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eCommerce Glossary

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3D Secure (3DS)

An additional authentication layer for online card payments that helps prevent fraud.

3D Secure required the customer to confirm the purchase with a code sent to their phone.

3PL (Third-Party Logistics)

An outside company that handles warehousing, fulfillment, and shipping on behalf of a business.

The startup outsourced its shipping needs to a 3PL provider.

A/B Testing

Method that compares two versions (A and B) of a webpage, app, or marketing campaign to determine which one performs better for a specific goal (e.g., increasing click-through rates). Only one element is changed between the two versions (for example, button color or wording), and users are randomly divided so each group sees only one version.

The online store conducted an A/B test - in one version the button was green, and in the other it was red. The green button generated 15% more orders.

AI Shopping Assistant

An artificial-intelligence tool that helps customers find products or make purchase decisions.

The AI shopping assistant answered sizing questions and suggested matching items.

AL (Annual Leave)

Paid leave granted to employees for vacation or personal time off.

Employees are entitled to 24 days of AL per year.

AOV (Average Order Value)

An indicator that shows the average amount a customer spends per order

Our store's AOV increased by 20% after discounts.

API (Application Programming Interface)

Software intermediary that allows two applications to communicate with each other.

The eCommerce platform integrates with payment gateways via API.

AWS (Amazon Web Services)

computing platform providing servers, storage, databases, and other services.

The startup hosts its applications and databases on AWS.

Abandoned Cart

A situation where a user of an online store adds a product to the cart, but does not complete the purchase process.

Abandoned carts are often caused by unexpected shipping costs or a complicated checkout process.

Acquiring / Acquirer

A bank or financial institution that processes card payments on behalf of a merchant.

The merchant's acquirer settled the day's card transactions the next morning.

Affiliate

A person or company that promotes another company’s products or services in exchange for a commission on the sales generated.

The blogger became an affiliate and earns a 10% commission on every sale made through their link.

Affiliate Marketing

A performance-based marketing model where affiliates earn commissions for driving sales or leads.

The brand launched an affiliate marketing program to reach new audiences through bloggers.

Authentication

A security process whereby the user's identity is verified (eg using a password, SMS code or biometrics).

When entering the system, the user was authenticated by entering an SMS code.

Authorization

The security process in which the system verifies that the user is authorized to use a particular service or perform an action (e.g. payment)

When paying online, the bank's system performs authorization to confirm the transaction

Average Time on Site

The average duration a visitor spends browsing a website during a session.

Average time on site increased after the redesign made navigation easier.

B&B (Bits and Bobs)

B&B: small items or miscellaneous details.

The warehouse stocked various B&B items for sale.

B2A (Business to Administration)

Interaction between business and administration

Companies apply to the government to complete administrative formalities.

B2B (Business to Business)

Interaction between businesses

The supply of goods by a company to another business is a B2B transaction.

B2C (Business to Consumer)

A commercial model where a company sells products or services directly to the end user.

Online stores that sell to individuals operate under the B2C model.

BE (Back End)

The server-side part of an application or website that handles logic, database, and server configuration.

Developers updated the BE to improve checkout speed.

BNPL (Buy Now, Pay Later)

A payment option that lets customers receive a product immediately and pay for it in installments.

BNPL made the expensive furniture more affordable by splitting the cost into monthly payments.

BOFU (Bottom-of-the-Funnel)

the final stage of the marketing funnel, where potential customers are ready to make a purchase decision. At this stage, they already know about the product or service and are comparing options, evaluating value, and looking for final reassurance (e.g., reviews, demos, discounts)

A user who has already explored several eCommerce platforms receives a limited-time discount offer and customer testimonials, which encourages them to complete the purchase.

BOGOF (Buy One, Get One Free)

A promotion where a customer receives an additional item free when buying one.

The store ran a BOGOF promotion on selected drinks. Customers bought two, one for free

BOGSHP (Buy One Get Second Half Price)

Promotion where the second item is half price when purchasing the first.

Customers bought two shirts: the second one was half price.

BOPIS (Buy Online, Pick Up In Store)

A shopping option that lets customers order online and collect their purchase at a physical store.

BOPIS became popular because customers could avoid shipping fees entirely.

Backorder

An order for a product that is temporarily out of stock but will be fulfilled once restocked.

