Ecommerce Glossary

Discover our ecommerce glossary, your go-to guide for understanding the language of online retail. Tailored for both experts and newcomers, it offers clear definitions of 100+ key terms which help you to master the dynamic world of ecommerce.

Ecommerce Key Terms Explained

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

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301 Redirect

Permanent redirect from one URL to another. Used in ecommerce for moving traffic from outdated URLs to relevant pages, crucial for SEO.

302 Found

Temporary redirect. Indicates the temporary movement of a webpage. Unlike 301, it doesn't pass on link equity to the new URL.

400 Error

"Bad Request". Indicates a general client error when the server cannot process the request due to an apparent client fault.

401 Error

"Unauthorised". Means that the page the user is trying to access is restricted and requires authentication.

403 Error

"Forbidden". Occurs when the server understands the request but refuses to authorise it, often due to access restrictions set by the website.

404 Error

"Page Not Found" error. Occurs when a user tries to access a webpage that doesn’t exist on the server, often due to a broken link or a mistyped URL.

500 Error

"Internal Server Error". This indicates a general problem with the website's server, which could be due to various issues on the backend.

503 Error

"Service Unavailable". This error is shown when the server is temporarily unable to handle the request, often due to maintenance or being overloaded.

A

A/B Testing

A method in ecommerce and digital marketing where two versions of a web page or app (A and B) are compared to determine which one performs better in terms of metrics like conversion rates, clicks, or user engagement.

Abandoned Cart

When a potential customer starts a check-out process for an online order but drops out of the process before completing the purchase.

Affiliate

A marketing arrangement by which an online retailer pays a commission to an external website for traffic or sales generated from its referrals.

AI

"AI" stands for "Artificial Intelligence," and in ecommerce, AI refers to the use of machine learning algorithms and data analytics to improve customer experiences, personalise shopping, manage inventory, and streamline operations.

Anchor Text

The clickable, visible text in a hyperlink. In SEO and ecommerce, it's important for anchor text to be relevant to the linked page, as it helps search engines understand the content of the destination URL.

AOV

"AOV" stands for "Average Order Value," similar to ATV, this metric calculates the average amount spent each time a customer places an order on a website. It's calculated by dividing total revenue by the number of orders.

API

"API" meaning "Application Programming Interface," is a tool in ecommerce that connects different software platforms, enabling data sharing and integration of various services like payments and social media with online stores.

AR

Augmented Reality (AR) is a technology that overlays digital information, such as images, videos, or 3D models, onto the real world through devices like smartphones, tablets, or specialised glasses, enhancing one's perception of reality and providing interactive experiences.

ARR

"ARR" refers to "Annual Recurring Revenue" which is a metric used in ecommerce and other subscription-based business models to measure the predictable and recurring revenue components of the annualised earnings from customers. It's crucial for assessing the long-term financial health and stability of a business.

ASIN

"ASIN" meaning "Amazon Standard Identification Number": A unique block of 10 letters and/or numbers that identify items on Amazon. It's crucial for managing product listings and inventory on the Amazon ecommerce platform.

ATV

"ATV" meaning "Average Transaction Value," similar to AOV, is a metric that calculates the average amount spent by customers in a single transaction on a website, useful for understanding spending habits and guiding pricing strategies.

B

B2B

"B2B" refers to "Business-to-Business" which is a type of transaction where businesses sell products or services to other businesses, rather than to individual consumers. In ecommerce, B2B platforms are designed to meet the needs of companies transacting with each other.

B2C

"B2C" refers to "Business-to-Consumer" which is a type of transaction where businesses sell products or services directly to individual consumers. B2C ecommerce is the most common form of online retail, involving sales through websites or online marketplaces.

Backorder

This refers to an order for a product that is not currently in stock but will be supplied when available. Customers can place orders for these items, and they are shipped once restocked, indicating a delay between order placement and fulfilment.

BOGOF

"BOGOF" stands for "Buy One Get One Free," a common sales promotion strategy in ecommerce and retail where a customer receives two items for the price of one, effectively halving the cost of each item. This is often used to clear stock or attract customers.

Bounce Rate

The percentage of visitors who navigate away from the site after viewing only one page, indicating engagement levels.

C

CAC

"CAC" meaning Customer Acquisition Cost is the cost of acquiring a new customer, calculated by dividing total marketing expenses by the number of new customers gained.

