E-commerce dictionary

Dictionary of useful e-commerce terms.

Dictionary

4

4 P's Marketing Mix

4P stands for product, price, promotion and place. It is a strategy that creates a portfolio of products, i.e. an organisation’s offer. The first is the product to be sold, in terms of price, quality or various other attributes related to the product or service. Price refers to the price, either of the good or […]

4A in marketing

The 4A model refers to a marketing strategy that determines whether a product or service is worth offering to a group of customers. The first point is affordability, which is primarily seen from the customer’s point of view.The second is availability, which is the overall accessibility of how advertising can help the brand reach the […]

A

A/B testing

A/B testing is a tool used to improve the conversion rate of an online store. It involves preparing two versions of a page, each with a different design and modified in different ways, to see which is more effective. One of these versions is shown to one group of visitors and the other to the […]

Acquisition

In growth marketing, acquisition involves bringing new users or clients to a website or mobile app from several sources. In the AARRR paradigm, it is the first “A” that explains how to locate consumers and finally convert them into customers. Marketing initiatives are accomplished using paid, non-paid, or both approaches, depending on the business goal. […]

Ad blocking

Ad blocking is software that blocks ads in your browser. It can be installed as a browser extension. It can detect and block advertisements as you browse websites. For example, it can block banner ads or pop-ups, or various animations or videos. One of the most popular software is AdBlock Plus, which can be installed […]

Affiliate network

Important intermediaries between marketers and brands, affiliate networks enable profitable collaborations. These networks enable advertisers to profitably monetize their traffic while enabling companies to reach larger audiences.

AI

Artificial intelligence (AI) is a technology that duplicates human intelligence processes through machine learning. To train algorithms, specific hardware and software are required, as well as popular programming languages such as Python, R, Java, C++, and Julia. AI systems use enormous volumes of labeled training data to anticipate future states.

AI Generated Content

AI-generated content is text created by computer algorithms that simulate human writing and thinking. These systems can produce entire pieces like articles or social media posts, or assist with brainstorming through interactive chats. As AI content generation becomes more prevalent, it’s crucial for professionals to understand and effectively leverage this technology. Learning to use AI […]

AIDA

AIDA is a marketing recipe that combines Attention, Interest, Desire, and Action to create a mouth-watering experience that drives customer obsession. It’s not just a framework, it’s a taste test for your brand – can you capture attention, stir interest, fuel desire, and ignite action?

AMP (Accelerated Mobile Pages)

AMP is an open-source HTML framework designed to create fast-loading, mobile-friendly web pages. It’s essentially a streamlined version of standard web pages, optimized for mobile devices. AMP pages prioritize speed and performance by simplifying HTML structure, restricting JavaScript usage, and leveraging efficient resource loading techniques. This framework aims to enhance user experience on mobile devices […]

Anchor text

An anchor text is a hyperlink that is part of the text, usually highlighted in blue. It is clickable and takes the visitor to another part of the page, to a completely different page, or to open a file. These links are used by search engines to figure out what the page is about. If […]

AOV

AOV (Average Order Value) is an important number for e-commerce enterprises because it measures the average amount spent by customers on a single transaction. It is an important KPI (Key Performance Indicator) that allows organizations to better understand their consumers’ spending habits, identify areas for development, and optimize their sales strategy. The average order value […]

Astroturfing

Astroturfing is one of the unfair marketing practices used by some brands or those trying to sell various products. It is a tactic where the sponsor pays for positive advertising or promotion in various online venues. These can be either social networking sites, discussion forums or various blogs set up for the sole purpose of […]

Attribution model

An attribution model is a methodology used in marketing and analytics to determine how credit for sales and conversions is assigned to different touchpoints across customer journeys. It helps businesses understand which marketing channels and interactions contribute most effectively to conversions. Common types of attribution models used in marketing and analytics: First-touch attribution: Credits the […]

ATV

This is calculated by taking the total value of the transactions and dividing it by the number of transactions. ATV helps businesses understand customer spending habits, identify sales trends, and develop strategies to increase sales. By focusing on increasing ATV, businesses can boost revenue without necessarily increasing the number of transactions, leading to more efficient […]

