Ecommerce is one of the fastest-growing industries, but it comes with a lot of technical terms, strategies, and jargon. Whether you’re launching an online store, optimizing your sales funnel, or scaling your business, understanding these terms is crucial to your success.
This Ecommerce Glossary is your ultimate guide to 150+ essential terms, covering everything from product listings and payment processing to marketing strategies and logistics.
📌 Bookmark this page to boost your ecommerce knowledge and grow your online store! 🚀
Difficulty Level Guide:
🟢 Beginner – Essential knowledge for newcomers
🟡 Intermediate – Terms for growing affiliates
🔴 Advanced – Complex concepts for experienced marketers
A
Abandoned Cart 🟢
When a customer adds items to their shopping cart but leaves the website without completing the purchase.
Acquisition Cost 🟡
The total cost of acquiring a new customer, including marketing and advertising expenses.
Affiliate Marketing 🟡
A marketing arrangement where an online retailer pays commission to external websites for traffic or sales generated from its referrals.
Analytics 🟡
Tools and metrics used to measure website performance, user behavior, and sales data.
API (Application Programming Interface) 🔴
A set of protocols and tools for building software applications that allows different systems to communicate with each other.
Average Order Value (AOV) 🟢
The average amount spent each time a customer places an order on a website.
B
B2B (Business-to-Business) 🟢
Commercial transactions between businesses, rather than between businesses and consumers.
B2C (Business-to-Consumer) 🟢
Commercial transactions between a business and individual consumers.
Backend 🔴
The server-side of an ecommerce website where data processing, database management, and administrative functions occur.
Bounce Rate 🟡
The percentage of visitors who navigate away from a website after viewing only one page.
Bundling 🟢
A marketing strategy where multiple products are sold together as one combined package.
Buy Button 🟢
A call-to-action button that initiates the purchase process.
C
Cart Abandonment Rate 🟢
The percentage of online shoppers who add items to their cart but don’t complete the purchase.
Checkout Process 🟢
The series of steps a customer must complete to purchase items in their shopping cart.
Conversion Rate 🟡
The percentage of website visitors who complete a desired action (usually making a purchase).
Content Management System (CMS) 🟡
Software that allows users to create, manage, and modify digital content without specialized technical knowledge.
Cross-selling 🟢
A sales technique where customers are encouraged to buy related or complementary items.
Customer Lifetime Value (CLV) 🔴
The predicted total revenue a business can expect from a single customer account throughout the business relationship.
D
Dashboard 🟢
A user interface that displays key performance metrics and business data in an easy-to-read format.
Digital Wallet 🟢
An electronic device or service that allows users to make digital transactions and store payment information.
Dropshipping 🟡
A retail fulfillment method where the store doesn’t keep products in stock but transfers customer orders to a third-party supplier.
Dynamic Pricing 🔴
A pricing strategy where prices automatically adjust based on market demand and conditions.
E
E-commerce Platform 🟢
The software or service that enables businesses to manage their online store and sales.
Electronic Data Interchange (EDI) 🔴
The computer-to-computer exchange of business documents in a standard electronic format.
Email Marketing 🟢
The use of email to promote products, communicate with customers, and build relationships.
Encryption 🔴
The process of converting data into a code to prevent unauthorized access during transactions.
Exit Rate 🟡
The percentage of visitors who leave a website from a specific page after viewing multiple pages.
F
Fulfillment 🟢
The process of receiving, packaging, and shipping orders to customers.
Fraud Prevention 🔴
Systems and measures implemented to detect and prevent fraudulent transactions.
Free Shipping Threshold 🟢
The minimum order amount required for customers to qualify for free shipping.
Frontend 🟡
The customer-facing part of an ecommerce website that visitors interact with.
Funnel 🟡
The path that customers take from first visiting a site to completing a purchase.
G
Gateway (Payment Gateway) 🟡
A service that authorizes credit card or direct payments processing for online businesses.
