E-commerce Glossary

Your comprehensive guide to e-commerce terminology. Browse our collection of definitions covering everything from basic concepts to advanced strategies.

A

Abandoned Cart

Abandoned cart refers to the situation where online shoppers add items to their shopping cart but leave the website without completing the purchase.

Abandoned Cart Email

An abandoned cart email is a targeted message sent to customers who left items in their cart without completing the purchase.

Abandoned Cart Recovery

Abandoned Cart Recovery involves strategies and tools to encourage customers who left items in their cart to return and complete their purchase.

Add Anything Missed Also

This term refers to the practice of ensuring no important elements, features, or settings are overlooked in the setup or configuration process of a Shopify store.

Add to Cart

"Add to Cart" refers to when a customer selects an item from an online store and places it in their virtual cart, showing intent to purchase.

Address Validation

Address Validation verifies the accuracy of a customer's shipping or billing address during checkout to ensure correct delivery.

Affiliate Marketing

Affiliate Marketing is a strategy where businesses reward affiliates for driving traffic or sales to their website through their marketing efforts

Affiliate Program

An Affiliate Program is a marketing strategy where businesses recruit affiliates to promote products or services in exchange for a commission on sales or referrals.

AI

Artificial Intelligence (AI) uses advanced algorithms and machine learning to simulate human decision-making, automate processes, and improve business operations.

AJAX Cart

AJAX Cart is a feature that lets users add or update products in their cart without a full page reload, offering a seamless shopping experience.

Analytics

Analytics involves collecting and analyzing data on a Shopify store’s performance, offering insights into sales, customer behavior, and operational efficiency.

API

An API (Application Programming Interface) enables software applications to communicate and exchange data, allowing custom functionality and integrations for Shopify stores.

App

An app is a software extension that integrates with Shopify to add new features, enhance functionality, or automate tasks for an online store.

Article

An article is content published on a Shopify blog to educate, inform, or engage customers, often as part of a store’s content marketing strategy.

Auto Renewal

Auto-Renewal for subscriptions automatically extends a customer's subscription by charging their payment method at regular intervals, ensuring continuous access.

Autoresponder

An autoresponder is an automated email system that sends predefined messages to customers after actions like submitting a form or making a purchase.

Average Order Value

Average Order Value (AOV) measures the average amount spent by customers per transaction, helping businesses assess and optimize sales performance.

B

B2B

B2B refers to transactions between businesses, where wholesalers, manufacturers, or service providers sell products or services to other businesses.

B2C

B2C (Business-to-Consumer) is when businesses sell products or services directly to individual consumers for personal use, common in online retail.

Back End

The back end of a Shopify store handles server-side operations, managing functionality, data, and integrations, unseen by the store's visitors.

Backorder

A backorder is an order for an out-of-stock item expected to restock soon. Customers can buy now, and the business ships once it's available.

BFCM

BFCM refers to the annual retail event after Thanksgiving, featuring major sales on Black Friday and Cyber Monday, making it one of the busiest shopping periods.

Black Friday

Black Friday, the day after Thanksgiving in the U.S., features big sales online and in-store, marking the start of the holiday shopping season.

Blended Storefront

A blended storefront combines physical retail and online shopping, offering inventory sync, live chat, and personalized experiences for seamless eCommerce.

Blog

A blog is vital for Shopify merchants, offering SEO-optimized content to boost traffic, improve rankings, and build brand authority in their industry.

BOGO

BOGO (Buy One Get One) is a promo where customers get a free product with a full-price purchase, boosting sales, clearing inventory, and encouraging larger buys.

Bounce Rate

Bounce rate is the percentage of visitors leaving a site after one page. A high rate may signal issues with content, user experience, or marketing.

Brick-and-Mortar Business

A brick-and-mortar business is a physical store where customers shop in person, unlike online-only businesses operating in the digital space.

Bundles

Bundles are a sales strategy where multiple products are sold together at a discounted price, encouraging more purchases and increasing average order value.

Buy Button

A Buy Button lets merchants embed product purchase options on their website or third-party platforms, offering a streamlined checkout experience for customers.

Buy Online, Pick Up In Store

BOPIS allows customers to buy products online and pick them up at a physical store, combining e-commerce convenience with in-store immediacy.

Buyer Persona

A buyer persona is a detailed, semi-fictional representation of an ideal customer, based on data, helping businesses understand customer needs and preferences.

C

Customer Acquisition Cost

Customer Acquisition Cost (CAC) is the total cost a business incurs to acquire a new customer, including all marketing, sales, and other related expenses.

Call to Action

A Call to Action (CTA) is a prompt in marketing materials that encourages users to take a specific action, like making a purchase or signing up.

