…

Order Management

Order management is the process of tracking and managing customer orders in a Shopify store. This includes tasks such as processing and fulfilling orders, tracking inventory levels, and providing customer…

Omnichannel

Having multiple channels for marketing and gaining sales is what increases the chances of building a profitable store or business. Commerce directly involves activities of sales which can be done…

Organic Traffic

The term “organic traffic” refers to users that arrive at your website as a consequence of unpaid (“organic”) search results. Organic traffic is the inverse of sponsored traffic, which refers…

Order Fulfillment

Order fulfillment encompasses the entire process, beginning with the sale and ending with delivery to your consumer. A third party must execute the order fulfillment stages for the e-commerce web…

Omnichannel Management

An omnichannel experience is one that is integrated, well-structured, and consistent across all conceivable channels with which a consumer interacts. It enables the client to use a variety of well-coordinated…

Product Bundling

Product bundling is when several individual items that are either usable together or not are combined as a single unit. In product bundling, items that tend to be used together…

Payment Gateway

A payment gateway is a commercial service offered by an e-commerce application service provider that allows direct payments or credit cards for online merchants, bricks and clicks, or conventional…

Pay-Per-Click Marketing

Pay-per-click marketing is a form of marketing whereby the person or organization running an advertisement pays the publisher each time an advertisement link is clicked on. It is also…

Quick Response Codes

Quick response codes are programmed codes that can be read by a mobile phone’s scanner to deliver certain information enveloped in the code. Mobile devices can scan and understand…

Revenue Per Visitor

Revenue per visitor (RPV) is a metric that measures the average amount of money earned from each individual visitor to a Shopify store. This is calculated by dividing the…

Return on Investment (ROI)

Return on Investment (ROI) is a metric for measuring the profitability of a business idea or an investment. ROI measures the estimated returns or profit to be expected from an…

Recurring Payment

Recurring payments are payments for which a customer has given permission to its financial institution to deduct a certain amount at a period and pay to a merchant as payment…

Shopify Bots

Shopify bots are programmed software for store owners on Shopify to aid marketing activities. Shopify bots are in two categories; one that automates the checkout process and the other that…

Spam Bots

Spam bots are computer programs built to carry out spam activities across the internet. Spam bots are known for getting data across websites, creating fake accounts, inflating site traffic, and…

Single Channel

Single channel as the name implies is when a store owner provides their services from one channel. It is either an online store-only or a physical store-only business. Single-channel…

Shopping Cart

A shopping cart is a software program used in eCommerce to help visitors make online purchases. During checkout, the program computes the amount of the order, including shipping and…

Shipping

Shipping in e-commerce involves processing orders, delivering, and receiving orders. It involves packaging, selection, labeling, and monitoring purchases. Shipping does not end after getting the product to the buyer…

Segmentation

In e-commerce one size does not fit all. What works of Zenith may not work for Zenaya. You have to shape your marketing strategy in such a way that it…

Trigger Products

Trigger products for e-commerce Shopify stores are products that are specifically designed to drive customer engagement and sales. These products are typically high-quality, unique, and relevant to the target…

Top of the Funnel

You are likely always on the lookout for ways to increase your customer base and boost your sales as a Shopify merchant. One effective way to do this is by…

Third-Party Payment Processor

A third-party payment processor is a service that allows a company to take payments without having its own merchant account, which is required to keep the money collected from card…

Technical Support

Technical support is a team with the duty to address the demands of the client in the most efficient and timely manner…

User Journey Map

A user journey map is a diagram that walks you through a person’s customer journey as they engage with your website or app. It enables businesses, particularly your UX team,…

Whitelisting

Whitelisting happens when a store owner lifts a ban or unblocks a customer’s IP address from the blacklist log. Whitelisting for e-commerce Shopify stores is a security measure that…