Geotargeting 🔴
Delivering different content or offers to website visitors based on their geographic location.
Google Analytics 🟡
A web analytics service that tracks and reports website traffic and user behavior.
Gross Merchandise Value (GMV) 🔴
The total value of merchandise sold through an ecommerce platform over a specific time period.
Guest Checkout 🟢
The option to complete a purchase without creating an account.
H
Headless Commerce 🔴
A separation of the front end and back end of an ecommerce application.
Heat Mapping 🔴
A visual representation of where users click, scroll, and spend time on a website.
Hosting 🟡
The service of storing, serving, and maintaining files for an ecommerce website.
HTML Email 🟢
Marketing emails that use HTML code to create visually appealing layouts and designs.
HTTP/HTTPS 🟡
Protocols for transmitting data over the internet, with HTTPS providing secure, encrypted connections.
I
Inventory Management 🟡
The process of tracking, organizing, and controlling stock levels of products.
Invoice 🟢
A document sent to customers detailing the products purchased, prices, and payment terms.
IP Address 🟡
A unique numerical label assigned to each device connected to a computer network.
Integration 🔴
The process of connecting different subsystems or components into a single system that functions as one.
In-store Pickup 🟢
A fulfillment option where customers can order online and collect items from a physical store.
J
JavaScript 🔴
A programming language commonly used to create interactive effects within web browsers.
JSON (JavaScript Object Notation) 🔴
A lightweight data-interchange format commonly used in ecommerce applications.
Just-in-Time Inventory 🔴
An inventory strategy that aligns orders from suppliers directly with production schedules.
K
Key Performance Indicator (KPI) 🟡
Measurable values that demonstrate how effectively a business is achieving key objectives.
Keywords 🟢
Words or phrases that customers use to search for products or services online.
Knowledge Base 🟢
A centralized repository of information about a product, service, or topic.
L
Landing Page 🟢
A standalone web page designed to convert visitors into customers.
Lead Generation 🟡
The process of attracting and converting strangers and prospects into leads.
Live Chat 🟢
Real-time customer service communication feature on websites.
Logistics 🟡
The detailed organization and implementation of a complex operation, especially regarding shipping and fulfillment.
Loss Leader 🟡
A product sold at a loss to stimulate other profitable sales.
Loyalty Program 🟢
A rewards program offered by a company to customers who frequently make purchases.
M
Marketplace 🟢
An ecommerce platform where multiple vendors can sell their products.
Merchant Account 🟡
A type of bank account that allows businesses to accept credit card payments.
Meta Description 🟢
HTML attribute that provides a brief summary of a web page’s content.
Mobile Commerce (M-commerce) 🟡
Commercial transactions conducted through mobile devices.
Multichannel Selling 🔴
Selling products through multiple sales channels simultaneously.
N
Net Promoter Score (NPS) 🟡
A metric for measuring customer satisfaction and loyalty.
Newsletter 🟢
Regular email communication sent to subscribers containing news, updates, and promotions.
Node.js 🔴
A JavaScript runtime environment commonly used in ecommerce backend development.
Non-disclosure Agreement (NDA) 🟡
A legal contract that establishes confidentiality between parties.
O
OAuth 🔴
An open standard for access delegation, commonly used for secure user authentication.
Order Management System (OMS) 🟡
Software that helps track orders, inventory, and fulfillment.
Organic Traffic 🟢
Visitors who arrive at a website through unpaid search results.
Outbound Marketing 🟡
Traditional marketing methods that involve reaching out to potential customers.
Order Fulfillment 🟢
The process of receiving, processing, and delivering orders to customers.
P
Payment Card Industry (PCI) Compliance 🔴
Security standards that organizations must follow to handle credit card data.
Payment Gateway 🟡
Service that processes credit card payments for online and offline businesses.
Pay-Per-Click (PPC) 🟡
Online advertising model where advertisers pay when users click their ads.
Product Catalog 🟢
A complete listing of all products available for purchase.