Campaign Tracking

Campaign Tracking involves monitoring marketing campaign performance using tools and analytics to assess their impact and effectiveness.

Carrier

A carrier is a logistics company responsible for transporting goods from the seller to the buyer in e-commerce.

Cart

The cart is a virtual space in an online store where customers store selected items before proceeding to checkout.

Cart Page

Cart page is a section of an e-commerce site where customers review items added to their cart before proceeding to checkout.

Cascading Style Sheets

Cascading Style Sheets (CSS) is a styling language used to control the presentation and layout of web pages.

Cashback

Cashback rewards customers with a percentage of their purchase as store credit, gift cards, or refunds, making it a popular promotional strategy.

Catalog

A catalog (or catalogue) is a structured collection of products or services available for purchase, typically presented online or in print

Chargeback

A chargeback is a customer-initiated request to reverse a payment via their bank, typically due to fraud, dissatisfaction, or undelivered goods.

ChatGPT

ChatGPT, an AI tool, helps Shopify merchants automate tasks like product descriptions, SEO content, and customer interactions with text-based responses.

Checkout

Checkout is the final step where customers provide payment and shipping details to complete their purchase on an e-commerce site.

Checkout Extensions

Checkout extensions let Shopify merchants customize the checkout process by adding features, fields, or experiences to boost user interaction and satisfaction.

Churn

Churn is the rate at which customers leave a business, measured by cancellations or subscription terminations over a given period.

Click Through Rate

CTR is the percentage of users who click a link or CTA out of total viewers, used to gauge the effectiveness of ads, emails, or website links.

Cold Emails

Cold emails are unsolicited messages sent to potential clients to introduce a product, service, or opportunity, aiming to build relationships or generate leads.

Collection

A Shopify Collection groups products together based on shared attributes, making it easier for customers to browse and shop related items.

Commerce Manager

Commerce Manager is a centralized tool for managing and tracking e-commerce activities across channels, often offered by platforms like Meta (Facebook).

Content Management System

A CMS is a platform that allows users to create, manage, and publish digital content without requiring technical expertise.

Content Marketing

Content marketing involves creating and sharing valuable content to attract, engage, and convert a target audience, driving profitable customer actions.

Contribution Margin

The contribution margin measures profitability by subtracting variable costs from revenue, showing funds available for fixed costs and profit.

Conversion Funnel

The conversion funnel models the stages potential customers follow to purchase, helping businesses optimize marketing and boost conversions.

Conversion Rate

Conversion rate is the percentage of website visitors who complete a desired action, like purchasing or signing up, measuring marketing or site effectiveness.

Cookies

Cookies are small data files stored on a user's device to track activity, improve experience, and remember preferences, ensuring privacy law compliance.

Cost of Goods Sold

COGS includes direct costs like materials, labor, and manufacturing for goods sold, helping Shopify owners price products and calculate profit margins.

Cost Per Acquisition

Cost Per Acquisition (CPA) measures the cost to acquire a customer by dividing marketing expenses by new customers, helping Shopify owners optimize spending.

Cost Per Click

Cost Per Click (CPC) measures the cost of each click on an ad, helping Shopify merchants evaluate and optimize the effectiveness of paid campaigns.

Cost Per Mille

Cost Per Mille (CPM) is the cost for 1,000 ad views, commonly used in display and social media ads to measure reach and visibility for brand awareness.

Coupon

A coupon offers a discount or deal to encourage purchases. Shopify merchants create coupon codes for discounts on products, shipping, or orders.

CRM

CRM manages customer interactions and data, improving relationships and retention. Shopify CRM tools track customer behavior, communications, and data.

Cross Selling

Cross-selling suggests related products to enhance shopping and boost order value. Shopify merchants use apps to show recommendations during the customer journey.

CSV

CSV (Comma-Separated Values) is a plain-text format for storing data like products or sales. Shopify uses CSVs for bulk import/export to manage data efficiently.

Customer Account

A Customer Account in Shopify stores personal details, order history, and preferences, enhancing the shopping experience and simplifying checkout for customers.

Customer Acquisition Cost

Customer Acquisition Cost (CAC) is the total expense of acquiring a new customer, including marketing and sales, used to evaluate ROI and marketing effectiveness.

Customer Journey

The customer journey is the process from product awareness to purchase and beyond, covering all interactions, helping businesses turn prospects into loyal customers.

Customer Journey Mapping

Customer Journey Mapping visualizes customer interactions from awareness to post-purchase, helping businesses understand pain points and improve the experience.

