30+ eCommerce Terms

The eCommerce industry is changing rapidly. This means that the language used in this field is constantly evolving as well. It can be hard to keep up with all of the new terms, especially if you are just starting out or looking for a career change. The good news is that there are some important keywords and phrases that every online business professional should know! In this blog post, we will go over some common terms that every eCommerce professional needs to know about!

  • Affiliate: Affiliates are online marketers who promote a business and earn commissions on each sale.
  • Auto Responder: An auto-responder is a computer program that sends automatic replies to messages received by eCommerce sites. They are typically used for marketing and customer retention purposes, as well as in the case of outages with other systems such as phone lines or emails.
  • Basket: The basket is one of those terms you don’t want to hear when shopping online! A Basket refers to an online purchase before it has been completed – meaning it’s not yet guaranteed that your order will be shipped because there may still be steps necessary on your part (such as signing into PayPal).
  • Batch Processing: Batches refer back to multiple products within a certain category being processed at once. For example, batch processing might involve packing up all orders made by the same customer before shipping them out together.
  • BDC: A BDC is a business-to-business transaction that takes place between two different companies which are not directly related to one another (such as an eCommerce site and a manufacturer, for example).
  • Channel Conflict: Channel conflict refers back to online stores being limited by what they can sell – this mainly happens when inventory has been stocked up with items from more than one channel such as eBay or Amazon for instance. This creates brand confusion where customers might be unaware of who actually owns the product because it’s listed on multiple channels.
  • Chargeback: Chargebacks occur whenever someone disputes their bank account charges with their credit card company in order to get money back after purchasing something online.
  • CMS: Content Management System (CMS) is a software application that allows users to create, edit, delete or otherwise manage content easily by conducting the process directly through the website’s web browser window using an intuitive user interface.
  • Commerce Service Provider: A commerce service provider is a company that offers services to eCommerce stores, including fulfillment, customer service and order shipping – they take care of the entire process for you! Commerce providers are divided into two categories: Software as a Service (SaaS) or Platforms as a Service (PaaS).
  • Cost-per-click: Cost per click refers back to what it costs an advertiser when someone clicks on one of their ads for example. This phrase can also be shortened to CPC which stands for cost per click in some cases. The more people who see your ad but don’t actually buy anything from it, means the higher this number will get over time – so make sure you’re using a variety of different strategies!
  • Cost-per-thousand: Cost per thousand refers back to the amount it costs an advertiser when someone views their ad for 1000 times. It’s important to know how much your marketing is costing you because if too many people are viewing but not buying, that number will go up – so make sure you’re doing everything possible in order to get more sales as well!
  • Electronic Wallet: An electronic wallet tracks and saves details about transactions made with online retailers; these include credit card information, shipping addresses, etc. This data can then be accessed by third parties such as banks or other payment providers in order to provide an improved customer experience.
  • Email Marketing: Email marketing involves sending out promotional emails to customers on an eCommerce site – typically these are done through email newsletters or automated messages.
  • Feedback Loop: A feedback loop is a marketing technique that allows businesses to engage with their customer base in order to get valuable information about how they can improve and do better over time. Feedback loops are found most often in social media platforms such as Facebook, for example where people might post public reviews of products from an online store.
  • Fulfillment Center: Fulfillment Centers can be thought of as warehouses where the storage and shipping process for products ordered from eCommerce sites take place. They typically come with all of the necessary equipment such as forklifts, conveyor belts etcetera. It’s basically everything you need in order to ship your inventory out!
  • Group Buying: Group buying is a type of marketing strategy which involves promoting the idea that customers can get better prices on goods or services when they purchase them together – this is usually achieved by combining numbers.
  • Inventory Management Software: Inventories are nothing without the proper software to manage them. Inventory Management Software is typically used by companies who produce and then sell a product, or manufacturers for example. It allows you to track the items that are in stock with their respective quantities, as well as monitor prices of your inventory across different markets.
