eCommerce Glossary - Build Your Store

eCommerce Glossary of Terms

Understanding key terms and metrics is essential for success in the eCommerce landscape.
These insights will guide you on where to focus your efforts as you grow your business.

A
A/B Testing AI
AI-driven A/B testing uses algorithms to test multiple versions of a page, product description, or ad automatically. It identifies the highest-performing variation faster than manual methods, helping optimize conversion rates.
Abandoned Cart Email
An automated follow-up email sent to customers who added items to their cart but didn’t complete checkout. It’s one of the most effective eCommerce strategies for recovering lost revenue.
AI Ad Creatives
AI-powered tools that generate ad copy, visuals, and even video ads automatically. They allow sellers to quickly test variations and improve campaign performance.
AI Copywriting
The use of artificial intelligence to create written content like product descriptions, landing pages, and blogs. It speeds up production while ensuring the content is persuasive and SEO-friendly.
AI Dropshipping
The integration of artificial intelligence tools and software into the standard dropshipping business model to automate, streamline, and optimize various tasks. Read Full Description
AI Name Generator
An AI-based tool that suggests creative, brandable business or store names. Many also check domain and social handle availability to streamline the branding process.
AI Product Descriptions
Automatically written product descriptions created by AI to be engaging, keyword-rich, and optimized for conversions. They save time while maintaining a professional tone.
AI Sales Funnel Builder
AI-powered software that creates and optimizes complete sales funnels, from landing pages to checkout. It ensures a smoother customer journey and higher conversion rates.
AI Shopping Assistant
An intelligent digital tool that uses artificial intelligence (AI) to help customers throughout their online (and sometimes in-store) shopping journey. Unlike basic, rule-based chatbots, these assistants leverage technologies like natural language processing (NLP), machine learning (ML), and generative AI to understand user intent, provide personalized recommendations, and guide the purchase process in a human-like, conversational […]
AI Store Builder
A platform that uses AI to build fully functional eCommerce or Shopify stores in minutes. It usually comes preloaded with products, designs, and optimized layouts.
AI Theme Detector
A tool that scans Shopify stores to reveal which theme is being used. It helps entrepreneurs replicate design ideas from successful competitors.
AI UGC Generator
Artificial intelligence that produces user-generated content style ads like reviews, testimonials, or influencer-like videos. It allows brands to create authentic content without hiring creators.
AliExpress Dropshipping
A dropshipping model where products from AliExpress are listed on a store and only purchased when a customer orders. The supplier ships directly to the buyer, eliminating inventory and storage costs.
AutoDS
An automation platform for dropshipping that manages product imports, fulfillment, order tracking, and store creation. It’s designed to save time and simplify scaling. Read Full Description
Average Order Value (AOV)
A metric showing the average amount customers spend per transaction. Increasing AOV through upselling, bundles, or free shipping thresholds is a key profitability strategy.
B
BigCommerce
A leading eCommerce platform similar to Shopify, offering store creation, payment integration, and scalability for growing businesses. Read Full Description
Bounce Rate
The percentage of visitors who leave a website after viewing only one page. A high bounce rate often signals poor content or design issues.
Break-Even ROAS
The Return on Ad Spend (ROAS) at which advertising campaigns neither lose nor make money. It’s critical for measuring ad efficiency.
C
Cart Abandonment
When a customer adds items to their cart but does not complete the purchase. Reducing cart abandonment is key to increasing revenue.
Chatbot
An AI-powered virtual assistant that communicates with customers via chat. It improves support, answers FAQs, and can help with product recommendations.
ChatGPT
A conversational AI model developed by OpenAI, widely used for generating content, answering queries, and automating communication. Read Full Description
Checkout Process
The steps customers take to complete a purchase. A streamlined checkout reduces friction and increases conversion rates.
Churn Rate
The percentage of customers who stop purchasing over a given time. It’s a vital metric for subscription-based eCommerce businesses.
Claude AI
Claude AI is a conversational AI developed by Anthropic that helps ecommerce sellers draft product descriptions, summarize feedback, and analyze reports efficiently. Read Full Description
Conversion Funnel
The journey customers take from awareness to purchase. Optimizing each stage of the funnel improves sales performance.
Conversion Rate
The percentage of visitors who complete a desired action, like making a purchase. Higher conversion rates equal more sales with the same traffic. Read Full Description
Cross-Selling
A sales technique where related products are suggested to customers. It increases order value and enhances the customer experience.
CTR (Click-Through Rate)
The percentage of users who click on an ad or link compared to total impressions. It measures ad or copy effectiveness. Read Full Description
Customer Acquisition Cost (CAC)
The average cost to acquire one customer through marketing or sales activities. Keeping CAC low is crucial for profitability.
