100+ E-commerce Glossary of Terms You Must Know

To run a successful e-commerce business, it is essential to have a comprehensive understanding of the various terms and phrases that are used in this field. From managing payments and inventory to providing top-notch customer service and implementing effective marketing strategies, knowing the language of e-commerce is crucial. Below is an overview of 100+ professional e-commerce terms that every e-commerce operator should know.

What are the different types of E-commerce？

1. B2B (Business-to-Business) 

The B2B model is a type of e-commerce business model where businesses sell products or services to other businesses. This model is commonly used in the manufacturing and wholesale industries. For example, a business that sells raw materials to other businesses.

2. B2C (Business-to-Consumer) 

The B2C model is a type of e-commerce business model where businesses sell products or services directly to consumers. This model is commonly used in the retail industry. For example, a business that sells clothing or electronics to consumers.

3. C2C (Consumer-to-Consumer) 

The C2C model is a type of e-commerce business model where consumers sell products or services directly to other consumers. This model is commonly used in the online marketplace industry. For example, a consumer selling their used items on eBay or Craigslist.

4. O2O (Online-to-Offline) 

The O2O model is a type of e-commerce business model where businesses use online channels to drive offline sales. This model is commonly used in the food and beverage industry. For example, a restaurant that accepts online orders for pickup or delivery.

5. B2G (Business-to-Government)

The B2G model is a type of e-commerce business model where businesses sell products or services to government agencies. This model is commonly used in the government procurement industry. For example, a business that provides IT services to a government agency.

6. C2B (Consumer-to-Business) 

The C2B model is a type of e-commerce business model where consumers offer products or services to businesses. This model is commonly used in the freelance and gig economy. For example, a freelance writer offering their services to a business.

7. B2B2C (Business-to-Business-to-Consumer) 

The B2B2C model is a type of e-commerce business model where businesses collaborate with other businesses to sell products or services to consumers. This model is commonly used in the online marketplace industry. For example, a business that sells products through a third-party platform like Amazon or Alibaba.

8. Freemium

The Freemium model is a type of e-commerce business model where businesses offer a basic service for free, but charge for premium features. This model is commonly used in the software industry. For example, a business that offers a free version of their software, but charges for advanced features.

9. Subscription

The Subscription model is a type of e-commerce business model where businesses charge customers a recurring fee for access to a product or service. This model is commonly used in the media and entertainment industry. For example, a business that offers a monthly subscription for access to their streaming service.

10. Crowdfunding

The Crowdfunding model is a type of e-commerce business model where businesses raise funds from a large number of people to finance a project or product. This model is commonly used in the startup industry. 

What are the terms used for user analysis in E-commerce?

11. Traffic: The number of visitors to a website or online store.
12. Conversion Rate: The percentage of website visitors who take a desired action, such as making a purchase.
13. Average Order Value (AOV): The average amount spent by a customer per order.
14. Customer Lifetime Value (CLV): The amount of revenue a customer is expected to generate over their lifetime.
15. Churn Rate: The percentage of customers who stop doing business with a company over a given period of time.
16. Acquisition Cost: The cost of acquiring a new customer, including marketing and advertising expenses.
17. Retention Rate: The percentage of customers who continue to do business with a company over a given period of time.
18. Customer Segmentation: The process of dividing customers into groups based on shared characteristics, such as demographics, behavior, or preferences.
19. A/B Testing: The process of comparing two versions of a website or marketing campaign to determine which performs better.
20. Heat Maps: Visual representations of user behavior on a website, showing where users click, scroll, and spend the most time.
21. Funnel Analysis: The process of analyzing the steps a user takes to complete a desired action, such as making a purchase.
22. Cart Abandonment Rate: The percentage of users who add items to their cart but do not complete the checkout process.
23. Search Queries: The terms users enter into a search bar on a website or search engine.
24. Click-Through Rate (CTR): The percentage of users who click on a link or ad after seeing it.
25. Average Session Duration: The average amount of time a user spends on a website or online store during a single session.
26. Exit Rate: The percentage of users who leave a website or online store after viewing a specific page.
27. Referral Traffic: The number of visitors to a website or online store who come from another website or platform.
28. RFM: The RFM model is a marketing analysis tool that uses customer behavior data to segment customers based on their Recency, Frequency, and Monetary value to the business.
29. Reviews and Ratings: The feedback provided by customers on a company's products or services, often displayed on the company's website or a third-party platform.
30. Visit depth: The number of pages a user visits in a store at one time, and the number of page views per session.