  • Lazy Loading: Lazy loading is when pages have images which load only after the user scrolls down the page first; this saves bandwidth because it means your website won’t be bogged down by every single visitor demanding more content right away! It’s also said that lazy loading will actually make your website load faster by default. eCommerce website is often full of images in one page, so lazy loading technique is welcomed.
  • Location-based Marketing: Location based marketing is a type of advertisement which directs people to nearby stores or services that are located close to them – this saves time and money for both the customer and the company, as they aren’t forced to do any follow up with those who didn’t respond in order to find out if they were interested in what was being offered!
  • Logistics: Logistics can be defined as “the business process of planning and carrying out the movement of goods from one place to another” – but what does this have to do with eCommerce? The answer is simple! All successful eCommerce sites need logistics systems if they want any hope of shipping products quickly and efficiently while still maintaining high customer satisfaction ratings.
  • Merchant Account: A merchant account allows merchants to process credit card payments online and typically takes up less than one percent from each transaction made. If you don’t have a merchant account, it’s important for your company to find one since processing cards manually would be time consuming! Merchants also need an adequate amount stored in their bank accounts before being able to establish themselves as legitimate businesses too.
  • Micropayment: Micropayments are small purchases done through eCommerce platforms such as iTunes or Steam; these transactions may involve purchasing something like virtual currency or digital goods.
  • Omnichannel Fulfillment: Omnichannel fulfillment refers back to an earlier definition of the term, which is “a business process whereby goods are shipped out to customers through all available channels”. To elaborate on this concept, we can say that omnichannel fulfillment encompasses online purchases as well as in-store purchases. The goal here is to make sure that a customer always has access to your product from any location!
  • Payment Gateway: Payment gateways are online portals which allow companies to charge customers’ cards; these can be done through a credit card or debit card depending on the type of merchant account you have available, for example.
  • Payment Threshold: The payment threshold refers back to how much money must pass before it will get processed – this means that if someone has only spent $25 and your company’s threshold is set at $30, then they won’t be able to make any more purchases until their total reaches over this amount! This could come in handy when trying to stop people from making a purchase impulsively as well.
  • Product Data Feeds: Product data feeds allow eCommerce merchants and stores to keep their inventory updated by automatically uploading new products into an online store based on what’s being sold elsewhere.
  • PPC (pay per click): A PPC (pay per click) refers back to how much you pay when someone clicks on your ad – it’s important for advertisers because the more people who see their ads but don’t buy anything means the higher this number will get over time, so make sure you’re using different strategies across all types of platforms!
  • Promo Code: Promotional codes are used by companies in order to offer customers discounts or free products; these can be redeemed through a code and then matched up with an item that has been previously purchased. For example, if customer A purchases something worth $100 and they have a promo code which is good for 50% off any purchase made online, they’ll only end up paying $50 instead. These come in handy as an incentive strategy even though its limited time and only for one person.
  • Robotic Fulfillment System (RFS): Robotic Fulfillment Systems use robots for storing items, picking orders and packaging them up – making it possible for companies with small inventories to offer their products online.
  • Shopping Cart: Shopping carts are the containers which hold all of a customer’s items while they shop online – this is done by adding products to an empty shopping cart or through checking out with what has been selected already! These act as a simple way for customers to keep track of what they’re buying without having to worry about forgetting anything in between sessions.
  • Shopify: Shopify is eCommerce software that can be used on your website or blog; it was developed specifically so any business could create their own storefront, no matter how small or large their budget may be. It’s important for companies using this type of program because it offers them tons of features and functionality just like those who have spent hundreds of thousands of dollars on their websites.
  • Third-party Payment Processor: Third party payment processors are the middle men between you and your customer; this means that they serve as an intermediary for both parties by processing payments, managing fraud detection, and carrying out other obligations which can be found in a merchant agreement. The important thing to know about these is that every one has different features so it’s crucial to find what suits your needs! For example, PayPal offers its customers the ability to hold onto funds until needed or even withdraw them using a debit card – while Stripe allows people to create custom plans with flexible pricing models without having any hidden fees along the way.

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