CLV

"CLV" stands for Customer Lifetime Value which works out the total amount a customer spends during their relationship with your business. Calculated as:

CLV = Average purchase value × Average purchase frequency × Customer lifespan

CMS

"CMS" refers to "Content Management System," a software tool that allows users to create, manage, and modify content on a website without the need for specialised technical knowledge. In ecommerce, a CMS is used to manage product listings, blog posts, and other website content efficiently.

CMYK

"CMYK," representing Cyan, Magenta, Yellow, and Key (Black), is crucial in digital marketing for print materials, ensuring precise color reproduction in brochures, packaging, and more, maintaining brand consistency across digital and physical mediums.

Conversion Rate

The percentage of visitors to a website who complete a desired action (such as making a purchase), out of the total number of visitors.

Core Web Vitals

A set of metrics introduced by Google to measure the speed, responsiveness, and visual stability of a webpage. In ecommerce, optimising for these factors is crucial for SEO, as they impact user experience and can influence a site's ranking in search results.

CPA

"CPA" meaning "Cost Per Acquisition": The total cost of acquiring a new customer, taking into account all marketing and advertising expenses. In ecommerce, CPA is a key metric for determining the effectiveness and efficiency of marketing strategies.

CPC

"CPC" refers to "Cost Per Click": A digital advertising model where advertisers pay a fee each time their ad is clicked. It's a common metric for evaluating the cost-effectiveness of online advertising campaigns.

CRM

"CRM" refers to "Customer Relationship Management," a technology for managing a company’s relationships and interactions with current and potential customers.

CRO

"CRO" refers to "Conversion Rate Optimisation," which is the process of enhancing a website to increase the percentage of visitors who complete a desired action, like making a purchase or filling out a form.

CRR

"CRR" or "Customer Retention Rate" is a metric in ecommerce that measures the percentage of customers a business retains over a given period. It's key for assessing loyalty and the effectiveness of retention strategies.

CS

"CS" refers to "Customer Support/Service": In ecommerce, this involves assisting and advising customers during and after their purchase process, encompassing a range of services from answering queries to handling returns.

CSS

"CSS" meaning "Cascading Style Sheets," is a style sheet language used to describe the presentation of documents written in HTML or XML. In ecommerce, CSS is crucial for styling web pages, including layout, colours, and fonts, enhancing the visual appeal and user experience.

CTA

"CTA" stands for "Call To Action," instructions or prompts in ecommerce, like "Buy Now" or "Learn More," designed to encourage immediate customer action and engagement, crucial for driving conversions on websites and emails.

CTR

"CTR" stands for "Call Through Rate," which measures clicks versus views on links or ads in digital marketing. In ecommerce, high CTR suggests effective marketing, driving more website or product page traffic.

CX

"CX" is short for "Customer Experience," which refers to the overall experience customers have with a business, from initial contact to post-purchase interactions. In ecommerce, it encompasses website navigation, customer service, product quality, and delivery process.

D

Database

An electronic system in ecommerce for managing and storing data on products, customers, orders, and inventory, crucial for organising and analysing information for business decisions.

DNS

"DNS" refers to "Domain Name System": The system that translates internet domain names into IP addresses. In ecommerce, DNS is fundamental for the functioning of websites, ensuring users can find and access the site.

Dropshipping

A retail fulfilment method where a store doesn't keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer.

E

EAN

"EAN" stands for "European Article Number," a 12- or 13-digit barcode used internationally for identifying specific retail products and tracking inventory in retail and warehouses. Essential for product cataloguing and supply chain management in ecommerce.

ESP

"ESP" refers to "Email Service Provider" which is a company that offers email marketing or bulk email services. In ecommerce, ESPs are used to create, send, and manage email campaigns to customers and prospects.

F

FBA

"FBA" refers to "Fulfilment by Amazon". This is a service where Amazon stores, picks, packs, and ships products on behalf of ecommerce sellers, as well as handles customer service and returns for these orders.

Fulfilment

The process of receiving, processing, and delivering orders to customers. This includes warehousing, picking, packing, and shipping.

G

GA4

"GA4" refers to "Google Analytics 4" which is the latest version of Google Analytics, offering more advanced analysis, better cross-platform tracking, and more comprehensive data models compared to its predecessors.

Gateway

A payment gateway is a merchant service provided by an ecommerce application service provider that authorises credit card or direct payments processing for e-businesses, online retailers, or traditional brick and mortar.

