E-commerce, or electronic commerce, refers to any business transactions conducted online. It involves buying and selling goods, services, or digital products through the internet. E-commerce can encompass various business models, including B2B, B2C, C2C, and more.
A method of comparing two versions of a webpage to see which one performs better in terms of conversions. For instance, a website might test two different call-to-action buttons to determine which one leads to more sales. Learn more about A/B Testing.
A performance-based marketing strategy where businesses compensate external websites (affiliates) for driving traffic or sales through their referrals. Explore more about Affiliate Marketing.
A metric that measures the average amount that customers spend per transaction. Calculated by dividing total revenue by the number of orders. Discover the significance of AOV.
The percentage of visitors who leave a site without taking any action. A high bounce rate may indicate an issue with the site's content or user experience. Read more on Bounce Rate.
Selling multiple products as a combined package, often at a lower price than if bought separately. This can increase [[[[[[average order value](marine-layer-marketing-confidence.html)](labor-day-marketing.html)](boxing-day-sales-uk.html)](a-deep-dive-into-drip-the-email-marketing-service-for-ecommerce)](case-studies-kuru-email-revenue.html)](behavioral-targeting-strategy.html) and encourage customers to purchase more items. Understand Product Bundling.
A fictional representation of an ideal customer based on market research. These personas help businesses tailor [[their marketing efforts](case-studies-beekman-1802-bfcm.html)](case-studies-jewelcandle-email-revenue.html) to specific customer demographics and behaviors. Learn more about creating Buyer Personas.
A marketing message designed to prompt an immediate response from the audience, such as "buy now" or "sign up today." Effective CTAs are crucial in guiding users towards completing a purchase. Explore effective CTAs.
The ratio of shopping carts created to completed transactions. Reducing cart abandonment is vital for improving conversion rates. Learn how to reduce Cart Abandonment.
The steps a customer takes to complete an online purchase, from adding items to the cart to finalizing payment. Streamlining this process can reduce cart abandonment and improve user experience. Understand the Checkout Process.
The path users take from first becoming aware of a product to making a purchase. Optimization efforts often focus on smoothing the journey through this funnel. Learn about optimizing the Conversion Funnel.
The total worth of a customer to a business over the entire course of their relationship. It's a crucial metric for determining how much to spend on acquiring new customers. Gain insights into CLV.
A business model where the retailer does not keep products in stock. Instead, customer orders are fulfilled directly by a third-party supplier. Learn more about Dropshipping.
A seamless shopping experience across multiple channels (e.g., online, mobile, in-store). Ensuring consistency across channels can significantly enhance customer satisfaction. Discover the benefits of Omnichannel.
An advertising model where businesses pay for each click on their ads. PPC is commonly used in search engine and social media advertising. Learn more about PPC.
The process of optimizing a website to rank higher in search engine results pages. Effective SEO can drive organic traffic and increase visibility. Explore SEO techniques.
A security protocol for establishing encrypted links between a web server and a browser. SSL ensures that all data transmitted remains private and integral. Understand the importance of SSL.
Using [social media platforms](woocommerce-klaviyo.html) to sell products directly. This integrates [the shopping experience](2024-state-of-ecommerce.html) with social networking, making it easier for customers to shop without leaving the platform. Learn about Social Commerce.
Automated Clearing House (ACH) payments are electronic bank transfers, which can be used to securely transfer funds directly between bank accounts. Learn more about ACH Payments.
E-wallets like Apple Pay, Google Wallet, and PayPal store payment information securely and make online transactions more convenient. Explore various Digital Wallets.
A service that processes credit card transactions. Popular payment gateways include Stripe and PayPal. Understand the role of a Payment Gateway.
Used to calculate shipping costs based on package dimensions rather than weight alone. This is commonly used by carriers to align shipping rates with the volume a package occupies. Learn about Dimensional Weight.
The process of receiving, packaging, and shipping customer orders. Efficient fulfillment is critical for maintaining customer satisfaction. Explore the fulfillment process in E-commerce.
Creating and sharing content to attract and engage potential customers, rather than explicitly promoting a brand. Effective content marketing can drive organic traffic and build brand loyalty. Discover more about Content Marketing.
Using emails to promote products, engage customers, and drive sales. Strategies include newsletters, promotional emails, and automated responses. Learn the benefits of Email Marketing.
Partnering with influencers to reach wider audiences and build credibility. Influencers can help promote products by leveraging their large and engaged followings. Explore Influencer Marketing.
Programs designed to encourage repeat business by offering rewards and incentives to customers. Examples include point systems, discounts, and exclusive offers. Understand how to implement effective Loyalty Programs.
Tools that help manage interactions with customers and potential customers. CRM systems can track sales, customer interactions, and streamline marketing campaigns. Learn about CRM Software.
Adherence to the Payment Card Industry Data Security Standard to ensure that credit card information is processed securely. Understand PCI Compliance.
Digital certificates that verify a website's legitimacy and enable an encrypted connection. SSL certificates are crucial for online security and customer trust. Learn the importance of SSL Certificates.
A tool for tracking and analyzing website traffic, user behavior, and conversion metrics. Google Analytics provides valuable insights for optimizing marketing strategies. Explore Google Analytics.
Metrics used to measure the success of various business operations. Common KPIs in e-commerce include conversion rate, average order value, and [[customer lifetime value](how-to-identify-vip-customers.html)](glossary-what-is-re-engagement.html). Learn about essential KPIs.
This comprehensive glossary of e-commerce terms covers key concepts essential for understanding and excelling in digital commerce. By familiarizing yourself with these terms, you'll be better equipped to implement effective strategies, enhance customer relationships, and ultimately drive your business success. Explore more in-depth articles and continue expanding your e-commerce knowledge through the following resources: