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3PL: Third-Party Logistics
Third-party logistics, also known as 3PL, refers to outsourcing logistics and supply chain operations to a specialized company. A 3PL handles all or some of the storage, transportation, and fulfillment tasks involved in getting products from the manufacturer to the customer. This includes warehousing, inventory management, packaging, and shipping. By using 3PL providers, companies can streamline their supply chains, improve efficiency, reduce costs, and focus on their overall growth.
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A/B testing, also known as split testing, is a method for comparing two versions of marketing content to determine which performs better. In an A/B test, versions A and version B are created, with one key difference, such as a different headline, button color, or layout. One version is shown to the first half of your audience and the other version to the rest. Next, you compare which version leads to more desired user actions, such as clicks or purchases. This data further helps you to optimize for conversion, increase sales, and create a better user experience.
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OV, which stands for Average Order Value, is a key metric in eCommerce that tells you the average amount a customer spends per order. In simpler terms, it tells you how much money customers bring in on average with each purchase. AOV is calculated by dividing your total revenue by the number of orders within a timeframe.
The AOV formula is: AOV (Average Order Value) = Total Revenue / Number of Orders Placed
A low AOV suggests customers buy small items often, while a high AOV might mean they buy in bulk or splurge on bigger purchases.
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In eCommerce, ASP (Average Selling Price) refers to the average amount a customer pays for your products. It's a key metric for understanding your revenue generation and pricing strategy. ASP is calculated by dividing your total revenue from product sales by the number of units sold during that period. For instance, if you sold ₹10,000 worth of products and 20 units in a month, your ASP would be ₹500 (₹10,000 / 20). By understanding ASP, you can make informed decisions about pricing, promotions, and product offerings to optimize your eCommerce business.
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An abandoned cart, also known as shopping cart abandonment, happens in online shopping when a customer adds items to their shopping cart but leaves the website before completing the purchase. Studies show that the average cart abandonment rate is around 70%, meaning for every 10 people who add something to their cart, 7 will leave without buying. Cart abandonment can happen for various reasons, like unexpected shipping costs or a complicated checkout process. Online stores use strategies like simplifying checkout, offering clear pricing, and sending reminder emails to recover abandoned carts.
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An ad set is a group of ads within a larger advertising campaign. They let you group ads with a similar target audience, budget, placement, and timing. This lets you easily manage your campaign and test different approaches to see what works best. Ad sets are commonly used in online advertising platforms like Instagram Ads, Google Ads, and others. By using ad sets effectively, you can increase the reach and impact of your advertising campaigns.
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BFCM stands for Black Friday and Cyber Monday. It's a major shopping event that marks the unofficial kick-off to the holiday shopping season. Black Friday, the day after Thanksgiving in the United States, traditionally focuses on online deals, while Cyber Monday, the following Monday, is known for mega online sales. BFCM has become synonymous with huge discounts, promotions, and deals offered by retailers both online and in brick-and-mortar stores. BFCM has grown into one of the biggest shopping events globally, making it a prime time for both shoppers and businesses.
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BOGO stands for "Buy One, Get One". It's a popular sales promotion strategy where you purchase one item at the regular price and get another item, often identical, for free or at a significantly reduced price. The goal is to entice customers to buy more by offering a seemingly unbeatable deal. BOGO is an effective way for eCommerce stores to encourage customers to buy more, try a new product, increase sales, or clear out excess inventory.
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Bounce rate refers to the percentage of visitors who land on your website and leave without taking any action, like browsing other pages, adding items to their cart, or making a purchase. They essentially "bounce" away after viewing just a single page. A high bounce rate may indicate potential issues for your eCommerce website/store such as confusing website layout, slow loading times, or missing information that visitors are looking for. The average bounce rate for e-commerce websites falls between 26% and 40%.
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Bundles are groups of multiple products sold together at a discounted price. These products are usually complementary, meaning they go well together (like a phone case and screen protector). They can include product bundles, mix-and-match options, product and service combinations, or time-limited offers. For example, an online store might also bundle similar items (multiple t-shirts) at a discount to clear inventory. Bundles benefit eCommerce businesses by increasing average order value and moving inventory while providing customers with added value and convenience.
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A "buy button" is a clickable button on eCommerce websites and platforms that allows buyers to quickly and easily purchase products with a single click. Buy buttons can also be placed on social media posts and emails, allowing customers to buy on the spot without ever leaving the page they’re on. A buy button typically appears next to a product listing or description, inviting buyers to make a purchase. For businesses, buy buttons are a great way to streamline the buying process and potentially boost sales by reducing the chance of someone abandoning their cart before checkout.
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Buy X get Y is a marketing promotion strategy where eCommerce stores offer a discount or free item (Y) to customers when they purchase a certain quantity (X) of another product or spend a specific amount. This quantity can be a specific number (like "Buy 2 shirts") or a minimum spending amount. The reward (Y) can be a free item, a discount on more items, or even free shipping. Buy X get Y discounts help stores boost sales by encouraging customers to buy more, clear inventory by bundling slow-selling items, and introduce new products by offering them at a discount with familiar ones.
