The Ultimate eCommerce Glossary: Speak the Language of Online Business Like a Pro!

Welcome to the eCommerce jungle, where terms and jargon fly around constantly. If you’ve ever felt lost with some of the concepts, don’t worry! We’ve got your back with this fun yet professional glossary to help you navigate the world of online business like a seasoned pro. 

Here we go:  

A

Active Customer 

A customer who has made at least one purchase within a specific time frame. Think of them as the VIP guests at your online store’s party. 🎉 

Annual Recurring Revenue (ARR) 

The amount of revenue a business expects to make in a year from subscriptions. It’s like predicting how many birthday cakes you’ll sell in 12 months if everyone keeps celebrating. 🎂 

Annual Subscription 

A subscription that renews every year. Think of it as the Netflix of your product or service, but with a yearly commitment. 📅 

API (Application Programming Interface) 

A fancy way of saying “tech magic” that allows different software to talk to each other. Think of it as the universal translator for your digital tools. 🛠️ 

Auto Renewal 

When a subscription automatically renews without the customer having to lift a finger. Set it and forget it, until the credit card bill arrives! 💳 

Automatic Payments 

Payments that process automatically on a set schedule. No reminders, no delays, just seamless cash flow. 💰 

AOV (Average Order Value) 

The average amount a customer spends per order. The higher, the better, like upgrading from economy to first class! You can create bundles and promotions, like a minimum amount for free shipping, to increase your AOV. ✈️ 

B

Back-End 

The behind-the-scenes coding and functionality that make an eCommerce store run seamlessly. If the storefront is the stage, the back-end is all the gears and levers working backstage. 🎭 

B2C (Business-to-Consumer) 

When businesses sell directly to consumers, like your favorite online clothing store. 👗 

B2B (Business-to-Business) 

When businesses sell to other businesses. Think wholesale suppliers selling to online retailers. 🏢 

Billing Cycle 

The time period between billing events. Monthly, yearly, or anywhere in between! 🗓️ 

Billing Interval 

The frequency at which a customer is billed (e.g., every month, every quarter). Subscription businesses live and breathe by this! 🔄 

Billing Interval Unit 

The unit of time used for billing intervals—days, weeks, months, years. Basically, how often the customer gets charged. ⏳ 

C

CAC (Customer Acquisition Cost) 

How much you spend to acquire a customer. The lower the CAC, the better your profit margins! 📈  

Cart Page 

Where customers review their items before checkout. The "last chance" page before committing to the purchase! 🛒 

CSS (Cascading Style Sheets) 

The code that makes websites look stylish and on-theme with your brand. It’s like the outfit of your online store! 🎨 

CTA (Call-to-Action) 

That magic button or link that says: “Buy Now,” “Subscribe,” or “Get Started.” Without a strong CTA, customers might just scroll away! 👀 

Checkout 

Where the magic happens. Customers finalize their purchase, and you make money! Cha-ching! 💵 

Churn Rate 

The percentage of customers who stop buying from your business or stop subscribing over a period of time. Keeping this low is key to business success! 🔄 

More on that here: https://www.instagram.com/reel/DG2r7_lCRei/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA== 

Currency 

The money format your store accepts. Like US Dollars or Euros, whatever keeps the cash flowing! 💸 

Customer Portal 

A self-service hub where customers manage their subscriptions and orders. Think of it as their personal shopping dashboard. 🖥️ 

Customer Retention 

The art of keeping customers coming back for more. Discounts, loyalty programs, and great service make this happen! 🤝 

E-F

Ecommerce 

The world of online buying and selling. If it involves a website and payments, it’s eCommerce! 🛍️ 

Ecommerce Merchant 

The seller in an eCommerce transaction. Could be a solo entrepreneur for example or a big brand! 🏬 

Ecommerce Platform 

The software that holds and powers online stores. Think Shopify, WooCommerce, or PrestaShop. 🖥️ 

Expiration 

When a subscription, discount code, or payment method reaches its end date. Time to renew! ⏳ 

Fulfillment 

The process of getting orders from the warehouse to the customer’s doorstep. Think of logistics, packing, shipping, and so on. 🚚 

L

LTV (Lifetime Value)

This key metric estimates the total revenue a business can expect from a single customer throughout their entire relationship with the company. 💰 

More on that here: https://www.instagram.com/reel/DGiPz55iPzv/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA== 

P-S

Payment Gateway 

The digital bridge between your store and the customer’s bank. Without it, no money moves anywhere! 🔄 

Payment Processor 

The company that handles credit card transactions. Like Stripe or PayPal! 💳 

Recurring Billing 

When customers are charged automatically on a set schedule. Subscription-based businesses thrive on this! 🔄 

SKU (Stock Keeping Unit) 

A unique identifier for each product in your store. Helps keep up with inventory management! 🏷️ 

Storefront 

The digital version of a physical store, it’s where customers browse and buy! 🛒 

Subscription Business Model 

A business that makes money by charging customers on a recurring basis. The holy grail of predictable revenue! 💰 

UX (User Experience) 

How easy and enjoyable your website is to use for the average person or shopper. Good UX = happy customers! 😊 

T-Z

Toggle 

A switch that lets users turn settings on or off. Small but mighty! 🔘 

Trial Period 

A free or discounted period for new users to test a service before committing. Hook ‘em early and try to keep ‘em! 🎣 

UI (User Interface) 

The visual and interactive elements of a website or app. It’s what users see, interact with, and click on! 🖥️ 

URL 

The web address of a page. The digital home of your eCommerce store! 🌐 

Variants 

Different versions of a product: sizes, colors, materials, you name it! 👕👖 

Yearly Subscription 

A subscription plan that bills customers annually. Less frequent, but bigger upfront revenue! 🎟️ 

Understanding eCommerce glossary terms is essential for anyone looking to succeed in the digital marketplace. From customer retention to churn to payment processor, mastering these key concepts and applying them to your business can help optimize your store’s online presence, enhance customer experience, and drive sales. By staying updated on the latest eCommerce terminology, you can navigate industry trends more effectively and make informed decisions that boost your store’s performance. 

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