The Essential E-commerce Glossary
O Olive King

The Essential E-commerce Glossary

Feb 21, 2024



Average Order Value (AOV)

The calculated average that a customer spends on an order. This allows brands to analyze customer behavior in relation to pricing and other aspects of a storefront.


Affiliate Marketing

The process of offering commissions to external parties such as influencers, companies, or publishers for promoting a product or service provided by one's company. These affiliate partners receive payment or a reward for achieving a specified result or reaching a certain quota of customers engaging with the advertising, which is monitored through affiliate link tracking.


Bounce Rate

The percentage of visitors who leave a website without interacting with any other pages, often indicating that the landing page may not be engaging or relevant.


Brand Awareness

The level of recognition and familiarity that consumers have with a brand.


Brand Identity

The overall perception and image of a brand, including its values, mission, and personality.


Creator-To-Consumer (CTC or D2C)

Creator-to-consumer (CTC or D2C) is a digital model where individuals with the capacity to create content (influencers, ambassadors, affiliates) sell directly to their own respective audience on behalf of a Merchant (i.e. eCommerce Brand). It allows both parties to specialize in their own aspect of the value chain: in which creators curate catalogs & make sales, while brands fulfill orders & source products.


Co-branded Influencer Pages

A merchandising strategy that involves constructing a landing page or product page that showcases a brand’s products in combination with content/branding from a specific influencer. This is a lucrative strategy for cultivating:

  1. Excitement & buy-in from influencers due to the novel & entrepreneurial format.
  2. Engagement & trust from consumers due to the use of a familiar namesake.
  3. Conversions & checkouts thanks to some CRO tactics the format lends itself well to like autoapplied discounts.
  4. Clearer attribution since tracking can be done at the pages-level, without need for UTMs.

There’s an emerging set of tools out there that can help with generating co-branded experiences with influencers via automation - CreatorCommerce being one of them.


Customer Loyalty Program

A rewards system offered to repeat customers, encouraging brand loyalty and repeat purchases.


Customer Segmentation

Dividing a customer base into distinct groups based on characteristics like demographics, behavior, or preferences to tailor marketing efforts.


Cost per Acquisition (CPA)

The cost associated with acquiring a new customer through marketing efforts, often calculated by dividing the total marketing costs by the number of new customers.


Cost per Click (CPC)

The cost paid by an advertiser for each click on their online advertisement.


Content Marketing

Creating and distributing valuable, informative, and engaging content to attract and retain customers.


Digital Marketing

Marketing strategies and tactics conducted through digital channels, including email, social media, search engines, and online advertising.


Email Marketing

The use of email to promote products, engage with customers, and build relationships. Email marketing campaigns may include newsletters, promotions, and transactional emails.



GDPR stands for General Data Protection Regulation. It’s an information privacy policy that is widely enforced in the European Union.

It demands that data controllers adhere to the seven major principles of data protection:

  • Lawfulness, fairness, and transparency
  • Purpose Limitation
  • Data Minimization
  • Accuracy
  • Storage Limitation
  • Integrity and confidentiality
  • Accountability


Influencer Marketing

Collaborating with individuals (influencers) who have a significant online following to promote products or services.


Market Expansion

The strategic effort to enter new geographic regions or demographics to reach a larger audience.


Niche Market

A specialized and focused segment of the market that caters to specific customer needs or interests, often with less competition.


Omnichannel Marketing

A marketing strategy that delivers consistent messaging and a seamless experience across various online and offline channels.


Pay-per-click (PPC)

An advertising model used to drive traffic to websites, where advertisers pay a fee each time their ad is clicked by a user.


Search Engine Marketing (SEM)

A digital advertising strategy that involves paid promotion to increase a website's visibility in search engine results. Advertisers bid on keywords, and their ads appear when users search for those terms, with payment based on clicks.


Search Engine Optimization (SEO)

The practice of optimizing a website, online content, or digital presence to improve its visibility and ranking in organic (unpaid) search engine results pages (SERPs).


Social Media Marketing

The use of social media platforms to promote products, engage with customers, and build brand awareness through content and advertisements.


Lead Generation

Refers to the process of identifying and gaining potential customers for a business's products or services.


Lead Nurturing

The process of cultivating and maintaining relationships with potential customers (leads) through targeted communications.


Key Performance Indicator (KPI)

A quantifiable measure that indicates the level of success in achieving important business objectives. In Shopify e-commerce, KPIs often include metrics such as conversion rate, customer acquisition cost, and average order value.


E-commerce Analytics

The use of data and metrics to analyze and gain insights into e-commerce performance and customer behavior.