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A buyer persona, also called a customer persona or marketing persona, is a detailed profile of your ideal customer. It's a fictional character based on market research and real data about your existing customers. Buyer persona captures their demographics, behavior patterns, motivations, goals, and challenges to provide a complete understanding of who they're selling to. By understanding your buyer persona's motivations and pain points, you can tailor your entire eCommerce experience to resonate with them. This can involve everything from the products you offer to the marketing messages you craft.
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Customer Acquisition Cost (CAC) refers to the amount of money a business spends on acquiring a new customer. This includes all the expenses involved in marketing, sales, and any other efforts that lead to a customer making a purchase. To calculate CAC, simply divide the total costs associated with acquiring customers (such as marketing expenses, sales team salaries, advertising costs, etc.) by the number of customers acquired within a specific period. The CAC formula is: CAC = (Cost of sales + cost of marketing) / New customers acquired For example, if a company spent $10,000 on marketing & sales efforts in a month and acquired 100 new customers during that same period, the CAC would be $100.
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CRM stands for Customer Relationship Management. It's a tool, often software, that helps businesses manage all their interactions with customers and potential customers. CRM is like the central hub for all your customer information and interactions. A CRM system helps businesses track sales leads, manage customer service interactions, and analyze customer data. This can help businesses improve their relationships with customers, streamline sales processes, and ultimately boost their bottom line.
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CRO, or Conversion Rate Optimization, is the process of improving the percentage of website visitors who take a desired action, like making a purchase, signing up for a newsletter, or downloading a file. It involves analyzing data, conducting tests, and optimizing elements such as user experience, content, and conversion funnels to increase conversion rates and drive better results. CRO helps businesses get more value out of their existing website traffic. By increasing conversions, they can boost sales, generate more leads, and ultimately grow their business.
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CTA stands for a call to action. In marketing, it refers to any prompt that directs the audience to take a specific step. CTAs are typically designed using strong verbs and clear language that entices the audience to act. They can be found in various marketing materials like websites, email campaigns, or social media posts. The ultimate goal of a CTA is to nudge the audience towards a conversion, which could be a sale, a sign-up, a download, or any other action that aligns with the marketing objective.
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CTR stands for Click-Through Rate. It's a metric used in marketing and advertising to measure the effectiveness of an ad or campaign. It tells you what percentage of people who see your ad actually click on it. CTR is calculated by dividing the number of clicks by the number of impressions, and then multiplying by 100 to express it as a percentage. So, for example, if your ad gets shown 100 times (impressions) and 5 people click on it, your CTR would be 5%. The average CTR in e-commerce is around 2.69%. However, a "good" CTR can change depending on the specific marketing channels.
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A campaign is a coordinated series of activities and efforts aimed at achieving specific objectives within a set timeframe. In eCommerce, a campaign refers to a strategic marketing initiative designed to achieve specific goals within a defined timeframe. These goals could include increasing sales, promoting a new product or service, driving website traffic, or generating leads. eCommerce campaigns often involve various marketing channels and tactics, such as email marketing, social media advertising, search engine optimization (SEO), pay-per-click (PPC) advertising, content marketing, influencer partnerships, and more.
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Campaign tracking is the process of monitoring and measuring the performance of your marketing efforts to assess their effectiveness and ROI (Return on Investment). It involves tracking various metrics like traffic sources, user engagement, and conversions to understand how effectively campaigns reach target audiences and achieve desired outcomes. This data helps eCommerce businesses to make informed decisions, optimize campaigns, allocate resources strategically, and maximize the impact of their marketing efforts to achieve their overall business objectives.
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Cart conversion rate, also known as shopping cart conversion rate, is a key metric in eCommerce. It essentially tells you what percentage of shoppers who add items to their online shopping cart actually follow through and complete the purchase. In other words, it measures how effective your online store is at converting browsers into paying customers. For example, if 100 people add items to their carts but only 10 people end up buying them, your cart conversion rate for that period would be 10%. The average cart abandonment rate globally sits around 69.82% A high cart conversion rate indicates a smooth checkout process and a trustworthy online store that convinces visitors to turn into buyers.
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Cashback refers to a way for customers to earn a portion of the money they spend back on their purchases. Instead of complete money back, customers earn a percentage of the purchase as cashback. There are two ways to earn it: through cashback websites or retailer loyalty programs. Cashback websites partner with stores and offer rewards for clicking through their links before shopping. Retailer programs offer cashback directly for purchases on their site. Overall, cashback is an incentive for shoppers to choose one store or online platform over another.
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A chargeback is a process where a customer disputes a charge made by an online store and seeks to get their money back. It's essentially a reversal of a transaction due to fraud, undelivered items, defects, or duplicate charges, acting as a form of consumer protection. Chargebacks can be a hassle for both the customer and the business. The customer has to go through the process of disputing the charge, and the business loses the sale and incurs a fee. However, chargebacks can be minimized by good customer service, fast shipping, clear return policies, and prompt refunds.
