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Home » 79 Ecommerce Glossary Of Terms & Conditions You Need To Know

79 Ecommerce Glossary Of Terms & Conditions You Need To Know

    The eCommerce industry has certain words it uses to describe its terms.

    These terms can confuse and leave you in the dark when you don’t know their meaning.

    A good example is when discussing your eCommerce website project with a designer.

    Even when you don’t know what it takes to design, get familiar with the words used.

    In this article, you will learn:

    • What eCommerce terms are?
    • Why you need to know these terminologies?
    • A to Z of eCommerce Glossary

    Let’s start.

    What Is Ecommerce Terminology?

    Ecommerce terms are words used in communicating ideas in the business industry.

    These terms allowed compressing a long explanation into a single word or two.

    We also known them as online business terms or ebusiness terms

    Whether you are starting or already in business, get knowledgeable about these terms.

    As it is helpful than you can ever think.

    Next, you will see reasons having an eCommerce glossary at hand is key.

    Why Learn Ecommerce Terms?

    • It helps deepen the technical understanding of your business
    • It helps explain to client in simple words they can understand.
    • When there is an error on your eCommerce website, you can detect the cause from the message on screen.
    • It helps in promoting business on social media when you see these terminologies.
    • It positions you as a professional when discussing with fellow business partners.
    • Ecommerce terms save time and energy using these terms than with long explanations.

    Ecommerce Terms: The A To Z Glossary

    301 Redirects:

    As the name implies, it’s a permanent redirection from one web address to another. This automatically sends your visitors and search engines bots to the new address when they click on the old one.

    Case Study:

    Let’s say your ecommerce business domain name is and you want to move to . What you need to do is use a 301 redirect on and it will automatically redirect your customers to

    302 Redirects:

    This works in the way as 301 Redirects— redirecting customers from an old web address to a new one.

    The difference is why 301 Redirects is permanent, 302 Redirects is temporary.

    404 Error:

    Your website redirects visitors to this page when they land on a non-existing post or page on your website showing the content does not exist.

    So if a customer lands on and you have no page with that slug (address), dog on your website, it will redirect them to a 404 page.

    Ecommerce Glossary of Terms (A – B)


    This is when a visitor leaves your web page without making a desired action. In ecommerce, it is when a visitor clicks on the Buy Now button, lands on your checkout page and leaves the page without buying.

    It is also called the Cart Abandonment or Recovery Cart Abandonment. Others you may come across booking abandonment, shipping abandonment and many others.

    A/B Testing

    Ecommerce marketing is full of uncertainty. And to take away the guesswork, A/B Testing is the way to go.

    It is a method of testing two web pages, pop-ups, emails or ads to determine which performs better.

    The two case study will be shown to your visitors and the page which performs it chooses.

    Another name for A/B Testing is Split Testing.

    Address Verification Service (AVS)

    Has your card ever been rejected when you try paying online? If it’s not because of insufficient balance, it’s because of your address not verified.

    Address Verification Service is a process which allows credit card companies (MasterCard, VISA, Verve etc.) verify if the billing address you input on a website matches the one of your card record.

    It’s an extra step of fighting fraudulent acts. You need this as an ecommerce business owner.


    An affiliate is a person in agreement with another company to sell their products on his own website.

    Affiliates are commercial partners promoting a company’s products for a commission (fixed or percentage).

    The affiliate is only paid if the visitors he directs to the company’s websites buys the products.

    Affiliate Marketing

    This is a type of marketing in which a company pays commission whether fixed or in percentage to affiliates after a successful sale.

    Affiliate marketing is a performance-based type of marketing.

    Your ecommerce business can benefit from affiliate marketing by giving out link to affiliates who will promote your products and you in turn pay them according to their works.

    Application Programming Interface (API)

    An API is a programming instructions allowing two apps, software or website to connect, interact and exchange data. It is mostly used by web designers and developers.

    Do you notice when you input an account number and choose the bank during transfer, the person’s name automatically displays? That’s is API between banks at work.

    API is also used to synchronize your ecommerce website with your mobile app. It has no limitations.


    Authorization is coined from authority. It’s a process of granting someone the permission to access certain features in your ecommerce website.