Customer Journey Mapping
The process of visualizing each step a customer takes with a brand. It helps optimize touchpoints for a better experience.
Customer Lifetime Value (CLV)
The total revenue a business expects from a customer during their relationship. Increasing CLV is key to long-term growth.
Customer Support Automation
The use of AI and software to handle customer service tasks like FAQs, refunds, or chat responses. It reduces workload while improving response times.
D
DeepSeek
DeepSeek is a reasoning-focused AI LLM that helps analyze data, generate code, and support technical tasks for ecommerce sellers. Read Full Description
Dropshipping
An eCommerce model where the store doesn’t hold inventory. Instead, products are shipped directly from suppliers to customers.
Dynamic Pricing AI
Artificial intelligence that adjusts product prices in real time based on demand, competition, or stock. It helps maximize profit margins.
E
E-Commerce
The buying and selling of goods or services online. It’s the foundation of platforms like Shopify and BuildYourStore.ai.
Email Marketing
The use of email campaigns to nurture leads, promote products, and increase sales. It remains one of the highest ROI marketing channels.
ePacket Shipping
A low-cost shipping option from China, widely used in dropshipping. It offers relatively fast delivery compared to other methods.
F
Facebook Ads
Paid advertising on Facebook and Instagram that helps businesses reach targeted audiences. It’s one of the main traffic sources for dropshipping stores. Read Full Description
Fiverr
Fiverr is a global online marketplace that connects businesses and individuals with freelancers offering digital services. Read Full Description
Fulfillment
The process of receiving, packaging, and shipping customer orders. In dropshipping, fulfillment is handled by the supplier.
G
Generative AI
AI that can create content, such as text, images, or videos. In eCommerce, it powers store design, copy, and product descriptions. Read Full Description
Generative Search Optimization (GSO)
Optimizing content for AI-driven search results like Google AI Overviews. It’s the next frontier of SEO.
Ghost Commerce
Ghost commerce is a business model where products are sold online without the seller holding or managing any physical inventory. Instead, it uses digital marketing to promote products sold by third parties, often through methods like dropshipping, affiliate marketing, or white labeling.
Google AI Overviews (AIO)
Google’s generative AI summaries that appear in search results. They pull key answers from multiple websites.
Google Analytics 4 (GA4)
Google’s analytics platform for tracking traffic, behavior, and conversions on websites and stores.
Google Gemini
Google Gemini is Google’s multimodal AI system that processes text, images, audio, and video, helping ecommerce sellers improve content, insights, and customer experience. Read Full Description
Google Shopping Ads
Product-based ads that display in Google search with images, prices, and store links. They’re essential for eCommerce growth.
H
Heatmap Tool
A visualization tool showing where users click, scroll, or focus on a webpage. It helps optimize design for conversions.
Hero Section
The top section of a homepage that usually contains the headline, image, and call-to-action. It’s critical for grabbing visitor attention.
I
Influencer Marketing
Partnering with influencers to promote products through authentic content. It drives trust and brand awareness. Read Full Description
Inventory Management
The process of tracking stock levels, sales, and supplier orders. Effective inventory management prevents overselling or stockouts.
J
Just-in-Time Inventory (JIT)
A supply chain strategy where products are ordered and received only when needed. It reduces inventory costs but requires reliable suppliers.
K
Key Performance Indicators (KPIs)
Metrics used to measure business success, like revenue, traffic, or customer acquisition.
Keyword Research
The process of finding search terms customers use. It drives SEO strategy and helps target relevant audiences.
L
Landing Page
A standalone page designed to capture leads or drive sales. In eCommerce, it’s often optimized for a single product or offer.
M
Machine Learning (ML)
A type of AI that allows systems to learn from data and improve performance without explicit programming. Read Full Description
Merchant Account
A type of bank account that allows businesses to accept credit card payments.
Meta Description
The short snippet displayed in search results under a page title. It impacts SEO and click-through rate.
Meta Title
The headline displayed in search engine results. It’s critical for SEO and enticing clicks.
Mobile Commerce (M-Commerce)
Shopping and transactions completed via mobile devices. Mobile optimization is essential for modern stores.
N
Native Advertising
Native advertising is a paid media format designed to match the look and feel of the platform it appears on, blending seamlessly with content. Read Full Description
Natural Language Processing (NLP)
AI technology that enables machines to understand human language. It powers chatbots, search, and content creation.
O
Off-Page SEO
SEO efforts made outside a website, like backlinks, guest posts, or PR.
Omnichannel Commerce
A sales approach that provides customers with a seamless experience across channels—online, in-store, and mobile.
On-Page SEO
SEO practices applied directly on a webpage, such as headings, content, and meta tags.
