Then there are the fundamentals that every marketer, e-commerce professional, and digital professional should comprehend.

This glossary seeks to decipher the variety of eCommerce terminology available and is an excellent read for anyone new to the field. Some of the information presented here (and more) may be found in variux's guides and white papers.

301 Redirect: A 301 redirect is a permanent redirection from one URL to another, automatically sending site visitors and search engines to the new URL instead of the original one they typed. This practice is crucial for preserving a website's domain authority and search rankings when the site's URL is changed for any reason. The status code 301 signifies that the page has been permanently relocated to a new location.

A/B testing: A/B testing (also known as split testing) is a method of comparing two versions of a web page or e-newsletter to see which one generates the most sales or sign-ups.

For example, if you had an eCommerce store, you might do an A/B test on a product page by showing 50% of consumers one version and the other 50% a different one. The 'winner' would be the version that generated the most sales over a specified time period, and you could then utilize that design in the future, knowing that it is likely to generate greater revenue.

Abandoned cart recovery: Identify visitors who started a purchase but didn't finish. Email or SMS them to encourage completion. Often includes offering incentives like promo codes or special offers.

Accessibility: Web accessibility is the technique of developing websites and other online resources so that persons with impairments can use them.

Address Verification Service (AVS): A tool from credit card processors for online retailers to detect suspicious credit card transactions and thwart fraud. AVS verifies the billing address submitted by card users against the records at the issuing bank.

Application Programming Interface (API): An Application Programming Interface (‘API’) is a set of rules that let two software applications interact and exchange data with each other. APIs are often used by developers to create apps and add-ons for existing software.

Authorization (Auth) vs Sale (Capture) Authorization: An Authorize transaction temporarily holds funds in the cardholder's account, typically for 1-30 days, based on the issuing institution's policy.

Successful authorization doesn't guarantee fund transfer.

For funds to transfer, the transaction must be "committed" or "captured." This finalizes the transfer and ensures the merchant receives the funds.

Sale (or Charge or Capture): A Sale transaction combines "Authorize" and "Capture." This one-step process allows the merchant to request funds transfer to their account without additional action.

Average order value (AOV): The average amount a customer spends in your online store, calculated by dividing total revenue by the number of orders in a specific period.

Average Time on Site: In web analytics, this metric shows how long visitors spend on a webpage. It's measured in minutes or seconds but may not reflect actual reading time accurately. Visitors could be interacting with content or have left the browser window open, affecting the metric's interpretation.

B2B (Business to Business): Business to business, selling to other businesses.

B2C (Business to Consumer): Business to consumer, selling to individuals.

Bundling: Combining multiple products into unique offers, often at discounted prices, to boost average order value.

Buyer persona: Fictional yet research-based profiles of potential customers. They detail ideal customers' lives, challenges, decision-making processes, informing product range, content, and marketing strategies.

Call to action (CTA): A call-to-action (also known as a ‘CTA’) is a message that prompts a user to immediately take a specific action — for example, “buy now,” “add to cart” or “contact us.”

Cart abandonment rate: This rate signifies the percentage of shoppers who add items to their cart but don't complete the purchase. To calculate it, you subtract the number of completed transactions from the overall number of orders started, divide that result by the total number of orders started, and then multiply by 100.

Chargebacks + Chargeback Protection: A chargeback is a customer protection mechanism that reverses funds to the customer's account. This occurs when customers believe they received a subpar product, detect fraudulent activity, or have valid concerns about a product.

For online stores, credit card payments are common. Taking steps to prevent misuse of chargebacks is essential, as they can pose a challenge to your payment processing provider, whether you anticipate it or not.

Chatbot: A computer application that assists in the automation of customer care in online stores. AI is increasingly being used to power chatbots.

Click Through Rate (CTR): CTR is a ratio that reveals the number of clicks on a specific link or ad in relation to the total number of visitors viewing that page or ad. It's used to gauge the effectiveness of online marketing campaigns, including webpages, advertisements, or email links.

CTR aids online retailers in assessing keyword performance and the effectiveness of ads or email campaigns.

