GLOSSARY

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.

Note: We are gradually adding in-depth guides for each term to help you go deeper. Any time you see this arrow, click through on a term to see more.

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A

C

Conversion Rate Optimization, the practice of improving the percentage of visitors who complete a desired action on a website.

Offering complementary or related products to customers during the purchase process.

A method of raising capital by collecting small amounts of money from a large number of people, often online.

Click-Through Rate, the percentage of users who click on a link or advertisement after seeing it.

The entire process a customer goes through from initial awareness to making a purchase and beyond.

The practice of dividing customers into smaller, more specific groups for marketing purposes.

D

Delivered Duty Paid, an incoterm indicating that the seller is responsible for all costs and risks until the goods are delivered to the buyer.

Offering a lower-priced or alternative product to a customer who initially declined a more expensive option.

A business model where retailers fulfill customer orders by purchasing products from wholesalers who ship directly to the customer.

E

European Article Number, a unique product identifier used in Europe.

Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's operating performance and potential sale value.

The use of automated email marketing workflows to send targeted messages based on user actions.

A marketing strategy that involves sending promotional messages to a group of recipients via email.

A measure of how users interact with online content, such as social media posts or email campaigns.

Ex Works, an incoterm indicating that the buyer is responsible for all costs and risks from the seller's premises.

F

A website feature that allows users to filter and refine search results by various criteria.

A small icon displayed in a web browser's address bar or tab representing a website.

Full Container Load, a shipment that fills an entire cargo container. Cost-efficient for large volume brands.

Fulfillment Network Stock Keeping Unit, a unique identifier for products stored in Amazon fulfillment centers.

Free On Board, an incoterm indicating that the buyer is responsible for the goods after they are loaded onto the vessel.

A company that manages the transportation and logistics of goods for importers and exporters.

A facility where products are stored, picked, packed, and shipped to customers.

A visual representation of the customer journey, depicting the stages from initial awareness to conversion.

G

An advertising platform by Google for running pay-per-click (PPC) and display ads.

A web analytics service by Google that tracks and reports website traffic and user behavior.

Revenue minus the cost of goods sold (COGS), representing a company's profit before operating expenses.

Goods and Services Tax, a consumption tax levied on the supply of goods and services in some countries, e.g. Canada & Australia.

H

Separating the frontend and backend of a site, allowing for greater flexibility in design and development.

Unauthorized sellers who take control of Amazon product listings.

Harmonized System Code, a standardized numerical method of classifying products for customs and trade purposes.

Hypertext Markup Language, the standard language for creating web pages.

HyperText Transfer Protocol Secure, a secure version of HTTP used for secure data transfer on the internet.

I

The number of times an ad or piece of content is displayed to users.

International Commercial Terms, a set of standardized international trade terms defining key responsibilities between buyer and seller.

Collaborating with individuals with a significant online following to promote products or services.

Visual representations of information or data, often used to show features and benefits in product images.

The process of tracking and controlling a company's inventory of goods to maintain stock levels.

J

A programming language commonly used for web development and adding interactivity to websites.

K

Specific words or phrases used in search engines to find relevant content.

The practice of excessively using keywords on a web page or Amazon listing to manipulate search engine rankings.

L

A specific web page designed for a focused marketing campaign or call to action.

Less than Container Load, a shipment that does not fill an entire cargo container.

The process of acquiring links to your website to show its authority and improve its search engine ranking.

Longer and more specific search terms that typically have less competition.

Custom audience segments created to resemble the characteristics of an existing customer group.

A structured marketing strategy that rewards customers for repeat purchases and brand loyalty.

Less Than Truckload, a shipment that does not require an entire truck but shares space with other cargo.

M

The difference between the cost of a product and its selling price, representing profit. Also called profit margin.

The entity responsible for processing payments and managing financial transactions for eCommerce businesses.

Buying and selling goods and services through mobile devices like smartphones and tablets.

Middle of the Funnel, the stage in the customer journey where potential customers are evaluating options.

Minimum Order Quantity, the lowest quantity of products a supplier or manufacturer is willing to sell.

N

The total profit a business makes after all expenses, including operating costs, taxes, and interest.

The connection or presence that may require a business to collect and remit sales tax in a specific jurisdiction.

O

SEO practices focused on improving a website's authority and relevance through external factors.

Being present across multiple sales and marketing channels to maximize visibility and increase sales volume.

SEO practices that involve optimizing individual web pages to improve search engine rankings.

The practice of buying products online at a lower price and reselling them—typically on Amazon—at a higher price.

The percentage of email recipients who open and view an email, a key email deliverability metric.

