May 30, 2024

The number of terms used in the world of ecommerce that it’s easy to get lost. If you plan to launch an online store, don’t let these terms bring you off your feet. This video will explain an overview of some crucial terms in e-commerce and what they refer to.

Video transcript: CPC, fulfillment, retargeting. Huh? If you’ve begun to dip your toes in the e-commerce market, you’ve likely seen this term before. It’s initially unclear. You search for one word. Then you search for another. One tab is transformed into 100. Then, before you realize it, you’ve shut down everything and are back on YouTube and watching your favorite drama channels.

I don’t believe that viewers are watching drama channels, only me. You’re back on YouTube and watching hilarious fails. I hope that people continue to watch funny videos. I’m sure they do. It’s happened to us all.

However, you’re in luck. Instead of forcing you to establish yourself, We’ve put together the following list of the most commonly used and well-known e-commerce terms you must know to begin.

Today, you’ll learn about two kinds of terms. The first will be general terms in e-commerce. You must learn to navigate online courses, tutorials, and your most-loved dropshipping YouTube tutorials.

Additionally, you’ll learn about the terms used in online marketing, which are essential if you’re looking to learn how to best make your brand visible to your customers online. Are you interested in learning what they didn’t teach the students in English class? Let’s get started.

Before I dive into the jargon, I must note something important.

Of course, I will only be able to go over some of the terms you must know about.

But I’ll explain the most well-known ones. The ones where are required to use for navigating YouTube tutorials, courses, and videos without needing to open more than 100 tabs.

Hello, my name’s Magda, and I’ve been with Oberlo for some time. I’ve helped hundreds of sellers, which means that I’ve described a variety of eCommerce terms. There could be thousands if you’re honest.

Therefore, I’ve created a list of terms in the e-commerce industry, which I discovered that novices were the ones most confused about. These fundamentals will assist you in getting the most out of your website and the web to ensure success.

General Ecommerce Terms

We’ll begin by introducing some terms you’d find in your administrator. The Shopify administration is your “back office. It’s where you operate your company from.

When your business is going, You will have to fill specific orders.

What is “fulfillment refer to?

It all depends on the kind the business you’re operating. If you’re using a dropshipping company, fulfillment is visiting your dropshipping software like Oberlo, for example, and placing the order with your supplier, which then packages and delivers the item to your customer.

However, if you package and sell your items and you can fulfill orders, it could be the result of you personally accepting an order online, packaging the products, and then shipping the order to your customer’s doorstep.

Profit Margin

The following ecommerce term is crucial to understand. It’s called margin, also known as what you call your profits margin. Profit margin is the amount a consumer pays for the item and what the product costs.

For instance, if you’re dropping shipping, the item’s price is the amount you pay the supplier. For example, an animal leash may cost you $5 from the vendor. However, if you post the item on your website for sale and then sell it for $20, that difference of $15 represents your profit margin. This is extremely important to be aware of.

Average Order Value (AOV)

The second phrase is AOV or AOV, which stands for Average Order Value. It is the average amount a client spends at your shop. The formula is simple.

It’s the sum of sales revenue multiplied by the total number of orders.

If you’re only beginning your journey, you won’t know the advantages of a typical order value. But ecommerce professionals who have been around for a while recognize that once a visitor is on your website, they are more likely to purchase another product, thus increasing the average value of their order.

Getting a new client to your door is more expensive than adding to an existing customer’s purchase. If you can increase the average value of your orders, it will be much easier to earn more over the long term.

Landing Page

The following e-commerce word to understand is the landing page. The landing page is the one that you can send a client. If you’re starting and considering, “Well, wouldn’t I just send the customer to my home page?” No.

Usually, you’ll want to send your client to a particular website for the product.

There are many different strategies for e-commerce available. Directing them to an online store with a selection of items or a particular promotional offer is possible. The landing page, however, is deliberate and not always the main page.

Bounce Rates

After removing the page that people are on and onto the subject of bounce rates. The bounce rate is the percentage of customers who leave your site after viewing only one page.

The bounce rate for the entire ecommerce market is 41 to 55 percent.

It’s a lot of people. Don’t get discouraged when you see some numbers within this interval. The ideal bounce rate to aim for to increase your profits is between 25 and 40 percent for people.

If you’re wondering what causes people to leave an online page, think about your experiences with e-commerce. Have you ever had a moment when you went to an online store and got a pop-up that asked you to sign up to send an email, and then an ad for a chat with a Facebook messenger chat followed by another pop-up with timers, and thought, “Woah, woah, woah. I need to leave”? It’s probably happened to you.

When you’ve got your E-commerce shop, you check it like a potential customer would. The customer will go elsewhere if anything needs to be more precise or take their attention.


You’re likely to hear the next term in e-commerce every day, and that’s conversion. Conversion is the process that transforms the user into a buyer.

It’s crucial to remember that this doesn’t necessarily refer to an investment transaction.

In ecommerce, it is natural that you’d think that a person who becomes a client buys something, and usually, that’s the situation. However, a conversion could be someone who signs up for your newsletter via email. It could be a conversion if people sign up to receive your ebook or course.

You might be thinking, what’s in the name of all that? I manage an online shop. I’m looking for sales. You indeed have to. Who doesn’t? If you’ve gained a new customer in one area of your company, it’ll be much simpler to keep trying to transform them until it’s turned into an actual sale. Therefore, pay attention to this.

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