Cloud-based eCommerce platform: You don't need to purchase web hosting or install any software to utilize a cloud-based eCommerce platform; instead, you simply access it using a web browser. It runs on its own servers. Cloud-based eCommerce platforms typically offer "all-in-one" packages that include all the essential tools required to build and operate a website. BigCommerce and Shopify are well-known eCommerce cloud-based applications.

Comparison shopping engine (CSE): Websites enabling consumers to discover multiple retailers selling a desired product. Shoppers compare prices from various retailers, making budget-friendly choices. Examples: Google Shopping, Amazon, eBay Commerce Network.

Content management system (CMS): A content management system (CMS) is software that allows the website owner to generate, edit, and publish content.

Content Optimization System (COS): A comprehensive solution for website and digital marketing management. It creates sales-ready, responsive, and personalized websites with easy updates. COS employs various techniques to enhance search results and rankings.

Conversion: A conversion occurs when a website visitor takes a desired action, such as signing up for a mailing list or making a purchase.

Conversion funnel: The many stages of a customer's journey through an online store are referred to as conversion funnels. It begins when a client becomes aware of a product (at the 'head of the funnel') and concludes when they purchase it. The conversion funnel is sometimes divided into four stages: awareness, interest, desire, and action.

Conversion rate: The conversion rate is the percentage of website visitors who successfully complete a desired action, such as making a product purchase or signing up for a mailing list.

Conversion rate optimization (CRO): Conversion rate optimization (CRO) is the process of modifying components of a website to maximize the possibility of visitors making a purchase. A/B testing, website heatmaps, abandoned cart recovery, and online consumer surveys are all examples of CRO.

Cookie: Cookies are minimal files a website places on a user's computer. They enable that site to identify or track your device, browser preferences, and online activities.

Cookies are commonly utilized in eCommerce to aid digital marketing efforts. For example, they enable website owners to retarget store customers who browsed their products with online adverts, or to automatically trigger emails to be sent when a person hits a specific page on a website.

Cost per acquisition (CPA): CPA, or Cost per Acquisition, is a metric used to measure the cost incurred when a customer takes an action that leads to a conversion. Conversions can encompass various actions, such as making a purchase, providing an email address, downloading content, or installing an app.

Cross selling: Offering related or complementary products to customers who have previously made a purchase from your online store.

CSS (Cascading Style Sheets): CSS is an abbreviation for 'Cascading Style Sheets'. That's the code that defines the aesthetics of a web page like which fonts, colors, and page layouts are utilized.

CSV file: A CSV file is a text file with data separated by commas. Spreadsheet software, such as Excel, is used to access and edit them, and CSV files are commonly used to store data in a spreadsheet format.

In the eCommerce context, CSV files are typically used to import and export product data into and out of online store-building programs.

Customer journey: A customer journey describes the steps taken by customers between their initial interest in a product and its purchase. Online retailers often strive to influence these'steps' as much as possible with the use of tools such as online ads, autoresponders, a customized checkout process, and abandoned cart savers.

Customer Lifetime Value (CLV): Customer Lifetime Value is an estimate of the total worth of a customer to a business over the entire duration of their relationship with that business. It represents the expected profit a company can anticipate from an individual customer.

Customer Relationship Management (CRM): CRM (Customer Relationship Management) refers to the technology used to handle relationships with customers and potential customers (for example, Salesforce, Capsule, or Nimble). A CRM system supports businesses in generating leads, converting them into new customers, and further developing their consumer relationships.

Digital Commerce: Today, an eCommerce system includes an overarching infrastructure that includes analytics from search engines, social platforms, mobile apps, and other parts of the internet and the world of commerce. This is referred to as Digital Commerce.
Knowing the broad spectrum of online business allows you to better prepare for marketing your company, acquire information about your consumers' purchasing habits, and satisfy to them accordingly.

Discount code: Discount codes (also known as promo codes or coupon codes) are used to activate discounts or special offers on an online store. They can be generated either by the store owner or by software.

Discount Rate: Discount rate is a percentage rate which is charged by the acquiring banks for processing the merchant’s transactions. This charge is a small percentage of each purchase and it depends on several factors like type of card, how credit card was processed and order placed, and whether CVM or AVS were used.

Discount rate also refers to the Federal Reserve Bank’sinterest rate that is charged to depository institutions that take loans from the Fed’s discount window.

