In the world of e-commerce, knowing the everyday lingo can be a real competitive edge. Terms like “checkout,” “CAC,” and “UX” are part of the daily vocabulary for anyone working in online retail. Whether you’re just starting out or looking to deepen your knowledge, this comprehensive glossary covers the essential A to Z of e-commerce.
This guide is perfect for e-commerce managers, marketing professionals, entrepreneurs, and students who want to speak the language of digital retail.
A
A/B Testing
A method of testing two versions of a webpage, layout, or button to see which one performs better in terms of conversions.
Accessibility
In e-commerce, this refers to how easy it is for users to navigate and interact with your online store, ensuring a smooth and inclusive shopping experience.
AdWords (Google Ads)
Google’s paid advertising platform, where you can run traffic campaigns using targeted keywords.
Agile Methodology
A work approach based on short, iterative development cycles (sprints), commonly used for platform development and e-commerce improvements.
AI in E-commerce
Artificial intelligence used to enhance product recommendations, forecast trends, and automate customer service.
API (Application Programming Interface)
A set of rules that allows different systems to communicate with each other. Commonly used for integrations between platforms, ERPs, payment gateways, and more.
App (Application)
Software designed to provide users with a personalized and streamlined experience, widely used in the retail and service industries.
Automation
The use of software to automate marketing activities like email campaigns, lead nurturing flows, and audience segmentation based on user behavior.
Average Order Value
The average amount a customer spends per purchase. Increasing AOV is an effective way to grow without acquiring new customers.
B
B2B (Business to Business)
A business model where one company sells products or services to another company.
B2C (Business to Consumer)
A business model where a company sells directly to the end consumer.
Backoffice
The administrative side of an e-commerce business—order management, inventory, finances, and customer service.
Banner
Visual ads placed on a website to promote special offers or highlight important messages.
Benchmarking
A process that uses specific methodologies and market data to evaluate competitor performance and assess where your e-commerce business stands.
Black Friday
Held in November, it’s one of the biggest retail sales events of the year, both online and in-store.
Blog
A section of a website dedicated to informative content like how-tos, tips, reviews, and expert insights.
Buy Box
A prominent space on marketplaces like Amazon that features the “winning” offer. Sellers compete for this spot based on price, shipping, and seller ratings.
Buyer Persona
A fictional representation of your ideal customer, built from detailed data about your target audience.
C
CAC (Customer Acquisition Cost)
A metric that shows how much it costs to acquire a new customer, factoring in marketing, sales, and other related expenses.
Call to Action
A prompt that encourages users to take a specific action, like “Buy now” or “Sign up today.”
Cashback
A loyalty program where part of the money spent is returned to the customer as store credit or a future discount.
Cash Flow
The movement of money into and out of your business over time is categorized as income or expenses.
Chargeback
A credit card refund is issued when a purchase is canceled or disputed.
Chatbot
AI-powered software that interacts with customers via text, often used for order support or handling basic questions and requests.
Checkout
The final step in an online purchase where the customer enters their details and completes payment.
Cloaking
A black-hat SEO practice where the content shown to search engines is different from what the user sees. (Not recommended.)
Cloud Computing
The delivery of software, storage, and tools over the internet enables even small businesses to access enterprise-level tech.
Content Marketing
Creating and sharing useful content tailored to your audience, with the goal of attracting, educating, and converting customers.
Contribution Margin
The portion of revenue that remains after subtracting variable costs is essential for setting prices and calculating profitability.
Conversion Pixel
A code placed on your website to track user actions, frequently used in Facebook and Google Ads.
CMS (Content Management System)
A platform for organizing and managing all website content.
CPC (Cost Per Click)
An ad pricing model (used by Google Ads) where advertisers pay each time someone clicks their ad.
Conversion
When a visitor completes a desired action on your site, like making a purchase, signing up, or downloading content.
CRM (Customer Relationship Management)
A system that tracks interactions with customers, storing purchase history and managing communication.
Cross Docking
A logistics strategy that reduces storage time by moving products directly from inbound to outbound shipping.
Cross Selling
Suggesting additional or related products to boost order value.
Customer Journey
A model that maps out the stages a customer goes through, from first interest to research to final purchase, based on observed online behavior.
