Ecommerce Terms You Need To Know To Manage Your Digital Company

Marketing professionals are certainly adept with jargons, aren't they? We enjoy discussing our KPIs, ROI, and margins. However, when you're talking about digital companies which are where processing and fulfillment takes place online, you'll need a new set of terms you have to be aware of to keep up.

Not only do you have to know general business and accounting concepts however, you must also know about online marketing, coding as well as conversion terminology to help you monitor and develop your company. If you're thinking "That's an awful lot of terms," you're exactly right. But don't worry, we've come up with an e-commerce glossary which covers all the terms and concepts you need to know for a successful online business.

A

Affiliate links A specific URL that has an affiliate's ID and username. Affiliate links can be used to track traffic directed to the site of a retailer.

Affiliate marketing
A form of performance-based marketing that rewards partners (also known as affiliates) for each client or visitor brought in by the affiliate's marketing efforts.

Amazon Marketplace
The most popular 3rd-party ecommerce platform. Selling on Amazon's Marketplace Amazon Marketplace can significantly boost volume through your store. Amazon charges fees on every sale through the Marketplace. They also offer Fulfillment by Amazon in which they manage the fulfillment process to your company at an extra cost.

App programming interface (API)
An array of subroutines, definitions, protocols, as well as tools to create application software. An API may be used to build a web-based application operating system, hardware, or software library.

Authorization
A security mechanism that determines whether a particular account in the payment system has sufficient funds for completing the transaction.

Autorized reseller
A brand-approved or -designated reseller that can offer digital products directly to consumers for the brand's behalf.

Average order value (AOV)
A customer's average price is the amount he spends in a typical visit to a company. The AOV can be calculated by subdividing the number of customers who have placed orders by total sales revenue.

B

Office back
A business's operations includes VAT, sales tax and billing. It also handles order processing as well as online payment. 's end-to-end platform manages all back-office operations for clients.

Blog
Blogs are an online journal of information relevant to your marketplace. Blog is the result from "web" and "log." A blog must be part of your online store. The majority of e-commerce platforms come with an integrated blog function, so you can attract both traffic and links to your site.

Bounce rate
The percentage of website visitors that navigate away from the site after viewing only one page.

Bundling
An idea of marketing wherein an organization offers a variety of associated products or services and offers them as a package solution, often for a discounted price.

Businesses to businesses (B2B)
Business to business refers to the transactions that are carried out between businesses, rather than between individuals and companies. customers.

Business to consumer (B2C)
It's a transaction or business carried out directly between a firm as well as consumers who are users of the product or services.

C

CTA (CTA)
Marketing concept in which an instruction is given to the intended audience in order to persuade them to immediately take action. Examples are "visit right now,"" "learn more,"" "sign up," and "subscribe."

Capture
The procedure of collecting money from a payment process once it is authorized.

Chargeback
An order from a credit card provider for a retailer to pay back the amount of loss incurred due to the fraudulent or undisputed transaction.

Content management system (CMS)
Computer software that allows the creation and modification in digital media. The majority of the time, it supports several users working together in a group.

Conversion
An expression employed to refer to a particular action a customer can take. For example, a website user can fill in forms to download an eBook, and by pressing the "Download" button, they are converted to the status of a lead. The term "conversion" can be used to define the person who is a customer.

Conversion rates
The percent of users who come to the site that turn to customers.

Cookie
A small, tiny file that is saved in a computer of a user's mobile device to serve the purpose of storing information related to the user's interactions with a particular site.

Credit card
A credit card that is used by users (cardholders) in order to allow the user to pay the merchant for products and services, based on the cardholder's agreement with the card issuer to pay them for the amounts so payed, in addition to any other agreed charges.

Cross-sell
The act or process of selling an additional item or service to a customer who is already a client. It is important that the new product or service offered increases the value the buyer is getting from the business.

Currency
The term "currency" refers to a type that uses money (monetary units) in common use, especially in a nation. Currencies comprise US dollars, British pounds, Australian dollars, as well as European Euros.

Cost of acquisition for the customer (CAC)
A measure that is growing in use, along with the rise of Internet businesses and online advertising campaigns that can be tracked. It's the process of persuading a prospective customer to purchase a item or provide a service.

Customer relationship management (CRM)
A CRM system allows businesses to keep track of relationships with their potential and current customers. It stores important information and information associated with every individual, including contact details as well as leads, accounts, and sales possibilities all in one central location.

D

Dashboard
 A user interface. The dashboard can provide quick views of key performance indicators that relate to a particular objective or business process. Dashboards are typically displayed on a web page which is connected to a database which allows the report to be dynamically updated.

Digital commerce
An e-commerce type used by an organization that delivers and sells products online. It deals exclusively with trading of electronic items.

Digital media
The combination of technology and content. This refers to all media that are encoded in machine-readable formats. Digital media is able to be produced or viewed and distributed altered, or stored on digital electronics devices.

Directories
A catalog or online listing of websitesthat includes online shops.

Discount
The reduction in the price of goods and services. Companies reduce the cost of the item or service by a specified dollar amount or percentage.

