ABC of eCommerce Terms Simplified
They say ABC, is as easy as 123, but what about when it comes to API, B2C and CTA?
When starting out on your eCommerce journey, it may feel like the internet is speaking in an entirely different language. We understand it can be overwhelming! So, we've created an easy-to-follow eCommerce glossary, that is your ultimate partner when navigating the eCommerce realm. This helpful guide is designed to demystify some of the common eCommerce terms, so you can focus on being the eCommerce #boss that you were born to be!
Affiliate Marketing is a mutually beneficial arrangement between a business and a partner who promotes that business as a third party. Think of it as a digital recommendation with cash incentives or word-of-mouth with extra steps and money. ‘Marketing Affiliates’ generally place ads or links on their website, app, or blog to direct website traffic towards a separate business. If the leads generate sales for that business, the Affiliate Marketer will receive a tasty commission.
Bounce Rate is the percentage of website visitors who leave a site without engaging with the content or user experience. Think of it as the internet’s equivalent to swiping left on a dating app. It’s the rate of rejection and is usually measured on visitors only viewing one page before leaving.
If you want to lower the rate of rejection, you should consider how the following could negatively impact numbers:
- How slow is the page loading time for your average user?
- How mobile friendly is your site?
- Do you have annoying or unnecessary Pop-ups?
- Is your site user friendly and easy to navigate?
- Are you experiencing any technical errors on your site?
- Have you properly implemented Google Analytics (see ‘G’)?
Cart Abandonment Rate is the percentage of visitors who leave a website after adding a product to their Cart but before making a purchase. It’s a bit of an emotional tease and businesses will often follow up on customers who abandon carts with additional incentives or a desperate email…
Here are some of the more common reasons why potential customers would abandon their cart:
- They had an issue with the shipping cost, method, or timeframe.
- They wanted to compare prices before making a purchase.
- They wanted to go in-store and see the product first.
- There weren’t enough payment options.
- They were trying to trigger a discount email.
Dimensional Weight or (DIM), is a pricing system used for postal delivery and is based on the dimensions of the package. To work out the DIM, you will need to multiply the length of your package with the width and height. This simple maths equation determines the shipping cost and should be considered when calculating overall costs. Keep this in mind if you are shipping a small item in a large box – that empty space is money poorly spent!
Email Marketing is the common term used to describe advertising products or services through email messages. These are usually focused towards visitors or customers who have provided their email and consent to a business for future communications. You’ve got Mail!
The most common types of Email Marketing:
- Email Newsletters.
- Acquisition Emails.
- Retentions emails.
- Promotional emails.
Fulfilment or Order Fulfilment is the sequence of events and processes used to undertake an order from the sale to delivery and the resulting customer satisfaction. You could say it’s the accomplishment of something desired, promised, or predicted. …In eCommerce, it’s essentially everything that happens after the money is exchanged!
Google Analytics is a crucial (and somewhat free) service provided by everyone’s favourite source of medical information – ‘Google’. It allows us to track and analyse web traffic and is an important source for performance statistics. Marketers utilise Google Analytics every day for SEO (see ‘S’ below) and marketing communications.
HTML or the mouthful – “Hypertext Markup Language” is the term used to describe the backend formatting of websites. To most of us, it will just look like the series of symbols and codes used by movie hackers. To those who know how to use it, this is what makes up the visual structure of a website. Think if it as code that dictates fonts, colours, graphics, and hyperlink effects on the website.
Inventory is the good and materials that a business has available for resale. It’s crucial to keep on top of inventory levels to manage to accurately reorder and communicate availability with your customers. “Inventory is boring. In the islands, they don't make you do stuff like take inventory. Why do you think so many businesses move to the Caymans?” Michael Scott – The Office Episode 312.
Keyword Ranking is the term used to describe where you sit on the list when customers search terms that relate to your website. Where you’re shown in the results, is your ranking. You want to be at the top of the list for everything and anything that relates to your business. If you sell compost bins and you don’t come up near the top of our search results, it might be worth looking into why?