What are the terms used for sales analysis in E-commerce?

31. Revenue: The total amount of money generated from sales.
32. Gross Profit: The revenue minus the cost of goods sold.
33. Gross Margin: The gross profit as a percentage of revenue.
34. Net Profit: The revenue minus all expenses, including the cost of goods sold, marketing, and operating expenses.
35. Net Margin: The net profit as a percentage of revenue.
36. Average Order Value (AOV): The average amount spent by a customer per order.
37. Repeat customers: Users who have made transactions in the store and make transactions again are called repeat customers.
38. Conversion Rate: The percentage of website visitors who make a purchase.
39. Cart Abandonment Rate: The percentage of users who add items to their cart but do not complete the checkout process.
40. Repeat Purchase Rate: The percentage of customers who make more than one purchase.
41. Inventory Turnover: The number of times inventory is sold and replaced in a given period.
42. Days Sales Outstanding (DSO): The average number of days it takes to collect payment from customers.
43. Sales Growth Rate: The percentage increase or decrease in sales over a given period.
44. Customer Acquisition Cost (CAC): The cost of acquiring a new customer, including marketing and advertising expenses.
45. Return on Investment (ROI): The ratio of net profit to the cost of investment.
46. Sales Forecasting: The process of estimating future sales based on historical data and market trends.
47. Seasonality: The pattern of sales fluctuations throughout the year.
48. Product Mix: The assortment of products offered for sale.
49. Pricing Strategy: The approach to setting prices for products or services.
50. Competitive Analysis: The process of analyzing competitors' sales performance, pricing strategies, and product offerings.

What are the terms used for logistics analysis in E-commerce?

51. Warehousing: The storage of goods in a warehouse before they are shipped to customers.
52. Inventory Management: The process of managing and tracking inventory levels in an e-commerce operation.
53. Order Management: The process of managing and fulfilling customer orders in an e-commerce operation.
54. Shipping and Fulfillment: The process of packaging and shipping customer orders in an e-commerce operation.
55. Carrier: A company that provides transportation services for goods, such as FedEx or UPS.
56. Freight Forwarder: A company that arranges the transportation of goods on behalf of another company.
57. Last Mile Delivery: The final stage of the delivery process, where goods are delivered to the customer's doorstep.
58. Delivery Time: The amount of time it takes for goods to be delivered to the customer.
59. Tracking Number: A unique identifier assigned to a shipment that allows customers to track the progress of their order.
60. OMS: Order Management System, which is a software platform used to manage and track customer orders and inventory across multiple sales channels.
61. SRM：Supplier Relationship Management, which is a strategic approach to managing relationships with suppliers to improve collaboration, reduce costs, and mitigate risks.
62. QC: Quality Control, which is the process of ensuring that products or services meet the required quality standards through inspection and testing.
63. PCS：Production Control System, which is a software system used to manage and control the production process, including scheduling, inventory management, and quality control.
64. Reverse Logistics: The process of managing the return of goods from the customer to the warehouse.
65. Fulfillment Center: A facility used for the storage and fulfillment of customer orders.
66. Cross-Docking: The process of unloading goods from one truck and loading them onto another for immediate transport.
67. Freight Rate: The cost of transporting goods by a carrier, typically based on weight and distance.
68. Bill of Lading: A legal document that details the shipment of goods and serves as a receipt of delivery.
69. Customs Clearance: The process of clearing goods through customs when crossing international borders.
70. SKU: Stock Keeping Unit, which is a unique identifier assigned to a product to track inventory and sales.