The customer placed a backorder and will receive the item when it's restocked.

Bounce Rate

It is a metric used to measure the percentage of visitors to a website who leave after viewing only one page, without taking any other actions, such as clicking on links or navigating to other pages. It is calculated by dividing the total number of single-page visits by the total number of visits to the website over a given period of time.

If 600 out of 1,000 visitors view only the homepage and then leave, the bounce rate will be 60%.

Bundling

Bundling is a marketing strategy that consists of offering several products or services as a package in order to create value for consumers, since the package usually has a lower price than buying the items separately.

The store sold shampoo and conditioner together at a special price, which was cheaper than buying them separately.

Buyer Persona

A buyer persona is a detailed fictional representation of an ideal customer for a business. It is developed by conducting research and analyzing data on the target audience's characteristics, behaviors, goals, motivations, and pain points. Consumer personas are created to help companies better understand their customers and make data-driven decisions that will resonate with their target audience.

The company’s buyer persona is a 25–35-year-old woman who prefers online shopping and is interested in eco-friendly products.

C2A (Consumer to Administration)

A model where citizens interact with government agencies online — for example, to purchase services, fill out applications, or make payments.

A citizen paid a fine on an online platform — this is an example of a C2A relationship

C2B (Customer to Business)

Interaction between users and businesses

The user offers a service to the company (e.g., taking a photo).

C2C (Consumer to Consumer)

A commercial model where users sell or exchange products with each other via an online platform

Phubber and MyMarket are platforms that operate on a C2C model.

CAC (Customer Acquisition Cost)

The average amount a business spends to acquire one new customer

If 1,000 GEL was spent on marketing and we acquired 50 new clients, the CAC is 20 GEL.

CCTLD (Country Code Top-Level Domain)

Two-letter domain code for a specific country.

Georgia uses the .ge CCTLD.

CLV (Customer Lifetime Value)

The total value a customer brings over time, estimated based on their repeat purchases and loyalty to the brand.

If a customer spends an average of 500 GEL per year and remains loyal for 5 years, their CLV will be 2,500 GEL.

CMS - Content Management System

A program that allows users to create, edit and manage content on a website without coding.

Wix is ​​an example of a CMS that allows you to easily update your website.

COD (Cash on Delivery)

A payment method where the customer pays in cash when the order is delivered.

Many customers in the region still prefer COD over online payment.

CPA (Cost per Acquisition)

The average cost a business pays to acquire one paying customer or lead.

Lowering the CPA allowed the team to reinvest more into other campaigns.

CPC (Cost Per Click)

CPC is a digital advertising metric that measures how much an advertiser pays each time a user clicks on their ad.

A company runs a Google Ads campaign for their new product. Each click on the ad costs $0.50. If 200 people click, the total CPC spend is $100.

CPL (Cost per Lead)

CPL measures how much it costs a business to acquire a lead, someone who has shown interest in a product or service, typically by filling out a form, subscribing to a newsletter, or signing up for a trial.

A software company runs a campaign to collect email sign-ups for a free trial. They spend $500 on ads and acquire 50 leads. The CPL is $500 ÷ 50 = $10 per lead.

CPM (Cost Per Thousand Impressions)

A digital advertising metric that measures the cost of showing an ad 1,000 times (impressions) to users, regardless of whether they click it.

"A brand runs a banner ad campaign on a website. The CPM is $5, meaning the brand pays $5 for every 1,000 times the ad is shown. If the ad is shown 50,000 times, the total cost is $250.
"

CRM (Customer Relationship Management)

Software or system used to manage interactions with customers, such as purchase records, contact information, etc.

The company stored customers’ contact information and purchase history in its CRM system.

CRO (Conversion Rate Optimisation)

Process of increasing the percentage of users who perform a desired action on a website.

The team improved CRO by redesigning the checkout page.

CS (Customer / Client Services)

Support provided to customers before, during, and after purchase.

CS responded to customer inquiries promptly.

CSEs (Comparison Shopping Engines)

Comparison Shopping Engines (CSEs) are websites or applications that allow consumers to search for and compare products and prices across multiple retailers or merchants. They typically aggregate product listings and pricing information from various online retailers and present them side-by-side, allowing consumers to quickly compare similar products' features, specifications, and prices.

The customer compared prices for the same phone across different online stores on a CSE platform.

