The Ultimate Glossary of Ecommerce Terminology
Ecommerce jargon got you stumped? Brush up on industry lingo with our database of the 150+ most commonly used ecommerce terms.
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301 Redirect
A method of redirecting a web page to another URL to maintain SEO and user experience when the original page is moved or no longer exists.
3PL
Third-party logistics providers that offer services like warehousing, shipping, and distribution for eCommerce businesses.
404 Error
A website status code that indicates the server was able to communicate with the given URL, but the specific page could not be located.
A
A-to-Z Guarantee
A customer protection program on Amazon that ensures buyers receive the products they ordered in the condition promised.
A/B Testing
A technique used to compare two versions of a web page or element to determine which one performs better in terms of user engagement or conversions.
A+ Content
Enhanced content on Amazon product listings that includes images, videos, and additional information to improve the shopping experience.
Abandoned Cart
When a potential buyer adds items to their online shopping cart but does not complete the purchase.
Above The Fold
The portion of a web page that is visible without scrolling, usually considered the most valuable real estate for content and ads.
ACOS
Advertising Cost of Sale, a metric used to evaluate the effectiveness of Amazon advertising campaigns.
Affiliate Marketing
A performance-based marketing strategy where affiliates earn commissions for promoting products or services.
Alt Text
A brief description of an image in HTML code, used for accessibility and SEO purposes.
Amazon Associates
An affiliate program that lets bloggers, content creators, and influencers earn money by referring customers to Amazon.
Amazon Attribution
An Amazon service that helps measure the impact of external advertising on Amazon sales.
Amazon FBA
Fulfillment by Amazon, a service where Amazon stores, packs, and ships products on behalf of third-party sellers.
Amazon FBM
Fulfillment by Merchant, where sellers handle their own order fulfillment on the Amazon platform.
AOV
Average Order Value, the average amount spent by customers in a single transaction.
ASIN
Amazon Standard Identification Number, a unique identifier for products on Amazon.
Attribution Model
A rule or method used to assign credit for a conversion to different touchpoints in a customer's journey.
B
Backlinks
Inbound links from other websites to a particular web page, important for SEO.
Bill Of Lading
A contract between a shipper, carrier, and consignee stating which goods are being shipped, where from, and where it's headed
BOFU
Bottom Of The Funnel, the stage of the customer journey where potential customers are close to making a purchase decision.
Bounce Rate
The percentage of website visitors who navigate away from a site after viewing only one page.
Brand Awareness
The level of recognition and familiarity a brand has among its target audience.
Brand Loyalty
The tendency of customers to repeatedly choose and purchase products from a particular brand.
Brand Referral Bonus
An Amazon scheme that rewards brands driving sales via external traffic sources with a rebate on fees.
Brand Registry
A program on Amazon that helps brand owners protect their intellectual property and control their product listings.
Branding
The process of creating and maintaining a brand's identity, image, and reputation.
BSR
Best Sellers Rank, a ranking system used on Amazon to indicate a product's popularity within its category.
Buy Box
The area on an Amazon product detail page where customers can add the product to their cart.
Buyer Persona
A semi-fictional representation of an ideal customer based on market research and data.
C
CAC
Customer Acquisition Cost. The cost associated with acquiring a new customer, usually in relation to paid channels like Facebook ads.
CBM
Cubic Meter, a unit of measurement for the volume of goods in shipping and logistics, often used as a measure for the pricing of shipments.
Chargebacks
A dispute process initiated by a credit card holder to reverse a transaction they deem to have not met their expectations.
Chatbot
A computer program that uses AI and natural language processing to engage in text-based conversations with users. Helpful for customer service.
Churn Rate
The percentage of customers who stop subscribing to a recurring product or service during a specific time period.
Click Fraud
The fraudulent practice of repeatedly clicking on online ads to deplete an advertiser's budget or artificially boost ad performance.
CLV
Customer Lifetime Value, the predicted total revenue a customer is expected to generate over their lifetime as a customer.
CMS
Content Management System, software (eg. Shopify or WordPress) used to create, manage, and publish digital content.
COGS
Cost of Goods Sold, the direct costs associated with producing or purchasing products for sale, including freight costs.
Conversation Rate
The percentage of website visitors who take a desired action, such as making a purchase or signing up for a newsletter. Can be shortened to CVR.
Cookies
Small text files stored on a user's device to track and store information about their online activities. Mainly used in eCommerce for retargeting ads.
CPA (v1)
Cost Per Acquisition, the cost incurred to acquire a new customer or lead.
CPA (v2)
Certified Public Accountant, a license that shows a professional accountant has met the profession's highest standard of achievement.
CPM
Cost Per Mille, the cost of 1,000 impressions for online advertising.
CRM
Customer Relationship Management, software and practices for managing and nurturing customer relationships.
CRO
Conversion Rate Optimization, the practice of improving the percentage of visitors who complete a desired action on a website.
Cross Selling
Offering complementary or related products to customers during the purchase process.
Crowdfunding
A method of raising capital by collecting small amounts of money from a large number of people, often online.
