Ecommerce defined

The language of ecommerce can be overwhelming, whether you’re new to selling online or an industry veteran. Here, we’ve created a go-to resource to break down the key ecommerce terms you need to know.

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A

Abandoned cartAccrued revenueACH paymentAdd to cartAnnual recurring revenueAnnual subscriptionAPIARRAuto-renewalAutomatic paymentsAverage order value (AOV)

B

B2CBilling cycleBusiness to business (B2B)Business-to-consumer (B2C)

C

CAC (customer acquisition cost)Call to Action (CTA)Cart abandonment rateCart recoveryCash backCheckoutCheckout abandonment rateCheckout conversion rateChurn rateClick and mortarClick to open rateCLTV formulaCOGSConnected devicesConversational commerceConversion funnelConversion rate optimizationCross-sellingCustomer acquisition costCustomer churnCustomer engagement scoreCustomer portalCustomer retentionCustomer winback

D

D2CDecoupled CMSDigital shopping cart abandonmentDigital subscriptionDirect-to-consumerDirect-to-consumer advertisingDiscount codeDisintermediationDrop shippingDTC ecommerceDunningDynamic pricing

E

EcommerceEcommerce conversion rateEcommerce merchantEcommerce personalizationEcommerce platformEntitlements (for digital subs)

F

Free shippingFulfillment center

G

Gift subscriptionGMV

H

Headless CMSHeadless commerce

I

Involuntary churn

J

Javascript SDK

L

Lifetime valueLoyalty programLTV calculationLTV/CAC ratio

M

Market demandMeal kitsMemberships programMerchant accountMobile commerceMonthly recurring revenueMonthly subscriptionMRR

N

Net promoter scoreNet revenue retention

O

Onboarding flowOne-time purchaseOrder fulfillmentOrder managementOrder management systemOrder processing

P

Partial shippingPayment APIPayment gatewayPayment informationPayment methodPayment processorPCI compliancePhygital subscriptionPro-rated billingProduct as a serviceProduct bundlesProduct detail pageProduct marginPromo codes

R

Recurring billingRecurring commerceRecurring paymentRecurring revenueRecurring subscription productsRepeat customerRevenue recognitionROAS

S

SKU SwappingSKUsSMS marketingSubscribe-and-saveSubscriber churnSubscription boxSubscription business modelSubscription cancellation flowSubscription commerceSubscription economySubscription fatigueSubscription managementSubscriptionsSurprise and delight

T

Take rateText message marketingTiered DiscountsTrial period

U

UpsellUser-generated content (UGC)

V

V-commerceValue proposition

Y

Yearly subscription

Latest terms

Entitlements (for digital subs)Phygital subscriptionMeal kitsConnected devicesDigital subscriptionAuto-renewalBilling cycleCustomer engagement scorePro-rated billingOnboarding flow

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