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Checkout is the final stage where a customer confirms their online shopping basket and completes the purchase. It's similar to the cashier lane in a physical store, but online. Customers typically review their cart items, provide shipping and billing information, choose a payment method, and receive confirmation upon successful payment. A smooth and user-friendly checkout experience is important to avoid cart abandonment and boost sales.
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Checkout extensions are tools specifically designed for Shopify Plus stores to customize and enhance the checkout experience for their customers. These can be anything from gift wrapping to loyalty programs, all aimed at making the checkout smoother and more customized for better sales. Checkout extensions are built into apps, ensuring a safe way to modify the checkout. This means they run separately from the core checkout page and other extensions, minimizing security risks and compatibility issues with future updates.
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Churn, also referred to as customer churn or subscriber churn, is a business metric that measures the rate at which customers stop doing business with a company within a certain time frame. It's a key metric that reflects how well a business retains its customer base. A high churn rate indicates that a business is losing customers faster than it can acquire new ones. This can be a serious problem, as it can lead to stagnant or declining revenue. Online businesses aim to keep their churn rate low by providing value and a positive customer experience.
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Click-to-Open Rate (CTOR) is an email marketing metric that measures how engaging your emails are. It specifically looks at the percentage of people who open an email and then click on a link within that email. To calculate CTOR, divide the number of unique clicks by the number of unique opens and multiply by 100. For example, if your email gets 200 clicks and 250 opens, your CTOR will be: CTOR = (200/250) x 100 = 80% By tracking the CTOR You can know how well your email content resonates with your audience and identify areas for improvement. This helps you refine future email marketing campaigns for better results.
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Content Management System (CMS)
A Content Management System (CMS) is a software tool that helps users create, manage, and edit website content without having to write code or understand web development languages. It’s a user-friendly platform for managing your website's content including text, images, videos, and other multimedia elements. Popular CMS platforms include Webflow, WordPress, Joomla, Drupal, and Wix, among others.
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Content marketing is a strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience. It includes creating various types of content like blog posts, videos, and social media posts, distributing it across different channels, and measuring its impact on business goals. To put it simply, content marketing is like having a long-term conversation with your target audience. You're offering them helpful information, solving their problems, and ultimately, positioning yourself as the go-to choice when they're ready to buy. Overall, content marketing is a long-term strategy for building trust and brand awareness, ultimately leading to more sales.
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Contribution margin is a key metric that tells a business how much money each sale contributes to covering its fixed costs and profit. It’s calculated by subtracting variable costs (expenses that change with sales volume) from sales revenue. This leftover amount essentially contributes to paying for fixed costs (expenses that stay the same regardless of sales) like rent and salaries. Businesses use contribution margins to measure profitability, make pricing decisions, and perform break-even analysis.
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A conversion funnel, also known as a sales or marketing funnel, is a visualization of the customer journey toward a business's desired action, like a purchase. It includes stages like awareness, interest, consideration, intent, and conversion. The conversion funnel narrows as prospects move through each stage, with the ultimate goal of converting them into customers. Understanding the conversion funnel helps businesses improve their marketing strategies to increase conversion rates and drive revenue growth.
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Conversion rate refers to the percentage of website visitors who take a desired action. This action could be anything from making a purchase (the most common goal) to signing up for an email list, downloading a brochure, or creating an account. For example, if 100 people visit your online store and 10 of them end up buying something, your conversion rate would be 10%. Higher conversion rates mean you're convincing more visitors to do what you want them to do. The average e-commerce conversion rate typically falls between 2.5% - 3%.
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Cookies are small data files that websites store on your device, like your computer or phone. These files contain data such as user preferences, login information, browsing history, and other relevant information. Cookies can be session or persistent, and first-party or third-party. They are a common way for websites to remember information about your visits and make your browsing experience more convenient. Overall, cookies help with features like staying logged in, personalized recommendations, and remembering settings but also raise privacy concerns. Hence, many websites provide cookie consent notices and allow users to manage their cookie preferences.
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Cost-per-click (CPC) is an advertising model used online where you pay for advertising based on the number of people who actually click on your ad. It's used in platforms like Google Ads and Facebook Ads. Advertisers set a maximum bid for clicks, and they're charged only when a user clicks on their ad. Here's the formula for calculating CPC: CPC = Total ad cost / Total number of clicks So, let's say you spend $100 on your ad campaign and get 200 clicks. Your CPC would be $100 divided by 200, which equals 50 cents per click A lower CPC generally indicates a more successful ad campaign, as you're getting more clicks for your money. CPC is a popular option for online advertisers because you only pay for results. It's a good way to target potential customers who are already interested in what you offer.
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Coupon discounts are a marketing strategy that offers customers a reduction in the price of a product or service. They come in various forms like percentages off, fixed-amount reductions, or even free shipping. For example, a 10% coupon discount would reduce the price of a $100 item by $10, to $90. Coupon discounts are used to attract new customers, encourage larger purchases, or clear out slow-moving inventory.
