eCommerce Glossary
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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.
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.
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.
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.
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
A metric that shows how long, on average, users spend on a website in one visit
Analytics showed that the average time spent on the site increased from 3 minutes to 5 minutes
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.
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.
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.
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.
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.
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.
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%.
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.
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.
Cross-selling
"A sales technique where the customer is offered additional products related to the product he has selected or purchased.
"
We offer a mouse and a laptop bag to a customer who buys a laptop.
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.
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.
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.
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.
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.
Inventory Stock
The amount of products that a business has in stock for sale or shipment
The store increased its stock so that the product would not run out during the upcoming sale.
Keyword
A word or phrase that a user uses to find a product in a search engine.
If I'm selling shoes, the keywords might be "sports shoes", "summer sandals", etc.
Live Chat
A form of online service where the user communicates in real time with a company representative via a chat on a website
The user received an immediate answer to their question via live chat support.
Loyalty Program
A program that rewards users for repeat purchases, such as discounts or points.
For every 100 GEL, the user receives 10 points, which can be used for the next purchase.
Marketing Automation
Using software to automate marketing tasks, such as sending emails.
An automated email campaign goes to all users who have registered on the site.
Marketplace
An online platform where various sellers upload and sell different products in one space, and customers choose from a single catalog.
Several sellers simultaneously sell appliances, clothing, and accessories on Marketplace
NPS - Net Promoter Score
A metric that measures customer loyalty and willingness to recommend a business.
In order to achieve a high NPS, a company should focus on improving the user experience.
Offer
Special conditions or discounts offered to the customer by the online store.
Don't miss out on our New Year's offer, which will last for a limited time only.
Omnichannel
A sales and communication strategy where the brand integrates all channels (online, offline, social media, app, store) into a single, connected experience.
The company added social networks and chat to the omnichannel system.
Order
The process of choosing and purchasing desired products by the buyer in the online store.
Your order has been received and is being processed.
Organic Traffic
Visitors to a website who come from search engines (e.g. Google) for free, without ads.
After SEO optimization, our site's organic traffic increased significantly.
Pre-sale Lead
A potential customer who has shown interest in a product or service but has not yet made a final decision to purchase.
After the webinar, we received several pre-sales leads who were interested in using our platform.
Product Description
Text that informs the customer about the product's features and benefits.
The product description explains that this shirt is made of 100% cotton and is natural
ROI (Return on Investment)
An indicator that shows how profitable an investment was — how much profit it brought in relative to the amount invested.
The advertising campaign showed a 200% ROI, meaning the investment was fully justified.
Recommendation Engine
An algorithm that offers users products tailored to their interests
The recommendation system added to the site increased sales by 15%.
Retailer
A company or store that sells products directly to the end user, both online and offline.
An online store that sells clothing directly to the consumer is considered a retailer.
Retargeting
A marketing strategy where you show your ad again to customers who have already visited your site or viewed products but not purchased. This ad appeared on other and other sites.
A user was looking at a pair of shoes, then on another site they saw an ad for the same pair of shoes again.
SEO - Search Engine Optimization
The process of optimizing a website or content to increase organic, free traffic from search engines.
Improving website SEO will help customers find your products easily on Google.
Sales Funnel
A marketing model that describes the customer journey from the initial stage (interest generation) to the final purchase.
Optimizing each stage of the sales funnel is essential to increase conversion.
Seller
A person or company that offers and sells products or services to consumers.
Each seller on the platform can upload their own products and set prices.
Shopping Cart
A virtual space on a website or app where a user places the products they want to buy
After adding the products, you can go to the cart and checkout.
Supplier
A company or person that provides products or services for sale to a business
The online store signed an agreement with several suppliers to expand the product range
Traffic
Number of visitors coming to the site.
A social media campaign increased website traffic.
Upselling
A sales technique where a customer is offered a more expensive or improved version of a product they are already planning to buy.
Convincing the customer to buy a better product instead of a "standard" product.
eCommerce
It is the buying and selling of products and/or services over the Internet.
Buying clothes from an online store is an example of e-commerce.
m-commerce
A type of e-commerce that is carried out through mobile devices (smartphones, tablets).
Buying a product through a mobile app is an example of mobile commerce.