A

A/B Testing – Comparing two versions of a page, email, or ad to determine which performs better.
Abandoned Cart – When a shopper adds items to a cart but leaves without completing checkout.
ACoS (Advertising Cost of Sales) – Ad spend divided by revenue generated from ads (common in marketplaces like Amazon).
Affiliate Marketing – Partners earn commission for driving sales or traffic via referral links.
API (Application Programming Interface) – Allows different software systems to communicate.
AR (Augmented Reality) – Technology that overlays digital elements onto real-world views (e.g., “try before you buy”).
ASP (Average Selling Price) – Average price at which products are sold.

B

Backorder – Product available for purchase but currently out of stock.
Basket Size / AOV – Average value of items in a customer’s cart.
BNPL (Buy Now, Pay Later) – Payment option allowing customers to pay in installments.
Bounce Rate – Percentage of visitors who leave after viewing one page.
BOPIS (Buy Online, Pick Up In Store) – Omnichannel fulfillment option.

C

CAC (Customer Acquisition Cost) – Cost to acquire a new customer.
Cart Abandonment Rate – Percentage of carts not converted into purchases.
Chargeback – Payment reversal initiated by a customer via their bank.
Checkout Optimization – Improving checkout flow to reduce friction and increase conversions.
Churn Rate – Percentage of customers who stop buying over a given period.
CMS (Content Management System) – Software for managing website content.
Conversion Rate (CVR) – Percentage of visitors who complete a desired action.
Cross-Sell – Offering complementary products to what a customer is buying.
CRM (Customer Relationship Management) – System for managing customer data and interactions.

D

Demand Forecasting – Predicting future customer demand.
D2C (Direct-to-Consumer) – Brands selling directly to customers without intermediaries.
Digital Wallet – Online payment method (Apple Pay, Google Pay, PayPal).
Drop Shipping – Seller does not hold inventory; supplier ships directly to customer.

E

eCommerce Platform – Software used to build and manage an online store (e.g., Shopify, Magento).
Email Automation – Triggered email workflows based on customer behavior.
ERP (Enterprise Resource Planning) – Software integrating inventory, finance, and operations.
Exit Rate – Percentage of users who leave from a specific page.

F

Fulfillment – Process of storing, packing, and shipping orders.
Friction – Anything that makes the buying process harder.
First-Party Data – Customer data collected directly by the brand.
Free Shipping Threshold – Minimum order value to qualify for free shipping.

G

Gateway (Payment Gateway) – Service that processes online payments.
Gross Margin – Revenue minus cost of goods sold (COGS).
GMV (Gross Merchandise Value) – Total value of merchandise sold over a period.

H

Headless Commerce – Frontend and backend decoupled for greater flexibility.
Heatmap – Visual representation of user behavior on a webpage.

I

Inventory Turnover – How often inventory is sold and replaced.
Invoice – Document detailing a transaction.
ISP (Internet Service Provider) – Company providing internet access.

J

Just-In-Time (JIT) – Inventory strategy minimizing stock by receiving goods only when needed.

K

KPI (Key Performance Indicator) – Metrics used to measure performance.
Keyword – Term used in search engines or ads to attract traffic.

L

LTV (Customer Lifetime Value) – Total revenue expected from a customer over time.
Last-Mile Delivery – Final delivery step from hub to customer.
Logistics – Management of inventory movement and shipping.

M

Marketplace – Platform where multiple sellers list products (Amazon, Etsy).
MAP (Minimum Advertised Price) – Lowest price a retailer is allowed to advertise.
Merchandising – Product presentation strategy to drive sales.
Mobile Commerce (mCommerce) – Shopping via mobile devices.

N

Net Revenue – Revenue after deductions (returns, discounts, fees).
NPS (Net Promoter Score) – Measure of customer loyalty.

O

Omnichannel – Seamless customer experience across multiple channels.
Order Management System (OMS) – Tracks and manages orders across channels.
Out-of-Stock Rate – Frequency of products being unavailable.

P

Payment Processor – Company that handles transaction processing.
Personalization – Customizing content or offers for individual users.
PIM (Product Information Management) – Central system for product data.
PLP (Product Listing Page) – Page displaying a list of products.
PDP (Product Detail Page) – Page showing detailed product info.

Q

Quality Assurance (QA) – Ensuring systems and processes work correctly.
Quick Commerce (Q-Commerce) – Ultra-fast delivery (often under 1 hour).

R

Returns Management – Handling returned products efficiently.
ROAS (Return on Ad Spend) – Revenue generated per dollar of ad spend.
RFM Analysis – Segmentation based on Recency, Frequency, Monetary value.

S

SEO (Search Engine Optimization) – Improving visibility in organic search.
SEM (Search Engine Marketing) – Paid search advertising.
SKU (Stock Keeping Unit) – Unique identifier for inventory items.
Subscription Commerce – Recurring purchase model.
Supply Chain – End-to-end process from sourcing to delivery

T

TCO (Total Cost of Ownership) – Full cost of a product over its lifecycle.
Third-Party Logistics (3PL) – Outsourced fulfillment and logistics provider.
Touchpoint – Any interaction between customer and brand.

U

Upsell – Encouraging purchase of a higher-value product.
UX/UI – User experience and interface design.
UTM Parameters – Tags added to URLs to track campaign performance.

V

Value Proposition – Core benefit explaining why customers should buy.
VAT (Value Added Tax) – Consumption tax applied in many regions.

W

Warehouse Management System (WMS) – Software managing warehouse operations.
Webhooks – Automated messages sent when events occur.
Wholesale – Selling goods in bulk to retailers.

X

XML Feed – Structured data feed for product listings.

Y

YoY (Year over Year) – Performance comparison with previous year.

Z

Zero-Party Data – Data customers intentionally share (preferences, quizzes).