    To some you authorize as authors, some editors, some shop manager, some administrator and more.

    You need authorization when you want to integrate a third party app (e.g Gmail, auto responders) to your site.

    Average Time on Site

    When you check your analytics (statistics), you will see a phrase called Average Time on Site.

    It simply means the average time spent by visitors on your store while browsing.

    There is sometimes error found with the average time spent by visitors on your stores as it is hard to calculate the exact time.

    Some customers may switch off their data to read a long blog post. Some may switch tab and continue with other website.

    Most times the results you see may not be accurate. Take the results as estimations.


    The word blog was derived from two separate ecommerce terms Web and Log.

    It is a section of your ecommerce website where you share information and discuss with your customers.

    Blog contains images, links, documents, videos, audios and text. You should stay current to update content on your blog.

    Bottom of the Funnel

    Bottom of the Funnel or Funnel’s Bottom is last stage in a potential customer’s journey on your website. This is the stage where visitor becomes customers.

    Bottom of the Funnel is also called the Transaction Phase or Purchase Stage. It is preceded by Top of the Funnel and Middle of the Funnel.

    Brick-and-Click Store

    This is the business model between full traditional physical shop and full ecommerce business with no physical shop.

    A brick-and-click store is any business with a physical location shop and a complete functional ecommerce website.

    This business type makes shopping easy for your customers. Those that want buy online can do so. And those that wants a physical interaction with your products can do so.

    Brick-and-Mortar Store

    This ecommerce term is used to describe the typical shop you see selling on the street or mall.

    These stores may still be selling but are nothing compared to their counterpart selling online.

    Brick-and-Mortar have been since ages – far as back as buying and selling began.


    This is an ecommerce marketing strategy where you combined similar or related products or services and sell to customers as one package.

    Customers loves this bundling method because they are able to buy at a lower price when they buy as one package than buy separately.

    Buy-to-Detail Rate

    Buy-to-Detail Rate helps you to understand products are buying after browsing through products’ catalogs.

    It is an ecommerce metric that allows you to compare the number of unique purchases versus the number of products’ views.

    To calculate your ecommerce Buy-to-Detail Rate, divide the Total Unique Purchase by the Product Page View.


    Buy-to-Detail Rate = Total Unique Purchases / Product Page views.

    Buyers Persona

    Buyers Persona is an imaginary representation of your prospective customers.

    It covers everything such as their demographics, goals, status, behavioural patterns, values and more.

    To have a good representation of who you want to sell to (buyer persona), you should answer the following questions.

    • Who are your customers?
    • What drives and motivate them?
    • Why do they buy the things they are buying?
    • How do they make their buying decision?

    Ecommerce Glossary of Terms (C – D)

    Call-To-Action (CTA)

    Call-To-Action is an digital marketing metrics strategy used to trigger a quick response or prompts visitors to do something.

    It could be to fill a form, buy something, or make a call. The common CTAs used in ecommerce marketing are, ‘Buy Now’, Call Now, ‘Get Started’ and ‘Click Here’.

    You can use CTAs in popups whether full screen or part or within an article. Whichever way you use CTAs, I want you to know that it can increase your conversion rates by a large margin.


    Chargeback is designed to help a buyer get refunds of his money.

    This happens when a customer feels he was sold a fake product or perceive the transaction is fraudulent.

    So, make sure you take steps with your payment processing providers to prevent the abuse of chargebacks on your ecommerce store.

    Churn Rate

    Churn Rate also called Attrition Rate is the percentage of customers who stop using a company’s service in period of time.

    This is most popular among ecommerce businesses that run the subscription model.

    Churn Rate shows the number of subscriber who unsubscribed from a service.

    Closed-Loop Marketing

    Closed Loop Marketing is the process of collecting customers’ data from various sources, analyze the data and create relevant content for the targeted audience.

    You can get the data via your website registration, content offers, emails and many more.

    Closed Loop Marketing can help you achieve better insights of your customers which leads into high return on investment.

    Cohort Analysis

    Cohort Analysis is a marketing strategy to help marketers’ separate customers into group using their behavioural pattern.

    With it, you can study how a specific group of customers behave over time.

