Ecommerce Glossary

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301 Redirect

A 301 redirect is what you use when a page has been moved, and the old URL shouldn’t be used anymore.

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.

Add to Cart Rate

Add to cart rate shows percentage of product page visitors who add an item to their cart. It shows whether shoppers are interested in a product, even if they don’t complete a purchase. Viewing a product shows interest. Adding it to the cart shows intent.

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

B2B eCommerce

B2B eCommerce (business-to-business eCommerce) is when one business sells products or services to another business through an online store or system. It is built for business buyers and usually supports bulk orders, repeat purchases, and customer-specific pricing.

B2C eCommerce

B2C eCommerce is when companies sell goods or services straight to individual shoppers online.

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.

Bundle Builder

A bundle builder allows shoppers to put together several products and buy them as one bundle. Instead of choosing a pre-made set, the shopper decides what’s included.

Bundle Rate

Bundle rate shows how often shoppers buy products as a bundle rather than individually. It looks at what portion of all orders include a bundled item.

Buy Now Button

A Buy Now button lets shoppers skip the cart and move straight to checkout for a product. It removes extra steps, which helps people complete purchases faster—especially on mobile.

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

Call to Action (CTA)

A call to action is a prompt that guides visitors toward the next step. It can be a button or a short phrase, like Add to Cart, Checkout, or View More.

Canonical URL

A canonical URL is the version of a page you want search engines to treat as the main one.

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.

Churn Rate

Churn Rate (CR) is the percentage of customers who stop buying from a business during a specific period. In ecommerce, churn applies to both one-time and repeat purchases, not just subscriptions.

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.

Cross-Selling

Cross-selling is when a store suggests related products to add to a shopper’s main purchase. The original product stays the same, and the extra items are optional.

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.

D

Dropshipping

Dropshipping is an ecommerce fulfillment method where a store sells products without keeping inventory. When a customer places an order, the store purchases the item from a third-party supplier, who ships it directly to the customer.

E

Engagement Rate

Engagement rate measures how actively shoppers interact with a website rather than just viewing pages. This includes actions such as product browsing, link clicks, and interactions with on-site elements.

Express Checkout

Express checkout is a checkout option that lets shoppers complete a purchase faster by using saved payment and shipping details.

G

Guest Checkout

Guest checkout is an option that lets shoppers complete a purchase without creating an account. Customers enter only the information needed to place the order and receive confirmation, then finish checkout without signing up.

L

Landing Page

A landing page is a page created to get visitors to take one specific action. That action could be buying a product, signing up, or filling out a form.

M

Mobile Optimization

Mobile optimization is the process of designing and optimizing a website, so it works smoothly on smartphones, not just visually, but in how it loads, reads, and responds to touch.

Mobile-First Design

Mobile-first design is a design approach where a website is planned around phone screens first. Pages, content, and actions are decided with mobile in mind before anything is adapted for larger screens.

O

One-Click Upsell

A one-click upsell appears after an order is placed. The customer can add the item instantly without going through checkout again.

One-Page Checkout

A one-page checkout completes the entire checkout process on a single page.

One-Time Offer (OTO)

A One-Time Offer (OTO) is a special offer shown to a shopper only once during an online purchase. If the shopper says no, the same offer does not appear again later.

Online Marketplace

An online marketplace works much like a shopping mall online where separate sellers run their own shops, but everything is listed and sold on the same website.

P

Payment Gateway

A payment gateway acts as the bridge between the checkout page and the financial institutions involved in a transaction. It securely transfers payment information so the processor and bank can confirm whether the charge is approved.

Product Bundle

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

Product Detail Page (PDP)

A Product Detail Page (PDP) is the web page that shows information about one product. It shows product images, price, description, options like size or colour, add to cart button, and/ or buy now button.

Product Discovery

Product discovery is the process by which shoppers find, explore, and evaluate products in an online store. It includes all experiences that help customers move from intent or curiosity to identifying the right product for their needs.

Product Listing Page

A Product Listing Page (PLP) displays groups of products by category, search results, or promotions to support browsing and comparison.

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.

Revenue per Visitor (RPV)

Revenue per Visitor (RPV) is a metric that measures how much revenue is generated per visitor, combining the effects of conversion rate and order value.

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.

S

Shopify Collections

Collections in Shopify are curated sets of products that make navigation and shopping simpler for users. Think of them as folders or shelves that organize items by category, style, or season.

Shopping Cart

A shopping cart is an online tool that holds selected products and allows customers to review and modify their order before checkout.

Size Guide

A size guide is a reference that explains how a product fits, so customers can pick the correct size. A size guide helps shoppers to select the right size before purchasing a product. It is used for apparel, footwear, and other items where fit matters. Its main purpose is to reduce uncertainty when shoppers are deciding which size to select.

U

Upsell Funnel

An upsell funnel is a step-by-step way a store shows slightly better or more expensive options while someone is buying. Each option is shown at a specific point, so the buyer is not shown everything at once. It means showing better product options one step at a time as someone moves through checkout.

Upselling

Upselling means encouraging someone to choose a product with higher-value and better quality they already want. The original product is replaced with a better one that offers more features, quantity, or benefits.

User Experience

User experience (UX) is how easy or difficult an ecommerce website is to use. It includes how fast pages load, how easy it is to find products, and how smoothly shoppers can move from browsing to checkout.

User Interface

User Interface (UI) refers to the visual elements of a website or app that users interact with.It includes buttons, menus, text, images, and how everything is placed on the page.

W

Wishlist

A wishlist is a tool that allows shoppers to save products they like. People use it when they’re not ready to buy but want to come back later without searching again.

Z

Zero-Party Data

Zero-party data is information a customer deliberately shares with an online store, such as preferences, sizing details, or buying intent. This data is provided directly by the customer, usually by answering questions or choosing options during their shopping experience.