Order Automation
Software that automates the processing and fulfillment of online orders. It reduces manual work and errors.
P
Payment Gateway
A service that processes payments between a store and customers. Examples include PayPal and Stripe.
Point of Sale (POS)
A system that allows stores to process payments in person. Shopify POS connects online and offline sales.
Predictive Analytics
The use of data and AI to predict future customer behavior. It helps optimize marketing and inventory decisions.
Print on Demand (POD)
A dropshipping model where custom products like t-shirts or mugs are printed only after a customer orders.
Private Label Dropshipping
A model where dropshippers sell products branded with their own logo. It adds exclusivity and brand value.
Product Image Optimization
The process of compressing and improving product photos for speed, SEO, and conversions.
Product Importing Tool
Software that allows store owners to quickly add products from marketplaces like AliExpress.
Product Page
A webpage dedicated to showcasing one product with images, details, and a buy button.
Product Research Tool
A tool that helps identify trending or “winning” products for dropshipping.
Profit Margin
The percentage of revenue left after costs are deducted. Higher profit margins indicate healthier business.
Q
Q4 Sales (Holiday Season)
The peak sales period (October–December) for eCommerce. Black Friday and Christmas drive massive revenue.
QR Code Payments
A payment method where customers scan a code with their phone to complete checkout. It’s quick and mobile-friendly.
R
Responsive Design
Web design that adapts to all screen sizes, from desktop to mobile. It’s essential for user experience and SEO.
Retargeting
Advertising that targets users who have already interacted with a brand but didn’t purchase. It’s a high-ROI ad strategy.
Return on Ad Spend (ROAS)
A metric that measures revenue earned for every dollar spent on ads.
Return Policy
The rules and procedures for customers returning items. Clear policies build trust and reduce disputes.
S
Search Console
A free Google tool that monitors a website’s performance in search results.
Search Engine Optimization (SEO)
The process of optimizing a website to rank higher on search engines.
Secure Sockets Layer (SSL Certificate)
A security feature that encrypts data and provides the HTTPS padlock on websites.
SERP (Search Engine Results Page)
The page users see after searching on Google or another engine.
Shipping Carrier
Companies like FedEx, DHL, and USPS that handle product delivery.
Shopify
A leading eCommerce platform allowing users to build and scale online stores. Read Full Description
Shopify AI Store Builder
Shopify’s built-in AI tool that generates complete stores from keywords. Can also refer more generally to store builders which create a Shopify store.
Shopify App Store
A marketplace of third-party apps to extend Shopify’s functionality.
Shopify Bundles App
A Shopify app that allows sellers to offer product bundles.
Shopify Collabs
A tool for connecting Shopify merchants with influencers and creators.
Shopify Dropshipping
Using Shopify to build a store that fulfills orders via dropshipping suppliers.
Shopify Flow (Automation)
An automation tool for Shopify Plus that simplifies workflows and tasks.
Shopify Payments
Shopify’s built-in payment gateway.
Shopify Plus
Shopify’s enterprise-level solution with advanced customization.
Shopify POS
Shopify’s point of sale system for in-person retail.
Shopify Theme
The design template of a Shopify store.
Shopify Theme Store
Shopify’s marketplace for free and premium themes.
SMS Marketing
Text message campaigns used to promote sales or recover carts.
Social Commerce
A subset of ecommerce that involves selling products and services directly through social media platforms. It allows consumers to discover, research, and purchase items within the social media app, streamlining the buying experience by keeping the entire transaction on the platform.
Storefront Design
The overall look and layout of an online store.
Supplier Directory
A database of suppliers that dropshippers can source products from.
T
Technical SEO
Website optimizations like site speed, schema, and crawlability.
TikTok Ads
Paid ads on TikTok to reach targeted audiences with short-form video.
Tracking Number
A code provided by carriers so customers can follow their order status.
Trust Badges
Visual icons like “Secure Checkout” that build trust during checkout.
U
Upselling
Encouraging customers to purchase higher-end products or upgrades.
User Generated Content (UGC)
Content created by customers or users, such as reviews, photos, or videos. Read Full Description
V
Voice Commerce AI
Technology that enables shopping via voice assistants like Alexa.
W
White Label Dropshipping
A dropshipping model where products are sold under a supplier’s standard branding.
Winning Product
A trending product with proven high demand and sales potential.
WooCommerce
A WordPress plugin that enables eCommerce functionality.
Y
Year-over-Year (YoY)
A metric that compares business performance over the same period in consecutive years.
Yotpo
A Shopify app offering reviews, loyalty programs, and UGC solutions.
Z
Zik Analytics
A research tool for dropshippers that helps find winning products, analyze competitors, and track trends.
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