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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.

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.

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

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.

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.

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.

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 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.

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.

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.

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.

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.

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.

GWP (Gifts With Purchase)

Free gifts offered when a customer makes a purchase.

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

HERO BANNER

A full-width section at the top of pages to highlight content.

The homepage features a hero banner promoting the new collection.

HUBSPOT

System-generated ID for tracking sales or ad-hoc projects.

Each project in HubSpot has a unique ID.

Homepage

The main page of a website.

The company redesigned its HP for better navigation.

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.

JPEG & PNG

Pixel-based image formats with fixed dimensions.

Upload the logo as JPEG or PNG.

KPI (Key Performance Indicators)

Metrics used to measure business success.

Sales growth is a critical KPI for the team.

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.

Landing Page

A web page designed to convert visitors into leads or customers.

The campaign directed users to a landing page offering a 20% discount.

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.

Loading Time

The time it takes for a website to fully load in a user's browser.

Slow loading time may cause users to leave the site.

Logistics

The process of planning and managing the movement and storage of goods.

Efficient logistics help ecommerce companies deliver orders quickly.

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.

MODALA / MODALA (მოდალური ფანჯარა)

A modal window or lightbox that displays in front of page content.

Users must close the modala to continue navigation on the webpage

MOM (Month on Month)

Metric used to compare data from one month to the previous month to track growth, trends, or changes.

A company reports $50,000 in sales in January and $55,000 in February. The MOM growth is (($55,000 - $50,000) ÷ $50,000) × 100 = 10%.

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

NAV (Navigation)

The menu or structure that helps users move through a website.

The website updated its NAV for clarity.

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.

OOO (Out Of Office)

Status indicating someone is away from work.

John is OOO this week.

OR (Open Rate)

Percentage of opened emails in a campaign.

The newsletter had a 45% OR.

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.

Opt-in

Permission given by users to receive marketing communications.

Users must opt-in before receiving promotional emails.

Opt-out

The process by which users unsubscribe from marketing communications.

Each newsletter includes an opt-out link.

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.

PDP (Product Detail Page)

Page showing detailed information about a product.

Customers viewed the PDP before purchasing.

PLP (Product Listing Page)

A web page that displays a list of products available for purchase.

The product listing page allows filtering by price and brand.

PPC (Pay Per Click)

PPC is an online advertising model where advertisers pay a fee each time their ad is clicked.

The company runs a PPC campaign on Google Ads.

PPV (Pay Per View)

Pricing model for video ads where advertisers pay each time the ad is viewed.

The video campaign used a PPV model on YouTube.

PROXY SERVER

System or router providing a gateway between users and the internet.

The company uses a proxy server to monitor network traffic.

Payment Gateway

Technology that securely processes online payments.

The website uses a payment gateway to accept credit card payments.

Payment Processor

A company responsible for processing online financial transactions.

The payment processor verifies the transaction before approval.

Personalisation

The practice of tailoring products or services to individual consumer preferences.

The website recommends products based on previous purchases.

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