Understanding ecommerce terminology can be daunting – especially for newcomers to the online retail scene!
Staying informed about the latest trends and technologies is crucial for success. Whether you’re a seasoned ecommerce entrepreneur or just dipping your toes into the digital marketplace, understanding key ecommerce terminology is essential. In this blog post, we’ll decode some of the most important terms you need to know, to thrive in the world of online retail.
Ecommerce
Let’s start with the basics. Ecommerce, short for electronic commerce, refers to the buying and selling of goods or services over the internet. It encompasses a wide range of activities, including online retail stores, digital marketplaces, and online auctions.
Explore our blog post “Our top five tips on mastering ecommerce,” for more insights.
SEO
SEO – “Search Engine Optimisation” – is the process of optimising your website to improve its visibility and ranking in search engine results. By optimising your site for relevant keywords and creating high-quality content, you can attract more organic traffic and increase your chances of converting visitors into customers.
Discover how Little Big Shop can track your SEO by integrating with Google Tag Manger.
Learn all about the basics of SEO with Semrush!
Click-Through Rate (CTR)
CTR, also known as the “click-through rate,” measures the percentage of people who click on a specific link or advertisement after seeing it. It’s commonly used in email marketing, online advertising, and search engine marketing campaigns to gauge the effectiveness of marketing efforts, and what customers want more of.
Conversion Rate
Conversion rate refers to the percentage of website visitors who take a desired action, such as making a purchase or signing up for a newsletter. Monitoring and optimising your conversion rate is essential for maximising the effectiveness of your ecommerce efforts.
Conversion Rate Optimisation (CRO)
CRO is the process of improving the percentage of website visitors who take desired actions, such as making a purchase or signing up for a service. It involves analysing user behaviour, formulating hypotheses for improvement, and testing different variations to identify the most effective strategies for increasing conversions. By continuously refining and optimising elements of a website, CRO aims to maximise its ability to convert visitors into customers or leads.
Shopping Cart Abandonment
Shopping cart abandonment occurs when a visitor adds items to their online shopping cart but leaves the website without completing the purchase. Understanding the reasons behind cart abandonment and implementing strategies to reduce it can help improve your ecommerce conversion rates.
Secure Sockets Layer (SSL)
SSL refers to a security protocol that encrypts data transmitted between a user’s web browser and a website’s server. Implementing SSL on your ecommerce website helps protect sensitive customer information, such as credit card numbers and personal details, from unauthorised access.
Your Little Big Shop is secured with SSL. Discover more about SSL and just how secure we are, here.
B2B
B2B refers to business-to-business transactions where goods, services, or resources are exchanged between two businesses. It includes direct sales, supply chain transactions, partnerships, procurement, and wholesale distribution. B2B transactions often involve longer sales cycles, larger order volumes, and a focus on building strong relationships and trust between business partners. If you’re a business owner buying stock from an external supplier, you are engaging with a B2B business.
B2C
B2C, short for business-to-consumer, describes the direct exchange of goods or services from businesses to individual consumers. It encompasses a wide range of industries including retail, e-commerce platforms, and service providers catering directly to personal needs. B2C transactions typically involve marketing efforts aimed at appealing to the preferences and desires of individual customers. A B2C business is what we would engage with as customers using an ecommerce site.
Omnichannel
Omnichannel retailing involves providing a seamless shopping experience across multiple channels, including online stores, physical retail locations, mobile apps, and social media platforms. By integrating various channels, retailers can offer customers greater flexibility and convenience in how they shop.
By familiarising yourself with these essential ecommerce terms, you’ll be better equipped to navigate the digital landscape and make informed decisions for your online business. Whether you’re optimising your website for search engines, fine-tuning your marketing campaigns, or streamlining your fulfilment processes, understanding ecommerce terminology is the first step towards ecommerce success. Stay tuned for more insights and tips to help you thrive in the exciting world of online retail!
