As technology advances, words are created to describe new ideas and concepts. Having trouble keeping up with all these new technological words? Don’t worry! Today we’re helping you build your ecommerce vocabulary with 25 terms every online merchant should know.
We’re simplifying and demystifying these words to introduce the language of ecommerce. Soon you’ll understand all these fancy ecommerce jargon and shortened abbreviations.
1. Back Office / Back End
Accessed with a username and password through the admin page, this part of the ecommerce software allows merchants to manage and operate online stores
2. Big Data
The name given to large amounts of customer information collected through ecommerce. There is a growing trend and interest in leveraging this data to make smarter business decisions.
Temporary data a computer stores to help websites load quicker. To clear your cache is to reload a web page with new data generally to see changes made during web development
4. Call-to-Action (CTA)
Image, text, or combination that encourages the reader to perform an action and drive conversions.
5. (Shopping) Cart Abandonment, Abandoned Carts
This occurs when customers add products to their carts but leave your online store before making a purchase.
6. Checkout Funnel
The checkout process portrayed as a funnel to emulate the loss of customer conversions at each step. Checkout processes include 5-page, 1- page, easy, guest and account creation.
7. Conversion Rate
A successful conversion is the completion of an activity – ranging from newsletter signups to purchases.
8. CPC, CPM, PPC, CPA
Each of these are pricing models for online advertising.
● CPC (Cost per Click)
● CPM (Cost per Mille / Thousand Impressions)
● PPC (Pay per Click)
● CPA (Cost per Action)
9. Digital Products (Downloadable Products)
Digital products include: EBooks, Music, Movies, Programs, Apps, and PrestaShop modules. In ecommerce it is the sale of intellectual property. PrestaShop allows you to sell these types of products -- for free!
The visual appeal and refined usability of your website. Ergonomic websites are error free, intuitive, and easy to use.
11. Front Office (Store Front / Front End)
It is the side of your ecommerce website that customers interact with – product displays, account creation and checkout process.
12. Inbound (Backlinks) & Outbound Link
● Inbound Links – links from other websites that lead to a page on your ecommerce site
● Outbound links – links that lead to another website from your ecommerce site
Both are important in increasing SEO and should be anchored by good key words
13. Keywords | Keyword
A word or phrase that 1) customers are searching 2) accurately describes your company 3) search engines use to help customers find your online store
14. KPI (Key Performance Indicators)
What are the goals for your ecommerce site? KPI’s are stats and ratios that help you measure your success in reaching your goals. Discover the top 10 KPI's for online merchants.
Logistics covers the offline aspect to ecommerce – it includes the transport of goods (both from distributors and to customers), packaging orders, and customer support.
16. Merchant Account
The account you open with payment processors that holds the incoming funds from credit card companies. Once approved, funds are deposited into your bank account.
17. Mobile Commerce (M-commerce)
Ecommerce conducted through wireless devices such as cell phones and tablets
18. Multi-Channel Retailing
Selling through multiple channels – ecommerce (online sales), with a brick and mortar store and taking phone orders.
19. Multi Store
Linking 2 or more online stores to the same back office (native in PrestaShop) – use multi-store to separate price catalogs or multiple product lines
20. Payment Processors | Payment Gateways
Both allow ecommerce merchants to processes payments from sales. They verify the card information with credit card companies who then approve the transaction.
Websites that allow users to view and use the website easily on all screen sizes. Buttons/ text become larger and layouts adjust to fit within the screen. Still not clear? Check out this infographic that explains responsive with cereal.
22. SEO (Search Engine Optimization)
Industry standards for creating content and web development to help search engines associate your website with relevant keywords
The amount of visitors to your online store - similar to foot traffic in a brick and mortar
24. UI & UX
● UI (User Interface) – Tools customers use in ecommerce. i.e. catalog, shopping cart, and checkout process
● UX (User Experience) – The Look and feel of your online store.
Cereal is used to explain UI and UX.
25. Web Hosting
Where data for your ecommerce site is stored. This network of computers allow customers to access the information needed to load your website on their computer.
What other words do you think ecommerce merchants should know? Define and list them in the comments below. Already running an online store? What words do you think all PrestaShop merchants should know?