Getting Through the Alphabetti Spaghetti of E-Commerce Without Losing Your Mind
We get it – acronyms can be confusing, annoying, and sometimes downright unnecessary. They often seem like secret codes designed to make the simple complex and the straightforward baffling.
But fear not!
Let’s debunk some of the most common e-commerce acronyms, explain what they actually mean, and maybe convince you that most acronyms belong in the bin.
Whether you’re a newbie or a seasoned pro, this guide will help you get through this alphabetti spaghetti of e-commerce nonsense.
1-9
3PL (Third-Party Logistics): Outsourcing your logistics operations like warehousing, packing, and shipping to another company.
A
ABM (Account-Based Marketing): Targeting specific companies with your marketing efforts, instead of going after everyone.
AI (Artificial Intelligence): In case you’ve been living under a rock, it’s becoming part of our everyday lives. Machines that can think and learn like humans. Some of this is pretty scary shit!
AOV (Average Order Value): The average amount people spend when they buy something from you.
API (Application Programming Interface): Rules that let different software talk to each other.
AR (Augmented Reality): Adding digital stuff to the real world through your phone or other devices.
B
B2B (Business-to-Business): When businesses sell to other businesses.
B2C (Business-to-Consumer): When businesses sell directly to us, the consumers.
BI (Business Intelligence): Tools and strategies to understand and analyze business data.
BOPIS (Buy Online Pickup In-Store): Buying something online and picking it up at a store.
C
CAC (Customer Acquisition Cost): How much it costs to get a new customer.
CDN (Content Delivery Network): A bunch of servers that deliver web content faster by being closer to you.
CMS (Content Management System): Software that helps you create and manage website content.
CPC (Cost Per Click): The amount you pay each time someone clicks on your ad.
CRM (Customer Relationship Management): A system for managing interactions with your customers.
CRO (Conversion Rate Optimisation): Making tweaks to your site to get more people to take action, like buying something.
CTA (Call to Action): A prompt telling people to do something, like “Sign Up” or “Buy Now”.
CTR (Click-Through Rate): The percentage of people who click on your ad after seeing it.
CVR (Conversion Rate): The percentage of visitors who actually do what you want them to do on your site.
CX (Customer Experience): How customers feel about all their interactions with your business.
D
D2C (Direct-to-Consumer): Manufacturers selling their products straight to customers, no middleman.
DNS (Domain Name System): The system that translates website names into IP addresses.
DS (Drop Shipping): Selling products you don’t actually keep in stock; you buy it from a third party who ships it directly to the customer.
E
EPC (Earnings Per Click): The average amount you earn each time someone clicks on your affiliate link.
ERP (Enterprise Resource Planning): Software that helps businesses manage daily activities like accounting and inventory.
F
FBA (Fulfilled by Amazon): Amazon handles storage, packaging, and shipping for sellers.
G
GA4 (Google Analytics 4): The newest version of Google Analytics for tracking and analyzing website and app traffic.
H
HTTP (HyperText Transfer Protocol): The protocol for transferring web pages on the internet.
HTTPS (HyperText Transfer Protocol Secure): A secure version of HTTP, encrypting data transferred between your browser and the website.
I
IoT (Internet of Things): Devices connected to the internet, like smart home gadgets.
IP (Internet Protocol): The rules for sending data over the internet.
ISP (Internet Service Provider): A company that provides you with internet access.
K
KPI (Key Performance Indicator): Important metrics that show how well you’re doing.
L
LTV (Lifetime Value): The total money you expect to make from a customer over time.
M
MOQ (Minimum Order Quantity): The smallest amount you have to order from a supplier.
MVP (Minimum Viable Product): A basic version of a product with just enough features to test with early users.
N
NPS (Net Promoter Score): A score that shows how likely your customers are to recommend you to others.
O
OM (Order Management): Tracking and fulfilling customer orders.
P
PDP (Product Description Page): The page on a website that gives detailed info about a product.
PIM (Product Information Management): Systems to manage all the info needed to market and sell products.
PLA (Product Listing Ad): An ad that shows product details like an image, price, and store name.
PLP (Product Lister Page): A web page that shows a list of products in a category.
POS (Point of Sale): The place where a transaction happens, either online or in a store.
PPC (Pay-Per-Click): An ad model where you pay each time someone clicks on your ad.
Q
QR Code (Quick Response Code): A type of barcode you scan with your phone to get info or go to a website.
R
ROI (Return on Investment): How much profit you make from an investment.
ROAS (Return on Ad Spend): How much revenue your ads generate compared to how much you spent on them.
S
SaaS (Software as a Service): Software that you subscribe to and use over the internet.
SEM (Search Engine Marketing): Paid ads on search engines to get more visibility.
SEO (Search Engine Optimisation): Techniques to improve your website’s visibility in search engine results.
SERP (Search Engine Results Page): The page you see after you enter a search query on a search engine.
SKU (Stock Keeping Unit): A unique code for each product for inventory tracking.
SLA (Service Level Agreement): A contract that defines the level of service expected from a provider.
SSL (Secure Sockets Layer): Technology for establishing a secure, encrypted link between a server and a client.
T
TOC (Total Ownership Cost): The total cost of owning and operating a product over its lifespan.
U
UI (User Interface): The parts of a product that you interact with.
URL (Uniform Resource Locator): The web address of a page.
USP (Unique Selling Proposition): What makes your product or service stand out from the competition.
UX (User Experience): How someone feels when using your website or app.