How many times have you been reading something related to eCommerce and you’ve been lost because of all the acronyms that are plastered all over the page? eCommerce at first glance appears to be a real head-scratcher because of all the acronyms, but once you break them down, it becomes much easier to understand. We’ve compiled a list of some of the most common acronyms and their respective definitions, to help make the world of ecommerce a not-so-scary place for all of us.
Average Order Value tracks the average dollar amount spent each time a customer places an order on a website or mobile a pp. To calculate your company’s average order value, simply divide total revenue by the number of orders. Related: Increasing your Average Order Value
Cost Per Click is factored into how much the advertiser bids on specific keywords and the relevancy of the ad to the landing page destination
Customer Relationship Management is a term that refers to practices, strategies and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle, with the goal of improving business relationships with customers, assisting in customer retention and driving sales growth. Related: The Power of CRM for B2C in eCommerce and Retail
A Card Security Code is a security feature for payment card transactions instituted to reduce the incidence of credit card fraud. The CSC is in addition to the bank card number which is embossed or printed on the card.
Inventory Management Software is a software system for tracking inventory levels, orders, sales and deliveries. Related: Inventory Management
An Internet Protocol address (IP address) is a numerical label assigned to each device connected to a computer network that uses the Internet Protocol for communication.
An Internet Service Provider is a company that provides subscribers with access to the Internet.
Key Performance Indicator is a set of quantifiable measures that a company uses to gauge its performance over time. These metrics are used to determine a company’s progress in achieving its strategic and operational goals, and also to compare a company’s finances and performance against other businesses within its industry. Related: 25 KPIs to Grow Your Business
An Order Management System is an electronic system developed to execute securities orders in an efficient and cost-effective manner. Brokers and dealers use OMSs when filling orders for various types of securities and are able to track the progress of each order throughout the system Related: OMS is an Omnichannel Imperative
Rate of Return is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost.
The listing page a user is directed to when performing a search on a search engine such as Google, Bing or Yahoo.
Search Engine Optimization is strategies, techniques and tactics used to increase the amount of visitors to a website by obtaining a high-ranking placement in the search results page of a search engine. Related: 9 Magento Tips for Your eCommerce Site
Search Engine Marketing is a form of Internet marketing that involves the promotion of websites by increasing their visibility in search engine results pages (SERPs) through paid advertising. Related: SEM Budget Planning for the Holidays
A Service Level Agreement is a contract between a service provider and the end user that defines the level of service expected from the service provider.
Don’t you feel better already? Knowing these popular terms helps simplify the world of eCommerce and makes it much more understandable for all of us. Next time you’re discussing eCommerce with somebody, you’ll be sure to sound to pro!