list of e-commerce Glossary!
call to action (CTA) – the part of a marketing message that attempts to persuade a person to perform a desired action.
PayPal – an online payment service that lets its users make purchases and receive payments via a user-defined email address.
shopping cart – software used to make a site’s product catalog available for online ordering, whereby visitors may select, view, add/delete, and purchase merchandise.
Business to Business (B2B)
The business model and process of one company selling to another.
Business to Consumer (B2C)
The business model and process of a company selling to direct consumers
Business to Business to Consumer (B2B2C)
The business model of when B2B companies create digital strategies and go directly to a business where there is a known engagement with customers, or go directly to consumers themselves.
Bricks and Mortar
A business that has a physical store location (or multiple locations) where merchandise can be purchased.
A person or company that buys goods in large quantities from various vendors with the intention of selling them to resellers who then sell to direct to consumer. Distributors and wholesalers usually work together as channel partners.
A person or company that makes goods for sale.
Customer Lifetime Value (CLV) or Lifetime Value of a Customer (LTV)
The prediction of future revenue, net profit and value that a customer will generate during the entire relationship with a merchant.
Only one metric in a series of other measures that asses the health of your eCommerce business. It is calculated by dividing the number of people who complete a particular action by the number of visitors to a particular page/process.
Conversion Rate Optimization (CRO)
The process of improving the user experience of a website with the goal of increasing the percentage of visitors that convert into customers.
A holistic approach to eCommerce growth. It is about user centric design, technical implementation, applied statistics, web analytics, and most importantly a dedication to continuous improvement through a cycle of testing and learning. It requires a curiosity to constantly identify new opportunities for improvement, develop hypotheses, and test solutions.
Landing Page Optimization
The process of creating, monitoring and tweaking landing pages to maximize the conversion of traffic.
A research and data based, semi fictional representation of your ideal customer.
Targeting your most profitable customer and those with the highest profit potential. These can include frequent shoppers, high average order values, few returns, customers that provide reviews, responsive customers (ie. respond to special offers and promotions).
A/B Testing (aka Split Testing)
A/B testing splits traffic into two different variations of a site. This allows marketers to test how specific changes impact behaviour on a site, independent of things that can also impact behaviour like promotions etc.
Shopping Cart Abandonment
The term applied to a customer after they browse a site, add products into their shopping cart, and at checkout leave the merchant’s site without completing their purchase.