eCommerce abbreviations and terms explained

This article explains abbreviations and terms that frequently appear in conversations and articles about eCommerce.

Common eCommerce abbreviations

People working in eCommerce often use the following abbreviations. Here is what each one means and how it relates to an online store.

1. ERP: Enterprise Resource Planning

An ERP is the business system at the centre of a company's operations. It stores and processes product information, including names, technical specifications, purchase costs, selling prices, stock levels and sales data.

In eCommerce, the term often comes up when discussing integration between an ERP and an online store. Product data is usually sent from the ERP to the store, while new order data travels in the opposite direction.

2. CMS: Content Management System

A CMS is the back-office or administration interface used to manage a website or online store. It allows authorised users to add, edit and remove text, images, products and other content.

3. CRM: Customer Relationship Management

A CRM helps a business track, analyse and manage customer information and interactions. In an eCommerce context, this may include purchases, website visits, unfinished baskets and other relevant activity.

4. CDP: Customer Data Platform

A CDP brings customer data together to support marketing and personalisation. In the context of this article, it extends the customer-management foundation with information customers deliberately provide, known as zero-party data, and information collected through their interactions with the business, known as first-party data.

Marketing teams use this information to understand customers and communicate with them more appropriately.

5. SEO: Search Engine Optimisation

SEO is a set of on-site and off-site activities intended to improve a website's visibility in organic search results.

For a more detailed explanation, see our article on good and bad SEO practices.

6. PPC: Pay Per Click

PPC is an advertising model in which the advertiser pays for a click rather than simply for an ad being displayed. Common examples include search and other online advertising campaigns. In search results, paid placements are distinguished from organic listings.

7. SEM: Search Engine Marketing

In the broad usage adopted in this article, SEM covers activities that improve visibility on search-results pages, including SEO and paid search advertising. Having both a relevant paid placement and a strong organic result can give a business more visibility.

8. SERP: Search Engine Results Page

A SERP is the page shown after someone enters a query in a search engine. It can include paid advertisements and organic results, as illustrated below.

9. UX: User Experience

UX describes the user's experience and the way they interact with an online store. It includes navigation structure, calls to action, product presentation and the payment journey.

Good UX makes those interactions efficient and straightforward. It defines the structure, functionality and behaviour of the interface.

10. UI: User Interface

UI design concerns the visual appearance of a website, online store or mobile app. It includes banners, buttons, text layout, photographs, icons and other visual elements used to interact with the store.

Read our detailed guide to online store design and the relationship between UX and UI.

11. API: Application Programming Interface

An API defines how separate applications can communicate and exchange data. Developers use its rules and specifications to connect systems.

For online stores, APIs are particularly important when integrating an ERP, payment provider or other external service.

12. B2B: Business to Business

B2B describes business between companies. A B2B online store is therefore designed for business customers.

Such stores often require registration and may display negotiated prices, rebates and discounts after a customer signs in. The store extends the work of wholesale and sales teams that already maintain direct customer relationships.

13. B2C: Business to Consumer

B2C describes sales by a business to individual consumers. A B2C store generally allows a customer to buy products in their own name.

A company may also purchase through a B2C store and request a business invoice, traditionally referred to as an R1 invoice in Croatia, while using the same shopping journey as any other visitor.

In a combined B2B and B2C store, product visibility, prices, descriptions and other aspects of the experience may differ after the customer signs in.

14. CTA: Call to Action

A CTA clearly invites the visitor to take the next step. Typical examples are “Buy”, “Add to basket” and “Notify me when available”.

Calls to action are especially important in eCommerce because customers should always understand what they can do next.

15. CRO: Conversion Rate Optimisation

CRO is the process of increasing the proportion of visitors who complete the desired action, usually a purchase.

It requires understanding how people move through the store, which actions they take and where they abandon the journey, for example when choosing a payment method or seeing a delivery charge.

16. KPI: Key Performance Indicator

A KPI is a measure used to evaluate performance. Common eCommerce indicators include:

1. Total sales revenue.
2. Average order value.
3. Basket abandonment rate.
4. Conversion rate.
5. Traffic to the online store.

17. SSL: Secure Sockets Layer

“SSL certificate” is a familiar industry term for the certificate used to support an encrypted HTTPS connection. Modern secure connections use TLS, the successor to SSL.

Encryption transforms readable information into protected data during transmission. This helps prevent confidential information from being read as it travels between the browser and the website.

How can you recognise a secure connection?

• The address begins with HTTPS rather than HTTP. The “S” refers to a secure connection.
• The browser provides connection-security information near the address. The original illustration shows a padlock, although the icon and presentation vary between browsers.

An encrypted connection is essential for protecting information in transit, but it does not by itself prove that the business behind a website is trustworthy.

18. URL: Uniform Resource Locator

A URL is a web address. Each page in an online store has its own address, and a clear URL structure is an important part of organising an eCommerce website for users and search engines.

19. COD: Cash on Delivery

COD means paying when the parcel is delivered. Payment is commonly made in cash, although some delivery services also support card payment on receipt.

Other common eCommerce terms

1. eCommerce

eCommerce covers online selling and the businesses directly involved in making it possible. These include store developers, retailers, marketing agencies, delivery companies and other service providers that support online transactions.

2. Platform

In eCommerce, a platform is the software on which an online store is built. Shape Core is one example.

Explore our services and solutions to learn more about its capabilities.

3. Checkout

Checkout is the process of completing a purchase after the customer has added the desired products to their basket. It can include:

1. Entering personal information, signing in or registering.
2. Selecting a delivery method.
3. Selecting a payment method.
4. Making or authorising the payment.
5. Receiving an email confirming that the order has been placed.

Checkout is a critical part of the customer journey, so its design should reflect the needs of the intended audience.

4. Payment gateway

A payment gateway is a service that enables an online store to accept card payments.

The retailer agrees commercial terms with the provider, including transaction fees, and the gateway is then integrated with the store.

Once configured, payments are processed through that connection. Depending on the selected workflow, funds may be authorised first and captured later, or the transaction may be completed automatically. Some workflows require the retailer to complete an action in the provider's administration interface.

5. A/B testing

A/B testing compares two versions of a page, element or process to determine which performs better.

At the start of a project, the best design or journey may not be obvious. Two versions can be shown to comparable groups of users and their results evaluated.

For example, an experiment involving 1,000 users could compare two checkout journeys and measure which produces more completed purchases.

6. Above the fold

“Above the fold” is the part of a page visible when it first opens, before the user scrolls.

This is the first impression of the store. It should communicate the main value proposition and a clear next step, such as exploring a promotion or browsing the product range.

7. Landing page

A landing page is created for a specific campaign or purpose. Visitors may arrive after clicking an advertisement on Google, Facebook or another channel.

Its main job is to present the relevant offer and encourage a particular action, such as adding a product to the basket, subscribing to a newsletter or joining a loyalty programme.