Ecommerce Terminology Guide: Over 50 Essential Terms & Definitions, presented by eMavens:
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1.Ecommerce Platform: An ecommerce platform is a software solution that allows businesses to set up and manage their online stores, including website design, product catalog, shopping cart, and payment processing.
2. SSL (Secure Sockets Layer): SSL is a security protocol that encrypts data transmitted between a website and a user’s browser, ensuring that sensitive information like credit card details remains secure during online transactions.
3. Conversion Rate: Conversion rate is the percentage of website visitors who take a desired action, such as making a purchase, signing up for a newsletter, or filling out a contact form.
4. Shopping Cart Abandonment: Shopping cart abandonment occurs when a customer adds products to their online shopping cart but leaves the website without completing the purchase.
5. SEO (Search Engine Optimization): Website’s content and structure to improve its visibility in search engine results, driving organic traffic.
6. ROI (Return on Investment):ROI is a measure of the profitability of an ecommerce campaign or investment. It compares the gain or loss generated relative to the cost of the investment.
7. Upselling: Upselling is a sales technique where a business encourages customers to purchase a higher-end or upgraded product or add-ons to increase the average order value.
8. Cross-selling: Cross-selling involves offering customers complementary or related products to what they are currently viewing or purchasing to increase sales and customer satisfaction.
9. B2B (Business-to-Business): B2B ecommerce refers to online transactions between businesses, where one business sells products or services to another business.
10. B2C (Business-to-Consumer): B2C ecommerce refers to online transactions where businesses sell products or services directly to individual consumers. Website’s content and structure to improve its visibility in search engine results, driving organic traffic.
11. Payment Gateway: A payment gateway is a service that securely processes online payments, allowing customers to pay for their purchases using credit cards, digital wallets, or other payment methods.
12. Inventory Management: Inventory management involves tracking and controlling the stock of products a business holds to ensure efficient order fulfillment and prevent overstocking or understocking.
13. Responsive Design: CResponsive design is a web design approach that ensures a website’s layout and content adapt to various screen sizes and devices, providing an optimal user experience.
14. Abandoned Cart Recovery: Abandoned cart recovery strategies aim to re-engage customers who have abandoned their shopping carts by sending them reminder emails or offering incentives to complete their purchase.
15. User Experience (UX): User experience refers to the overall experience a visitor has when interacting with a website, including navigation, design, and usability, with the goal of enhancing customer satisfaction and conversions.
16. CMS (Content Management System): A content management system is a software that allows website owners to create, edit, and manage digital content, including text, images, and videos, without the need for coding.
17. Dropshipping: Dropshipping is a business model where an ecommerce store sells products without physically stocking them. Instead, products are shipped directly from the supplier to the customer.
18. Fulfillment Center: A fulfillment center is a warehouse used by ecommerce businesses to store, pick, pack, and ship products to customers, often outsourced to third-party providers.
19. API (Application Programming Interface): An API is a set of rules and protocols that allow different software applications to communicate and share data with each other.
20. SSL Certificate: An SSL certificate is a digital certificate that verifies the authenticity of a website and enables secure data encryption during online transactions.
21. CTA (Call to Action): A call to action is a prompt or button on a website that encourages visitors to take a specific action, such as “Buy Now” or “Sign Up.”
22. Mobile Commerce (M-commerce): M-commerce refers to online shopping conducted using mobile devices like smartphones and tablets.
23. Affiliate Marketing: Affiliate marketing is a performance-based marketing strategy where businesses reward affiliates (publishers) for promoting their products or services and driving sales.
24. SKU (Stock Keeping Unit): A SKU is a unique alphanumeric code assigned to each product in an inventory to track and manage its stock.
25. Chatbot: A chatbot is a computer program that uses artificial intelligence to simulate human conversation, providing customer support, answering questions, and assisting with online purchases.
26. A/B Testing: A/B testing is a method used to compare two versions of a web page or marketing campaign to determine which one performs better in terms of conversions.
27. Customer Lifetime Value (CLV): CLV is the predicted net profit a business can expect to earn from a customer throughout their entire relationship with the company.
28. Retargeting (Remarketing): Retargeting is a digital advertising strategy that displays targeted ads to users who have previously visited a website or interacted with a brand but did not make a purchase.
29. Ewallet: An ewallet (electronic wallet) is a digital payment method that allows users to store and make transactions with their financial information securely stored electronically.
10. B2C (Business-to-Consumer): B2C ecommerce refers to online transactions where businesses sell products or services directly to individual consumers. Website’s content and structure to improve its visibility in search engine results, driving organic traffic.
11. Payment Gateway: A payment gateway is a service that securely processes online payments, allowing customers to pay for their purchases using credit cards, digital wallets, or other payment methods.
12. Inventory Management: Inventory management involves tracking and controlling the stock of products a business holds to ensure efficient order fulfillment and prevent overstocking or understocking.
