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Glossary

E-commerce and digital marketing glossary

This glossary explains 202 terms used daily in e-commerce and digital marketing, each with a definition, a formula and a real example. The aim is not academic precision but usefulness when you are deciding something.

Advertising · 24 terms
Audience OverlapAudience overlap is different ad sets reaching the same users. When two sets i… Audience SaturationAudience saturation is the point at which as much of the targeted audience as … Bid CapA bid cap is a bidding strategy that fixes the highest amount you will pay for… Brand SafetyBrand safety is the full set of measures taken to keep ads from appearing next… Budget AllocationBudget allocation is how total marketing spend is divided between channels and… Click-Through Rate (CTR)Click-through rate is the percentage of people who see an ad and click it. It … Cost Per Acquisition (CPA)CPA (Cost Per Acquisition) is the average ad spend required to produce one con… Cost Per Click (CPC)CPC is the average amount you pay for each click on your ad. Competition, qual… Cost Per Mille (CPM)CPM is what it costs to show your ad a thousand times. It is the primary metri… Creative FatigueCreative fatigue is the performance decline that comes from showing the same a… Creative Testing MatrixA creative testing matrix is a planning table that produces ad variants system… Custom AudienceA custom audience is a targeting list you build from your own data: customer e… Daily BudgetDaily budget is the average amount a campaign or ad set can spend in a day. Pl… FrequencyFrequency is the average number of times the same person sees your ad. The 1.5… Funnel StageFunnel stage defines where a user sits in their relationship with the brand: a… Google Merchant CenterMerchant Center is the dashboard where product data is sent to Google. Shoppin… Hook RateHook rate is the percentage of people who see a video and watch the first 3 se… Learning PhaseThe learning phase is the period in which the algorithm works out who to show … Lookalike AudienceA lookalike audience is a targeting audience the platform builds from users wh… Performance Max (PMax)Performance Max is Google's automated campaign type that combines the full inv… Quality ScoreQuality Score is the 1–10 rating Google Ads gives to how well keyword, ad and … ROASROAS (Return on Ad Spend) is the ratio showing how much revenue each unit of a… RetargetingRetargeting means showing ads again to people who visited the site but did not… Target ROAS (tROAS)Target ROAS is an automated bidding strategy that tells the ad platform how mu…
Amazon · 12 terms
Automation · 3 terms
Brand · 5 terms
Content · 4 terms
E-commerce · 16 terms
CRO (Conversion Rate Optimization)CRO is the systematic work of improving the site experience to get more sales … Campaign CannibalizationCampaign cannibalization is a discount pulling sales that would have happened … Cart RecoveryCart recovery is the flow that sends automatic reminders to customers who adde… Cross-Selling and UpsellingCross-selling is recommending a product that complements the one being bought;… Discount DepthDiscount depth is the size of a discount relative to the normal price. As dept… Dynamic PricingDynamic pricing is the automatic updating of price according to competitor pri… Free Shipping ThresholdThe free shipping threshold is the cart value above which no shipping fee is c… GTIN (Global Trade Item Number)GTIN is the numbering standard that identifies a trade item uniquely worldwide… Multi-Channel SellingMulti-channel selling means offering the same product simultaneously on your o… Personalization OptionThe personalization option is the field where a buyer enters a name, date, col… Price ElasticityPrice elasticity measures how much unit sales change, in percentage terms, for… Product Exchange RateProduct exchange rate is the percentage of orders where the customer swaps for… Psychological PricingPsychological pricing is a pricing approach built on how a price is perceived.… Reference PriceA reference price is the comparison point a customer carries in their head for… Return RateReturn rate is the percentage of shipped orders that come back. Typical bands … Return Reason AnalysisReturn reason analysis is the classification and counting of returned orders b…
Export · 12 terms
Finance · 19 terms
Break-Even PointThe break-even point is the sales level at which total revenue exactly covers … Cash Conversion CycleThe cash conversion cycle is the number of days it takes for money paid into i… Cost of Installment SalesThe cost of installment sales is the total burden on the business of offering … Currency RiskCurrency risk is profit moving because revenue and costs sit in different curr… Days Inventory OutstandingDays inventory outstanding is the average number of days it takes for stock on… Deferred Payment SurchargeThe deferred payment surcharge is the difference between the cash price and th… Double Taxation TreatyA double taxation treaty is a bilateral agreement between states that keeps th… Form W-8BEN / W-8BEN-EW-8BEN and W-8BEN-E are the IRS forms on which non-US resident individuals and… Gross MarginGross margin is what is left after product cost is subtracted from the selling… Net MarginNet margin is the profit left after all costs — product, variable selling cost… Net SalesNet sales is what remains after returns, cancellations and discounts are deduc… Payment Processing CommissionPayment processing commission is the percentage a virtual POS or payment provi… Product Profitability MatrixA product profitability matrix is a table that places every item in the catalo… Sales Tax NexusSales tax nexus is the connection that creates an obligation for a business to… Supplier Payment TermsSupplier payment terms are the number of days between receiving goods and payi… Transfer PricingTransfer pricing is the setting of the price applied to purchases and sales of… Unit EconomicsUnit economics is the end-to-end calculation of what a single order or a singl… VAT RefundA VAT refund is the repayment to the taxpayer of value added tax incurred on V… Working CapitalWorking capital is the cash needed to keep day-to-day operations running. It i…
Legal · 10 terms
Logistics · 6 terms
Marketplace · 16 terms