Authorization

Authorization refers to the process of granting permission or access to resources, data, or systems. It ensures that only authorized individuals or entities have the appropriate rights to perform specific actions or access certain information. Authorization typically follows authentication, where a user or system verifies their identity. This crucial security measure is essential in protecting […]

Average time on site

Average time on site is like a stopwatch for website engagement. It tells you how long, on average, visitors hang around and explore your web pages during a single visit. This metric gives you a peek into how captivating your content is and how well your site holds visitors’ attention. A higher average time on […]

AVS

AVS refers to the typical number of viewers watching a media broadcast or stream at any given time. It helps broadcasters and content creators gauge the reach and impact of their programs. By analyzing AVS, they can tailor content, optimize ad placements, and better understand audience preferences, ensuring a more targeted and effective viewing experience.

B

B2B

B2B, short for Business-to-Business, describes commerce transactions between businesses, rather than between businesses and consumers (B2C). It encompasses the exchange of goods, services, or information between companies to support their operations or to resell to their customers. B2B interactions often involve larger volumes of products or services and may include negotiations, contracts, and customized solutions […]

B2C

B2C, or business to customer, is a business or marketing model where the business is on one side and the customer, or end user, is on the other side of the business relationship. The term is often used to refer specifically to online business. It is one of the most common and popular business models […]

Backlinks

Backlinks are crucial for SEO, signaling to search engines like Google that your site is authoritative. These are links from other websites to yours, with high-quality backlinks boosting your search rankings and visibility. As an off-page SEO element, backlinking complements on-page SEO efforts. Quality backlinks act as endorsements, recommending your content to others. They help […]

Banner

Banners are a popular way for businesses to get their message out there online. They’re like a digital billboard that pops up on websites, usually along the edge of the screen. And, let’s be honest, they’re still one of the most effective ways for companies to reach their target audience. Publishers partner with these advertisers, […]

Big data

Big data refers to large, complex data sets, particularly from new sources, with increasing volumes and velocity. These voluminous data sets, often unmanageable by traditional data processing software, can be used to address business problems.

Black Hat SEO

Imagine trying to sneak your way to the top of search engine rankings without actually earning it. That’s what black hat SEO is all about – using underhanded tactics to manipulate your way to the top. But here’s the thing: search engines are onto it, and they won’t hesitate to ban you if they catch […]

BNPL

Buy Now, Pay Later (BNPL) services are revolutionizing the way we shop online. It’s expected to grow to over 900 million users globally by 2027 – driven by the need for affordable credit options during uncertain economic times. The holiday season saw a surge in BNPL adoption, with one in 14 online purchases made using […]

BOPIS

The thrill of online shopping, minus the wait. That’s what Buy Online, Pick up In-Store (BOPIS) is all about. You get to browse and buy from the comfort of your own home, and then pick up your goodies in-store, skipping the delivery hassle altogether. With BOPIS, you can enjoy the best of both worlds: the […]

Bounce rate

Bounce rate is the proportion of people who leave a website after reading just one page without interacting or going to additional sites. It shows just how interesting and pertinent the first page is to the demands and expectations of the visitors. Many times, a high bounce rate means that visitors weren’t interested enough to […]

Brand

Imagine walking into a crowded market and being immediately drawn to a particular store or product because of its unique name, logo, or symbol. That’s what a brand is all about – creating an identity that sets you apart from the competition. When done well, a strong brand can be a powerful magnet that attracts […]

Brand Loyalty

Think about your favorite coffee shop or bookstore – the one that you always come back to, even when there are other options nearby. That’s brand loyalty in action. It’s the sense of comfort and familiarity that keeps customers coming back for more. And it’s not just about the products or services themselves, but about […]

Breadcrumb navigation

Breadcrumb navigation helps people navigate web pages and is an important SEO feature. It allows visitors to navigate to previous pages and identify their current position. It is based on Hansel’s fairy story and allows for path, place, and attribute navigation. Breadcrumb navigation allows visitors to quickly navigate to the current page, improving their overall […]

Broadcaster Video On- Demand (BVOD)

Imagine your favorite TV channels offering a Netflix-like experience. That’s essentially what BVOD brings to the table. It’s a clever fusion of conventional free-to-air broadcasting and modern streaming technology. With BVOD, viewers can access a treasure trove of content from familiar TV networks, all at their fingertips. No need to worry about schedules or setting […]