Name of the domain
The root address of the web page. For example, www.myshop.com.

Dunning management
It is the capacity of a recurring bill solution to handle the processes and communication surrounding expired payments, failed payments, and renewals.  Its platform includes Dunning Management tools that help sellers automatically notify clients regarding payment issues that are recurring.

E

Ecommerce
It is the process of purchasing or selling items or services on the internet. E-commerce encompasses mobile commerce, electronic funds transfers as well as online transaction processing electronic data interchanges, the management of inventory systems and automated data collection systems.

F

It allows for global subscriptions and payment for thousands of software businesses around the world. Our end-to-end ecommerce platform is specifically designed for businesses that sell software, content or even apps on the internet.

Fulfillment
It is the fulfillment of a need or condition. The platform, for example, manages the fulfillment of software, digital content, etc. for the purchaser on behalf of the seller.

G

General Data Protection Regulation (GDPR)
A new EU law that replaces the 1995 EU Data Protection Directive (DPD) to enhance the protection of personal data of EU citizens. The regulation requires businesses and organizations to comply with specific guidelines concerning the processing and collection of personal data.

Google Analytics
The industry standard for analytics, Google Analytics is a software that is free to link up with your website and track traffic through your site and their interactions with funnels and objectives. Google Analytics provides invaluable insights regarding your site, and can be used as a basis for identifying strategies for growth.

Google Keyword Tool
A free keyword suggestion tool that uses data from the Google search results. Google search to provide the most relevant keywords to a URL and category.

Google Trends
An instrument that displays the frequency with which a particular term or keyword is searched on Google. This allows marketers to easily compare keywords or phrases. It also shows where searches originate and how many searches over the period of time.

Google Webmaster Tools
The principal channel to communicate with Google as a website owner, Google Webmaster Tools gives an evaluation of your website as well as your Google rankings by Google to help you tweak and optimize your website performance to get better results.

Gross Value of Transaction (GTV)
The term refers to the total sale amount that is transacted on the platform. This is the sum of the expenditures on behalf of the users within the time frame.

H

Hyper Text Markup Language (HTML)
The markup language that is used in the general case is used to build web pages as well as web applications.

I

Integration
The term "typically" refers to the method by which two separate systems, applications, software and so on. can be joined so that the data in both becomes part of a larger comprehensive system.

Internet of things (IoT)
The physical device network such as vehicles, household appliances, and other items embedded with electronics, software, sensors, actuators, and other connectivity that allows these objects to connect and exchange data.

J

JavaScript
A programming language for computers that uses object-oriented programming typically used to produce interactive web-based browser effects.

JavaScript Object Notation (JSON)
 A lightweight data-interchange format. It's built on a subset that is part of the JavaScript programming language.

K

Key Performance Indicators (KPI)
The measurement of a value which shows the effectiveness of a business in accomplishing its business goals.

L

Page Landing
A web page that is shown in response to a link in a pay-per-click ad, an email or particular URL that is displayed in offline advertising. Landing pages include content directly related to the link that a user clicked.

Lifetime customer value (LCV/CAC)
The forecast of net profit that is attributed to an overall future relationships with the customer.

Limited Liability Company (LLC)
A corporate structure whereby the employees of a business are not personally responsible for the company's debts or liability.

Long Tail
Chris Anderson's belief that marketplaces and markets particularly online tend to be geared towards niche goods and away from mainstream general-appeal items.

M

Margin
The distinction between a product or service's price of sale as well as its cost of manufacturing or to the ratio between a company's revenues and expenses.

Marketing Automation Platform (MAP)
Technologies and software designed to help marketing departments and organizations to more effectively market through multiple channels on the internet as well as automate routine tasks.

Merchant
A person or business who sells goods or services. A merchant who is an e-commerce vendor refers to any entity selling items or services only on the Internet.

Merchant Account
A bank account which allows companies to accept payments by debit or credit cards.

Micro-payment
A transaction that involves the exchange of a small amount of cash in exchange for something available online, like an app download, a service or web-based content.

Microservices
A technique for software development, a variant of the service-oriented architecture (SOA) architectural style that organizes an application as a collection of loosely coupled services.

Multi-Channel Ecommerce
It is the process of selling products or services on a range of ways and platforms, which includes both mobile and online.

N

Net Profit
Actual profit after work expensesthat aren't included in the calculation of gross profit, were made.

Niche
 A small, distinct market segment.

O

Organic
Search engine results which are displayed on the basis of their relevance to a question, as opposed to results from paid search that appear because the site owner has paid for an advertisement or paid to be featured.

Outsource
Hiring third-party providers to handle certain aspects or activities of your company on your behalf. Outsourcing is a great option for anything from web design to logistics and fulfillment.

Overhead
It is the ongoing costs associated with managing an enterprise.

P

PageRank
Google's Page Ranking System that emphasizes inbound links to determine a page's importance.

Payment
A process or action of paying someone , or some thing, or to be or being paid. A sum that is paid or due.