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Cross-selling is a sales strategy that focuses on selling related or complementary products to an existing customer. It targets existing customers who already trust the brand. For example, recommending a phone case or screen protector with a mobile phone purchase. The goal of cross-selling is to increase the customer's overall purchase value and provide them with a more complete solution. It can also be a way to boost customer satisfaction by ensuring they have everything they need.
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Customer accounts are like digital profiles that store your history with a company. These profiles typically store key details like name, contact information, and purchase history. It allows businesses to track past interactions, personalize future experiences, and streamline communication. For customers, this means faster checkouts and easier order tracking, making shopping more convenient and tailored to their interests.
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The customer journey is the entire experience a person has with a brand, from initial awareness to after-sales service. It includes all the interactions, right from the moment they first become aware of your product, all the way through to post-purchase stages, across different touchpoints. These touchpoints can be anything from online ads to in-store experiences to customer service calls. The key to understanding the customer journey is to see it from the customer's perspective. What are their thoughts, feelings, and pain points at each stage? By mapping out these touchpoints, businesses can identify areas for improvement and ensure a smooth, positive customer journey that fosters loyalty and drives growth.
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A customer journey map is a blueprint that visually shows a customer's experience with your brand. It tracks their interactions, thoughts, and emotions throughout their relationship with your product or service across various touchpoints. The goal of a customer journey map is to help businesses understand their customers better. By seeing the journey from the customer's perspective, businesses can identify areas for improvement and create a more positive and seamless experience. It allows them to tailor their marketing, sales, and support strategies to better meet customer needs at each stage.
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Customer retention refers to the ability of a business to retain its existing customers over a period of time. It is a measure of how successful a business is at preventing customers from switching to competitors and encouraging them to make repeat purchases or continue using their product or service. This involves strategies and efforts aimed at keeping customers satisfied, engaged, and loyal to the brand, leading to repeat purchases and long-term relationships. By prioritizing customer retention, businesses can ensure long-term loyalty, reduce churn, and maintain stable revenue streams.
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Customer retention rate is a metric used by businesses to measure the percentage of customers that they retain over a specific period of time. It's calculated by taking the number of customers at the end of a period (E), subtracting the number of new customers acquired during that period (N), and then dividing that result by the number of customers at the start of the period (S). CRR = ((E-N)/S) x 100 A high customer retention rate is generally considered good because it indicates that you're providing value to your customers and they're happy doing business with you. The average customer retention rate in e-commerce is around 38%.
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A customer review is an evaluation of a product or service written by someone who has actually purchased and used it. It's basically a customer's feedback on their experience with a business. They can be positive, negative, or neutral, and they often include a rating system along with written comments. People rely on customer reviews to learn more about products and services before they buy. A customer review can be a great source of honest feedback about the pros and cons of a particular product. Businesses also use them to understand how customers feel and improve their offerings.
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A Digital Asset Management (DAM) system is a software solution that helps businesses organize, store, find, and share digital files such as images, videos, documents, audio files, and other multimedia content. With features such as version control and collaboration tools, a DAM system enables multiple users to access, edit, and share assets at once, making it easier to collaborate and keep everything consistent. Overall, a DAM system helps businesses get the most value out of their digital assets by making them readily available and protected throughout their lifecycle.
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DTC, which stands for Direct-to-Consumer, is a business model where companies sell their products directly to customers through their own online channels, instead of relying on traditional retail stores or wholesalers. In a DTC model, the brand controls the entire customer experience, from production and marketing to sales and customer support. This allows businesses to build stronger relationships with their customers, collect important data, and often offer lower prices by cutting out middlemen. DTC has become increasingly popular, especially with the rise of eCommerce platforms and digital marketing channels.
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Dimensional weight, also known as volumetric weight or DIM weight, is a pricing strategy used by shipping companies to calculate the cost of shipping packages based on their size rather than just their weight. It considers both the actual weight and the volume of the package, as carriers need to allocate space on their vehicles efficiently. This system ensures carriers are compensated for the space a package occupies, even if it's not very heavy. It also encourages businesses to use efficient packaging to minimize wasted space.
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A discount code, also known as a promo code, coupon code, or offer code, is a series of letters and numbers that a retailer or brand provides to customers. When entered at checkout, it reduces the price of a product or service. The discount might be a percentage off the total, a fixed amount deducted from the total, or free shipping. Businesses use discount codes as a marketing strategy to increase sales, attract new customers, and reward existing ones.
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Discounts are reductions in the price of a product. They are a common promotional strategy used by businesses to attract new customers, increase sales of existing products, or clear out inventory. There are multiple types of discounts such as percentage discounts, fixed amount discounts, bundle discounts, seasonal promotions, volume discounts, coupon discounts, and loyalty rewards. For customers, discounts mean saving money. They can stretch their budget further and potentially afford items they wouldn't have been able to otherwise. This can lead to increased customer satisfaction and loyalty.
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Dropshipping is a retail fulfillment model where a store doesn't keep the products it sells online. Instead of keeping that product in stock, the store forwards the order to a supplier who then ships it directly to the customer. As a result, the store doesn't handle the product directly, avoiding the need for inventory storage or fulfillment logistics. Dropshipping allows businesses to focus on marketing and sales without the hassle of managing inventory, making it a popular model for online entrepreneurs and small businesses.