    Cohort analysis is all about finding similar traits between your customers and grouping them together.

    Comma-Separated Values (CSV)

    A CSV is a file format that arranges and stores your data in a tabular form. It’s like excel spreadsheet but with a .csv file extension.

    You may ask, “What is the use of CSV?”

    You an use CSV to import and export large customers’ data from your ecommerce website.

    This data customers’ name, email, orders, shipping address and lots more.


    A conversion is a point where a visitor or your targeted audience carries out your desired goal.

    This goal could to make a purchase, submit their email, share an article, click a link and many more.

    Conversion is what happens after a user clicks on the Call-To-Action button. It is the end results of a customers journey.

    Conversion Funnel

    As the name implies, conversion funnel is journey that happens from the moment a customer lands on your website to when the buy your products.

    The main reason why it is called a funnel is because the number of users dropped along the journey.

    That is, there is a lower number of users at the top compared to the number that started.

    So if a 1000 visitors landed on your website, 100 could click the Buy Now button and 10 pays for the products.

    Conversion Path

    Conversion Path is the intentional steps aim to lead a visitor on your ecommerce website to become a new customer.

    The conversion path begins as soon as the visitor gets to your landing page. He then browses your products catalog, selects his desired products and make payment.

    Any little mistake in colour, typography and others can make a conversion path futile.

    Conversion Rate

    Conversion rate is the percentage of visitors who converted (carried out a desired goal).

    It is calculated by dividing the total number of visitors who buys your products in a given time by the total number of visitors who landed on your website same time and multiply by 100.


    Conversion rates = Numbers of users who bought / Total number of users who visited the site X 100

    Two things most determine how high your conversion rate will be. They are; easy to use website navigation and site loading speed.

    Conversion Rate Optimization (CRO)

    Conversion Rate Optimization is the process of enhancing users experience on your website to increase your chance of converting them to customers.

    Sometimes this could be repositioning the navigation menu, changing website colour or typography.

    To optimize your conversion rate to the fullest, you need understand the human psychology, ability to read data and web design.

    Content Management System (CMS)

    Content Management System are publishing tools you can used to setup your ecommerce website and publish content.

    With CMS, you can create, edit, arrange, publish and delete content from a single dashboard.

    The most popular among the CMS are WordPress, Joomla, Drupal, Magento and more.

    Content Optimization System (COS)

    This is a process of using various techniques to optimize your website content so you may appear on the front page of Google when customers search.

    Content Optimization extends to having a responsive clean ecommerce website.

    Integrating digital marketing as part of your strategy is also part of content optimization system.


    A cookie is the small amount of data your website generates and stores on the user’s web browser.

    Cookies are stored on the user’s browsers to help improve their experience using the website.

    So, it present certain attributes to a user based on his previous interaction with the website.


    Cross-Selling is the process of selling another products or services to customers who already bought from you.

    For best results, I recommend cross-selling products related to what the user has in their cart.

    So, if I have selected an iPhone and added to my cart. You can cross-sell me an iPhone case –  that would be a perfect match.


    Crowdsourcing is a practice of gathering data (information) from the general public to achieve a business goal.

    It is a system where people voluntarily submit their ideas, content, opinions to a cause via social media platforms, website, form filling.

    An example is an app that allows users submit eye witness events in their locals to keep other user updated in real time.

    Customer Relationship Management (CRM)

    Customer Relationship Management is act of analyzing customer’s interactions and feedbacks so you could best improve your relationship with them.

    You use CRM ecommerce tools to compile customers contacts, purchases, chats across various marketing channels.

    The whole essence of CRM is to help your customers have a better time doing business with you.

    Customer Lifetime Value (CLV)

    Customer Lifetime Value is a forecast of how much in total you can make from doing business with a particular customer.

    We will base most time your predictions on customers on their past transactions with you.

    Another name for Customer Lifetime Value (CLV) is Lifetime Customer Value (LCV) or Lifetime Value (LTV).

    Customer Acquisition Cost (CAC)

    The amount you spent to get a customer and make him pay is called Customer Acquisition Cost (CAC).