Payment Card Industry compliance (PCI)
A set of security standards designed to ensure that any business that takes, process, store or store credit card details keep their data secure.

Payment gateway
A merchant service provided by an application provider , which authorizes direct or credit card payment processing for businesses that are digital such as online retailers, bricks and clicks, or traditional brick and mortar.

Payment processor
It is a company, usually a third party, that is appointed by a merchant to handle transactions through various channels, including credit cards as well as debit cards used by merchants to acquire banks.

PayPal
An internationally renowned, top-rated processor of payments. This is the most popular choice for the vast majority of people who pay by credit card.

Pay Per Click (PPC)
A type of online advertising that lets you bid to get highly targeted traffic you pay online for each visit to your website instead of paying for impressions or other metrics.

Plugin
In computing, a software component that provides a certain function to an existing program. When a program can support plugins, they allow customization.

Point-of-sale (POS)
The exchange that occurs between a merchant and a customer when a product or product is bought, usually with a point of sale system to complete the transaction.

Q

Quantitative Metrics
Information that is represented by numbers, for example, visits, click-through-rates and the time spent on a site.

Quantitative Metrics
Data that measures the quality of a customer interaction that may be subjective. They are typically built on reviews from customers, interviews, and surveys. This data is then given a qualitative score that is used to assess the efficacy of a campaign.

R

Recurring billing
If a business automatically charges the cardholder for specific goods or services on a prearranged schedule.

Return on Investment (ROI)
The ratio between the net profit and the cost of investment resulting from an investment of some resources.

Revenue
The amount of money that an organization actually earns over the course of its normal business activities, like the sale of goods and services to clients.

Roadmap
A strategic plan that defines the desired goal or outcome as well as the key steps or milestones needed to reach it. It also serves as a means of communication, and documents that outline strategic thinking--the why--behind both the goal and plan.

S

Search Engine Marketing (SEM)
Marketing online that improves a website's visibility on a search engine results page (SERP). It is accomplished by making the website more efficient using strategies for indexing, and also by purchasing paid-search ads.

Search Engine Optimization (SEO)
The procedure of making your site as well as building links is an SEO-friendly manner to make sure that your site gets the best possible ranking in relevant SERPs.

Search Engine Results Page (SERP)
A page is produced through searching for a specific keyword via Google. SEO is the process of moving a webpage up the search results, meaning that your site can be clicked from page 1 . or as close to that as possible.

Social Media
An array of social media platforms through which firms can target viewers through ads or an entire social media strategy. Facebook, Twitter, Google Plus, Instagram, Pinterest, and others are all examples of social media platforms.

Social Media Marketing
The term "social media marketing" refers to Internet marketing, which promotes goods or services using social media. Also, it is referred to as internet-based word-of-mouth marketing.

Software Development Kit (SDK)
A collection of development tools that allows the creation of applications for the specific software package software framework or hardware platform.

Shopping cart
Site visitors are able to select items for eventual purchase.

Software
The operating programs, as well as other information that computers use.

Software as a service (SaaS)
The software licensing and delivery model in where software licenses software on a subscription basis, and hosted centrally. The software is usually accessed through a user via a web browser. Sometimes, it is referred to as web-based software, on-demand software as well as hosted software.

Split Testing (A/B Testing)
Testing models that let marketers simultaneously test two factors (often labeled"A" and "B) for the purpose of determining which variation in web page, ad content or design yields the most effective outcome.

Subscription
It is the access to a particular item or service for the specified duration.

T

Traffic
The quantity of customers coming to your website from other sources. This is known as the "input" side of the ecommerce equation. A higher volume of traffic typically results in greater business, and it is comparable to the foot traffic that is found in brick and mortar stores.

Transaction
An instance of buying or selling a product or service.

U

Usability
The ease and efficiency of your clients' ability to utilize or interact on your site. Usability is central to the quality of the user experience as well as your conversion percentage. It now extends to the customers' experience when using mobile or tablet devices.

User interface (UI)
A method by which a user and a computer system interact, in particular, by using input devices and software.

Upselling
A method of selling that is used to get a buyer to spend more by buying the upgrade, or similar products or service.

User experience
The experience that a person using a product, like a site or an application for computers.

V

Value-added tax (VAT)
A value-added taxis also often referred to in certain countries as a services and goods tax, is one type generally consumed tax which is collected in a gradual manner, based on the increase in value of a service or product at each stage of production or distribution.

Vendor
A participant within the supply chain offers goods and services for consumers and businesses. The term "vendor" is used to describe the entity that is paid for items that are supplied in lieu of the maker of the product itself.

Vertical
An industry sector made up of like-minded businesses as well as customers.

W

WordPress
An open and free-of-cost content management system developed on PHP as well as MySQL. To function, WordPress has to be placed on a website server. This could be part of an Internet hosting provider or as a network host all in it's own.

WP Engine
A leading web host within the controlled WordPress hosts category.

Chances are you're going to need to refer to this glossary again ... again and often ... and again. Make it a bookmark on your preferred browser so it is easy to access all of the key terms in e-commerce. Your accountant and affiliates will thank you I guarantee it.