DNS Server: : A DNS Server stands for Domain Name System which links domain names with their proper IP addressesDomainDomain is the internet alias that points to a server.

Domain name: A domain name is the web address that your website or online store is located at — yourstorename.com etc.

Dropshipping: Dropshipping is a technique of selling goods in which you do not manufacture, purchase, store, or distribute those items. Instead, you accept product orders through an online store and forward them to a supplier. The supplier then delivers the products to the customer thereby charging you a fee.
The advantage of this business model is that entrance hurdles are low; the drawback is that because it is low-cost and low-risk, competition is severe.

Dwell time: Dwell Time refers to the duration between a user clicking on a search result and their return to the search engine results. Content that generates longer dwell times may receive favorable treatment from search engines.

Ecommerce: Ecommerce is the process of purchasing and selling things (physical or digital) over the internet. (It should not be confused with 'e-business,' which refers to the general practice of establishing an Internet business).

Ecommerce platform: An eCommerce platform is a browser-based program that allows you to sell things online. Shopify, BigCommerce, and Wix are examples of popular eCommerce platforms.

Email marketing: Email marketing is an approach to promoting your products and services via email to a mailing list. It frequently delivers one of the highest returns on investment when compared to other marketing methods.

Faceted navigation: Faceted navigation (also known as 'faceted search') is a form of navigation that is commonly encountered in online businesses with a large number of products. It assists consumers in narrowing down their search by giving filters related to the products being explored (for example, an online shoe store may give a faceted navigation system with size, color, and material filters).

Flash sale: Brief, high-discount promotions on an online store's products or services, typically lasting a few hours to a day. They create urgency, increasing sales volume. Flash sales can effectively clear inventory, attract new customers, or boost revenue in slow sales periods.

Fraud: Common types of online fraud related to e-commerce sellers include:

• Payment Fraud: This involves using stolen credit card information or conducting chargeback fraud, where a customer falsely claims a charge was unauthorized.

• Account Takeover: Fraudsters gain access to customer accounts, making unauthorized purchases or stealing personal information.

• Phishing: Scammers send fake emails or messages impersonating trusted entities to deceive customers into revealing sensitive information.

• Identity Theft: Criminals steal personal information to make unauthorized purchases, open credit accounts, or commit other fraudulent activities.

• Shipping Fraud: Fraudsters use stolen credit cards to make purchases and have products shipped to different addresses, making it difficult to trace.

• Friendly Fraud: Customers falsely claim they didn't receive ordered items or that their card was charged without authorization.

• Return Fraud: Customers return used or counterfeit items for refunds or replacements.

• Gift Card Fraud: Criminals use stolen or counterfeit gift cards to make purchases. E-commerce sellers must implement robust security measures and fraud detection systems to mitigate these risks.

Fulfillment: Fulfillment is the process of delivering items ordered from an online store to a customer. Inventory management, product packing, and shipping are common tasks.

Fulfillment by Amazon (FBA): Fulfillment by Amazon (FBA) is a service that allows retailers to store their products in Amazon's fulfillment centers and have them delivered by Amazon. When a buyer purchases an Amazon FBA product, the firm packs and ships the order on behalf of the seller (and costs the seller for doing so).

Headless commerce: It's an unconventional approach to eCommerce that separates the front end from the back end, allowing both layers to be built separately. As a result, online stores can easily react to changing customer wants and new market trends.

HTML (Hypertext Markup Language): HTML is an abbreviation for Hypertext Markup Language, which is the code used to create web pages. ‘Hypertext’ refers to the hyperlinks that an HTML page contains, and ‘markup language’ refers to the way tags are used to define page layout and content.

HTML determines the structure of web pages. This structure alone is not enough to make a web page look good and interactive. So you'll use assisted technologies such as CSS and JavaScript to make your HTML beautiful and add interactivity, respectively.

Inbound Link: An inbound link, also known as a backlink, is a hyperlink on a third-party website that directs users to your own website. In SEO (Search Engine Optimization) terminology, these links are highly significant. Search engines like Google view relevant inbound links as indicators of valuable content. This assessment influences your website's Page Rank, a metric that affects its position in search engine results.

