E-commerce Glossary

Being involved in the e-commerce industry means that you are exposed to so many terms and abbreviations it can feel like you are learning a new language. Having a grasp of the meaning will not only help you understand the tips and suggestions to make your business successful, but it will also help to gain insight into the industry. It is important to make sure that you can speak the lingo and understand what others are saying; it could be those helping you market the business, or your suppliers and others linked to your business. 

You might not actually have to use these words in emails and conversations, but they are very important to provide insight into the e-commerce industry and help you succeed.

We have put together a guide to some key terms to help you thrive in e-commerce.

A good starting point is with e-commerce.

E-commerce

The process of buying and selling online or electronically. This term may refer to online retail as a whole, or more specifically the transaction type. The process of selling products online and on mobile through shops, 3rd party marketplaces like Amazon and eBay, and other channels.

Amazon Marketplace

The largest 3rd party ecommerce platform. Amazon charge fees on every sale through the Marketplace.

Blog

Online log of content relevant to your market. These should be added onto your e-commerce site so you can attract both traffic and links to your store.

Brick and Mortar

A business that has a physical store that customers can go to rather than just having an online presence.

CMS – Content Management System

A back-end interface that makes editing content more user-friendly, e.g. WordPress.

Conversion

Arguably one of the most crucial parts of e-commerce. The conversion is the process of transforming or "converting" the user to a customer. This is not always a financial transaction. Often, the conversion takes place when a visiting user requests a quote, fills out a contact form, or places an order. It can be revenue driven, but not necessarily. The conversion depends solely on what your organization has decided to track.

Conversion Rate

The percentage of visitors to a given page that convert into customers. Sales enablement companies can assist businesses with this.

Domain

The main page or main URL for a website. This is often the "homepage" of the web address.

Dropshipping 

A type of e-commerce arrangement where the manufacturer or distributor ships directly to your customers.

eBay

An ecommerce giant. eBay allows retailers access to a market of buyers. Sellers pay a listing fee and a percentage of the sale of the item on eBay, with the option to auction or set a Buy It Now price.

Fulfilment 

A third-party service which looks after warehousing, stock management and delivery. Usually charged at a set per item price, outsourcing fulfilment can save significantly on the costs of processing stock.

Gateway

Also commonly referred to as the "payment gateway," this is the platform that processes payments for online purchases. This term also applies to regular brick and mortar stores that process credit card payments. The gateway processes the transfer of data from the user's bank to the website for the transaction to occur.

Google Analytics

The industry standard for analytics, Google Analytics is a free tool you can link up with your website, enabling you to track traffic through your site and their interactions with you funnels and goals. Google Analytics provides invaluable insights about your website, which can be used as a basis for identify growth hacks.

Inventory

Inventory is the stock in your business.

Landing Page

A landing page is a page your customers will land on, either from paid traffic or search traffic, designed to maximise the chances of conversion on a desired action.

Multi-Channel E-commerce

Multi-channel e-commerce is the process of selling goods and services across multiple different channels and devices, including online and on mobile.

Outsource

Hiring third party providers to handle elements or functions of your business on your behalf, outsourcing is commonplace in ecommerce, on everything from web design to logistics and fulfilment.

PPC – Pay per click

A type of online advertising where you bid per click on highly targeted traffic, paying online for each click through to your website, rather than paying for impressions or some other metric.

Page Rank (PR)

Measures where a page is ranking with Google or another search engine. Higher ranked pages are closer to the number one spot.

SEO – Search engine optimisation

The process of setting out your website and building links in a Google-friendly way, to ensure your website is given the best possible ranking within relevant SERPs.

Shopping Cart

An e-commerce shopping cart is the contents of what a user has added to his online order. All the products appear as a mass order on the page or in this case "in the cart."

Social Media

Facebook, Twitter, Google Plus, Instagram, Pinterest and others, social media is a collecting of platforms where businesses can tap into targeted audiences through advertising, or through a comprehensive social media strategy.

Traffic

The levels of visitors coming to your site from a number of sources, traffic is the ‘input’ side of the e-commerce equation. More traffic generally results in more business, equivalent to footfall in the ‘real world’ environment.

Upselling

Offering deals on similar products or showing related products in hopes to get users to buy additional items along with their purchase.

Usability – the ease and efficiency with which your customers can use and interact with your website, central to the quality of their experience and your conversion rate. Usability now also extends to mobile and tablet devices, and the experience your ecommerce store offers across these channels.

Wholesale

The distributor or manufacturer, this is the party that sells directly to retailers. It is a stage in the supply chain before retail, wholesale deals in bulk volumes. You may be buying stock wholesale, or selling wholesale to another trade party

How the London Bridge Project Can Help to Deliver Success

The London Bridge Project (LBP) is a leading sales and management consulting firm that provides both amazon consulting services and amazon sales support for businesses looking to grow exponentially within the biggest marketplace in the world. We offer a complete end-to-end service for Amazon based businesses, which includes providing valuable insights into Amazon sales data and a pipeline of under-explored opportunities within your niche.

If you would like to learn more about how the London Bridge Project can help your online business, make sure to contact a member of our team today to discuss your requirements.