    It is important in ecommerce business to know your CAC as it helps determine where you should reduce cost and where to spend more on.

    Your CAC may be high at the initial stage. But as you proceed in business, try to reduce your expenses I acquiring customers by using others ecommerce marketing strategy.

    Click Through Rate

    Click Through Rate is a ratio showing between the number of time customers sees your brand and the number of time they clicked on it.

    CTR is common with social media ads, email marketing and Pay-Per-Click Marketing.


    Click Through Rate = Number of Ad Click / Number of Ad View

    So, if Facebook display your ads to 1000 people and only 100 clicked on it. Your CTR will be 100 / 1000 which gives 0.1 CTR.

    Digital Commerce

    Digital commerce is a combination of infrastructure which makes up the ecommerce system.

    The infrastructure includes but not limited to software, ecommerce platforms, and more.

    It is good you know what ecommerce tools are available in the industry so you best prepare when executing your strategy.

    Discount Code

    A discount code is a set of letters and numbers given buyers to enjoy a reduction in price of products.

    This reduction in price can be fixed (deduct flat price – N1000, $9) or by percentage (50%, 75%).

    A coupon is most sent to customers via email or ads. And sometimes, you can offer discount code via popup when you notice a customer is about to abandon the checkout page.

    Another name for discount code is coupon code or promo code.


    Dropshipping is an ecommerce business type where a retailer ships goods directly from the manufacturers to a customer using his brand name.

    In dropshhipping, you don’t have to produce your products or own a warehouse, the manufacturers do all the branding for you.

    This business model type saves from the headache of stocking products with no one to buy.

    Domain Name

    A domain name is a set of letters, numbers or characters that customers use to locate your ecommerce website on the web.

    It is the address of your online business location and the representative of your business on the web.

    Common domain name extensions are .com, .org, .net and more.

    Ecommerce Glossary of Terms (E – G)


    An eBook also known as electronic book is a digital format of book print for use on electronic devices.

    It consists of images and text in readable format on computer, tablets, and smartphones.

    You can publish your eBook in different format like PDF, ePub, Plain Text, and more.

    Editorial Calendar

    Do you struggle to arrange and keep control of writing and publishing your content? Use an editorial calendar.

    Editorial calendar helps you keep track of what to write and when to write.

    With editorial calendar, you can make plans for the future and meet up with deadlines.


    Email is the short form of electronic mail. It refers to the exchange of messages between two or more persons using an electronic device.

    In 1971, Ray Tomlinson sent the first email. By 1997, people already using emails.

    You can send text, documents, images, videos and more via an email and ony the user will be able to see it.

    Engagement Rate

    Engagement rate is used to measure how much and often a user interact with your content. This content could be ads, blog post, videos, podcast and more.

    There are three major yardsticks used to measure engagement rate. They are; Reactions (likes or love), Comments and Shares.

    Engagement Rate = (Reactions + Comments + Shares / Total number of views) X 100

    Let’s say you posted on Facebook; 1000 people saw it, 100 likes, 10 commented and 1 shares it, your engagement rate will be

    Engagement rates = [(100 + 10 + 1) / (1000) ] X 100 = 11.1%

    Evergreen Content

    Evergreen content is a content that is useful and relevant for years to come. I call them, “Contents that stands the test of time”.

    This type of content stays fresh wit readers and friendly to search engines – Google, Yahoo and more.

    I encourage when writing, you don’t get swayed by trends but sticks with evergreen content.

    Event-Triggered Email

    Have you ever click on something or register on a site and you immediately receive an email in your inbox? That’s an event-triggered emails.

    They are emails automatically sent to a user or group of users when a certain action is performed on the site.

    Example of event-triggered email is a discount code sent to buyers when the leave the checkout page without buying.


    Fulfillment is the systematic process you take from the moment a customer’s buys your products to when you deliver them the product.

    As your customers’ base grows, I encourage you automate a whole lot in the process and outsource many.

    Another name for fulfillment in ecommerce is order fulfillment.

    Google Analytics

    As seen in the name, Google Analytics is an analytics services provided by Google that allows you have a detailed report of your ecommerce website statistics.

    The advantage of this web service is that you are able to track your visitors’ locations, devices and more and also make good marketing decisions.