Customer Loyalty
When customers become loyal to a brand through great service, value, and experience.
D
Dashboard
A visual panel showing your e-commerce store’s key performance metrics in one place.
Data Layer
A structure used to collect and pass detailed website data to tools like Google Tag Manager and Google Analytics.
Digital Marketing
All the strategies, channels, and tools used to promote a brand online.
An order fulfillment model where the seller doesn’t keep inventory and the supplier ships products directly to the customer.
E
E-commerce Omnichannel
A seamless shopping experience across physical stores and online channels, with connected inventory and service.
Email Marketing
Automated, personalized emails sent to leads and customers to build relationships and drive sales.
E-ticket
A digital receipt or proof of purchase is sent via email for online orders.
ERP (Enterprise Resource Planning)
Software that integrates a business’s core functions, like inventory, accounting, and sales, into one system.
F
FAQs (Frequently Asked Questions)
A dedicated page that answers common customer questions about delivery times, shipping costs, return policies, and more.
Startups and tech solutions that merge fashion and technology, like virtual fitting rooms or AI style assistants.
Free Shipping
An incentive where the seller covers delivery costs to encourage purchases.
Fulfillment
The end-to-end process of handling an order, from picking and packing to shipping and delivery.
Funnel (Sales Funnel)
The customer journey from first contact to purchase: top (awareness), middle (consideration), bottom (decision).
G
Gateway (Payment Gateway)
A platform that securely processes credit card payments between your store and payment providers.
Google Shopping
A Google platform that displays product listings with images, prices, and links to the seller’s website.
When a brand pretends to be environmentally responsible for publicity without actually making sustainable efforts. (Not recommended.)
Growth Hacking
Creative, fast-paced strategies driven by data and experimentation to fuel rapid business growth.
GTIN (Global Trade Item Number)
A globally recognized product identifier required for selling on marketplaces.
H
Hashtag
A social media keyword prefixed by “#” to make content more discoverable.
Headless Commerce
An architecture where the front end (what the user sees) is decoupled from the back end (data and logic), offering more flexibility.
Heatmap
A tool that visually shows where users are clicking, scrolling, or hovering on your site.
Heavy User
Someone who regularly uses the internet and digital channels is a key e-commerce audience.
Homepage
The main landing page of your website is where key content and navigation typically live.
Hosting
The service that stores your website’s files and makes them accessible online.
HTML
The standard markup language used to build webpages.
Hyperpersonalization
Advanced use of AI and data to tailor experiences and product recommendations to each individual user.
I
Idea Validation
The process of testing whether a new product or feature has real market demand before fully launching it.
Inbound Marketing
Attracting potential customers by creating valuable content, optimizing for search engines, and engaging on social media.
Indexing
The process of getting your site’s pages recognized and listed by search engines like Google.
Integration with Marketplaces
Connecting your store to platforms like Amazon to expand your reach and sales channels.
Interface (User Interface)
The design and layout that users interact with on your site.
J
JavaScript
A programming language used to create dynamic features on websites, such as interactive shopping carts and animated banners.
JPEG
Just like websites use specific coding languages, image files come in different formats. JPEG is one of the most commonly used in web design.
Job to be Done (JTBD)
An innovation framework focused on understanding the “job” the customer is trying to accomplish when using a product.
K
Keyword
A term users type into search engines. It forms the foundation of SEO and Google Ads strategies.
KPIs (Key Performance Indicators)
Metrics that show how well your strategies are working, like average order value, conversion rate, or ROI.
L
Landing Page
A standalone page created with a specific goal, like collecting leads or selling a product. It’s fully focused on driving conversions.
Lead
A potential customer who has shown interest in your product or service by providing contact information in exchange for content or an offer.
Lead Qualification
The process of assessing whether a lead has the potential to become a customer, based on factors like interest, budget, and timing.
Login
A user’s identification used to access online services, typically consisting of a username or email and a password.
Log out
The action a user takes to exit an account or end a logged-in session.
LTV (Lifetime Value)
The total revenue a customer is expected to generate over the course of their relationship with your brand.
M
Marketplace
A digital platform where multiple sellers offer products, like Amazon or Shopee.