CSP (Content Security Policy)

CSP is a web security standard that helps prevent attacks like Cross-Site Scripting (XSS) and data injection by specifying which sources of content (scripts, images, styles, etc.) are allowed to load on a website.

The website implemented CSP headers for added security.

CTA (Call to Action)

A prompt encouraging users to take a specific action, such as clicking a button.

The landing page's CTA said 'Shop Now' in bold letters.

CTA - Call To Action

A button or link that prompts the user to perform a specific action.

"Buy Now" or "Add to Cart" buttons are examples of CTAs.

CTR (Click Through Rate)

The percentage of people who click on an ad after seeing it.

The email campaign achieved a CTR of 8%.

CVR (Conversion Rate)

Percentage of users completing a desired action on a website, e.g., purchase or form submission.

The CVR increased after simplifying the checkout process.

CX (Customer Experience)

Overall experience a customer has with a brand or service.

The company improved CX by speeding up delivery times.

Cart Abandonment Rate

The percentage of shoppers who add items to their cart but leave without completing the purchase.

A high cart abandonment rate often signals a complicated checkout process.

Category Page

A webpage that groups and displays products belonging to the same product category.

The category page for shoes let customers filter by size and color.

Chargeback

A forced reversal of a card payment, usually initiated by the customer's bank due to a dispute.

The merchant lost revenue after a customer filed a chargeback over an undelivered item.

Chatbot

An automated program that simulates conversation with users, often for customer service.

The chatbot answered common shipping questions instantly, day or night.

Checkout

The process where a customer confirms their order and completes payment on a website.

The customer added three items to the cart and proceeded to checkout.

Checkout Page

The webpage where customers enter shipping and payment details to finalize a purchase.

The checkout page displayed a summary of the order before the final payment step.

Checkout process

The checkout process is the series of steps a consumer goes through to complete a purchase on an ecommerce website. Typically, this involves entering personal and payment information, reviewing order details and confirming the purchase.

During the checkout process, the customer entered their address, selected a delivery option, and confirmed the payment by card.

Churn Rate

A percentage that shows how many customers stop using the service or leave the platform over a certain period of time.

If 5% of customers drop out of service each month, the Churn Rate is 5%.

Click & Collect

A service allowing customers to order online and pick up their items at a designated location.

Click & collect let shoppers skip the shipping wait entirely.

Composable Commerce

An approach that builds an eCommerce platform from independent, interchangeable software modules.

The company adopted composable commerce to mix and match best-in-class tools.

Content Marketing

A marketing strategy that involves creating and sharing relevant content to attract and engage a target audience.

The brand started publishing blog articles about skincare to attract more customers.

Conversational Commerce

Selling products through chat-based interfaces such as messaging apps or chatbots.

Conversational commerce let customers place orders directly within a messaging app.

Conversion

One of the main metrics of online marketing, which indicates the performance of the desired action by the user (for example, placing an order, subscribing to a newsletter, etc.).

To increase website conversion, you need to improve your marketing strategy.

Courier

A person or company that transports and delivers packages to their destination.

The courier left the package at the customer's front door.

Cross-Border eCommerce

Online buying and selling of products between customers and sellers in different countries.

Cross-border eCommerce allowed the shop to sell products to customers in Europe.

Customer Acquisition

The process of attracting and converting new customers to a business.

The company spent heavily on customer acquisition through digital ads.

Customer Lifetime Value to CAC Ratio (LTV:CAC)

A ratio comparing how much value a customer generates over time to the cost of acquiring them.

An LTV:CAC ratio of 3:1 or higher generally indicates a healthy business model.

Customer Loyalty

Strategies and practices used to keep customers satisfied and encourage them to purchase from a brand repeatedly over time.

The company introduced a bonus points system to increase customer loyalty.

Customer Retention

The ability of a business to keep customers returning for repeat purchases.

Loyalty programs are a common way to improve customer retention.

D2C (Direct-to-Consumer)

A business model in which a company does not use intermediaries, such as retailers and wholesalers, and sells its products or services directly to consumers. The company can offer lower prices and more customized products by controlling the entire process.

The clothing brand sells products only through its own website without intermediaries — this is a D2C model.