Buzzmarketing

Buzzmarketing is a type of marketing that aims to create a buzz, buzz or buzz about a brand, product or service among people. Its purpose is to create brand awareness without incurring high costs. Viral marketing and astroturfing are also part of buzz marketing. It is one of the most powerful marketing tools because, if […]

C

C2C

C2C means customer to customer. One of the e-commerce models where consumers trade or exchange goods with each other on an online platform. This is mediated by another platform where in terms of market classification consumers mainly exchange products or information and experiences about these products or services. These can be various exchanges or auctions, […]

Call-to-Action (CTA)

Call-to-Action, commonly known as CTA, is a marketing term used to describe a prompt or instruction designed to encourage an immediate response or action from the audience. It’s a crucial element in marketing and sales strategies, guiding potential customers towards a specific goal. Effectiveness of a CTA can vary depending on factors like your audience, […]

Cause marketing

Cause marketing is marketing that combines business growth with corporate social responsibility. These companies support non-profits for example to look good. They also encourage their customers to donate to the organisations they work with and support them in that. One way is to sell products where the profits go to the organisation or buy one […]

Chargebacks

Chargebacks are a consumer protection mechanism in the world of financial transactions, particularly for credit and debit card purchases. For businesses, especially in e-commerce, managing and minimizing chargebacks is crucial for maintaining profitability and good standing with payment processors. For consumers, it’s an important protection against fraud and unfair practices, but should be used responsibly.

Chatbot

Meet the ultimate conversational partner: the chatbot! It’s like having a super-smart friend who’s always available to chat, listen, and help you out. But instead of being a human, this friend is a computer program designed to mimic human conversation. While some chatbots are simple and just provide basic information, others are equipped with something […]

Click-through Rate (CTR)

Click-Through Rate (CTR) is a key metric in digital advertising that measures how often people click on an ad or product listing after viewing it. It’s calculated by dividing the number of clicks by the number of impressions and multiplying by 100. For instance, 5 clicks from 100 impressions yields a 5% CTR. CTR serves […]

Cloaking

Cloaking is a black hat SEO technique. It’s submitting a page to the search engine that’s been optimised for the algorithm that determines the page’s position. So the search engine will show the page in a better position. But the problem is, the visitor sees a completely different page that wouldn’t have been ranked by […]

CMS

CMS stands for Content Management System. This system is mainly used by laymen who do not know programming languages. They are designed to manage the content of websites without the need to know programming languages. They are accessed through the CMS administration interface, where content can be added, edited and modified. The advantage is that […]

Conversion Rate

Conversion rate is a crucial performance indicator in digital marketing, measuring the percentage of visitors who complete a desired action. It’s calculated by dividing the number of conversions by the total number of visitors and multiplying by 100. For example, if an e-commerce site has 200 visitors and 50 sales in a month, its conversion […]

Cookies

Cookies are records that a web browser stores after clicking on an affiliate link. This is precisely how affiliate marketing works. When a link is clicked, a cookie is created and stored in the browser, typically for 30 days. After this period, they are automatically deleted, and the publisher is no longer entitled to a […]

Cost of Goods Sold (COGS)

Cost of Goods Sold, or COGS for short, is all about the money a company spends to make the stuff it sells. It’s like the recipe cost for a baker – how much they spend on flour, sugar, and eggs to bake a cake. COGS covers the obvious expenses: the raw materials that go into […]

CPA

CPA stands for cost per action. It is a payment per conversion that an advertiser pays when a visitor takes an action on their site, such as making a purchase in their shop. It is a method of online marketing where the advertiser only pays the publisher for how many customers take a particular action, […]

CPC

CPC – cost per click – is a part of internet marketing and refers to how much an advertiser pays a publisher for a click on their advertisement. This term is closely related to PPC or Pay per Click. While CPC is the cost per click itself, PPC is the operating system for this type […]

CPI

CPI, cost per impression. This term is associated with online traffic and internet advertising. It refers to the price paid by an advertiser for each impression of their ad to an internet user. A similar term associated with cost per impression is CPM, cost per mille, which is the cost per thousand impressions. These terms […]