Customer Retention

Customer Retention uses strategies to keep customers satisfied and loyal, increasing lifetime value and being more cost-effective than acquiring new ones.

Customer Retention Rate

Customer Retention Rate (CRR) measures the percentage of customers who remain with a company over time, reflecting its ability to retain customers.

Customer Reviews

Customer reviews are feedback based on experiences with a product or service, helping businesses build credibility, trust, and attract new buyers.

D

Digital Asset Management

Digital Asset Management (DAM) organizes and manages digital assets like images, videos, and documents, enabling efficient access, sharing, and optimization.

Dashboard

A Dashboard visualizes key metrics like sales, customer activity, and inventory, providing real-time insights into a business's performance on Shopify.

Dimensional Weight

Dimensional Weight is a pricing method that factors in package size and weight to calculate fair shipping costs for larger, lighter packages.

Discounts

Discounts are promotional offers that reduce product prices to encourage purchases, helping Shopify stores boost sales, attract customers, and increase order value.

Domain Name

A domain name is a unique website address crucial for branding, customer trust, and SEO. Shopify stores use it to create a recognizable online presence.

Draft Orders

Draft Orders in Shopify are manually created by merchants for special cases like custom or bulk purchases, allowing sales orders without immediate payment.

Dropshipping

Dropshipping is a retail method where stores sell products without stocking them, relying on third-party suppliers to ship items directly to customers.

D2C

Direct-to-Consumer (D2C) is a business model where brands sell their products directly to customers, bypassing traditional retail channels and intermediaries.

Dynamic Pricing

Dynamic pricing adjusts product prices in real time based on factors like demand, competition, customer behavior, and market conditions.

Dynamic Retargeting

Dynamic retargeting shows personalized ads featuring products users viewed but didn’t buy, based on their interactions with your website.

F

Facebook Pixel

Facebook Pixel is code that tracks website actions, integrating data with Facebook to enhance ad targeting, retargeting, and performance measurement.

Flash Sales

Flash sales are time-limited promotional events where products are offered at a significant discount for a short period, typically hours or a day.

Flipping

Flipping involves buying products at low prices and reselling them at higher prices for profit, common in eCommerce and retail through bulk or discount purchases.

Flow

Flow is a Shopify automation tool that streamlines workflows, automates tasks, manages customer experiences, and boosts efficiency without coding.

Fraud Prevention

Shopify fraud prevention tools identify and block suspicious activity, ensuring safer transactions, reducing chargebacks, and preventing fraud in real time.

Free Gift with Purchase

A free gift with purchase is a promotion offering a free item when customers meet criteria like a minimum order value, boosting sales and conversion rates.

Freight Forwarding

Freight forwarding manages transporting goods, often internationally, by coordinating shippers and carriers to ensure efficient, cost-effective delivery.

Frequently Bought Together

Frequently Bought Together suggests complementary products based on purchasing patterns, boosting sales and increasing average order value for e-commerce stores.

Front End

The "front end" is the user-facing part of a website or store, including design, navigation, product pages, and checkout, shaping the overall user experience.

Fulfillment

Fulfillment is the process of receiving, packing, and shipping orders to customers. It can be handled in-house, via 3PL, or through dropshipping.

P

Page Builder

Page builders enable merchants to create, customize, and optimize Shopify store pages without coding expertise, enhancing user experience.

Page Views

Page views refer to the total number of times a web page is loaded or reloaded by visitors, a critical metric for website performance.

Partial Payments

Partial payments enable customers to pay for products or services in installments, offering flexibility and enhancing affordability.

Pay Later Options

Pay later options allow customers to make purchases now and pay in installments or at a later date, offering enhanced financial flexibility.

Payment Gateway

A payment gateway is a technology that facilitates secure online transactions, connecting merchants and customers for seamless payment processing.

Payment Method

Payment methods refer to the options customers use to pay for goods or services, including credit cards, digital wallets, bank transfers, and more.

Payment Card Industry

PCI compliance ensures that businesses securely handle credit card information by adhering to industry standards.

Performance Marketing

Performance marketing is a results-driven approach where advertisers pay for specific actions such as clicks, conversions, or sales rather than impressions.

Plugins

Plugins are software components that add specific features to an application, enhancing its functionality without changing the core system.

Point of Sale

POS systems process sales in physical stores while syncing with online platforms to ensure unified inventory management and a seamless customer experience.

Post Purchase Survey

Post-purchase surveys gather customer feedback after a sale, providing insights to improve the shopping experience and identify areas for enhancement.

Post Purchase Upsell

Post-purchase upsell apps help businesses boost revenue by offering complementary products or services after checkout, increasing average order value.