Product Feed 🔴
A file containing a list of products and their attributes for distribution to shopping channels.
Progressive Web App (PWA) 🔴
A website that functions like a mobile app, offering enhanced features and performance.
Purchase Order (PO) 🟢
A commercial document issued by a buyer to a seller indicating types, quantities, and prices for products.
Q
QR Code 🟢
A two-dimensional barcode that can be scanned by mobile devices to access information quickly.
Quality Assurance (QA) 🟡
The process of verifying that a product or service meets specified requirements.
Query String 🔴
Part of a URL that assigns values to specified parameters.
Quick View 🟢
A feature that allows customers to see product details without leaving their current page.
R
Real-time Analytics 🔴
Immediate analysis and presentation of data as it’s collected.
Recurring Payment 🟡
Regular, automated billing for subscription-based services or products.
Refund Policy 🟢
Terms and conditions under which customers can return products and receive reimbursement.
Responsive Design 🟡
Web design approach that makes pages render well on various devices and screen sizes.
Return on Investment (ROI) 🟡
A performance measure used to evaluate the efficiency of an investment.
Revenue Per Visitor (RPV) 🔴
The average revenue generated by each website visitor.
S
Search Engine Optimization (SEO) 🟡
Practices to improve a website’s visibility in search engine results.
Shopping Cart 🟢
Virtual cart where customers collect items before purchasing.
SKU (Stock Keeping Unit) 🟢
A unique identifier for each distinct product and service.
Social Commerce 🟡
The use of social networks for ecommerce transactions.
SSL Certificate 🟡
Digital certificate that authenticates a website’s identity and enables encrypted connections.
Supply Chain 🟡
Network between a company and its suppliers to produce and distribute products.
T
Tag Management 🔴
System for managing JavaScript and tracking tags on a website.
Tax Calculation 🟡
Process of determining appropriate tax rates for different jurisdictions and products.
Third-party Integration 🔴
Connection of external applications or services with an ecommerce platform.
Transaction Fee 🟢
Cost charged by payment processors for handling a transaction.
Two-Factor Authentication (2FA) 🟡
Security process requiring two different forms of identification to access an account.
U
UI (User Interface) 🟢
The visual elements users interact with on a website or application.
UX (User Experience) 🟡
The overall experience a user has while interacting with a website or application.
Upselling 🟢
Sales technique encouraging customers to purchase a higher-end product or upgrade.
URL Structure 🟡
The format and organization of website addresses for optimal navigation and SEO.
User-Generated Content 🟢
Content (such as reviews or photos) created by customers rather than the business.
V
Variable Pricing 🟡
Pricing strategy where the same product is sold at different prices based on conditions.
Virtual Terminal 🔴
Web-based interface for processing credit card transactions manually.
Voice Commerce 🔴
Shopping through voice-activated devices and digital assistants.
Voucher Code 🟢
Digital code that customers can enter to receive discounts or special offers.
W
Warehouse Management System (WMS) 🔴
Software used to control and manage warehouse operations.
Web Analytics 🟡
The measurement and analysis of web data to understand user behavior.
Webhook 🔴
Automated messages sent from apps when something happens.
Wholesale 🟡
The sale of goods in large quantities, typically to retailers.
Wishlist 🟢
Feature allowing customers to save products they want to buy later.
X
XML Feed 🔴
Structured data format used for sharing product information between systems.
XML Sitemap 🟡
File that helps search engines understand website structure and content.
Y
Yield 🔴
The return on an ecommerce investment, often measured in revenue or profit.
YOY (Year Over Year) 🟡
Comparison of one period with the same period from the previous year.
Z
Zero-day Attack 🔴
A cyber attack that exploits previously unknown software vulnerabilities.
ZIP Code Targeting 🟡
Marketing strategy that focuses on specific geographic areas using postal codes.
Zone Pricing 🔴
Setting different prices for products based on geographic zones or regions.