    Google Analytics is a widely used web analytics service among ecommerce business owners.

    Growth Hacking

    This is a process involving a quick analysis and experimentation of data to identify the most effective way to start and scale up a business.

    Growth Hacking was first used by Sean Ellis and ever since marketers, engineers, influencers, product managers and more are now called growth hackers.

    To accelerate your business growth, you need growth hackers to build and execute powerful strategies that will boost up your business.

    Ecommerce Glossary of Terms (H – K)


    A hashtag is a word or phrase used in social media platforms to identify a trends or topics.

    It is a way of grouping post with similar content and is usually preceded by a # sign.

    Example of hashtags are #ecommerce #ecommerceterms and more.

    Inbound link is a third-party link from another website linking to your ecommerce website.

    It is an effective way to rank high on Google as it tells you are an authourity in your field if others could link to you.

    Another name for inbound link in SEO is Backlink.

    Inbound Marketing

    Inbound marketing is an ecommerce marketing strategy that uses content, social media and search engine optimization to attract the right kind of audience.

    It makes it easy for potential customers to search and find you on search engines, and social media.

    Inbound marketing enhances your visitors experience on your site and so you should use it.


    Infographics are graphical representation of data, facts or knowledge in an easy and understandable image format.

    They help present and simplify large amount of complex information into one piece.

    The full meaning of infographics is Information Graphics.

    Intelligent Product Recommendation Systems

    Have you ever browse an ecommerce site and you see, “People also buy” or “Recommended products”?

    Those are the works of Intelligent Products Recommendation Systems.

    It’s an Artificial Intelligence systems recommending products for your customers based on their previous purchase or browsing patterns.

    I encourage you to take full advantage of this system as it will help boost your sales.


    Inventory is the quantity of goods you have to sell. It is the amount of goods available in your warehouse.

    It is necessary you keep in touch with the amount of products available for sale before you start promoting.

    Having a high inventory record after a long time of production signifies low sales in your business.


    JavaScript is an object-oriented computer programming language popular among developers for building ecommerce website and others.

    It can run even after a page load and this because the source code is processed by the user’s browser and not the web server.

    Netscape originally developed JavaScript.

    Key Performance Indicator (KPI)

    Key Performance Indicator is value that measures the success your business at a particular time based.

    It helps you evaluate your performance and check if you are meeting up with your business goals and objectives.

    Key Performance Indicators are of different types and you will only nee that relevant to your business industry.


    Keywords are words or phrase customers use on search engines to bring up relevant answers.

    They are not only limited to search terms; they can also be words used to identify the content of a website.

    When a customer search for “shoe” or “party shoe”, those are keywords.

    Ecommerce Glossary of Terms (L – M)

    Landing page

    A landing page is a single page on your website where customers’ lands when they click on a link outside your website.

    This page contains information that speaks to the visitor’s needs thereby helping him decide on the spot.

    A landing page is also called Lead Capture Page or Destination Page. Some refer to it as the Deal Page.

    Listing fee

    Listing fee is the amount of money a classified website or online auction site charges you to list your products.

    In most classified sites, the listing fee is usually free and you can then be charged more if you want to promote your products.

    Listing fees are non-refundable and increase depending on your promotional package.

    Andtab is a FREE classified website to buy and sell your fashion & beauty products.


    Lead is an ecommerce term used to describe a potential customer who found interest in your products or services.

    You can gain leads through social media ads, email marketing, content sign up forms and other ecommerce marketing strategy.

    A lead is not yet a customer and not still a visitor. It is in between.

    Lifecycle Stages

    In ecommerce, lifecycle stages are stages your products undergo before it becomes available to the public use.

    These stages are usually, Market Research Stage, Development/Production Stage, Market Introduction Stage, Growth Stage, Maturity Stage and Decline Stage.

    Don’t be afraid of the decline stage. Those are bound to happen especially when your competitors introduce new products in the markets.

    This is why you need keep updating your products to meet up with industry standards.


    Logistics is the managing of services or physical products such as shoes, liquids, livestock as well as intangible items like time and information.

    It is what happens between the point of research to the point of consumption to meet up with customers satisfaction.