Print on Demand

Print on Demand apps enable merchants to sell custom products like t-shirts, mugs, and posters without inventory or upfront costs, streamlining production and shipping.

Product Bundles

Product Bundles apps let merchants create packages of related products, offering discounts or special deals to boost sales, improve customer value, and increase order size.

Product Comparison

Product Comparison tools help customers assess multiple products side by side, comparing features, prices, and benefits, enabling smarter and more informed buying decisions.

Product Description

Product descriptions highlight features, benefits, and uses, guiding purchase decisions. Effective descriptions use storytelling and SEO to engage customers and boost sales.

Product Feed

A product feed is a structured file containing your product data for use on platforms like Google Shopping, Facebook Ads, or marketplaces.

Product Filter

A product filter enhances the shopping experience by allowing customers to narrow down products based on attributes like price, size, or color.

Product Options

Product options allow merchants to offer customizable variations of their products, such as sizes, colors, materials, or personalized engravings.

Product Page

A product page displays detailed info about a product, including features, price, images, and purchase options, helping customers make informed buying decisions.

Product Quiz

A product quiz guides customers through questions to help them find the best product, enhancing shopping experiences and engagement.

Product Set

A product set is a curated collection of related items grouped together to simplify shopping and improve customer experience.

Product Variants

Product variants are alternative versions of a product that vary based on specific attributes like color, size, or material.

R

Retail as a Service

Retail-as-a-Service (RaaS) enables businesses to use a retailer’s technology and infrastructure to operate online or offline without major capital investment.

Recommendation Engine

A recommendation engine uses algorithms to suggest products, services, or content to users based on their preferences, behaviors, and data patterns.

Recurring Billing

Recurring billing is a payment model that automates billing for services or subscriptions on a regular basis (e.g., weekly, monthly, annually).

Referral Marketing

Referral marketing uses customer recommendations to grow your business by rewarding them for referring new customers.

Refund

Refund tools on Shopify help streamline the process of managing returns and issuing refunds to customers for orders.

Retargeting

Retargeting shows targeted ads to users who visited your store but didn’t complete a desired action, like making a purchase, to re-engage and convert them.

Retention

Retention refers to the strategies and activities aimed at keeping customers engaged with a brand and encouraging repeat purchases over time.

Return Management System

A Return Management System (RMS) streamlines returns, exchanges, and refunds, ensuring a smooth process for merchants and customers.

Return on Investment

Return on Investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment relative to its cost.

Return on Ad Spend

ROAS measures the revenue generated from every dollar spent on advertising, helping businesses gauge the effectiveness of their marketing efforts.

Return Policy

A return policy outlines the conditions under which customers can return purchased goods, typically within a specific time frame.

S

SaaS

SaaS delivers software applications over the internet, allowing users to access them without installation, maintenance, or hardware requirements.

Search Engine Optimization

SEO (Search Engine Optimization) enhances a website’s visibility on search engines like Google, driving organic traffic and improving rankings.

Sessions

Sessions refer to the visits a user makes to a Shopify store within a specific timeframe. They help merchants track customer behavior, engagement, and conversion trends.

Shipping

Shipping in Shopify involves processing and delivering orders to customers efficiently. Merchants can integrate shipping solutions to manage rates, carriers, and tracking.

Shipping Cost

Shipping cost refers to the amount charged for delivering products to customers. Shopify merchants can use shipping cost calculators and automation tools to provide accurate rates at checkout.

Shipping Insurance

Shipping insurance safeguards merchants and customers from shipping losses, ensuring product safety and compensation for delivery issues.

Shipping Method

Shipping methods refer to the various ways a merchant can ship their products to customers, offering different speeds, costs, and carriers based on customer needs.

Shipping Zones

Shipping zones help merchants set specific delivery methods, rates, and rules based on geographic regions, optimizing shipping strategies.

Sitemap

A sitemap is a file that lists the pages of a website, helping search engines like Google crawl and index its content more effectively.

SKU

SKU is a unique identifier for each product or item in a store's inventory, used to track stock levels, sales, and orders.

Social Commerce

Social commerce involves selling products directly through social media platforms, combining e-commerce and social networking to create seamless shopping experiences for users.

Social Proof

Social proof uses others' actions and opinions—like reviews and ratings—to influence purchasing behaviors and build consumer trust.

Store Credit

Store credit lets merchants issue refunds, rewards, or incentives as in-store balance, boosting repeat purchases and customer loyalty.

Store Locator

A store locator helps customers find physical store locations, improving foot traffic and enhancing the shopping experience.

Storefront

A storefront is the digital face of your Shopify store, influencing user experience, conversions, and brand perception.