CPO

CPO – Cost per order is a term that refers to the cost of ordering a campaign or internet advertising. This cost is calculated by dividing the cost of the ad by the number of successful orders. The purpose of this calculation is to determine how much it costs to get an order. If the […]

CRO

CRO stands for Conversion Rate Optimisation. This term stands for the various activities involved in optimising a website in order to increase the conversion rate. These changes are related to user experience, i.e. trying to make the website more user-friendly and successful. It is also related to website testing, such as A/B testing, which examines […]

Cross selling

Cross selling is a sales tactic that involves offering additional products or services to existing customers. Up selling is a similar tactic, but with the aim of offering a more expensive product. In cross selling, the product does not have to be more expensive, but can be an accessory. For example, a customer buys a […]

Cross-Channel Marketing

Integrated marketing across multiple platforms is a strategy that aims to create a seamless experience for potential customers throughout their buying journey. This approach involves coordinating different marketing channels to deliver a consistent and interconnected message. By interacting with consumers at various points of contact, marketers can employ data-driven techniques to develop detailed customer profiles. […]

Customer Acquisition Cost

Businesses must spend money to attract customers and convince them to buy their products or services. This expenditure is known as the customer acquisition cost. It’s a crucial metric that helps companies understand how profitable their customers are and how efficiently they’re generating sales. To calculate this cost, businesses add up all the expenses related […]

Customer Lifetime Value (CLV)

One important metric that enables companies to grasp the long-term value of their client contacts is customer lifetime value. It looks at the expected amount of money a client will spend with a company during their whole tenure. Companies weigh two primary elements in order to solve this. They first consider the average income a […]

D

Demand Generation

Demand generation is a strategic process to spark interest in your products or services. It uses various tactics to generate and convert buyer interest, including: 1. Content marketing 2. SEO 3. Email campaigns 4. PPC advertising 5. Social media 6. Marketing automation 7. Partnerships The goal is to engage potential customers and build long-term relationships […]

Digital Garage

Digital Garage is a concept that can refer to different things depending on the context, but generally it relates to digital innovation and technology. Here are a few common uses of the term: 1. Google Digital Garage: This is a free online learning platform created by Google to help people develop their digital skills. It […]

Digital PR

Digital PR? It’s like traditional PR’s cooler, tech-savvy cousin. Instead of schmoozing at fancy events, we’re talking online buzz and internet fame. Think bloggers, not billboards. Social media mavens instead of TV spots. It’s all about getting your brand out there in the wild west of the internet. You’ve got to be everywhere – Twitter, […]

Direct-to-Consumer (DTC) Brands

Direct-to-Consumer (DTC) brands are companies that manufacture and sell their products directly to consumers, bypassing traditional intermediaries such as wholesalers, distributors, and retailers. These brands typically operate through their own e-commerce platforms, websites, and sometimes physical stores, maintaining full control over their product development, marketing, sales, and customer relationships. DTC brands often focus on creating […]

Domain

A domain is used to refer to an internet address. When you type a domain name into your browser, it will automatically load content from that hosting. There are three levels or tiers of domains. The first level is a domain name such as .com, .net, .org, .fr, .de. Second level domains are paid and […]

Domain Rating

Ahrefs’ Domain Rating (DR) is a proprietary measure that evaluates the robustness of a website’s incoming link structure. This metric operates on a logarithmic scale, ranging from 0 to 100. A score of 100 represents the highest possible strength, while 0 indicates the weakest. DR provides insight into the relative power of a site’s backlink […]

Duplicate content

The term duplicate content can be found especially in SEO search. It refers to identical content that can be found on two or more websites at the same time. Duplicate content can take a variety of forms, such as directly stolen content that has been taken from other sites without permission, or content that has […]

E

Email Unsubscribe Rate

The email unsubscribe rate measures the percentage of recipients who opt out of future communications from a sender. It’s calculated by dividing the number of unsubscribes by the number of delivered emails, then multiplying by 100. Recipients typically unsubscribe via a link in the email. This metric is crucial for email marketing, alongside open rates, […]

F

Facebook Marketplace

Facebook Marketplace is a feature within the Facebook platform that allows users to buy and sell items locally. It’s a digital marketplace where individuals can list products, browse listings, and communicate with buyers or sellers. Marketplace offers a wide range of categories, from furniture and electronics to vehicles and housing rentals. It combines the reach […]

G

Gen Z

Generation Z (Gen Z) refers to people born roughly between 1997 and 2012. They are the demographic cohort following Millennials. Gen Z is known for being digital natives, growing up with smartphones and social media. They value authenticity, diversity, and social causes, and are often described as pragmatic and financially conscious.