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Identity Access Management (IAM)
Identity Access Management (IAM) is a framework or system that helps businesses manage and control access to their resources, such as computer systems, networks, data, and applications. In simpler terms, IAM is about controlling who has access to what within an organization's digital environment. It involves defining and managing user identities, roles, and permissions, as well as enforcing policies and protocols to ensure that only authorized individuals or systems can access specific resources. IAM systems typically include features such as user authentication, authorization, and user provisioning, as well as capabilities for managing passwords, access levels, and security policies.
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In online advertising and marketing, an impression refers to the number of times an advertisement is displayed or shown to a user. Each time an ad appears on a webpage, social media feed, or any other digital platform where it could potentially be seen by a user, it counts as one impression. Ad impressions are a key metric for advertisers because they track how many people see their ads. However, an impression does not necessarily mean that the ad was clicked or interacted with by the user, it just means someone saw the ad.
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Influencer marketing involves collaborating with individuals, known as influencers, who have a strong presence on social media platforms. These influencers, due to their credibility and authority in specific niches, can influence the opinions and purchasing decisions of their followers. Brands partner with influencers to create sponsored content that promotes their products or services to the influencer's audience. Influencer marketing content can be in the form of sponsored posts, product reviews, or endorsements. Ultimately, businesses leverage the influencer's reach and engagement to increase brand awareness, drive traffic, and generate sales.
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Inventory is all the stock a company keeps on hand for the purpose of selling or using in its operations. This can be anything from finished products ready for sale, work-in-progress items being manufactured, or raw materials awaiting production, depending on the stage of production. In short, inventory is everything a business needs to keep things running and customers satisfied.
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Inventory management is the process of overseeing and controlling the flow of goods and materials within a business. It involves the planning, procurement, storage, tracking, and distribution of inventory to make sure that the right amount of stock is available at the right time, in the right place, and at the right cost. Many businesses use different inventory management techniques depending on their industry and specific needs. Some common methods include the Just-in-Time (JIT) system, or the ABC classification system. Effective inventory management balances ideal inventory levels to meet customer demand to minimize excess or low inventory. This means smooth operations and reduces costs for businesses.
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Inventory turnover rate is a financial metric used to measure the efficiency of a company's inventory management. It shows how many times a company's inventory is sold and replaced within a specific period, typically a year. The formula for calculating the inventory turnover rate is: Inventory Turnover Rate = Cost of goods sold (COGS) / Average Inventory A high inventory turnover rate generally means that a company is selling its inventory quickly and efficiently. However, a very high turnover rate might also suggest the business isn't carrying enough inventory to meet customer demand, which could lead to stockouts and lost sales.
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The Inventory Turnover Ratio is a metric used in business to measure how efficiently a company manages its inventory. It's calculated by dividing the cost of goods sold by the average inventory level. Generally, a higher ratio is better, but it's important to consider the industry. A grocery store will naturally sell through inventory faster than a car dealership. The average inventory turnover ratio for e-commerce businesses is around 4-6 times per year. This means that on average, an e-commerce business sells and restocks its inventory every 2-3 months.
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L
LTV stands for Customer Lifetime Value. It's a metric used in marketing and business analysis to measure the total revenue a customer is expected to generate for a company over the entire duration of their relationship with that company. It estimates the long-term value of a customer to a business. It's calculated by multiplying customer value (average revenue per customer) by the average customer lifespan. LTV = AOV x Average customer lifespan x Average purchase frequency Understanding LTV helps businesses make informed decisions about customer acquisition, retention strategies, and marketing investments. By increasing LTV, companies can improve profitability and sustainable growth.
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A landing page is a standalone web page created specifically for a marketing or advertising campaign. It's where visitors "land" after clicking on a link or advertisement, such as from a search engine result, social media post, email, or online advertisement. A landing page is designed to guide visitors toward a specific action or goal, such as making a purchase, signing up for a newsletter, downloading a resource, or registering for an event. Unlike regular web pages, landing pages are focused and have a clear call-to-action, helping to boost conversion rates.
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Logistics refers to the process of planning, implementing, and controlling the movement and storage of goods, services, and information within a supply chain. It involves activities such as transportation, warehousing, inventory management, packaging, and distribution. The goal of logistics is to ensure that the right products are delivered to the right place at the right time while minimizing costs and maximizing efficiency. Effective logistics management is essential for businesses to meet customer demand, optimize resources, and maintain competitive advantages in the marketplace.
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A loyalty program is a marketing strategy designed to encourage customers to make repeat purchases and remain loyal to a brand or business. These programs typically offer rewards, incentives, or benefits to customers who frequently engage with the company, such as making purchases, referring friends, or participating in promotional activities. Loyalty programs can take various forms, including points-based systems, tiered memberships, discounts, exclusive offers, freebies, or access to special events. The ultimate goal of a loyalty program is to foster long-term relationships with customers, increase customer retention, and drive repeat business, ultimately leading to increased profitability and brand advocacy.