Inbound marketing: Drawing people to your online business through engaging, shareable content, rather than relying on advertising or PR to push them. The key advantage is its cost-effectiveness, often requiring minimal or no initial expenditure.

Inventory: Inventory or stock refers to the goods that an online merchant sells.

IP Address: IP Address is the actual numeric address where the website lives (like a street address)JSJavaScript is one of the most common programming languages for websites. Estimated, 90% of websites are created in this language. It is used to create dynamic and interactive websites and web applications.

Keyword: Keywords are words or phrases entered by individuals into search engines when they are seeking specific content, products, or services. In the context of e-commerce, website owners aim to identify the keywords that people commonly use to search for products. They then integrate these keywords into their website's content to improve its visibility and relevance in search engine results. This practice is a fundamental aspect of search engine optimization (SEO) for e-commerce websites.

Keyword research: Keyword research is the practice of identifying the search phrases that individuals use when seeking specific information, products, or services on search engines like Google. Once you've pinpointed the relevant keywords in your business niche, you can optimize your website's content to align with these phrases. To conduct effective keyword research, specialized tools like Semrush or Ahrefs are typically used to provide valuable insights and data.

KPI (Key Performance Indicator): A measurable value used to assess the success of an individual or organization in achieving a specific goal. In eCommerce, KPIs could include targets like monthly online sales or the number of monthly website visitors.

Landing page: A web page with a specific purpose, like capturing email addresses or promoting a specifi product. Also called 'squeeze pages,' they're commonly used with online marketing campaigns, including PPC or social ads.

Lead: A 'lead' is a customer or organization who has demonstrated an interest in a company's product or service. Leads are often captured in an online or eCommerce scenario via mailing list signup forms.

Lead magnet: An enticing offer that motivates potential buyers to provide their contact details to a business. Often, it's something valuable, such as a free e-book, discount coupon, webinar, or exclusive content, offered in exchange for an email address.

Logistics: Logistics is the process of planning and organizing resources to ensure that they are available when they are needed. This basically involves ensuring that the processes involved in carrying merchandise and shipping orders are robust.

Machine Learning (ML): Machine Learning is a subset of AI that involves the development and training of models that learn without human intervention using existing data. ML models are used to forecast and make decisions.

Margin: The margin is the profit percentage of a sale after deducting the cost of products, labor, and other expenses. In eCommerce, this indicator is used to assess the profitability of a product sale or product line.

mCommerce: mCommerce, also known as mobile commerce, refers to the use of wireless handheld devices for online purchasing and selling of goods and services." Mobile phones, smartphones, tablets, and personal digital assistants (PDAs) are examples of wireless electronic devices.
Kevin Duffey created the term "mobile commerce" in 1997 during the introduction of the Global Mobile Commerce Forum, when he highlighted the delivery of eCommerce capabilities in the consumer's hand using wireless technology.
It simply implies 'a store that fits in a customer's pocket.'

Microsite: A microsite is a web page or a small cluster of pages that serves as a supplement to the main website." It is a different URL from the company's homepage and is a specific content site designed to live outside of the company's parent website.
A microsite, sometimes known as a Minisite, is used for branding or promotion. Some businesses, for example, use them to emphasize a certain campaign or to target specific consumer personas, whereas others use them to narrate a short story or to inspire a specific call to action.

Omnichannel: It is an eCommerce strategy in which the online business use a variety of sales and marketing channels that are fully connected to give a consistent shopping experience for all customers.

Online marketplace: An online marketplace is an online space where many merchants sell their products. Amazon, eBay, and Etsy are examples of popular online markets.
These systems differ from 'standalone' store builders like Wix and Shopify in that transactions are processed by the marketplace (rather than the merchants selling on them), and fulfillment is handled by the marketplace owner in the case of some online marketplaces (particularly Amazon).

Online store builder: An online store builder is a browser-based tool that allows you to establish and manage your own online store. (Popular online store builders include Shopify and Squarespace.)

Open source: Open source refers to any software or digital tool that is publicly available and whose source code can be freely updated. In the context of eCommerce, open-source platforms such as WooCommerce or Magento allow retailers to alter and adapt their platforms to their specific needs.