Promoting a product or service through non-paid channels like content marketing and social media.

Hiring external companies or individuals to perform specific tasks or services for a business.

P

A structure used by Amazon to group variations of a product under a single product detail page.

A legal document that grants an inventor exclusive rights to their invention for a certain period.

A service that authorizes and processes online payments on eCommerce websites.

A small piece of code that tracks user behavior and provides data for online advertising and analytics.

Purchase Order, a document issued by a buyer to a seller to initiate a product inventory purchase.

Point of Sale, the location where a transaction is completed and payment is made.

Pay-Per-Click, an online advertising model where advertisers pay a fee each time their ad is clicked.

A branding strategy where a business sells products under its own brand name but sources them from a manufacturer.

Offering multiple products or services together as a package at a discounted price.

Q

Quality Assurance, the process of ensuring the quality and reliability of products before shipping out from a manufacturer.

Quick Response Code, a two-dimensional barcode that can store various types of data, often used to direct customers to a website.

R

The practice of buying products at retail stores and reselling them—usually on Amazon—at a profit.

Displaying ads to users who have previously visited a website or interacted with a brand.

A company's policy on handling product returns, including conditions and procedures.

Return on Ad Spend, a metric used to measure the effectiveness of advertising campaigns. Calculated by dividing ad revenue by spend.

Return on Investment, a measure of the return on an investment relative to its cost. Calculated by dividing profit by cost of investment.

S

A consumption tax imposed on the sale of goods and services in many regions.

A marketing tactic that leverages the perception of limited availability to drive consumer urgency.

Words or phrases searchers have entered into a search engine to find your content or products.

The number of times a specific search term is used in a given period on platforms like Google or Amazon.

Search Engine Optimization, the practice of optimizing a website to improve its visibility in search engine results.

Search Engine Results Page, the page displaying search results after a user queries a search engine.

A set of instructions and data provided to Amazon for the shipment of products to fulfillment centers.

Short and general search terms with high search volume and competition.

Stock Keeping Unit, a unique identifier for a specific product or item, usually defined by the seller.

Promoting products or services through social media platforms and strategies.

Indicators, such as reviews or endorsements, that demonstrate the popularity and trustworthiness of a product.

Advertising products on Amazon that appear in search results and product detail pages.

Secure Sockets Layer, a technology that encrypts data exchanged between a website and its visitors.

The process of planning, implementing, and controlling the flow of goods from suppliers to customers.

T

Total Advertising Cost of Sale, a metric used to assess the overall advertising spend on Amazon relative to sales.

A system for classifying and organizing content or products into categories and subcategories.

Electronic transfer of cargo ownership without presenting a physical bill of lading at the destination port.

A platform where TikTok users can discover and purchase products directly from the app.

Top of the Funnel, the stage in the customer journey where potential customers become aware of a problem or need.

A legally registered symbol, word, or phrase representing a brand or product.

A security method that requires two forms of verification for user access such as a saved password and an authentication app.

U

User-Generated Content, content created and shared by users or customers that brands can ask to use in marketing.

User Interface, the visual and interactive elements that allow users to interact with a website or application.

The process of gaining approval to sell certain restricted or gated products on Amazon.

The percentage of email subscribers who opt out of receiving further emails.

Universal Product Code, a standardized barcode used for product identification.

Encouraging customers to purchase a more expensive or advanced version of a product, or a higher quantity.

Uniform Resource Locator, the web address that specifies the location of a website on the internet.

Unique Selling Proposition, a unique quality or feature that sets a product or business apart from competitors.

Urchin Tracking Module, a code appended to URLs to track the source and effectiveness of marketing campaigns.

User Experience, the overall experience and satisfaction of a user when interacting with a product or service.

V

Different versions of a product with variations in features, options, or attributes.

Value Added Tax, a consumption tax applied to the value added at each stage of production or distribution.

Content that spreads quickly and widely across the internet through shares and engagements.

W

The sale of goods in large quantities to retailers or other businesses for resale.

X

A file that lists the pages of a website to help search engines crawl and index the site.

eCommerce Terminology FAQs

If you're working or building a business in the eCommerce industry, you'll come across a lot of jargon or specific eCommerce lingo. Some of it isn't overly important, but there are some key terms that relate to the performance of your eCommerce business. These terms are important to learn so that you can monitor performance and improve results across eCommerce sites.

The most important eCommerce terms to learn are those relating to the performance of your business. Acronyms like ROAS, LTV, CAC, and ACOS are all important to know, but also to understand how to improve within your eCommerce store.