Knowing industry terminology is essential for e-commerce success. Understanding these terms helps you make better decisions when reading marketplace reports, building marketing strategies, and optimizing your store. Here's an A-to-Z glossary of 50+ most commonly used e-commerce terms.
A
| Term | Definition |
|---|
| A/B Testing | Comparing two versions (title, image, price) to measure which performs better. |
| ACoS (Advertising Cost of Sales) | Ad spend / ad revenue ratio. Core Amazon PPC metric. Lower ACoS = more profitable ads. |
| Affiliate Marketing | Third parties promote your products and earn commission per sale. |
| AOV (Average Order Value) | Total revenue / number of orders. Increase with bundles and cross-selling. |
| API (Application Programming Interface) | Interface enabling data exchange between systems. Foundation of marketplace integrations. |
| ASIN (Amazon Standard Identification Number) | Unique 10-character identifier assigned to every Amazon product. |
B
| Term | Definition |
|---|
| B2B (Business to Business) | Business selling to other businesses. Wholesaler → retailer relationship. |
| B2C (Business to Consumer) | Business selling directly to end consumers. Most e-commerce stores are B2C. |
| BNPL (Buy Now Pay Later) | Financial model allowing deferred payment without traditional installments. |
| Bounce Rate | Percentage of visitors who leave after viewing only one page. Lower = better. |
| Bundle | Two or more products sold together at a discounted package price. |
| Buy Box | The seller position next to Amazon's "Add to Cart" button. 80%+ of sales come through Buy Box. |
C
| Term | Definition |
|---|
| CAC (Customer Acquisition Cost) | Total marketing spend / number of customers acquired. |
| Cart Abandonment | Adding products to cart but leaving without purchasing. Typically 60-80%. |
| Conversion Rate (CR) | Percentage of visitors who become buyers. E-commerce average: 1-3%. |
| CPC (Cost Per Click) | Cost per ad click. Core pricing model for Google Ads and marketplace ads. |
| CPM (Cost Per Mille) | Cost per 1,000 impressions. Used for brand awareness campaigns. |
| CRM (Customer Relationship Management) | System for collecting, analyzing, and managing customer data and communications. |
| Cross-sell | "Customers who bought this also bought..." recommendations. Increases cart value. |
| CTA (Call to Action) | Action-driving message. "Add to Cart", "Buy Now", "Start Free Trial" buttons. |
D
| Term | Definition |
|---|
| D2C (Direct to Consumer) | Manufacturer selling directly to consumers, bypassing intermediaries. |
| Dropshipping | Selling without inventory. When orders come in, supplier ships to customer. |
| DSP (Demand-Side Platform) | Programmatic ad buying platform. Amazon DSP, Google DV360. |
E-F
| Term | Definition |
|---|
| EAN (European Article Number) | European barcode standard (13 digits). Used to identify products. |
| E-E-A-T | Experience, Expertise, Authoritativeness, Trustworthiness — Google's content quality criteria. |
| FBA (Fulfillment by Amazon) | Amazon handles storage, packing, shipping, and returns. |
| FBM (Fulfillment by Merchant) | Seller handles storage and shipping themselves. |
| Fulfillment | Entire process from order receipt to delivery: storage, packing, shipping. |
G-H
| Term | Definition |
|---|
| GMV (Gross Merchandise Value) | Total sales volume on platform before commissions and discounts. |
| GTIN (Global Trade Item Number) | Umbrella name for EAN, UPC, ISBN barcodes. Required by most marketplaces. |
| Headless Commerce | Architecture where frontend and backend are separated for flexibility. |
K-L
| Term | Definition |
|---|
| KPI (Key Performance Indicator) | Core performance metrics: conversion rate, AOV, CAC, etc. |
| Landing Page | Single-purpose page reached via ad or link, focused on one goal. |
| LTV / CLV (Customer Lifetime Value) | Estimated total spend of a customer over their entire relationship. |
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M-N
| Term | Definition |
|---|
| Marketplace | Platform where multiple sellers sell. Amazon, eBay, Etsy. |
| MOQ (Minimum Order Quantity) | Minimum units required by wholesalers/manufacturers per order. |
| NPS (Net Promoter Score) | Customer recommendation score based on "Would you recommend us?" 0-100. |
O-P
| Term | Definition |
|---|
| Omnichannel | Integrated sales strategy across physical and digital channels. Store + web + mobile unified. |
| Organic Traffic | Visitors from search engines without paid advertising. |
| PPC (Pay Per Click) | Pay-per-click advertising. Google Ads, Amazon Sponsored Products. |
| Private Label | Selling products manufactured by others under your own brand. |
| PoD (Print on Demand) | Products printed (t-shirts, mugs) only when orders come in. |
R-S
| Term | Definition |
|---|
| Retargeting | Showing ads to users who visited your site but didn't purchase. |
| ROAS (Return on Ad Spend) | Ad revenue / ad cost. 4x ROAS = $4 revenue per $1 spent. |
| ROI (Return on Investment) | Investment return. (Revenue - Cost) / Cost × 100. |
| SaaS (Software as a Service) | Cloud-based subscription software. Shopify, Beekod, etc. |
| SEO (Search Engine Optimization) | Technical and content work to rank higher on Google search results. |
| SKU (Stock Keeping Unit) | Unique code for each product variant (color, size). Essential for inventory tracking. |
| SSL (Secure Sockets Layer) | Security protocol encrypting data between website and user. Required for HTTPS. |
U-V-W
| Term | Definition |
|---|
| UGC (User Generated Content) | Content created by users: reviews, photos, videos. |
| UPC (Universal Product Code) | US barcode standard (12 digits). Required for international selling. |
| Upsell | Offering a more expensive or upgraded version. "Upgrade for just $3 more." |
| UX (User Experience) | Website usability, speed, and design quality. |
| White Label | Selling a manufacturer's product under your brand. Less customization than private label. |
| WMS (Warehouse Management System) | System optimizing inventory tracking, shelf management, and packing processes. |
Conclusion
Knowing e-commerce terminology is the first step to industry success. Learning these terms helps you better understand marketplace reports and build more informed marketing strategies. Save this glossary as a reference and keep adding new terms as you encounter them.