Organic traffic: Organic traffic refers to website visits that come from "natural" or unpaid search results on search engines, as opposed to traffic generated through advertisements or paid promotions. To generate organic traffic, website owners need to implement search engine optimization (SEO) techniques, which involve optimizing the website's content, structure, and other elements to improve its visibility and ranking in search engine results pages (SERPs). Organic traffic is valuable because it typically consists of users who are genuinely interested in the website's content or offerings and have found it through their search queries.

Payment gateway: Payment gateways are software tools used for processing credit card payments. While some eCommerce solutions include built-in payment gateways, others may require you to integrate a third-party payment gateway with your online store to facilitate sales. Most gateways have a monthly fee plus a small per transaction fee.

PCI compliance: ‘Payment Card Industry Data Security Standard’ (PCI DSS) is a set of security standards aimed at ensuring that online retailers handling credit card information do so securely. When an online store is PCI compliant, it means it adheres to these standards, providing a high level of security for online payments.

PIM: This acronym stands for Product Information Management. PIM systems assist businesses in managing and distributing product information across numerous sales channels. It is an important tool for eCommerce management since it keeps product information consistent and up to date.

Plugin: A plugin is a piece of software that may be installed as an add-on to a website builder or eCommerce platform. Plugins often enhance a website's functionality or combine it with other programs. Ecwid and WooCommerce are two popular eCommerce plugins.
(Note: The term 'plugin' is commonly linked with WordPress. Some eCommerce systems, such as Wix and Shopify, refer to plugins as 'apps,' but the concept is the same.

Point of sale (POS): Typically, the term 'Point of Sale' (or 'POS' for short) refers to the process of getting payments for items sold in person at a physical location (retail establishment, market stall, etc.). When an eCommerce platform has POS capabilities, it usually means that you may accept payments for goods using a card reader and other selling hardware, with every sale being automatically recorded by your online store and your inventory levels being modified correspondingly.
Card readers, cash registers, barcode scanners, tills, and receipt printers are common components of POS hardware; well-known providers of this gear include Shopify and Square.

PPC (Pay-per-click): An advertising model where you pay a fee each time someone clicks on your ad. Search engine advertising, like bidding on search phrases to display ads above search results, is a common form of PPC.

Processing Fee (Credit Card): Credit card processing fees are charges incurred by merchants when they accept credit card payments. These fees cover the costs associated with authorizing and processing transactions. There are typically three main components to credit card processing fees:

• Interchange Fees: These fees are set by credit card networks (e.g., Visa, MasterCard) and go to the card-issuing banks. They are based on various factors, including the type of card (e.g., rewards card, corporate card) and the risk associated with the transaction.

• Assessment Fees: These fees are also set by credit card networks and are paid to the networks themselves. They are typically a fixed percentage of the transaction amount.

• Processor Markup: Payment processors, such as banks or third-party processors, charge a markup fee for their services. This can be a flat fee per transaction or a percentage of the transaction amount.

• Transaction Fees: can be an additional flat rate per transaction.

• Gateway Fee: typically flat monthly fee plus a per transaction fee for charges or refunds.

Product option: A product option is a characteristic that defines a product, such as size, color, or material.

Product variant: A product variant is a unique product that combines a variety of product options. A large blue suede shoe, for example, is one product type; a little red leather shoe is another, and so on.

PWA: This acronym stands for Progressive Web App. This technology enables you to construct web applications that function similarly to traditional applications but can be accessed using a web browser (they do not need to be downloaded).

PXM: This acronym stands for product experience management. PXM is a supplement of PIM that focuses on providing clients with attractive product experiences. PXM uses PIM data but adds the components that improve client engagement (such as personalization and interactive content).

QR Code: "QR Code" is an abbreviation for Quick Response Code, a machine-readable two-dimensional barcode made up of an array of black and white squares. It is commonly used to store URLs and enable quick access to information via a smartphone.
These are more helpful than traditional barcodes since they can store and digitally show data such as URL links, geo coordinates, text, and so on, and they can be scanned by smartphone.

Real-time carrier shipping: Real-time carrier shipping occurs when the exact shipping rates charged by postal companies are automatically pulled into the checkout process for an order." (These rates take into account the order weight, dimensions, and the customer's delivery destination.)
This shipping approach enables eCommerce businesses to charge each consumer the true cost of delivering an order, avoiding overcharging or undercharging.

