Glossary of Ecommerce Terms | EcomXpertz
Essential Ecommerce Terms Explained for Beginners and Professionals.
1. A/B Testing
A method of comparing two versions of a webpage, ad, or email to determine which performs better.
2. Affiliate Marketing
A performance-based marketing strategy where affiliates earn a commission by promoting a company’s products or services.
3. Average Order Value (AOV)
The average amount spent by a customer in a single transaction. Calculated as total revenue divided by the number of orders.
4. Cart Abandonment
When a customer adds items to their online shopping cart but doesn’t complete the purchase.
5. Conversion Rate
The percentage of visitors to a website who take a desired action, such as making a purchase or signing up for a newsletter.
6. Dropshipping
A business model where the retailer sells products without holding inventory. Instead, the supplier ships directly to the customer.
7. Fulfillment
The process of picking, packing, and shipping products to customers after they make a purchase.
8. Marketplace
An online platform, such as Amazon or eBay, where multiple sellers list and sell products.
9. Payment Gateway
A service that processes online payments by securely transferring transaction details between the merchant and the customer’s bank.
10. Pay-Per-Click (PPC)
An online advertising model where advertisers pay a fee each time their ad is clicked.
11. Private Label
A product manufactured by a third party but sold under a retailer’s brand name.
12. Product Listing Optimization
The process of improving a product’s title, description, images, and keywords to enhance visibility and conversions.
13. Return on Investment (ROI)
A measure of the profitability of an investment. In ecommerce, it’s often used to assess the success of marketing campaigns.
14. SKU (Stock Keeping Unit)
A unique identifier for each product in a retailer’s inventory, used for tracking and managing stock.
15. Supply Chain
The network of suppliers, manufacturers, and logistics providers involved in producing and delivering a product to the customer.
16. Upselling
A sales technique where customers are encouraged to buy a higher-end version of the product they’re considering.
17. User-Generated Content (UGC)
Content created by customers, such as reviews, photos, or videos, that is used to promote a product or brand.
18. Web Analytics
The collection and analysis of website data to understand user behavior and improve performance.
19. Warehouse Management System (WMS)
Software that helps manage inventory and operations within a warehouse.
20. White Label
A product manufactured by one company and sold under another company’s brand, similar to private labeling.