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O
O2O, or Offline to Online, is a strategy in eCommerce that bridges the gap between a business's online presence and its physical stores. Customers can discover products offline but complete transactions or engage further online, or vice versa. For example, customers may browse products online, make purchases, and then choose to pick up their orders in-store, or they may research products in-store and later complete their purchases online. This strategy enhances convenience, boosts brand visibility, and drives sales by leveraging both offline and online strengths.
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Omnichannel refers to a multichannel approach to sales or marketing that provides customers with a seamless and integrated shopping experience across all channels, including physical stores, online platforms, mobile apps, social media, and any other touchpoints. In an omnichannel strategy, customers can interact with a brand or business through various channels, and their experience is consistent and interconnected regardless of the channel they use. This approach allows customers to switch between channels seamlessly, such as browsing products online and then purchasing in-store, or vice versa, without any disruption in their journey.
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A one-page checkout is exactly what it sounds like a streamlined process where a customer completes their entire purchase on a single webpage without having to go through multiple steps. In a one-page checkout, all the necessary fields for completing the order, such as shipping address, payment method, and order summary, are displayed on a single page for the customer to fill out and review. This simplifies the checkout process, reduces friction, and makes it faster and more convenient for customers to make a purchase.
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An order success page, also known as a confirmation page or thank-you page, is the page that customers are directed to after successfully completing a purchase or placing an order on an eCommerce website. This page acts as a confirmation that the order has been received and processed successfully. It usually includes information such as an order summary, transaction details, shipping information, and an order confirmation number. It's similar to a receipt but online.
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Order tracking is a system that allows customers to monitor the whereabouts of their purchases after they've been placed online or by phone. It's a feature offered by many online retailers that allows customers to monitor the progress of their order from the moment it's shipped until it reaches them. Sellers assign a unique tracking number to the order, like an ID. Customers can then use this number on the seller's website or app to see where their package is in real-time, get updates on its estimated delivery date, and even receive notifications if there are any changes or delays.
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P
PCI DSS Compliance stands for Payment Card Industry Data Security Standard Compliance. It's a set of security standards designed to ensure that companies that accept, process, store, or transmit credit card information maintain a secure environment. PCI DSS Compliance involves implementing measures such as secure networks, data protection, access controls, and regular monitoring. Businesses that accept credit card payments must adhere to PCI DSS standards to prevent data breaches and fraud. Compliance is verified through self-assessment questionnaires, audits, and reports. Maintaining PCI DSS compliance is highly important for protecting customer data and avoiding penalties or reputational damage.
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POS, which stands for Point of Sale, refers to the system a business uses to complete customer transactions. For example, when a customer swipes their card or taps their phone to complete a purchase - the entire system that processes that payment, from scanning your items to printing the receipt, is part of a POS system. Today's POS systems can do a lot more like keeping track of how much inventory is left in stock, managing customer information for loyalty programs, and even generating reports to help business owners understand their sales and make better decisions.
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A page builder is a tool or software used to create and design web pages without the need for coding or technical skills. It features a drag-and-drop interface, pre-designed templates, and customizable elements that allow users to easily build and customize web pages visually. With a page builder, users can add text, images, videos, buttons, forms, and other elements to create attractive and functional web pages quickly and efficiently. Page builders are commonly used for creating websites, landing pages, sales pages, and other online content.
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A payment gateway is like a digital cashier for online transactions. When a customer enters their credit card information, the payment gateway doesn't store it - it acts as a middleman, sending the encrypted information to the bank for authorization. Once the bank approves the payment, the payment gateway securely transmits that back to the store, allowing them to complete the order. Payment gateways support various payment methods, including credit/debit cards, digital wallets, bank transfers, and other online payment options.
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A post-purchase survey is like a mini questionnaire that businesses send to customers after they've made a purchase. It's a way for companies to gather feedback and insights from customers about their buying experience. These surveys typically ask questions about satisfaction with the product or service, ease of the purchasing process, and overall shopping experience. Post-purchase surveys help businesses understand what they're doing well and where they can improve, ultimately helping them provide better products and services to their customers in the future.
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A post-purchase upsell is a marketing strategy where a business tries to convince a customer to buy something additional after they've already completed a purchase. Imagine you just bought a new pair of shoes online. These upsells can show up on checkout pages, in emails, or even on the order confirmation screen. Businesses use these to increase their sales by offering additional, often relevant, items after a customer’s initial purchase. This can boost their average order value and even help customers by reminding them of things they might need.
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Print on demand (POD) is a printing technology and business model where products are printed only when an order is received. It allows businesses to create custom-designed products, such as t-shirts, mugs, books, or posters, without large upfront investments in inventory or printing equipment. With print-on-demand, products are produced and shipped directly to customers as orders come in, eliminating the need for stocking inventory or managing fulfillment. This approach enables greater flexibility, reduces risk, and allows for more customized and unique products to be offered to customers.