13. Responsive Design: CResponsive design is a web design approach that ensures a website’s layout and content adapt to various screen sizes and devices, providing an optimal user experience.
14. Abandoned Cart Recovery: Abandoned cart recovery strategies aim to re-engage customers who have abandoned their shopping carts by sending them reminder emails or offering incentives to complete their purchase.
15. User Experience (UX): User experience refers to the overall experience a visitor has when interacting with a website, including navigation, design, and usability, with the goal of enhancing customer satisfaction and conversions.
16. CMS (Content Management System): A content management system is a software that allows website owners to create, edit, and manage digital content, including text, images, and videos, without the need for coding.
17. Dropshipping: Dropshipping is a business model where an ecommerce store sells products without physically stocking them. Instead, products are shipped directly from the supplier to the customer.
18. Fulfillment Center: A fulfillment center is a warehouse used by ecommerce businesses to store, pick, pack, and ship products to customers, often outsourced to third-party providers.
19. API (Application Programming Interface): An API is a set of rules and protocols that allow different software applications to communicate and share data with each other.
20. SSL Certificate: An SSL certificate is a digital certificate that verifies the authenticity of a website and enables secure data encryption during online transactions.
1. Ecommerce Platform:
An ecommerce platform is a software solution that allows businesses to set up and manage their online stores, including website design , product catalog, shopping cart, and payment processing.
2. SSL (Secure Sockets Layer):
SSL is a security protocol that encrypts data transmitted between a website and a user’s browser, ensuring that sensitive information like credit card details remains secure during online transactions.
3. Conversion Rate:
Conversion rate is the percentage of website visitors who take a desired action, such as making a purchase, signing up for a newsletter, or filling out a contact form.
4. Shopping Cart Abandonment:
Shopping cart abandonment occurs when a customer adds products to their online shopping cart but leaves the website without completing the purchase.
5. SEO (Search Engine Optimization):
SEO is the practice of optimizing a website’s content and structure to improve its visibility in search engine results, driving organic traffic.
6. ROI (Return on Investment):
ROI is a measure of the profitability of an ecommerce campaign or investment. It compares the gain or loss generated relative to the cost of the investment.
7. Upselling:
Upselling is a sales technique where a business encourages customers to purchase a higher-end or upgraded product or add-ons to increase the average order value.
8. Cross-selling:
Cross-selling involves offering customers complementary or related products to what they are currently viewing or purchasing to increase sales and customer satisfaction.
9. B2B (Business
B2B ecommerce refers to online transactions between businesses, where one business sells products or services to another business.
10. B2C (Business-to-Consumer):
B2C ecommerce refers to online transactions where businesses sell products or services directly to individual consumers
11. Payment Gateway:
A payment gateway is a service that securely processes online payments, allowing customers to pay for their purchases using credit cards, digital wallets, or other payment methods.
12. Inventory Management:
Inventory management involves tracking and controlling the stock of products a business holds to ensure efficient order fulfillment and prevent overstocking or understocking.
13. Responsive Design:
Responsive design is a web design approach that ensures a website’s layout and content adapt to various screen sizes and devices, providing an optimal user experience.
14. Abandoned Cart Recovery:
Abandoned cart recovery strategies aim to re-engage customers who have abandoned their shopping carts by sending them reminder emails or offering incentives to complete their purchase.
15. User Experience (UX):
User experience refers to the overall experience a visitor has when interacting with a website, including navigation, design, and usability, with the goal of enhancing customer satisfaction and conversions.
16. CMS (Content Management System):
A content management system is a software that allows website owners to create, edit, and manage digital content, including text, images, and videos, without the need for coding.
17. Dropshipping:
Dropshipping is a business model where an ecommerce store sells products without physically stocking them. Instead, products are shipped directly from the supplier to the customer.
18. Fulfillment Center:
A fulfillment center is a warehouse used by ecommerce businesses to store, pick, pack, and ship products to customers, often outsourced to third-party providers.
19. API (Application Programming Interface):
An API is a set of rules and protocols that allow different software applications to communicate and share data with each other.
20. SSL Certificate:
An SSL certificate is a digital certificate that verifies the authenticity of a website and enables secure data encryption during online transactions.
21. CTA (Call to Action):
A call to action is a prompt or button on a website that encourages visitors to take a specific action, such as “Buy Now” or “Sign Up.”
22. Mobile Commerce (M-commerce):
M-commerce refers to online shopping conducted using mobile devices like smartphones and tablets.
23. Affiliate Marketing:
Affiliate marketing is a performance-based marketing strategy where businesses reward affiliates (publishers) for promoting their products or services and driving sales.
24. SKU (Stock Keeping Unit):
A SKU is a unique alphanumeric code assigned to each product in an inventory to track and manage its stock.
25. Chatbot:
A chatbot is a computer program that uses artificial intelligence to simulate human conversation, providing customer support, answering questions, and assisting with online purchases.
26. A/B Testing:
A/B testing is a method used to compare two versions of a web page or marketing campaign to determine which one performs better in terms of conversions.