Return on Investment (ROI): A metric used to gauge the effectiveness of an investment. It quantifies how much money was gained as a result of spending on a particular business initiative. The common formula to calculate ROI is to divide the income generated by the investment by the cost of the investment and multiply the result by 100.

Sales channel: A sales channel is the platform on which you sell — your own online store, a social network website, an online marketplace like eBay, and so on. Most professional eCommerce platforms allow you to sell through various channels.

Sales funnel: A series of actions someone must do in order to become a customer is known as a sales funnel. In eCommerce, sales funnels are frequently designed through automation — for example, advertisements are shown to potential customers that direct them to a mailing list sign-up page; once on the list, that lead receives automated communications that serve as a 'customer journey' with an online purchase as its final destination.

Search engine optimization (SEO)Search engine optimization is a set of strategies and techniques aimed at enhancing a website's position in search engine results. The primary focus of SEO includes:

• Keyword Research: Identifying relevant and high-traffic keywords to incorporate into website content.

• Content Creation: Producing high-quality, search-friendly content that is valuable to users and aligns with chosen keywords.

• Technical Optimization: Improving website speed, user experience, and technical aspects to make it more search engine-friendly.

• Link Building: Acquiring quality backlinks from other reputable websites to enhance authority and credibility.
  To carry out effective SEO, dedicated SEO tools like Ahrefs and Semrush are often employed. These tools provide valuable insights, data, and analytics to help website owners make informed decisions and optimize their online presence for better search engine rankings.

Segmentation: Categorizing potential customers into distinct groups based on various characteristics, typically demographics (such as age, gender, social group) or behavioral traits (like past purchases, clicks, cart abandonment).

SERP (Search engine results page): The page displaying search results after entering a query into a search engine like Google.

Shopping cart: A shopping cart in eCommerce is the online version of a shopping basket that you may use in a supermarket. You add items to it and pay for them at the checkout.

SKU (Stock Keeping Unit): The term 'SKU' refers to 'stock keeping unit,' and it is a number that retailers use to differentiate products and maintain inventory levels. SKUs are primarily used internally and should not be confused with a 'UPC' (Universal Product Code — read below for further information on these).

Slider: A slideshow that is integrated into a web page is referred to as a slider in web design parlance. It is also known as the carousel.

Social commerce: The direct buying and selling of products on social media platforms. Examples include Facebook Shops and TikTok Shop.

Software as a Service (SaaS): Software as a service (SaaS) is a software distribution model that offers remote access to software and its functions via a Web-based service." It is licensed on a subscription basis and is hosted centrally, eliminating the need for organizations to handle installation and maintenance.
Web-based, on-demand, or hosted software are other terms for SaaS applications. It is one of the three major cloud computing categories, together with infrastructure as a service (IaaS) and platform as a service (Paa).

Split testing: The process of comparing multiple variants of a newsletter, web page, or process to determine which one generates the most conversions. The most effective version is then set as the default.

SSL (Secure Sockets Layer): SSL is an abbreviation for 'secure sockets layer,' which is an online protocol that provides better online security. An SSL certificate indicates that your website has a secure connection and that data supplied and received by your website is encrypted. The "https" prefix on a website's URL indicates that it is utilizing SSL.

SSL Certificate: Secure socket layer, this is the encryption ticket that hides all of your traffic from the eavesdroppers.

Transaction fee (platform): A transaction fee is a charge made by an eCommerce platform on a sale of a product. (It’s different from a credit card processing fee, because the fee applies regardless of how payment is made for goods).

Universal Product Code (UPC): A Universal Product Code ('UPC' for short) is a one-of-a-kind code printed on retail product packaging to aid in the identification of a specific item. It is made up of two parts: a machine-readable barcode and a 12-digit unique number.

Upselling: The practice of encouraging a customer purchasing from your store to upgrade their selection to a more expensive option. This exposes customers to additional products they may not have initially considered, potentially increasing revenue for the store owner.

URL: This abbreviation stands for Uniform Resource Locator. It’s simply a web address that you type into your browser to open a specific web page.