Have you had the idea recently that you’ve wanted to start an eCommerce business? Do you just want to know more about all the eCommerce mumbo-jumbo that gets thrown around? Or Maybe you want to brush up on some old terms and maybe learn some new ones?
Here you will find the answer to all those questions. I’m going to mention a few key eCommerce terms that are currently in use within the eCommerce world.
9 Need to Know eCommerce Terms
1. First and foremost, what is “eCommerce?”
eCommerce is an abbreviation of Electronic Commerce. Electronic commerce = eCommerce/e-commerce. It’s basically the shopping you do online. If you do any commercial transactions conducted online or electronically on the Internet, it’s considered to be an eCommerce transaction.
2. Customer Lifetime Value or Lifetime Value of a Customer
Prediction of all the value a business will derive from their entire relationship with a customer. This is the money you will receive from a single customer for their entire life. You want an LTV to be high.
3. Conversion Rate
You calculate conversion rate by dividing the number of people who complete a particular action by the number of visitors to a particular page/process. It is the percentage of visitors who take the desired action.
4. Shopping Cart Abandonment
This is the term for customers who, after they browse a site, add products to their shopping cart, and leave the site without completing their purchase. They might have seen the final price or wanted to know what the price would be if they bought the items. Although they left the site without purchasing, they are still potential customers. They can come back in the next few hours or the next day. Re-targeting marketing can also help bring them back or entice them to make the purchase.
5. Customer Retention
It means the strategies that encourage customers to keep coming back to your store to purchase more goods. You can do so by creating personalized and fun buying experiences. Using the strategies also keeps your product or company on the customer’s mind even when they don’t necessarily need to purchase.
PHP is a programming language. It is one of the most popular languages and web frameworks like Magento have used PHP.
XML is a markup language, like HTML, that stores and transports data. It doesn’t do anything per se, it just displays information.
8. eCommerce Platform
An eCommerce platform is a software that allows you to sell your products online. There a few out there, like the one already mentioned Magento, Shopify, BigCommerce, and Shopify to name a few.
9. Open Source
A term given to software whose original source code is made available to the public. It can be modified, changed and/or redistributed. If you want a website that is unique, having an eCommerce platform with the option to use open source will help.
There are of course many more eCommerce terms but these are some important ones and ones that span across the marketing and online world.