H

Headless

A website architecture in ecommerce where the front-end is separated from the back-end, allowing for flexible and independent content presentation via APIs. It's ideal for creating diverse, omnichannel experiences.

Heatmap

A data visualisation tool used to show where users click, scroll, and how they navigate through the site. Heatmaps help in understanding user behaviour and improving website design for better engagement and conversion.

HEX

"HEX," or Hexadecimal, extends RGB's utility in digital marketing by providing a precise six-digit code for web design, facilitating brand consistency across online platforms by standardising colour schemes in websites, logos, and digital assets.

Hosting

The service of storing and serving website files to make them accessible online. In ecommerce, it's essential for ensuring website speed, reliability, and security, with options like shared, dedicated, and cloud hosting.

HTML

"HTML", meaning "Hypertext Markup Language," is the standard language for creating and structuring web pages, essential in ecommerce for designing and displaying content like product descriptions and images on websites.

HTTPS

"HTTPS", meaning "Hyper Text Transfer Protocol Secure," is the protocol over which data is sent between your browser and the website that you are connected to. In ecommerce, HTTPS is essential for ensuring secure transactions and protecting customer data.

I

IMS

"IMS" refers to "Inventory Management System": A tool or software used for tracking inventory levels, orders, sales, and deliveries. In ecommerce, it's crucial for managing stock, avoiding overstocking or out of stocks, and optimising inventory turnover.

Inventory

The total quantity of products that an ecommerce business has available for sale at any given time. It includes items stored in a warehouse or distribution centre and is crucial for managing supply, demand, and order fulfilment.

IPO

"IPO" stands for "Items Per Order," similar to UPT, this term in ecommerce refers to the average number of items included in a single order placed by a customer. It helps businesses understand purchasing behaviour and basket size.

ISP

"ISP" stands for "Internet Service Provider," which is a company that provides services for accessing and using the internet. In ecommerce, ISPs are crucial as they offer the infrastructure for online transactions and website access.

J

JavaScript

A programming language used to create interactive effects within web browsers. In ecommerce, JavaScript is used to enhance user interfaces, validate forms, animate images, and manage user interactions for a more dynamic and responsive shopping experience.

JSON

"JSON" stands for "JavaScript Object Notation," is a lightweight data-interchange format used for transmitting data between a server and web application. In ecommerce, JSON is often used for APIs, enabling the exchange of product, user, and order information between different systems.

K

Keyword

A term used in SEO to help ecommerce websites rank higher in search results and draw relevant traffic, commonly found in product descriptions, blog posts, and metadata.

KPI

"KPI" stands for "Key Performance Indicator," are metrics used to measure the performance and success of an ecommerce business. Common KPIs include conversion rate, average order value, and customer acquisition cost.

L

LTV

"LTV" refers to "Lifetime Value," the total revenue a business can expect from a single customer throughout their relationship with the company.

M

Metadata

Data within a webpage's HTML, like titles, descriptions, and keywords, used by search engines to index and display pages in search results. It's vital for SEO in ecommerce, enhancing visibility and click-through rates (CTR).

MMS

"MMS" refers to "Multimedia Messaging Service," this is a standard way to send messages that include multimedia content, like images and videos. In ecommerce, MMS is used for marketing and customer engagement.

MOQ

"MOQ" refers to "Minimum Order Quantity": The smallest amount of a product that a supplier is willing to sell. In ecommerce, MOQ is important for wholesalers and B2B transactions, as it impacts inventory and pricing strategies.

MTD

"MTD" refers to "Month-to-Date": It represents the time from the start of the current month until now, used when tracking and analysing performance.

MVP

MVP or "Minimum Viable Product" is a basic version of a product with just enough features to satisfy early customers and provide feedback for future development, allowing startups to test market viability with minimal resources.

MVT

MVT meaning Multivariate Testing simultaneously tests multiple webpage elements to find the best combination for improving performance metrics like conversion rates. It offers deeper insights than A/B testing by examining how different changes interact and affect user behaviour.

N

No-Follow

An HTML tag telling search engines not to count a link for page ranking purposes, often used in ecommerce for user-generated or paid links.

NPS

"NPS" meaning "Net Promoter Score," is a metric used to assess customer loyalty and satisfaction by asking customers how likely they are to recommend a company or product to others.

O

Omnichannel

A multichannel approach to sales that seeks to provide customers with a seamless shopping experience, whether they're shopping online from a desktop or mobile device, by telephone, or in a brick-and-mortar store.