CTA
Call to Action, a prompt or button that encourages users to take a specific action, such as "Buy Now" or "Sign Up."
CTR
Click-Through Rate, the percentage of users who click on a link or advertisement after seeing it.
Customer Journey
The entire process a customer goes through from initial awareness to making a purchase and beyond.
Customer Segmentation
The practice of dividing customers into smaller, more specific groups for marketing purposes.
D
DDP
Delivered Duty Paid, an incoterm indicating that the seller is responsible for all costs and risks until the goods are delivered to the buyer.
Downsell
Offering a lower-priced or alternative product to a customer who initially declined a more expensive option.
Dropshipping
A business model where retailers fulfill customer orders by purchasing products from wholesalers who ship directly to the customer.
E
EAN
European Article Number, a unique product identifier used in Europe.
EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's operating performance and potential sale value.
Email Automation
The use of automated email marketing workflows to send targeted messages based on user actions.
Email Marketing
A marketing strategy that involves sending promotional messages to a group of recipients via email.
Engagement Rate
A measure of how users interact with online content, such as social media posts or email campaigns.
EXW
Ex Works, an incoterm indicating that the buyer is responsible for all costs and risks from the seller's premises.
F
Faceted Navigation
A website feature that allows users to filter and refine search results by various criteria.
Favicon
A small icon displayed in a web browser's address bar or tab representing a website.
FCL
Full Container Load, a shipment that fills an entire cargo container. Cost-efficient for large volume brands.
FNSKU
Fulfillment Network Stock Keeping Unit, a unique identifier for products stored in Amazon fulfillment centers.
FOB
Free On Board, an incoterm indicating that the buyer is responsible for the goods after they are loaded onto the vessel.
Freight Forwarder
A company that manages the transportation and logistics of goods for importers and exporters.
Fulfillment Center
A facility where products are stored, picked, packed, and shipped to customers.
Funnels
A visual representation of the customer journey, depicting the stages from initial awareness to conversion.
G
Google Ads
An advertising platform by Google for running pay-per-click (PPC) and display ads.
Google Analytics
A web analytics service by Google that tracks and reports website traffic and user behavior.
Gross Profit
Revenue minus the cost of goods sold (COGS), representing a company's profit before operating expenses.
GST
Goods and Services Tax, a consumption tax levied on the supply of goods and services in some countries, e.g. Canada & Australia.
H
Headless eCommerce
Separating the frontend and backend of a site, allowing for greater flexibility in design and development.
Hijacker
Unauthorized sellers who take control of Amazon product listings.
HS Code
Harmonized System Code, a standardized numerical method of classifying products for customs and trade purposes.
HTML
Hypertext Markup Language, the standard language for creating web pages.
HTTPS
HyperText Transfer Protocol Secure, a secure version of HTTP used for secure data transfer on the internet.
I
Impression
The number of times an ad or piece of content is displayed to users.
Incoterms
International Commercial Terms, a set of standardized international trade terms defining key responsibilities between buyer and seller.
Influencer Marketing
Collaborating with individuals with a significant online following to promote products or services.
Infographic
Visual representations of information or data, often used to show features and benefits in product images.
Inventory Management
The process of tracking and controlling a company's inventory of goods to maintain stock levels.
J
JavaScript
A programming language commonly used for web development and adding interactivity to websites.
K
Keywords
Specific words or phrases used in search engines to find relevant content.
Keyword Stuffing
The practice of excessively using keywords on a web page or Amazon listing to manipulate search engine rankings.
L
Landing Page
A specific web page designed for a focused marketing campaign or call to action.
LCL
Less than Container Load, a shipment that does not fill an entire cargo container.
Link Building
The process of acquiring links to your website to show its authority and improve its search engine ranking.
Longtail Keywords
Longer and more specific search terms that typically have less competition.
Lookalike Audiences
Custom audience segments created to resemble the characteristics of an existing customer group.
Loyalty Program
A structured marketing strategy that rewards customers for repeat purchases and brand loyalty.
LTL
Less Than Truckload, a shipment that does not require an entire truck but shares space with other cargo.
M
Margin
The difference between the cost of a product and its selling price, representing profit. Also called profit margin.
Merchant Of Record
The entity responsible for processing payments and managing financial transactions for eCommerce businesses.
Mobile Commerce
Buying and selling goods and services through mobile devices like smartphones and tablets.
MOFU
Middle of the Funnel, the stage in the customer journey where potential customers are evaluating options.
MOQ
Minimum Order Quantity, the lowest quantity of products a supplier or manufacturer is willing to sell.
N
Net Profit
The total profit a business makes after all expenses, including operating costs, taxes, and interest.
Nexus
The connection or presence that may require a business to collect and remit sales tax in a specific jurisdiction.
O
Off-Page Optimization
SEO practices focused on improving a website's authority and relevance through external factors.
Omnichannel
Being present across multiple sales and marketing channels to maximize visibility and increase sales volume.
On-Page Optimization
SEO practices that involve optimizing individual web pages to improve search engine rankings.
