Glossary

Ecommerce encyclopedia

A
A/B testing is a comparison between two versions of a webpage.

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Abandonment is when customers don't finish the order process and leave without buying anything.

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Affiliate marketing is when you receive monetary rewards for promoting someone's products.

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Assisted conversions are actions made prior to the conversion.

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Average order value is a sum shoppers normally spend on the website

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Average time on site is the time users spend on your site

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B
B2B
B2B is an exchange of resources between two different businesses.

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B2C
B2C is when businesses sell their products or services only to consumers.

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Billing address is the address attached to the bank card in order to verify the payment

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Bottom-of-the-funnel is content intended for clients at the bottom stage of the sales funnel.

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Bounce rate is the percentage of visitors that left a landing page within 15 seconds.

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Brick and mortar refers to businesses with physical stores

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Brick-and-click is when a business has both physical and online shops.

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Bundling is when goods, which are connected to each other, are sold at a lower price than if you buy them separately.

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Buyer persona is a semi-fictional character that represents a company's ideal customer.

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C
Call-to-action refers to actions required from customers to make.

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Chargeback is a refund for the disputed transaction.

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Churn rate is the percentage of customers that stopped using a service during a given time period.

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Click-through rate, or CTR, is the ratio between interactions with an ad link to the total number of people that saw it.

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Closed-loop marketing is the collection of data from multiple channels to create relevant content for customers.

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Competitive analysis is an assessment of strong and weak sides that current and potential competitors have.

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CMS, or Content management system, is a software to create, edit, and publish content for your website.

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Conversion is the number of required actions divided by the total number of visitors.

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Conversion rate optimization refers to actions taken on the website to increase the conversion rate

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Cookies are small text files with data on previous activities on the website.

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Cross-selling is an additional purchase, which is offered at the checkout.

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Customer Acquisition Cost (CAC) is the cost of sales and marketing for business to acquire a new client.

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Customer lifetime value, or CLV, is how much money an ordinary customer will spend on your products during a lifetime.

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Cyber Monday is the first Monday after Thanksgiving when you can buy electronics at a reduced price.

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D
A discount code is a unique discount on a certain item.

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Domain name is a part of network address that identifies a website.

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Dropshipping is a delivery of goods from a supplier to the buyer without storing them before in the warehouse.

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E
Ecommerce is the process of buying or selling products online.

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Ecommerce platform is a software for business owners to manage their online sales operations.

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Email marketing is a promotion of company's products or services using email.

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Engagement rate is the metric that shows the level of involvement in the company's content.

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Event-triggered email is a scheduled email dedicated to a certain event.

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Evergreen content is the type of content that will always remain relevant despite the change of trends.

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G
Google Analytics is a service to analyze the traffic of a website.

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Google keywords are words and phrases typed into Google search engine's bar.

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Gross Profit is a metric that measures a company's financial health.

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Growth hacking is when you gain a lot of customers and don't invest a lot of resources into it.

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H
Hashtag is a hash that comes before keywords on social media.

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I
Inbound marketing is a methodology to attract customers using content and SEO

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Infographics are presentations of information in a graphic format for better understanding.

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Intelligent product recommendation systems are tools that suggest products for customers to buy.

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Inventory is finished goods available for the purchase.

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K
Keyword stuffing is when pages are filled with unnecessary keywords in order to appear in different search results.

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KPI is a way to measure the performance of an organization or department.

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L
Landing page is a web page that contains a special offer.

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Lead is a person or business that may eventually become a client.

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Lead Nurturing is the process of turning potential clients into customers.

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Lifecycle stages are steps users need to take to become the company's client.

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Listing fee is fee charged for placing your products on other platforms

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Logistics is the process of planning and transportation of goods.

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M
Margin is a company’s profit divided by its revenue.

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Marketing automation is the usage of software to automate marketing activities

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Marketplace is an area, where people can trade things.

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Merchant account is an account for business purposes.

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Middle-of-the-funnel is content for clients at the middle stage of the sales funnel.

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Mobile commerce is when you buy or sell goods using your smartphone or tablet.

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Monthly recurring revenue, a.k.a MRR, is a revenue business expects to get each month.

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N
Native advertising is a paid ad that is presented in a form of the publisher's typical content.

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Net promoter score, or NPS, is the level of customer loyalty to the company.

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O
Off-page optimization is a website optimization to obtain a higher position in search results.

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Omnichannel management is the management of multiple sales channels at the same time.

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On-page optimization refers to actions taken within a website to get higher positions in search results.

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Open rate is the percentage of users that opened an email out of the total number.

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Fulfillment is the whole process of goods delivery.

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Organic traffic refers to visitors, who entered your website by clicking on search results.

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Outsource is when companies hire employees from a third party on an hourly basis.

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P
Pay-per-click (PPC) marketing is when advertisers pay publishers and platform holders for each user, who clicked on their paid links.

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Payment Card Industry (PCI) compliance refers to requirements to improve the security for payment cards data.

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Payment gateway is a service that authorizes credit card or direct payments.

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Point-of-sale (POS) system is an area where customers can pay for goods or services.

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PPC
PPC is a model of advertising when you pay each time users click your ad link.

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R
Recurring payment is a scheduled form of payment.

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Responsive design is when web pages adapt to the user’s behavior and environment such as screen size, platform, and type of the device.

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ROI (Return on Investment) is the rate of return to the company's investments.

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3
301 Redirect is a notification that the webpage has been moved to a new address.

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S
SEO
SEO is the process of optimizing a website for search engines.

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Search engine results page, or SERP, is a search engine's response to the user's query

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Service Level Agreement, or SLA, is a document of commitment between a service provider and a client.

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Shipping is the process of transporting goods.

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Smarketing is an alignment between sales and marketing teams to achieve better performance.

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Social media are websites that allow people to communicate and share pieces of content.

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Social proof is an idea that consumers will adapt their behavior according to actions of other people.

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Stock keeping unit (also known as SKU) is a unique code that retailers provide for each item in their stores.

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T
Top-of-the-funnel relates to content for clients at the top stage of the sales funnel.

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Transaction is an exchange of goods or services for payment.

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U
Upselling is when you're offered an improved version of a product or service.

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User Experience refers to impressions users get from your website.

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User interface, or UI, is a part of application users interact with.

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V
Viral content is content that people tend to share rapidly through social media.

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W
Web analytics is the number of page views and site visitors.

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Website Builder is a set of tools provided by certain companies to create websites based on their platforms.

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Wholesale is when you buy goods in large quantities and resell them partially to different stores

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X
XML Sitemap if a file containing data about indexing pages of the website.

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