OOS

"OOS" or "Out of Stock" is a status indicating that a product is no longer available for purchase. In ecommerce, managing OOS situations is vital to maintaining customer satisfaction and sales consistency.

P

P&L

"P&L" refers to "Profit and Loss": A financial statement that summarises the revenues, costs, and expenses incurred during a specific period. In ecommerce, P&L statements are crucial for understanding the financial health of the business.

PDP

"PDP" refers to "Product Detail Page," which showcase individual products with details like features, price, and reviews. These pages are vital for customer decisions and purchases.

PLA

"PLA" refers to "Product Listing Ads" which are online advertisements that display detailed product information, such as images, prices, and business names, often seen in Google Shopping and other ecommerce platforms.

PLP

"PLP" or "Product Listing Page" in ecommerce display multiple products, typically categorised, like 'Men's Shoes' or 'Kitchen Appliances.' They are key for site navigation and user experience, allowing customers to browse and select products for more information.

POS

"POS" or "Point of Sale" is a system used by businesses to conduct sales transactions. In ecommerce, POS systems can be integrated with online platforms to synchronise sales data both in physical stores and online.

PPC

"PPC" meaning "Pay-Per-Click," is a digital advertising model in which advertisers pay a fee each time one of their ads is clicked. In ecommerce, PPC is used to drive traffic to websites, with costs based on the number of clicks.

Product Feed

A digital file containing a list of products and their attributes, like price, availability, and descriptions, used to distribute product information to various online platforms, including ecommerce websites and shopping comparison sites.

Q

QC

"QC" refers to "Quality Control" which is the process of ensuring that products in ecommerce meet certain standards of quality. It involves testing, inspecting, and correcting any defects before products are sold to customers.

QR Code

"QR Code" stands for "Quick Responsive Code", which is a scannable two-dimensional barcode used in ecommerce for easy access to product details, mobile payments, and promotional content.

Query

In the context of search engines and ecommerce, a query is a term or phrase that users type into a search box to find information or products.

R

Redirect

A method used on websites to automatically send visitors from one web page to another. In ecommerce, redirects are used for various reasons, such as moving users from outdated product pages to current ones or from old to new website versions.

Retargeting

Online advertising that targets users who have already visited a specific website, with the aim of encouraging them to return and complete a purchase.

RGB

"RGB," standing for Red, Green, Blue, is an additive colour model vital for digital marketing and ecommerce, as it defines colours for screens and digital displays, ensuring vibrant and accurate visuals in online content and advertisements.

Rich Snippets

Enhanced search results that include additional information like ratings, images, and prices. In ecommerce, rich snippets can improve visibility and click-through rates by providing more details about products directly in search results.

ROAS

"ROAS" meaning "Return on Ad Spend" is a metric that measures the effectiveness of digital advertising campaigns, calculated by dividing the revenue generated from ads by the cost of those ads. It's crucial in ecommerce for evaluating the profitability of marketing efforts.

ROI

"ROI" or "Return on Investment" is a performance measure used to evaluate the efficiency or profitability of an investment, calculated by dividing net profit by the cost of investment. In ecommerce, it's used to assess the effectiveness of marketing and business expenditures.

RTZ

"RTZ" or "Run to Zero" is a strategy in ecommerce inventory management aiming to minimise stock levels to near-zero, reducing holding costs and excess inventory, while relying on accurate demand forecasting for replenishment.

S

SAAS

"SAAS" stands for "Software as a Service," which is cloud-based software provided over the internet, used in ecommerce for platforms like shopping carts and inventory management.

SEO

"SEO" refers to "Search Engine Optimisation," the practice of improving a website to increase its visibility when people search for products or services related to the business in search engines.

SERP

"SERP" refers to "Search Engine Results Page," the page shown by search engines after a query, key in ecommerce for visibility and sales. It includes organic results, ads, and often rich snippets or local listings.

SKU

"SKU" stands for "Stock Keeping Unit," a unique code consisting of letters and numbers that identifies each product in a store or warehouse, typically used for inventory management purposes.

SLA

"SLA" refers to "Service Level Agreement," which is a contract between a service provider and a client that specifies the level of service expected during the agreement's duration. In ecommerce, SLAs are often used for agreements with hosting providers, logistics companies, and other third-party service providers.