Online Arbitrage
The practice of buying products online at a lower price and reselling them—typically on Amazon—at a higher price.
Open Rate
The percentage of email recipients who open and view an email, a key email deliverability metric.
Organic Marketing
Promoting a product or service through non-paid channels like content marketing and social media.
Outsourcing
Hiring external companies or individuals to perform specific tasks or services for a business.
P
Parent / Child Listing
A structure used by Amazon to group variations of a product under a single product detail page.
Patent
A legal document that grants an inventor exclusive rights to their invention for a certain period.
Payment Gateway
A service that authorizes and processes online payments on eCommerce websites.
Pixel
A small piece of code that tracks user behavior and provides data for online advertising and analytics.
PO
Purchase Order, a document issued by a buyer to a seller to initiate a product inventory purchase.
POS
Point of Sale, the location where a transaction is completed and payment is made.
PPC
Pay-Per-Click, an online advertising model where advertisers pay a fee each time their ad is clicked.
Private Label
A branding strategy where a business sells products under its own brand name but sources them from a manufacturer.
Product Bundling
Offering multiple products or services together as a package at a discounted price.
Q
QA
Quality Assurance, the process of ensuring the quality and reliability of products before shipping out from a manufacturer.
QR Code
Quick Response Code, a two-dimensional barcode that can store various types of data, often used to direct customers to a website.
R
Retail Arbitrage
The practice of buying products at retail stores and reselling them—usually on Amazon—at a profit.
Retargeting
Displaying ads to users who have previously visited a website or interacted with a brand.
Return Policy
A company's policy on handling product returns, including conditions and procedures.
ROAS
Return on Ad Spend, a metric used to measure the effectiveness of advertising campaigns. Calculated by dividing ad revenue by spend.
ROI
Return on Investment, a measure of the return on an investment relative to its cost. Calculated by dividing profit by cost of investment.
S
Sales Tax
A consumption tax imposed on the sale of goods and services in many regions.
Scarcity
A marketing tactic that leverages the perception of limited availability to drive consumer urgency.
Search Terms
Words or phrases searchers have entered into a search engine to find your content or products.
Search Volume
The number of times a specific search term is used in a given period on platforms like Google or Amazon.
SEO
Search Engine Optimization, the practice of optimizing a website to improve its visibility in search engine results.
SERP
Search Engine Results Page, the page displaying search results after a user queries a search engine.
Shipping Plan
A set of instructions and data provided to Amazon for the shipment of products to fulfillment centers.
Short-Tail Keywords
Short and general search terms with high search volume and competition.
SKU
Stock Keeping Unit, a unique identifier for a specific product or item, usually defined by the seller.
Social Media Marketing
Promoting products or services through social media platforms and strategies.
Social Proof
Indicators, such as reviews or endorsements, that demonstrate the popularity and trustworthiness of a product.
Sponsored Products
Advertising products on Amazon that appear in search results and product detail pages.
SSL
Secure Sockets Layer, a technology that encrypts data exchanged between a website and its visitors.
Supply Chain Management
The process of planning, implementing, and controlling the flow of goods from suppliers to customers.
T
TACOS
Total Advertising Cost of Sale, a metric used to assess the overall advertising spend on Amazon relative to sales.
Taxonomy
A system for classifying and organizing content or products into categories and subcategories.
Telex
Electronic transfer of cargo ownership without presenting a physical bill of lading at the destination port.
TikTok Shop
A platform where TikTok users can discover and purchase products directly from the app.
TOFU
Top of the Funnel, the stage in the customer journey where potential customers become aware of a problem or need.
Trademark
A legally registered symbol, word, or phrase representing a brand or product.
Two Factor Authentication
A security method that requires two forms of verification for user access such as a saved password and an authentication app.
U
UGC
User-Generated Content, content created and shared by users or customers that brands can ask to use in marketing.
UI
User Interface, the visual and interactive elements that allow users to interact with a website or application.
Ungating
The process of gaining approval to sell certain restricted or gated products on Amazon.
Unsubscribe Rate
The percentage of email subscribers who opt out of receiving further emails.
UPC
Universal Product Code, a standardized barcode used for product identification.
Upsell
Encouraging customers to purchase a more expensive or advanced version of a product, or a higher quantity.
URL
Uniform Resource Locator, the web address that specifies the location of a website on the internet.
USP
Unique Selling Proposition, a unique quality or feature that sets a product or business apart from competitors.
UTM
Urchin Tracking Module, a code appended to URLs to track the source and effectiveness of marketing campaigns.
UX
User Experience, the overall experience and satisfaction of a user when interacting with a product or service.
V
Variants
Different versions of a product with variations in features, options, or attributes.
VAT
Value Added Tax, a consumption tax applied to the value added at each stage of production or distribution.
Viral Content
Content that spreads quickly and widely across the internet through shares and engagements.
W
Wholesale
The sale of goods in large quantities to retailers or other businesses for resale.
X
XML Sitemap
A file that lists the pages of a website to help search engines crawl and index the site.