27. Customer Lifetime Value (CLV):
CLV is the predicted net profit a business can expect to earn from a customer throughout their entire relationship with the company.
28. Retargeting (Remarketing):
Retargeting is a digital advertising strategy that displays targeted ads to users who have previously visited a website or interacted with a brand but did not make a purchase.
29. Ewallet:
An ewallet (electronic wallet) is a digital payment method that allows users to store and make transactions with their financial information securely stored electronically.
30. SaaS (Software as a Service):
SaaS is a cloud-based software distribution model where applications are hosted and maintained by a third-party provider and accessed by users over the internet.
31. API Integration:
API integration is the process of connecting different software systems or applications to enable them to work together and share data seamlessly.
32. Abandonment Rate:
Abandonment rate is the percentage of online shopping carts that are abandoned by customers without completing a purchase.
33. Inbound Marketing:
Inbound marketing is a customer-centric marketing approach that focuses on attracting and engaging potential customers through valuable content and experiences.
34. SSL Handshake:
SSL handshake is the initial process of establishing a secure connection between a web browser and a web server, where encryption keys are exchanged.
35. API Key:
An API key is a unique code that grants access to specific features or data within an API, ensuring secure interactions between software applications.
36. Customer Segmentation:
Customer segmentation is the practice of dividing a customer base into distinct groups based on shared characteristics, allowing for more personalized marketing strategies.
37. Ecommerce Analytics:
Ecommerce analytics involves the collection and analysis of data related to website traffic, user behavior, and sales performance to inform decision-making.
38. Churn Rate:
Churn rate is the percentage of customers who stop doing business with a company during a specific time period, often used to measure customer retention.
39. Virtual Reality (VR) Shopping:
VR shopping is an immersive shopping experience that allows users to explore and interact with products in a virtual environment.
40. Augmented Reality (AR) Shopping:
AR shopping enhances the real-world shopping experience by overlaying digital information, such as product details or reviews, onto a user’s view through a device like a smartphone.
41. Chargeback:
A chargeback occurs when a customer disputes a credit card transaction, leading to a refund from the merchant and potential financial penalties.
42. Digital Marketing Funnel:
The digital marketing funnel represents the stages a potential customer goes through, from awareness to conversion, in the online buying process.
43. Drop-off Rate: D
rop-off rate indicates the point in an online process, like checkout, where users abandon their actions before completion.
44. Heatmap:
A heatmap is a visual representation of data that shows the areas of a web page where users interact the most, helping businesses optimize design and layout.
45. Multi-Channel Selling:
Multi-channel selling involves offering products through various online and offline sales channels, such as marketplaces, social media, and physical stores.
46. Open Source Ecommerce:
Open source ecommerce refers to ecommerce platforms and solutions with source code that is freely available for modification and customization.
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47. Content Personalization:
Content personalization tailors website content, product recommendations, and marketing messages to individual users based on their behavior and preferences.
48. Payment Processing Fee:
Payment processing fees are charges imposed by payment gateways for processing online transactions and can include fixed fees and a percentage of the transaction amount.
49. EDI (Electronic Data Interchange):
EDI is a system for exchanging business documents electronically between different companies, often used in ecommerce for automating supply chain processes.
50. 3PL (Third-Party Logistics):
3PL providers offer logistics and shipping services to ecommerce businesses, handling warehousing, order fulfillment, and shipping on behalf of the merchant.
With these ecommerce terms and definitions, you’ll be better equipped to navigate the complex world of online retail. eMavens is here to assist you in understanding and implementing these concepts to maximize your ecommerce success.
An ecommerce platform is a software solution that allows businesses to set up and manage their online stores, including website design , product catalog, shopping cart, and payment processing. 
SEO is the practice of optimizing a website’s content and structure to improve its visibility in search engine results, driving organic traffic. 
B2B ecommerce refers to online transactions between businesses, where one business sells products or services to another business. 
User experience refers to the overall experience a visitor has when interacting with a website, including navigation, design, and usability, with the goal of enhancing customer satisfaction and conversions. 
An API is a set of rules and protocols that allow different software applications to communicate and share data with each other. 
Affiliate marketing is a performance-based marketing strategy where businesses reward affiliates (publishers) for promoting their products or services and driving sales. 
Retargeting is a digital advertising strategy that displays targeted ads to users who have previously visited a website or interacted with a brand but did not make a purchase. 
Abandonment rate is the percentage of online shopping carts that are abandoned by customers without completing a purchase. 
VR shopping is an immersive shopping experience that allows users to explore and interact with products in a virtual environment. 
The digital marketing funnel represents the stages a potential customer goes through, from awareness to conversion, in the online buying process. 
Open source ecommerce refers to ecommerce platforms and solutions with source code that is freely available for modification and customization.
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3PL providers offer logistics and shipping services to ecommerce businesses, handling warehousing, order fulfillment, and shipping on behalf of the merchant. 
