Ecommerce Glossary

A

A/B Testing

A/B testing is a method of comparing two versions of a product, webpage, or feature to determine which one performs better by showing each version to a random segment of users and measuring their responses.

Abandoned Cart

An abandoned cart happens when a shopper adds items to their cart but leaves before completing the purchase. They showed interest, but something stopped them from checking out.

Average Order Value (AOV)

Average Order Value (AOV) is the average amount spent per order. A higher AOV means customers are buying more items or choosing higher-priced products.

B

Bounce Rate

Bounce Rate is the percentage of visitors who leave your site after viewing only one page. A high bounce rate usually means people didn’t find what they expected, or the page didn’t give them a reason to stay.

Buy Now, Pay Later (BNPL)

Buy Now, Pay Later (BNPL) lets shoppers get a product now and pay for it in small payments over time. They don’t have to pay the full amount upfront.

C

Cart Abandonment Rate

Cart Abandonment Rate is the percentage of people who put something in their cart but don’t go through with the purchase. When this number is high, it usually means something in your checkout is confusing, slow, or pushing customers away.

Click-Through Rate (CTR)

Click-Through Rate (CTR) shows the percentage of people who clicked your link, ad, or button after seeing it. The higher the score, the more your message stood out.

Conversion Rate (CVR)

Conversion Rate (CVR) is the percentage of visitors who complete a desired action — whether that’s buying, subscribing, or sending in a form. It’s a helpful way to see how good your site or campaign is at turning visitors into customers.

Cost Per Acquisition (CPA)

Cost Per Acquisition is the amount you spend to get one customer or one conversion. It shows the real cost of turning a click or visit into a sale.

Customer Lifetime Value (CLV / LTV)

Customer Lifetime Value (CLV / LTV) is the total money a customer is likely to spend in your store over time. It shows how valuable one customer is across all their future orders, not just the first one.

P

Product Bundle

A product bundle groups multiple items into one deal so customers can buy everything they need at once, usually for less.

R

Retargeting / Remarketing

Retargeting / Remarketing means showing ads to people who visited your store but left without buying.It displays your products back in front of shoppers who already showed interest.

ROAS (Return on Ad Spend)

Return on Ad Spend (ROAS) shows how much money you earn for every dollar you spend on ads. A higher ROAS means the ad is working well and making a profit. If it’s low, the ads are not bringing in enough money to cover their cost and need to be fixed.