Commerce Glossary

Abandoned Cart

When a customer adds items to their online shopping cart but leaves the website without completing the purchase.

Affiliate Marketing

A marketing strategy where affiliates (partners) promote a merchant's products or services and receive a commission for referring sales or leads.

Average Order Value (AOV)

The average amount a customer spends per order in a given time frame.

B2B (Business-to-Business)

A transaction or business model where businesses sell products or services to other businesses.

B2C (Business-to-Consumer)

A transaction or business model where businesses sell products or services directly to individual consumers.

Bounce Rate

The percentage of website visitors who leave after viewing only one page, without interacting further with the site.

Cart Abandonment Rate

The percentage of online shoppers who add items to their shopping cart but leave the website without completing the purchase.

Chargeback

A forced reversal of a payment initiated by the customer's credit card issuer, often due to a disputed or fraudulent transaction.

Click-Through Rate (CTR)

The percentage of users who click on an ad or link out of the total number of users who view it.

Conversion Rate (CR)

The percentage of website visitors who complete a desired action, such as making a purchase or signing up for a newsletter.

CRM (Customer Relationship Management)

A strategy, process, or software system used to manage and analyze customer interactions and data throughout the customer lifecycle.

Cross-selling

Encouraging customers to purchase additional, related items in addition to the main product they are interested in.

Churn Rate

The percentage of customers who discontinue their relationship with a business within a specific time period.

Dropshipping

An e-commerce model where the retailer does not keep inventory but forwards customer orders to a supplier, who then ships the products directly to the customer.

E-commerce Platform

A software application that enables businesses to manage their online store, including product listings, orders, and payment processing.

Gross Margin

The difference between the total revenue and the cost of goods sold, expressed as a percentage.

Inventory Management

The process of managing and controlling stock levels, including ordering, storing, and tracking products.

M-commerce (Mobile Commerce)

E-commerce transactions conducted on mobile devices, such as smartphones and tablets.

Marketplace

An e-commerce platform where multiple sellers offer their products or services, typically managed by a third party.

Multichannel Selling

Offering products or services for sale through multiple channels, such as online marketplaces, social media, and brick-and-mortar stores.

Net Promoter Score (NPS)

A metric used to measure customer satisfaction and loyalty by asking customers how likely they are to recommend a business to others.

Omnichannel Retail

A seamless and integrated shopping experience across multiple channels and touch points, both online and offline.

Payment Gateway

A service that processes and authorizes credit card payments for online transactions.

PPC (Pay-per-Click)

An online advertising model where advertisers pay a fee each time one of their ads is clicked.

Product Feed

A file containing product information and attributes, such as images, descriptions, and prices, used to display products on e-commerce websites or marketplaces.

Retargeting

An online advertising strategy that targets users who have previously visited a website or engaged with a brand, aiming to bring them back and encourage a purchase.

Return on Advertising Spend (ROAS)

The revenue generated by advertising campaigns, divided by the cost of those campaigns.

Retention Rate

The percentage of customers who continue to make purchases or engage with a business over a specific time period.

SEO (Search Engine Optimization)

The process of optimizing a website to improve its visibility and ranking on search engine results pages, increasing organic (non-paid) traffic.

Shopping Cart

A virtual cart on an e-commerce website that holds selected items for purchase until the customer is ready to check out.

SKU (Stock Keeping Unit)

A unique identifier assigned to each product or variation, used for inventory tracking and management.

SSL Certificate (Secure Sockets Layer)

A digital certificate that encrypts data transmitted between a user's browser and a website, ensuring secure online transactions.

Subscription-based E-commerce

A business model where customers pay a recurring fee for access to products or services, such as software, digital content, or physical goods.

Time on Site

The average amount of time visitors spend on a website during a single session.

Traffic Source

The origin of website visitors, such as direct visits, referrals from other websites, search engines, or social media platforms.

Upselling

Encouraging customers to purchase a higher-priced item or upgrade by offering additional features, benefits, or improved specifications.

User Experience (UX)

The overall experience a user has while interacting with a website or app, including its ease of use, design, and functionality.

User Interface (UI)

The visual elements and interactive components of a website or app that enable users to navigate and interact with the site or app effectively.

Virtual Assistant

A software application or AI-powered chatbot that provides automated assistance and customer support on a website or app, helping users find information, answer questions, or complete tasks.

Voice Commerce

The use of voice-activated technologies, such as smart speakers or virtual assistants, to search for products, place orders, and complete transactions in an e-commerce setting.

Web Analytics

The measurement, analysis, and reporting of website data to understand and optimize web usage, visitor behavior, and overall site performance.

Web Hosting

A service that provides the necessary infrastructure for websites to be accessible on the internet, including storage space, bandwidth, and security features.

Wish List

A feature on e-commerce websites that allows users to save items they are interested in but not yet ready to purchase, often for future reference or to share with others.

Zero-Party Data

Data that customers voluntarily share with a brand or retailer, such as preferences, interests, or purchase intentions, enabling more personalized marketing and customer experiences.