Google Bot

The web crawling software used by Google to discover and index web pages for its search engine. Googlebot systematically browses the World Wide Web, following links between pages to find new and updated content. It analyzes page content, structure, and relationships to other pages, enabling Google to rank and display relevant results in search queries. […]

Google Discover

Google Discover is a mobile feature that provides users with a curated feed of articles, news, and other content based on their interests and search history. It appears on the Google app homepage on mobile devices and on the Google.com homepage on Android devices. Discover uses machine learning algorithms to show users content they might […]

Google Merchant Center

Google Merchant Center serves as a centralised platform for e-commerce businesses to manage their digital presence across Google’s suite of shopping-related products. This powerful tool enables companies to control and update their online product listings efficiently. The core purpose of Google Merchant Center is to provide a streamlined interface where businesses can upload, maintain, and […]

H

Hyper-personalization

Hyper-personalization takes marketing to new heights by tailoring products and content to individual customers. Using real-time data and advanced tech, it creates ultra-specific offerings that resonate deeply with each person. From custom hair care solutions to targeted social ads, this approach aims to cut through the noise and grab attention in a world of endless […]

K

Keyword Stuffing

Keyword stuffing is a search engine optimization (SEO) technique that involves overusing specific keywords or phrases on a web page in an attempt to manipulate search engine rankings. This practice is generally considered unethical and can actually harm a website’s search engine performance.

L

Live Shopping

Live Shopping is a marketing strategy where a host, usually an influencer or celebrity, promotes a product through a live video. Similar to home shopping television shows in which an individual demonstrates how to use an item, the interaction between the host and the audience takes place entirely live, as the name suggests. Gamified content, […]

O

Open Rate

Email open rate is a key performance indicator in email marketing. It measures the proportion of recipients who view an email from a particular campaign. To calculate: Open Rate = (Number of Opened Emails / Number of Delivered Emails) x 100. Open rates fluctuate across industries, but the overall average hovers around 17%. Striving to […]

P

Product Detail Page

In the world of online shopping, a product detail page (PDP) serves as a digital showcase for individual items. It’s a dedicated webpage on an eCommerce platform that acts as a virtual salesperson, offering an in-depth look at a specific product. When potential buyers click on an item that catches their eye, they’re directed to […]

S

SMART Goals

SMART Goals are a framework for setting effective objectives. The acronym SMART stands for:

Snippet

In web search results, a brief excerpt or summary of a webpage’s content, displayed below the page title and URL. Snippets provide users with a quick preview of the page’s relevance to their search query. They can be regular text excerpts, rich snippets with additional data like ratings or prices, or featured snippets prominently displayed […]

Social Commerce

Social Commerce refers to the practice of buying and selling products or services directly within social media platforms. Here’s a concise explanation: Social Commerce is the integration of e-commerce functionality into social media platforms, allowing users to complete the entire shopping process – from product discovery to purchase – without leaving their preferred social media […]

Social Proof Messaging

Social proof in a marketing context is evidence that other people have purchased and experienced value from a product or service that a company offers.

T

Targeting

Targeting is the process of making an ad relevant to the audience it’s for. This comes after market segmentation which is the process of understanding the market and before positioning which is the differentiator from competition. There are also several other things to consider when targeting such as size of the segment or if it’s […]

U

UX

Online shopping interface design, often referred to as e-commerce UX, focuses on crafting an effortless and pleasant journey for customers visiting a digital storefront. This discipline encompasses the thoughtful development of website layouts, enhancement of browsing and product discovery tools, and refinement of the purchasing workflow. The ultimate goal is to create an intuitive platform […]

V

Voice Commerce

Voice commerce, or V-commerce, is an emerging form of online shopping where customers use voice commands to make purchases. This technology leverages voice-activated devices like Amazon’s Alexa, Google Home, or even chatbots to facilitate transactions. While V-commerce is still in its infancy, it’s gaining traction, with numerous businesses already exploring and investing in this innovative […]

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