    Logistics with no doubt demands planning, and executing ecommerce strategies for the better good of your business.

    Long Tail

    Long tail is an ecommerce marketing strategies where you sell large amount of products to small number of persons as against selling little products to mass number of persons.

    This is similar to Long-Tail keywords where specific and long keyword phrase are used as content keywords.

    In 2004, Chris Anderson was the first to use the ecommerce term, “Long Tail” where he described it as niche form of marketing.


    Marketing is any business activity you do to get your products to more customers and make more sales.

    This involves the use of advertisement, slogans, endorsements, influencers or media exposure and more.

    It is a way to attract, hold and serve customers by building a relationship with them.

    You will need marketing automation to stay effective and efficient with business. It is the use of ecommerce tools or platforms to automate repetitive task.


    mCommerce is the use of wireless electronic device to buy and sell products or services on the internet.

    The devices are mobile phones, smart phones, tablets, and even personal digital assistants also called (PDAs).

    It was in 1997 at the Global Mobile Commerce Forum that Kevin Duffey first used the term.

    Merchant Account

    Merchants account is a business bank account type that allows you to accept and process payments using your cards.

    It is an agreement between you, your bank and your online payment processor to accept customers’ payment and send to your account.

    I encourage you get a merchant account for your ecommerce business as it makes customers perceive you as been serious.

    Middle of the Funnel

    Middle of the Funnel is a stage in customer’s journey on your website where you meet with their needs.

    This stage requires that you engage your customers because this is where they make their final decisions.

    You should maximize more of your ecommerce marketing strategies at this stage via email, content, offers and more.

    Monthly Recurring Revenue (MRR)

    Monthly Recurring Revenue is the forecast income you can expect to get from your business every month.

    It only works if your business operates on the subscription model.

    The simple way to calculate your Monthly Recurring Revenue is to multiply total number of your paying customers by the average revenue per customers.

    Ecommerce Glossary Of Terms (N – O)

    Native Advertising

    Native advertising is an online advertising type where ad content looks more of an editorial content.

    This form of adverts does not need banners and gifs but runs with content like blogs or infographics.

    You can use native advertising to position your ecommerce business as an expert and also to convert more customers.

    Net Promoter Score (NPS)

    How willing will your customers want to share or recommend your business with their friends and families?

    That would depend on your Net Promoter Score. This score determines how loyal your customers are to your brand.

    Fred Reichheld was the first to use this ecommerce term in 2003 with the aim to determine customers’ satisfaction.

    Omni-Channel Management

    Omni-Channel Management is the ability to allow your customers access their stores in various channels.

    It is a way of giving your customers a smooth shopping and managing experience across many ecommerce platforms.

    So make sure you omni-channel your ecommerce website so customers can acess via mobile app, website and all devices.

    Open Rate

    The percentage of users who received your email in their inbox and open it is called the open rate.

    It is calculated by dividing the total numbers of emails opened by the total number of emails delivered and multiplies by 100.


    Open Rate = [(Total Email Opened) / (Total Email Delivered)] X 100%.

    So if you sent out 100 emails to customers and 10 open it. Your open rate is 10%.

    Open Rate = [(10) / (100)] X 100% = 10%

    Ecommerce Glossary of Terms (P – Q)


    Page Views is an ecommerce metrics that shows the number of times a particular page was viewed.

    It counts every page opened and refreshed by customers.

    You should know your site page view to understand what page customers are interacting with most.

    Payment Gateway

    Payment Gateway is an ecommerce tool that helps with your payment transactions on your website.

    It stands as the middle and receives money from your customers and end to your account after removing its commission.

    Payment gateway is same with Payment Service Providers. They are all online service that offers online payment methods using credit, debit cards or transfers.

    Examples of payment gateways are Paypal, Stripe and Paystack.

    Profit Margins

    Profit margins are the percentage of products’ selling price that turns into profit.

    It is the difference between how much you spent on business and the how much was generated from the products or services sold.


    Profit Margin = [(Total Sales – Total Expenses) / Total Sales]

    Keep your expenses low to have a good profit margin.