The Last Mile Delivery or as it should be called “Last Kilometre Delivery” is the final delivery from a business to the door of the end-customer. If the product is making several stops, the ‘Last Mile’ is the journey from the last destination to the customer.
Mobile Optimisation is the essential practise of making sure that your website is accessible, functional, and visually appealing on a mobile device. When building a website, ensure that mobile devices are considered. If you don’t, you’re going to be significantly limiting your audience and missing out on all the customers shopping on the toilet! #multitask
Niche is a term used to describe an area of the market specialising in one type of product or service. “Telsa” is the only globally accessible and completely electric car company in the world. You could call that their “Niche”. You could also define Niche as a market example like “Pet Owners”, “Vegans” or “Eco-Conscious Consumers”.
Organic Traffic is website traffic that is earned, not paid. Organic Traffic comes from search engine results as opposed to paid traffic which is based on a referring website or partner. Businesses love organic traffic as it’s a sure-fire indication that they are doing something right.
Packaging in eCommerce is just as important as your brand name, logo and even the products that you sell. It's usually a customer's first physical interaction with your brand and it represents a key aspect in their customer journey. It can tell a story, inspire, entice, enhance your product, sell your product, use a box to think outside of it, add character and ultimately win or lose a customer. It's not just a box, tape and label...
A QR Code or “Quick Response” code is a popular optical label or visual code consisting of black and white squares. When scanned with a smartphone camera, the QR code will lead users to a URL or application. We thought QR codes were on their way out but thanks to the mandatory COVID check-ins, QR codes are more popular than ever.
A Returns Policy is a set of rules retail merchants establish to manage the necessary process by which customers return or exchange products for a variety of reasons. We live in an age of “buy before you try” and if you don’t have a Returns Policy it could spell trouble.
SEO (Search Engine Optimisation) is the process of optimising online content so search engines like ‘Google’ show your business at the top of the search results for relevant search terms. It covers a variety of fun methods to improve a website and generally increases visibility with potential customers. “I want to rank number one of google for everything please…”
Traffic is a broad term that essentially describes visits to a website. It’s monitored to assess the effectiveness of a business at attracting visitors. Unlike ‘Road Traffic’, high numbers in Web Traffic is a good thing. It does not describe the unreasonable amount of time it takes you to get from one place to another due to the amount of people of the road.
The Unboxing Experience is a little bit like watching kids unwrap their presents at Christmas. It’s the act of removing a newly purchased product from its external packaging and examining its features and inclusions, typically when filmed and shared on social media. It's vital to eCommerce success. There are literally tens of millions of unboxing videos online. That's tens of millions of people focusing on the way that you have packaged your product, sharing it with millions of others and placing judgment on the overall experience. Packaging is important people!
Viral Content is any content shared digitally by a very large number of people because of their interest and willingness to share said content. It typically needs to be shared organically and is usually the result of having content worthy of sharing or by having a pulse on the current viral trends. Unlike an actual virus, Viral Content is usually a good thing and will mean significant fame for the owner or subject matter.
Warehouse Management System (WMS) is a software solution that helps businesses manage their entire warehouse inventory and supply chain distribution. It basically keeps track of everything going in and out of your Inventory.
YTD stands for “year-to-date” and describes the period between the biggening of the year and today’s date. It’s an important field to cover when checking progress and success of your eCommerce business.
Bonus… Yas! you are on your way to becoming fluent in eCommerce jargon.
Zeal you have it, we have it. Its technically not an eCommerce term but it means energy and passion when pursuing something. It’s important to have Zeal in in eCommerce and we wish you all the best on your journey.
Think of this guide as an entrée to the five-course meal that is eCommerce. It will get you started but you’re going to be hungry for more soon. We hope you’ve found this guide helpful.
Packleo. Packaging Joy.