Return on Investment (ROI)

Refers to the measurement of the financial return or profit generated from an e-commerce business or marketing campaign in relation to the initial investment or cost incurred. It is typically calculated as a percentage and is used to assess the overall profitability and effectiveness of e-commerce activities, such as advertising, product development, or website improvements. A higher ROI indicates a more successful and profitable investment. For Shopify store owners, ROI could relate to investments in advertising, redesigns, new software, and more.


Google Ads

Google's online advertising platform, allowing businesses to display ads on Google's search results pages and across its advertising network.


Email Automation

The process of automatically sending targeted emails to subscribers based on predetermined triggers or actions, often used to streamline communication and nurture leads.


Email Popup

A small window that appears on a website to prompt visitors to input their email addresses, typically used to build an email subscriber list for marketing purposes.


Server-side tracking

Server-side tracking sends the user data to your first-party server (website). The server transfers the data to the third-party platforms ( Meta, TikTok, Google, etc ).

Widely used since Apple iOS 14 update ( 2021 ) that blocks third-party tracking scripts. Used to improve tracking


SMS Marketing

Marketing strategy that involves sending promotional messages and updates directly to customers' mobile phones via text messages.


Marketing Channels

Various platforms or mediums used by businesses to reach and engage with their target audience, such as social media, email, search engines, and traditional advertising avenues.


Marketing Plan

A comprehensive document outlining a company's marketing objectives, strategies, tactics, and budget allocation to achieve its goals within a specific timeframe.


Market Analysis

The process of evaluating and understanding market dynamics, including customer needs, competitors, industry trends, and potential risks, to inform strategic decision-making.


Content Marketing

A marketing approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience, with the ultimate goal of driving profitable customer action.


User-generated Content

Content, such as reviews, photos, videos, or testimonials, created and shared by consumers rather than brands, often used by companies as authentic endorsements or social proof in marketing campaigns.



Online store


Abandoned Cart

When a customer adds items to their cart but does not finalize the purchase, leaving the items abandoned in the cart. Paying attention to how many customers do this and why can help improve the customer journey and increase potential sales in the future.



The use of technology to perform repetitive tasks, streamline processes, and improve efficiency in e-commerce operations.


Back end

Is where store owners manage their online stores. It's where you add products, process orders, set up settings, and control everything behind the scenes.


Cart Recovery

The process of re-engaging with customers who have abandoned their shopping carts through email reminders or incentives.


Checkout extensibility

Checkout extensibility is Shopify’s new checkout that is going to replace the traditional checkout.liqud for Shopify Plus merchants. The newer checkout is easier to edit by non-technical users and give them new customization opportunities.

All Shopify Plus store owners will have to rebuild their liquid checkout customizations on extensibility or they will be unable to continue selling.


E-commerce Conversion Rate (CVR)

The percentage of website visitors who complete a purchase, indicating the effectiveness of a website's sales process.


Data-driven Decision Making

The practice of using data analysis and insights to inform business decisions and strategies.


E-commerce Platform

A software or system that enables businesses to create, manage, and operate online stores.


Front end/Storefront

The customer-facing part of an online store.


Google Analytics

A web analytics service by Google that tracks and reports website traffic, providing valuable insights into user behavior.


Inventory Management

The process of effectively overseeing and controlling the stock within a business.


Landing Page

A dedicated web page designed for a marketing or advertising campaign.


Mobile App

A downloadable software application designed for mobile devices.


Product Listing

A detailed online presentation of a product.


Product Recommendations

Automated suggestions for related or complementary products displayed to customers during their shopping experience.


QR Code

A two-dimensional barcode that can be scanned by a mobile device to access information, websites, or promotions.


Responsive Design

Website design that adjusts and optimizes its layout and content to provide an optimal viewing experience on various devices.



An online platform where multiple vendors or sellers can list and sell their products or services.


Mobile Optimization

Refers to the process of adapting your website content to provide a tailored experience for visitors accessing the site from mobile devices.


Multichannel Selling

The strategy of selling products through various platforms or channels.



Small software add-ons that can be installed on your online store to give it extra features or abilities.


Shopify Apps

Third-party software applications that can be integrated into a Shopify e-commerce store.


Shopify Plus

An enterprise-level version of the Shopify e-commerce platform.


Shopify Theme

Pre-designed templates that determine the visual appearance of a website. It determines the layout, color scheme, and overall appearance of your store. There are both free and paid themes available on the Shopify theme store.

Read more about choosing the right Shopify theme.


Shopify Markets

Shopify Markets is a suite of tools that helps you manage your cross-border sales and e-commerce operations from a single Shopify dashboard.

It includes specific tools for

  • Localization
  • Shipping methods
  • Inventory management
  • International domains and expansion stores
  • Duties and international taxes management


Shopify Private App

A private Shopify App is one that’s built specifically for your store and isn’t available for anyone else. The developers who create the app have full control over installing and maintaining the app.