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Product bundles are groups of individual products or services sold together at a discounted price. Think of them as pre-made gift baskets - they combine several items that are often complementary. For example, instead of buying each item separately, you might see a bundle that includes a phone, a case, and headphones all together for a discounted price. Product bundles are often used by businesses to encourage customers to buy more and to offer them added value. They're a great way to save money and get everything you need in one go.
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Product comparison is a side-by-side comparison of different products to see which one is better. It's the process of evaluating and comparing similar products to find the best fit for you. Product comparison basically involves analyzing features, specifications, and prices to understand how each product measures up. By comparing different options, customers can make informed purchasing decisions and choose the product that best suits their needs and budget.
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A product filter is a feature on eCommerce websites that allows buyers to narrow down their search results based on specific criteria or preferences. Product filters help customers sort through the massive selection/product range by specific criteria like color, size, brand, price, or even material. Customers choose what they’re looking for, and the filter refines the results to only show those matching the said choices. This saves tons of time browsing and helps customers find exactly what they need. This feature is particularly useful on websites with large inventories or diverse product ranges.
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A product quiz is an interactive tool used by online businesses to engage with customers and help them find the perfect products that match their preferences or needs. It asks them a series of questions to collect information about their style, hobbies, and preferences. Then, based on their answers, it suggests products they might like. Product quizzes are used by eCommerce stores to make shopping more fun and personalized. They can cover various categories such as fashion, beauty, home decor, electronics, and more.
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R
ROAS stands for Return On Ad Spend. It's a key metric in online marketing that measures the advertising revenue generated for every dollar spent on a campaign. Think of it like a scorecard that tracks how efficiently your ads are converting into sales. ROAS is calculated by dividing the revenue generated from advertising by the cost of the advertising campaign. For example, if a business spends $100 on advertising and generates $500 in revenue from that campaign, the ROAS would be 5 ($500 / $100), indicating that for every dollar spent on advertising, the business earned $5 in revenue. While a 3:1 to 4:1 ROAS is a good target for e-commerce, it can vary based on your industry, marketing channel, and business goals.
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ROI, which stands for Return on Investment, is a metric used to assess the profitability or efficiency of an investment. ROI is calculated by dividing the net profit generated from the investment by the cost of the investment and expressing the result as a percentage or ratio. ROI is a valuable metric that provides a clear picture of the financial performance of an investment. It helps you understand how much you're getting out of your investment compared to what you put in. A positive ROI indicates that you're making money back on your investment, while a negative ROI suggests you're spending more than you're earning.
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RaaS: Retail-as-a-Service
RaaS stands for Retail-as-a-Service. It's a business model where companies offer retail-related services or solutions to other businesses on a subscription or pay-per-use basis. RaaS providers generally offer a range of services, such as inventory management, point-of-sale systems, customer relationship management (CRM), marketing tools, and analytics. By using RaaS, businesses can access the resources and expertise they need to run their retail operations more efficiently and cost-effectively without having to invest in building their own infrastructure. RaaS is often used by small and medium-sized businesses, startups, and entrepreneurs.
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A recommendation engine is a filtering system that uses data to suggest products, services, or content that you're likely to be interested in. For example, if you've bought certain items or watched specific movies, the recommendation engine might suggest similar products or movies that it thinks you'll like. Recommendation engines use techniques like collaborative filtering, content-based filtering, and machine learning to make predictions about what you might enjoy. Overall, they personalize your online experience and help you discover new favorites.
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Referral marketing is a strategy where businesses encourage customers to refer their friends, family, or contacts to their products or services. It involves rewarding customers for making successful referrals, such as giving them discounts, coupons, or other incentives. Referral marketing relies on word-of-mouth recommendations and leverages existing customer relationships to acquire new customers. It's like when you tell a friend about a great restaurant you tried and they decide to check it out too. Referral marketing can be a powerful way for businesses to generate leads, increase sales, and build brand loyalty through the endorsement of satisfied customers.
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Retention refers to a business's ability to keep its existing customers coming back for more. It's essentially about turning one-time buyers into loyal customers. Retention involves strategies to engage customers, provide excellent service, and meet their needs consistently. Businesses benefit from customer retention because it's generally cheaper to retain existing customers than to acquire new ones. Overall, high retention means loyal customers, more revenue, and positive word-of-mouth.
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A reward program, also known as a loyalty program, is a marketing strategy designed to encourage customers to keep coming back to a business. It's like a "thank you" for their continued support, offering them incentives for repeated purchases or engagement. A reward program involves offering rewards, incentives, or benefits to customers who engage with the company by making purchases, referring friends, or participating in other specified actions. These rewards can take various forms, such as discounts, loyalty points, cashback, freebies, exclusive offers, or access to special events.
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SEM stands for Search Engine Marketing. It's a digital marketing strategy focused on increasing a website's visibility in search engine results pages (SERPs) primarily through paid advertising. SEM involves paying search engines, like Google or Bing, to display ads for your website at the top or bottom of search results pages. These ads are typically displayed based on keywords or phrases relevant to the user's search query, and advertisers pay a fee each time someone clicks on their ad (this is called Pay-Per-Click or PPC advertising).