    Partial Shipment

    Partial shipment is a shipment type where the delivery process of products takes place in two or more consignment.

    The customer has to give the permission before that shipping order can be accepted and began.

    Another name for partial shipment is part shipment.

    Pay-Per-Click (PPC) Marketing

    Pay-Per-Click is an advertising form where the advertisers pay you when his ads are clicked on your website.

    A third party like Google Adwords will have to give you the ads code to include on your website.

    Pay-Per-Click is also called CPC which means Cost-Per-Click.

    Point-of-Sale (POS)

    Point-of-Sale is the point where a customer pays you in exchange for your products or services.

    It is a digital replacement for cash register and as such can process, track,  and manage customers’ orders.

    Point-of-Sale is also called Point-of-Purchase.

    Qualified Lead

    A qualified lead is a visitor who has shown interest in your products or services.

    They are now on the process to become a customer.

    You will know them when they fill a form, download your content or add products to their cart when they signed up.

    QR Code

    QR Code is a machine readable code in black and white square share scanned by digital devices to provide access to information.

    You can use them to store web links, passwords, text, co-ordinates and many more digital information.

    QR Code stands for Quick Response Code

    Ecommerce Glossary of Terms (R – U)

    Recurring Transaction

    Recurring transactions happens when you charge customers using their card details on specific periods in their own permission.

    The customers gives you his card details and authourize you to charge daily, monthly, quarterly or annually.

    Recurring transaction works best with the subscription business model.

    Return on Investment (ROI)

    Return on Investment is the profit or loss you get from a business relative to the amount of money you invested.

    It is a way of company comparing their performance based on their capital and expenses.


    ROI = (Net Profit / Cost of Investment) x 100

    Another name for Return on Investment is called Rate of Return.

    Service Level Agreement (SLA)

    If you offer services, Service Level Agreement is the contract signed by you and the clients on the performance of work you will deliver.

    This agreement covers the quality, scope, privacy, responsibilities, and time duration of the project.

    I encourage you to have a think on what you are promising to offer clients before you begin.

    Most times you should draw out the service level agreement, not them.

    Shopping Cart

    Shopping cart is a part of your website where customers adds different products when browsing through your products catalog.

    This is the online version of how you go to a supermarket and then picks up a basket to puts in your chosen products.

    Shopping cart is also known as the cart or basket of an ecommerce website.

    Stock Keeping Unit (SKU)

    Stock Keeping Unit are sets of letter and numbers you can scan to identify a specific products or services.

    It helps you automatically keep track of your products and manage your inventory.

    Stock Keeping Unit is beneficial as it allows you know which products need to be ordered and which you are to sell.

    Software as a Service (SaaS)

    Software as a service is an ecommerce business type where you provide access to software and its function on the web.

    In this business model, you host the software and sell licenses using the subscription business models.

    Software as a service is also called On-demand software or Web-based software.

    Time Lag

    Time lag is the interval (in days) between when a visitor lands on your site and when he converted.

    It takes into account all customers waiting, and transaction period.

    So if a customer interacts with your website for the first time and busy on the same day, the time lag is 0.


    Turnkey is software built from start to finish and ready for the available markets.

    In this case, the software is not built to a particular customer’s taste or specification.

    Turnkey products are best for online training coaching businesses, or billing systems.

    Top of the Funnel

    The Top of the Funnel is the first stage in a customer’s journey on your website.

    It is the first interaction between when a visitor lands on your website and engage with your content.

    At this stage, you need engage your customers with irresistible offers because it is easy for them to press the back button.


    Upselling is an ecommerce marketing strategy where you offer customers additional products to make them buy more.

    It is a way of recommending products your customers won’t have known exist in your products’ catalog.

    When you upsell, the products you are offer should either be an upgrade of the customer’s existing one or a more expensive one.

    User Experience (UX)

    The overall experience of your site, apps, products, service to customers is called user experience. It defines how easy and interactive is your user interface to customers while using your products.

    You will get a good user experience when you provide customers beyond what they want.

    Conclusion On Ecommerce Terms:

    Now, you see that you can’t go wrong with this A-Z of eCommerce glossary.

    As a business owner, it is important you have an understanding of these ecommerce terms.