Usually, private apps are used to add certain functionality to a store to solve a specific business problem.


Shopify Public App

A public Shopify App is built with the intention to be popularized and sold in the Shopify App Store. Public apps usually provide solutions to business problems that are common for many merchants.

Thus, public apps become available to all Shopify merchants, but they have to pass through a rigorous vetting process. The most distinguished public apps on Shopify get the ‘Built for Shopify’ badge.


Subscription Commerce

A business model where customers pay a recurring fee at regular intervals to receive products or services.


Subscription Models

Offering products or services on a recurring basis.


SSL Certificate

Secure Sockets Layer certificates provide secure, encrypted connections between web browsers and web servers.


User Experience (UX)

The overall impression, feelings, and satisfaction that users have when interacting with a product or service.


User Interface (UI)

The visual and interactive elements of a software application or website.


Shopify Experts

Professionals or agencies with specialized skills and expertise in various aspects of e-commerce and the Shopify platform.


Virtual Reality (VR) Shopping

The use of virtual reality technology to create immersive shopping experiences.


Web Hosting

The service that makes your website visible on the internet.



Customizable elements or components that can be added to different parts of your online store.


XML Sitemap

A file that lists the URLs and metadata of a website's pages.



Hypertext Transfer Protocol Secure ensures encrypted data transfer between a user's browser and a website.


Digital Wallets

Electronic systems that store payment information and facilitate online transactions, such as Apple Pay and Google Pay.


Artificial Intelligence (AI)

The use of computer systems and algorithms to perform tasks that typically require human intelligence.


Augmented Reality (AR)

Technology that overlays digital information onto the real-world environment.


Virtual Reality (VR)

Immersive technology that creates a computer-generated environment.


Internet of Things (IoT)

A network of interconnected physical devices and objects.


Shopify Shop App

A mobile application developed by Shopify that allows users to browse, purchase, and manage products from Shopify-powered stores directly on their smartphones.


Page Speed

The time it takes for a web page to load completely in a user's browser, typically measured in seconds. Faster page speeds are generally associated with better user experiences and higher search engine rankings.


Lighthouse Score

A metric provided by Google's Lighthouse tool, which evaluates the performance, accessibility, best practices, and SEO of a web page. It generates a score based on these factors to help developers optimize their websites for better user experiences and search engine visibility.



The final step in the online purchasing process where customers review their selected items, enter shipping and payment information, and complete the transaction to finalize their purchase. An optimized checkout process is crucial for reducing cart abandonment and improving conversion rates in e-commerce.





Chat Support

Real-time online chat assistance provided by businesses.



A computer program designed to interact with customers and provide automated responses or assistance through chat interfaces.


Customer Reviews

Feedback and opinions provided by customers about products or services.


Customer Service

Providing assistance and support to customers before, during, and after a purchase.


Shared Inbox

A collaborative email inbox accessible to multiple users within a team or organization, enabling efficient management and response to incoming messages, inquiries, and support tickets.


Help Center

An online resource or section of a website dedicated to providing customers with self-service support, frequently asked questions (FAQs), troubleshooting guides, tutorials, and other resources to assist them in resolving issues or finding answers to their queries.


Shipping Policy

A set of guidelines and terms established by a company detailing the procedures, costs, delivery times, shipping methods, and any other relevant information related to the shipment of products to customers.


Return Policy

A set of rules and procedures outlining the conditions, timeframes, and processes under which customers can return purchased items to the seller for a refund, exchange, or store credit.


Refund Policy

A set of rules and procedures governing the circumstances and methods by which customers can receive a reimbursement for returned or canceled orders, including details on eligible items, processing times, fees, and any conditions or restrictions.



Shipping & Operations


Order Management

The administration of business processes related to orders for goods or services.


Order Tracking

Providing customers with the ability to monitor the status and location of their orders.

Sustainable Packaging

Environmentally friendly packaging materials and practices.



A fulfillment method where a retailer sells products without keeping them in stock.



The process of receiving, processing, packing, and shipping customer orders.


Green E-commerce

A focus on environmentally sustainable practices.


Shipping and Handling

The processes and costs associated with packaging, transporting, and delivering products to customers.



Security & Privacy



Measures and practices to protect e-commerce websites and customer data.


Data Privacy

Policies and practices related to the collection, use, and protection of customer data.


SSL Certificate

Secure Sockets Layer certificates provide secure, encrypted connections between web browsers and web servers.



This post could not be possible without the help of some of our amazing partners

Kenyon Brown @ CreatorCommerce

Preslav Nikov @ Craftberry





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