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SEO stands for Search Engine Optimization. It's a set of practices that website owners use to improve their website's visibility in search engine results pages (SERPs). The goal of SEO is to increase organic, or unpaid, traffic to a website by optimizing various elements such as keywords, content quality, meta tags, website structure, and backlinks. The more optimized your website is for SEO, the higher it's likely to rank on search engine results pages, making it easier for people to find you online.
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A Stock Keeping Unit, or SKU, is a unique alphanumeric code assigned by a retailer or manufacturer to identify and track a specific product. For example, every single shoebox in a shoe store (or style of shoe) would have a special code on it - that's the SKU. This code doesn't just represent the shoe itself, but all its variations. Each variation would still have the same core identity (the running shoe), but the SKU might have an additional letter or number appended to differentiate the size or color (e.g., SKU1234-M for a medium size and SKU1234-L for a large).
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SMM stands for Social Media Marketing. It's a digital marketing strategy that involves using social media platforms like Facebook, Instagram, Twitter, etc to connect with your target audience, promote your brand, and achieve your marketing goals. SMM includes various activities such as creating and sharing content, interacting with followers, running advertising campaigns, and analyzing performance metrics. Businesses use SMM to reach their target audience, increase website traffic, generate leads, and drive sales.
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Shipping cost is the amount of money it takes to deliver a package from the seller to the buyer’s doorstep. It includes fees for packaging, handling, transportation, and any additional surcharges. Shipping costs can vary depending on factors such as the size, weight, destination, and shipping method chosen for the package. The seller usually shows your estimated shipping costs at checkout, so customers can factor that into their budget before they buy. These estimates often factor in the weight of the order and the delivery zip code.
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Shipping method refers to the way in which items are transported from the seller to the buyer. It includes various options such as standard shipping, expedited shipping, and priority shipping. Each method has different delivery times, costs, and features. Standard ground shipping is usually the cheapest but takes the longest. Expedited options get it there faster but cost more, and there's even overnight delivery for the quickest (and priciest) service. Customers can choose the shipping method that best suits their needs and preferences when making a purchase.
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Shopify pixels are snippets of JavaScript code that you can add to your Shopify store. They track customer behavior and send that data back to Shopify. This pixel collects data about visitors' actions, such as page views, product views, add-to-cart events, and completed purchases. This data helps merchants understand how customers interact with their store, which can be incredibly valuable for marketing and website optimization. Overall, Shopify pixels are a powerful tool for Shopify store owners who want to gain a deeper understanding of their customers and improve their online business.
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A shopping cart is a virtual basket or container on an eCommerce website where customers can collect and store items they intend to purchase. It allows users to add products to their cart while browsing the online store and continue shopping until they are ready to complete their purchase. The shopping cart keeps track of the selected items, quantities, and prices, allowing customers to review and edit their selections before proceeding to checkout. Once customers are satisfied with their choices, they can proceed to the checkout process to provide payment and shipping information to complete the purchase.
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A sitemap is a file or webpage that lists and provides information about the pages on a website. It is like a blueprint or directory for search engines and users to navigate the website's content more effectively. Sitemaps can include details such as the URLs of individual pages, their hierarchy or structure within the site, and metadata like the last modified date and frequency of updates. There are two main types of sitemaps: XML sitemaps, which are designed for search engines to crawl and index website content, and HTML sitemaps, which are intended for users to easily navigate the site.
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Social commerce refers to the practice of selling products or services directly through social media platforms or utilizing social media features to facilitate online transactions. It involves integrating eCommerce functionalities into social media platforms, allowing users to browse, shop, and make purchases without leaving the social network. Social commerce can take various forms, including in-feed product listings, shoppable posts, live shopping events, and peer-to-peer selling through messaging apps. It leverages the social nature of platforms like Facebook, Instagram, Pinterest, and Snapchat to enable seamless shopping experiences and encourage user engagement.
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Social proof is a psychological phenomenon where customers are influenced by the actions of others in their decision-making. It boils down to the idea that if others are doing something, it must be the right thing to do. Since online customers can't physically examine products, positive reviews, ratings, social media engagement, and even celebrity endorsements all act as signals that the products are trustworthy and desirable. This builds confidence and reduces risk for shoppers, ultimately leading to more sales.
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Store credit is a type of refund a customer receives from a store instead of getting their money back directly. It is like a digital currency that customers can use at a specific store. So, even if they don't get cash back for the return, they still have the chance to pick out something else from that store without spending more money. Store credit typically has an expiration date and can only be redeemed for products or services offered by the issuing retailer. It's a popular way for stores to encourage buyers to shop with them again instead of taking their money elsewhere.
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A subscription bundle is a package deal offered by a company that combines multiple subscriptions into a single, discounted plan. Like buying in bulk, it lets you get several subscriptions together for a lower overall price than paying for each one separately. Bundles often combine things that go well together, like movies and music streaming, or offer all-in-one packages with essential services. Subscription bundles are convenient because they make it easier and more cost-effective for customers to access the things they want.
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