Slug

A slug is the part of a URL that identifies a particular page on a website in a form readable by both users and search engines. Typically, it's the end portion of the URL that explains the page’s content, like “about-us” in “www.example.com/about-us”.

SMS

"SMS" refers to "Short Message Service". This is a text messaging service component of most telephone, internet, and mobile device systems. In ecommerce, SMS is used for promotions, order updates, and customer service.

SSL

"SSL" stands for "Secure Sockets Layer," a standard security technology for establishing an encrypted link between a web server and a browser, ensuring that all data passed between them remains private. It's essential for secure ecommerce transactions.

T

Technical SEO

The aspect of SEO focuses on optimising website infrastructure and technology to help search engines crawl and index it efficiently, improving site performance and rankings.

Tech Stack

The collection of technologies used to build and run a website or application. In ecommerce, this includes web development frameworks, programming languages, database systems, and server infrastructures crucial for creating and maintaining an online store.

Third-Party Data

Information collected by an entity that does not have a direct relationship with the user the data is being collected on. In ecommerce, this data is often used for targeted advertising and market analysis but comes from external sources like data providers or aggregators.

Topical Authority

This refers to a website's credibility as an expert source on a specific subject, established by consistently publishing quality, in-depth content on that topic.

U

UGC

"UGC" stands for "User Generated Content," which is content created and shared by consumers or end-users, such as reviews, comments, social media posts, and videos, is often used in marketing to build authenticity and engagement.

UI

"UI" refers to "User Interface": The layout and design with which users interact on a website or app. In ecommerce, a well-designed UI enhances user experience, aiding in navigation and the overall shopping process.

UPT

"UPT" stands for "Units Per Transaction," similar to IPO, UPT measures the average number of items (or units) purchased in a single transaction. This metric provides insight into customer buying habits and the effectiveness of sales strategies, like cross-selling or bundling promotions.

URI

URI meaning "Uniform Resource Identifier" is a string of characters that identifies a particular resource, encompassing a broader range than URLs. It can identify a resource by its location, name, or both. For example, mailto:example@email.com is a URI that doesn't specify a web location but identifies an email address, used to initiate an email to that address. Unlike a URL, which generally locates a resource on the Internet, this URI identifies a resource by its unique identifier, in this case, an email address.

URL

URL or "Uniform Resource Locator" is an address used to access resources on the Internet. It includes a protocol (like HTTP), a domain name (e.g. www.example.com), and often a path to a specific file or page. URLs enable web navigation and content retrieval.

UX

"UX" refers to "User Experience": This encompasses all aspects of a user's interaction with a company's website or application, including ease of use, accessibility, and overall satisfaction with the shopping process. Good UX is key to keeping customers engaged and loyal.

V

Variants

Different versions or options of a product available in ecommerce, such as sizes, colours, or materials, allowing customers to select according to their preferences.

Vendor

A vendor is an individual or company that sells goods or services. Vendors can supply products to other businesses (B2B) or directly to consumers (B2C), often through online marketplaces or their own ecommerce platforms.

VPN

"VPN" meaning "Virtual Private Network," is a tool providing secure and private online connections, often used in ecommerce for safe transactions and data protection.

VR

Virtual Reality (VR) creates immersive digital environments separate from the real world, using headsets and other equipment to stimulate senses like sight and sound for a fully immersive experience.

W

WMS

"WMS" means "Warehouse Management System," which is a software application designed to support and optimise warehouse or distribution centre management. In ecommerce, WMS helps in managing inventory, order fulfilment, and streamlining the overall logistics process.

X

XML

"XML" meaning "eXtensible Markup Language," is a markup language used for encoding documents in a format that is both human-readable and machine-readable. In ecommerce, XML is often used for data exchange between systems, such as in product feeds for online marketplaces.

XML Sitemap

A file in XML format that lists a website's URLs, making it easier for search engines to crawl and index the site. In ecommerce, an XML sitemap is crucial for ensuring that all product pages are found and indexed by search engines.

Y

YoY

"YoY" meaning "Year-over-Year" or "Year-on-Year," is a comparison metric that evaluates the performance of an ecommerce business by comparing financial or operational results from one year to the same period in the previous year.

YTD

"YTD" stands for "Year-to-Date," and it refers to the period from the beginning of the current year to the present day, used in ecommerce for analysing business performance and trends within that specific timeframe.

Z

??

We haven't any for Z yet, if you come across one, please let us know and we'll pop it on here. For now, the only Z after this list is some much-needed Zzz..!