Barcode MatchingBarcode matching is the work of making sure the barcode values in a seller's c… Campaign Participation FeeThe campaign participation fee is the discount obligation a marketplace requir… Catalog QualityCatalog quality is the score measuring how complete and accurate the informati… Fast Delivery BadgeThe fast delivery badge is a marketplace mark showing that a product will be h… Featured VariantThe featured variant is the one variant in a product group that is surfaced in… Handling TimeHandling time is the maximum period allowed for the seller to hand an order ov… Listing OptimizationListing optimization is the work of arranging product title, bullet points, de… MarketplaceA marketplace is a system where multiple sellers sell through the same platfor… Marketplace Commission RateCommission rate is the percentage a marketplace takes from every sale. In Turk… Marketplace Search RankingMarketplace search ranking is the order in which products are listed for a que… Product MatchingProduct matching is the process of merging a listing uploaded by the seller wi… Seller RatingSeller rating is the marketplace's measure that collects store performance int… Seller ScoreSeller score is how marketplaces rate a seller on delivery speed, cancellation… Sponsored ProductA sponsored product is an ad format shown in the top positions of on-site mark… Tag Optimization (Etsy)Tag optimization is filling the limited number of tag fields on Etsy listings … Variant ManagementVariant management is grouping options of the same product such as color, size…
Measurement · 15 terms
A/B TestingAn A/B test shows two versions to different visitors at the same time and meas… Attribution WindowThe attribution window is the period over which a click or a view can be credi… Control GroupA control group is a set of users deliberately held out from an ad, an email o… Conversions API (CAPI)Conversions API is a method that sends conversion data to the ad platform dire… Data-Driven Attribution (DDA)Data-driven attribution is an attribution model where credit is calculated by … Event Match QualityEvent match quality is a 1–10 score showing how well the conversion data you s… Event ParameterAn event parameter is the detail attached to an event sent to the measurement … First-Click AttributionFirst-click attribution is an attribution model that gives credit for a conver… Funnel AnalysisFunnel analysis measures the rate at which users complete the steps of a proce… GA4GA4 (Google Analytics 4) is Google's event-based analytics platform. What sepa… Incrementality TestingAn incrementality test is an experiment that measures the sales an ad investme… Last-Click AttributionLast-click attribution is an attribution model that gives credit for a sale to… Media Mix Modeling (MMM)Media mix modeling is a measurement method that statistically models the relat… Multi-Touch AttributionMulti-touch attribution is an approach that splits credit for a sale across ev… Server-Side TrackingServer-side tracking is a setup that passes user data to ad and analytics plat…
Metric · 8 terms
Metrics · 1 terms
Operations · 17 terms
ABC AnalysisABC analysis is the separation of products into three groups by their contribu… Barcode (GTIN)A barcode is a scannable number that identifies a product uniquely. The common… Contract ManufacturingContract manufacturing is having a product made in someone else's factory unde… Dead StockDead stock is product that has not sold for a long time and is unlikely to. It… Defect RateDefect rate is the percentage of units sold that turn out to be faulty. The di… Inventory Count AccuracyInventory count accuracy is the rate at which the stock quantity in your syste… Inventory TurnoverInventory turnover shows how many times a year stock sells through and is repl… Lead TimeLead time is the total elapsed time from placing an order with a supplier to t… Lot (Batch) TrackingLot tracking is following products from the same production or import batch un… Minimum Order Quantity (MOQ)MOQ is the smallest order quantity a supplier will accept for a given product.… Order Fulfillment RateOrder fulfillment rate is the percentage of incoming orders completed without … OversellingOverselling is selling a product that is not in stock. It comes from a delay i… Reorder PointThe reorder point is the threshold at which a new order has to be placed once … SKU (Stock Keeping Unit)An SKU is the unique internal stock code a business assigns to every sellable … SKU (Stock Keeping Unit)An SKU is the code that identifies a product variant uniquely inside the busin… Safety StockSafety stock is the buffer quantity held against demand swings and supply dela… Sampling ProcessThe sampling process is the stage where sample products are obtained from the …
SEO · 18 terms
AI Visibility (GEO)AI visibility is a brand being mentioned and cited as a source in the answers … Canonical TagA canonical tag is the signal that tells a search engine which of several URLs… Crawl BudgetCrawl budget is the number of pages a search engine will crawl on your site in… Google Business ProfileGoogle Business Profile is a business's official record in Google Search and M… Internal LinkingAn internal link is a link from one page on your site to another. It both guid… Keyword CannibalizationCannibalization is several pages on your own site competing against each other… Keyword ResearchKeyword research is the work of establishing which words the target audience a… Local PackThe local pack is the map and the box of three businesses that appears above G… Long-Tail SearchesLong-tail searches are specific queries, usually longer than three words, that… Map RankingMap ranking is the position a business appears in when a search is made on Goo… NAP ConsistencyNAP (Name, Address, Phone) consistency is writing the business name, address a… Programmatic SEOProgrammatic SEO is the automatic production of large numbers of search-focuse… SitemapA sitemap is the file that presents the list of a site's pages to search engin… Structured Data (Schema)Structured data is the markup that describes a page's content in a form search… Technical SEOTechnical SEO is the infrastructure work that lets search engines crawl and in… Topic ClusterA topic cluster is a main topic page (the pillar) and its supporting subtopic … llms.txtllms.txt is a plain-text file that summarises what a site is and its most impo… robots.txtrobots.txt is the file that states which bot may crawl which part of a site. I…
Social · 10 terms
TikTok · 1 terms
Web · 5 terms
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