Ecommerce Glossary 2023: Common Terms & Definitions Explained

Given the fast-paced nature of the ecommerce space and the technical language often used, keeping up with the jargon and terminologies in ecommerce and Shopify is crucial.
With the variety of ecommerce platforms, online marketing terms, and customer experience strategies, having a thorough vocabulary of ecommerce terms at your fingertips may help you navigate the digital landscape of selling products and services online.
This ecommerce glossary by Ecommerce Pro will provide you with the most basic foundational layer to succeed in the ecommerce industry, covering everything from well-known ecommerce solutions like Shopify to essential concepts like online store management and customer experience:

Ecommerce Platforms:

• Shopify: A well-known and widely used hosted ecommerce platform that enables merchants to build and run their online businesses.
• WooCommerce: an open-source ecommerce plugin for WordPress websites. Woocommerce is intended for WordPress-based websites, enabling sites to have ecommerce functionalities.
• BigCommerce: An ecommerce platform that lets business owners build online stores and sell their products online. Great for businesses of all sizes.
• Magento: A sophisticated ecommerce platform for bigger online brands and businesses (enterprise), with a wide variety of features for merchants.
• PrestaShop: A free, customizable ecommerce platform renowned for its easy-to-use interface and layout. 
• Volusion: A complete ecommerce solution with all the tools that are needed to set up and run an ecommerce website.
• 3dcart: A platform for online stores offering many intuitive capabilities, such as powerful promotional tools and SEO optimization.
• Squarespace: A popular website builder with built-in ecommerce capabilities for building ecommerce sites that are appealing to shoppers.
• OpenCart: A simple-to-use open-source ecommerce solution enabling companies to launch online stores.

Online Store Management:

• Inventory management: The practice of monitoring and managing a store's inventory or store of goods.
• Order fulfillment: The procedures of handling and delivering consumer orders. It involves the picking, packing, and sending of products.
• Payment gateways: The solutions and gateways that make it possible for buyers and sellers to make payments online.
• Shopping cart: A type of software that enables visitors of an ecommerce website to pick products they wish to purchase or add to their cart and then proceed to check out.
• Product catalog: A comprehensive inventory or database of all the items offered for sale in an online store.
• Customer relationship management (CRM): A business strategy and software system used for managing customer relations.
• Analytics and reporting: The gathering and examination of data in order to learn more about customer behavior and online store activity.
• Multi-channel selling: In addition to the primary online store, the practice of selling goods on numerous other online markets or platforms.
• Dropshipping: A retail fulfillment approach in which the online store keeps no product inventory. They instead send the customer order and address details to a third-party supplier who then ships the order directly to consumers.
• Sales tax compliance: The practice of respecting the local tax laws and procedures applied to online sales.

Website Design and Optimization:

• Responsive web design: Developing websites that can adjust to different screen sizes, from smartphones, to laptops, and tablets.
• User experience (UX): The practice of improving all aspects of users' interactions with an ecommerce site.
• Conversion rate optimization (CRO): Strategies that boost the proportion of website visitors who engage in desirable behavior, such as completing a purchase.
• Search engine optimization (SEO): Methods and strategies for enhancing a website's visibility on organic search results.
• Mobile commerce (m-commerce): The use of mobile devices such as smartphones to buy and sell products and services over the internet.
• A/B testing: Assessing two or more iterations of a web page to see which one converts most effectively.
• Page load speed: The length of time it takes for a website to load completely may affect the user experience and search engine optimization (SEO) rankings.
• SSL certificates: Secure Socket Layer certificates encrypt information sent between a website and its users, ensuring a secure and encrypted connection.
• Website security: The measures and tools used to defend against threats to website security, such as hacking or data breaches, on an online store.
• Content management systems (CMS): Programs and software that make it easier to create and manage digital content for websites.