What are the terms used for customer service in E-commerce?

71. Customer Service: The support provided to customers before, during, and after a purchase.
72. Customer Experience: The overall experience a customer has when interacting with a business.
73. Customer Satisfaction: The degree to which a customer is satisfied with their experience with a business.
74. Customer Retention: The ability of a business to retain its customers over time.
75. Customer Loyalty: The degree to which a customer is loyal to a particular brand or business.
76. Customer Feedback: The feedback provided by customers on their overall experience with a business, including customer service, shipping, and product quality.
77. Net Promoter Score (NPS): A metric used to measure customer loyalty and satisfaction.
78. FAQ: Frequently Asked Questions, which is a collection of common questions and answers about a product, service, or topic, provided to help users find information and solve problems.
79. Email Marketing: The process of using email to communicate with customers and promote products.
80. Live Chat: An online chat system that allows customers to communicate with a business in real-time.
81. Help Desk: A system used to manage customer inquiries and support requests.
82. Self-Service: Tools and resources provided to customers to help them find answers to their questions and resolve issues on their own.
83. Complaint Management: The process of managing and resolving customer complaints.
84. Refund and Return Policy: The policies and procedures for handling customer returns and refunds.
85. Personalization: The process of tailoring a customer's experience based on their preferences and behavior.
86. Customer Segmentation: The process of dividing customers into groups based on shared characteristics, such as demographics, behavior, or preferences.
87. Customer Lifetime Value (CLV): The amount of revenue a customer is expected to generate over their lifetime.
88. Customer Acquisition Cost (CAC): The cost of acquiring a new customer, including marketing and advertising expenses.
89. Customer Churn: The percentage of customers who stop doing business with a company over a given period of time.
90. Upselling and Cross-selling: The process of promoting additional products or services to customers to increase sales.

What are the terms used for technology and security in E-commerce?

91. Payment Gateway: A service that processes online payments and transfers funds from the customer to the merchant.
92. SSL (Secure Sockets Layer): A protocol that encrypts data transmitted between a website and a user's browser to protect sensitive information.
93. Encryption: The process of converting data into a coded language to protect it from unauthorized access.
94. Tokenization: The process of replacing sensitive data, such as credit card numbers, with a unique identifier to protect it from theft.
95. Two-Factor Authentication (2FA): A security process that requires users to provide two forms of identification, such as a password and a fingerprint, to access their account.
96. Fraud Detection: The process of identifying and preventing fraudulent transactions.
97. PCI DSS (Payment Card Industry Data Security Standard): A set of security standards established by the payment card industry to protect against credit card fraud.
98. API (Application Programming Interface): A set of protocols and tools used to build software applications and facilitate communication between different systems.
99. Cloud Computing: The use of remote servers to store, manage, and process data.
100. Content Delivery Network (CDN): A network of servers used to distribute content, such as images and videos, to users around the world.
101. Responsive Design: A design approach that allows a website to adapt to different screen sizes and devices.
102. Web Hosting: The service of storing and serving website files on a server.
103. Cybersecurity: The protection of computer systems and networks from theft, damage, or unauthorized access.
104. Malware: Software designed to harm or disrupt computer systems, such as viruses, worms, and Trojan horses.
105. Firewall: A security system that monitors and controls incoming and outgoing network traffic.
106. DDoS (Distributed Denial of Service) Attack: An attack that floods a website with traffic to overwhelm its servers and disrupt its operation.
107. Vulnerability Assessment: The process of identifying and assessing potential security vulnerabilities in a system.
108. Penetration Testing: The process of testing a system's security by attempting to exploit vulnerabilities.
109. Backup and Recovery: The process of backing up data to prevent loss in the event of a system failure or disaster.

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