DAP (Delivered at Place)

An international shipping term (Incoterm) where the seller is responsible for delivering goods to a specified destination, ready for unloading. The buyer is responsible for import duties, taxes, and unloading costs.

The shipment was sent DAP to the client’s warehouse.

DIRECT RESPONSE MARKETING

Marketing designed to elicit immediate and measurable response from the audience.

The company sent a promotional email with a special offer to encourage immediate sign-ups.

DRAWER

Slides out like a drawer over the web page to provide content (e.g., mini basket, currency switcher).

The website used a drawer for the shopping cart preview.

Delivery Integration

It is the process of integrating third-party delivery services into an ecommerce platform. By integrating with popular delivery services, online retailers can offer their customers a range of shipping options, including same-day or next-day delivery, tracking information, and other features that can help improve the overall customer experience.

The online store integrated with a courier service, allowing customers to see tracking information directly on the website.

Digital Marketing

Marketing strategies carried out through digital channels, such as social media, search engines, email, and more.

The company launched a digital marketing campaign using Facebook and Google ads.

Digital Wallet / E-Wallet

A software-based system that securely stores payment information for online and mobile transactions.

Customers could pay instantly using their digital wallet at checkout.

Direct Traffic

Visitors who arrive at a website by typing its URL directly or using a bookmark.

Direct traffic often reflects strong brand recognition and loyalty.

Downselling

Offering a customer a cheaper alternative when they hesitate to buy a more expensive product.

When the customer paused at checkout, the site used downselling to suggest a lower-cost plan.

Dropshipping

A business model in which the retailer does not keep the products in stock, but instead ships them directly from the supplier to the customer.

The online store receives an order, forwards the information to the supplier, and the product is shipped directly to the customer without being stored in a warehouse.

EAN (European Article Number)

Unique identifier for products, used globally for inventory and sales tracking.

The barcode on the product is its EAN.

EOB (End Of Business)

End of the working day.

Please send your report by EOB.

ERP (Enterprise Resource Planning)

Integrated software to manage business processes, including HR, accounting, inventory, and CRM.

The company uses ERP to manage operations.

ESP (Email Service Provider)

Platform that sends bulk emails and manages email marketing campaigns.

Mailchimp is a popular ESP.

Ecommerce Metrics

Indicators used to assess the performance of an online store, such as conversion rates, traffic, etc.

The marketing team monitors ecommerce metrics daily to track sales and customer behavior.

Engagement Rate

A metric measuring how actively users interact with content, such as likes or comments.

The post's high engagement rate showed strong audience interest.

Express Delivery

A faster, often premium shipping option that delivers orders more quickly than standard shipping.

Customers paid extra for express delivery to receive their order within 24 hours.

FAQ (Frequently Asked Questions)

Frequently asked questions and their answers, usually provided on a website to address customer queries.

Customers can find delivery information in the FAQ section.

FE (Front End)

The part of a website or application visible to users.

The designer improved the website’s front end.

FOC (Free of Charge)

Provided without payment.

Samples were sent FOC to clients.

Featured Products

Items highlighted in an online store to increase their visibility.

The homepage displays featured products that are currently popular.

Flash Sale

A special offer with significant discounts available for a limited time.

The store announced a flash sale that lasted only three hours.

Fraud Detection

Systems and processes used to identify and prevent fraudulent transactions.

The platform's fraud detection system flagged an unusual purchase pattern.

Free Shipping

Offer of delivery at no cost to the customer.

Customers receive free shipping on orders above $50.

Fulfillment

Complete logistics process, including product receipt, storage, order packaging, and delivery to the customer

Many online stores use fulfillment centers to ensure orders are shipped quickly and efficiently.

Fulfillment Center

A warehouse facility where orders are stored, packed, and shipped to customers.

The retailer partnered with a fulfillment center to speed up nationwide deliveries.

GMV (Gross Merchandise Value)

The total value of goods sold through a platform over a given period, before deducting costs.

The marketplace reported strong GMV growth during the holiday season.

GWP (Gifts With Purchase)

Free gifts offered when a customer makes a purchase.

Customers received a mug as a GWP with their coffee order.

Gross Margin

Gross profit expressed as a percentage of total revenue.

The company's gross margin was 45% for the quarter.

Gross Profit

Revenue remaining after subtracting the cost of goods sold.

Gross profit rose despite a slight drop in total revenue.

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