Digital Marketing:

• Pay-per-click (PPC) advertising: A model of online advertising where advertisers are charged for each occasion that their ad is clicked on.
• Search engine marketing (SEM): Improving the visibility of a website in search engine results through paid search advertising to encourage an increase in web traffic.
• Social media marketing (SMM): Using social media to advertise and market products, interact with potential customers, and increase brand recognition.
• Email marketing: Distributing newsletters or promotional emails to specific subscribers via email.
• Content marketing: The creation and distribution of useful, informative, or entertaining content that is valuable to a target audience in order to draw in and keep them engaged.
• Influencer marketing: A marketing strategy that involves collaborating with individuals who have a strong social media presence or following to promote products, improve brand visibility, and reach target audiences.
• Affiliate marketing: Collecting a commission through the promotion of other people's goods or services and taking a cut of every transaction.
• Retargeting/Remarketing: Displaying relevant and targeted advertisements to consumers who recently visited or engaged with a web site, with the intention of bringing them back onto the site to complete a desired action, such as completing the purchase.
• Customer segmentation: Using shared traits to categorize customers into distinct groups for tailored or customized marketing.
• Online advertising platforms: Tools and platforms for handling and optimizing digital marketing campaigns, such as Google Ads and Facebook Ads.

Customer Experience:

• Personalization: individualizing or personalizing the buying experience for each consumer based on their tastes, habits, and previous action in your online store.
• Customer reviews and ratings: the customers' comments, reviews, and feedback about their interactions and experiences with goods and services.
• Live chat support: A customer service feature wherein customers can get immediate answers to concerns and questions with the help of real-time messaging.
• Product recommendations: the strategy involving recommending comparable or complementary products based on a customer's past browsing or purchasing activity.
• Abandoned cart recovery: Methods to draw in customers who have abandoned their shopping carts, with the desired outcome being that they finish their transaction.
• Loyalty programs: Programs aimed at rewarding and keeping loyal customers with special deals, rewards, and incentives.
• Social proof: Utilizing organic endorsements from consumers, such as testimonials, online reviews, and social media to establish credibility and trust with prospective clients.
• Return and refund policies: Regulations and processes allowing consumers to return items and claim refunds when they are not pleased with their purchase for any valid reason.
• Customer feedback and surveys: The practice of obtaining customer insights to comprehend their level of satisfaction, preferences, and recommendations.
• Omnichannel customer support: delivering dependable customer service and support over a variety of channels, including over the phone, email, chat, social media, and more.

Logistics and Shipping:

• Fulfillment centers: Facilities or warehouses utilized for processing orders, distributing goods to customers, and keeping inventory.
• Shipping carriers: Businesses that offer transportation services for sending parcels, such USPS and FedEx.
• Tracking and order status: This refers to the ability for customers to track their orders status in real-time, including details related to the processing and transit of their orders.
• International shipping: This refers to the transportation of goods across international borders as well as dealing with local customs laws, duties, and logistics.
• Warehousing: The practice of keeping and managing goods in a warehouse, which includes updating stocks and inventory tracking.
• Last-mile delivery: This describes the final stage of the transportation process, during which the product is delivered to the customer's delivery address.
• Packaging and labeling: The process of packaging and labeling products for safe transit and easy identification before shipping.
• Reverse logistics: The process of managing and coordinating the handling of customer returns, exchanges, and refunds.
• Shipping insurance: A service that works as protection from shipment loss or damage during transportation, frequently offered by shipping companies and even third-party insurers.
• Customs and duties: This refers to the charges and levies that are collected by customs officials on goods that arrive or depart between different countries.

With Ecommerce Pro's comprehensive ecommerce glossary, you have a valuable resource to consult when navigating the terms used in online commerce. Remember to always stay up-to-date with emerging ecommerce trends and technologies, as it is vital in this ever-changing landscape. Continue to explore, learn more, and always stay dynamic, ready to adapt to the evolving world of selling products and services online.

To access more valuable resources regarding ecommerce and the latest Shopify news and advice, checkout out the Ecommerce Pro Blog.

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