Mobile Performance
Measures how well your site works on mobile devices. Critical, since a large share of traffic comes from mobile devices.
N
Newsletter
An email update sent to maintain customer relationships and share news, promotions, or updates.
NPS (Net Promoter Score)
A satisfaction metric that measures how likely your customers are to recommend your store to friends or colleagues.
O
Omnichannel
Full integration between online and offline sales channels, allowing a customer to buy on one channel and receive the product through another.
Open Rate
The percentage of emails that are opened is used to measure the effectiveness of email marketing campaigns.
Opt-in
The user’s consent to receive communications is based on clear rules and permissions.
Opt-out
The user’s action of unsubscribing or withdrawing permission to receive messages.
Order Bump
A complementary offer is displayed during checkout to encourage customers to spend more.
Organic Search
When a visitor arrives at your site through unpaid search engine results.
Organic Traffic
All the unpaid visits your store receives from sources like search engines, direct access, or referrals.
P
Payment Split
The automatic distribution of payments between sellers and partners, commonly used in marketplaces.
Persona
A fictional character created to represent your ideal customer, based on research and data.
Platform
A digital system that supports and manages essential e-commerce functions like operations, administration, and finance.
Product Variation
Different versions of the same product, such as color, size, or model.
Programmatic Media
Automated buying of ad space using real-time data to target specific audiences more efficiently.
Q
QR Code
A scannable visual code used to access links, make payments, or unlock exclusive promotions via smartphone.
R
Recurring Sales
A subscription-based model where the customer pays regularly for a product or service.
Remarketing
Marketing campaigns designed specifically to re-engage leads who have already converted.
Responsiveness
A website’s ability to adjust its layout and visual elements to different screen sizes and devices.
Retargeting
Ads are shown to users who have previously visited your site, encouraging them to return and complete an action.
Return on Investment (ROI)
A metric that shows the financial return earned compared to the amount invested.
Review
Customer feedback or product ratings can strongly influence purchase decisions.
Reverse Logistics
The process of handling returns for products bought online. It plays a key role in the post-purchase experience.
S
Search Engine Optimization (SEO)
A set of strategies to improve a website’s visibility in organic search engine results like those on Google.
SKU (Stock Keeping Unit)
A unique identification code is assigned to each product and variation in your inventory.
Social Ads
Paid advertisements are placed on social media platforms to increase visibility and sales.
Social Proof
A tactic that uses the behavior or opinions of others to build trust and influence conversions.
Sponsored Link
A term coined by Google to describe paid online advertisements that appear in search results or partner websites.
Stockout
When a product runs out of stock, it potentially harms the customer experience and leads to lost sales.
Store Locator
A tool that helps customers find the nearest physical store.
T
Tag Manager
A Google tool that lets you manage and update tracking tags on your website without needing to edit the code directly.
Tracking
The system used to track a customer’s order from dispatch to delivery. It helps improve transparency and customer satisfaction.
Traffic Sources
Metrics showing where your website traffic is coming from, helping you assess which channels are performing best.
U
UI (User Interface)
The visual design of a website or app. A well-designed UI helps guide users and makes the shopping experience easier.
Unboxing Experience
The emotional and sensory experience a customer has when receiving and opening a product purchased online.
Upsell
A sales technique where the customer is offered a better or more complete version of the product they are considering.
The overall experience a user has while navigating a site or app. Good UX increases the chances of conversion.
V
An interactive tool that helps customers find their ideal size using real body data and fit preferences.
W
Web Analytics
The analysis of how users navigate your site. Tools like Google Analytics help track behavior and improve performance.
White Label
A product or service that can be rebranded and sold under another company’s name.
Wishlist
A feature that lets customers save products they want to view or purchase later.
X
XML (Extensible Markup Language)
A file format used to send product data to marketplaces, including details like name, price, inventory, and images.
Y
YouTube Ads
Ads shown on YouTube’s platform are used for both brand awareness and performance-focused campaigns.
Z
Z-Index (CSS)
A code property that defines the stacking order of elements on a webpage. Useful for responsive design.
Mastering e-commerce terminology is key to making more strategic decisions and communicating clearly with suppliers, partners, and technical teams. We hope this glossary helps you navigate the digital world with greater confidence.
Want to keep learning about e-commerce?
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