Ecommerce conversations can become a stream of abbreviations: CAC, MER, AOV, LTV, 3PL. Some describe different things, while others are alternative names for the same idea. Understanding the distinction makes it easier to follow a report, compare proposals and talk to the people running different parts of a business.
This DTC dictionary brings those terms together in plain English. It covers customer acquisition and retention, store performance, marketing, operations and technology, with formulas or examples where they help explain the meaning.
Use the alphabetical sections to find a term quickly. Where a metric can be calculated in different ways, the definition explains the distinction that matters when you're using it.
What does DTC mean?
DTC stands for direct-to-consumer. It describes a brand selling its products directly to the people who use them, through channels such as its own website, app or physical stores. You'll also see it written as D2C.
A brand can sell DTC alongside wholesale or marketplace channels. The term describes the relationship in that sale, rather than requiring the business to use only one route to market.
A–C: acquisition, brand and customer metrics
These terms cover how customers discover a brand, how purchases are measured and some of the systems supporting that work.
Abandoned cart
A cart containing products that hasn't become a completed order within the period your store uses to identify abandonment. The customer may still return later.
Above the fold
The part of a page visible before scrolling. Its size varies with the device, browser and screen, so it isn't one fixed location across all visits.
A/B testing
Comparing two versions of something by assigning people to different experiences and measuring the result. For example, a store might test two product-page layouts against completed purchases.
Acquisition
Bringing new customers into the business. In ecommerce reporting, customer acquisition usually means gaining a first-time buyer, rather than simply attracting a visitor or subscriber.
Ad account
The account used to manage campaigns, budgets, billing and access on an advertising platform.
Ad fatigue
A decline in an advertisement's effectiveness as people become familiar with it. Also called creative fatigue, although a weaker result can have causes beyond repetition.
Ad spend
The amount spent buying advertising. It usually excludes creative production, agency fees and other marketing costs unless the report explicitly includes them.
Affiliate marketing
A referral arrangement in which a partner earns a commission for an agreed result, commonly a tracked sale. Publishers, creators and other businesses can act as affiliates.
Agency
An external business providing services such as advertising, creative production, development or search marketing.
Agentic commerce
Shopping in which software agents help carry out tasks such as finding products, comparing options or completing an authorized purchase. The degree of automation depends on the service and permissions.
Analytics
The collection and interpretation of data about business activity. Ecommerce analytics can cover browsing, purchases, marketing performance, operations and customer behavior over time.
AOV: average order value
Order revenue divided by the number of orders in the same period. It describes the average transaction size, which is different from the value of the customer's whole relationship.
API: application programming interface
A defined way for software systems to request data or actions from one another. An inventory integration might use an API to update available stock.
App Tracking Transparency: ATT
Apple's permission framework for tracking people across other companies' apps and websites or accessing the device advertising identifier. The requirement began with iOS 14.5.
Attribution
Assigning credit for a conversion to marketing interactions according to a model and tracking window. Attributed sales aren't necessarily sales that would disappear without that channel.
Attribution window
The period after an interaction during which an advertising or analytics system can credit a conversion to it. Click-through and view-through windows may differ.
B2B: business-to-business
Selling products or services to another business. A brand supplying inventory to a retailer is making a B2B sale.
B2C: business-to-consumer
Selling to individual consumers. It includes both direct brand sales and sales through retailers, making it broader than DTC.
Backorder
An order accepted for a product that isn't currently available to fulfill. The customer waits for replenishment, with timing explained before purchase.
Below the fold
Content that becomes visible after scrolling. Detailed specifications, reviews and other purchase information often sit here and can still be important to the decision.
BFCM: Black Friday and Cyber Monday
The retail promotion period around Black Friday and Cyber Monday. Brands use the abbreviation for campaigns that may extend beyond the four days from Friday through Monday.
Blended ROAS
Commonly, total store revenue divided by total ad spend. It avoids assigning each order to one platform, but includes revenue from existing demand and other channels.
BNPL: buy now, pay later
A payment arrangement that lets a customer pay later or in installments. Fees, repayment schedules and eligibility depend on the provider and product.
Bootstrapped
A business funded primarily through its founders and operating income, rather than outside equity investment. It can still use loans or other financing.
BOPIS: buy online, pick up in store
A purchase placed online and collected from a physical store. Also called click and collect.
Bounce rate
In GA4, the percentage of sessions that aren't engaged. An engaged session meets the engagement-time threshold, includes a key event, or has at least two page or screen views.
Brand awareness
How familiar people are with a brand. Research can distinguish recognizing a brand when prompted from remembering it without a prompt.
Brand identity
The visual and verbal elements used to represent a brand, including its name, design, typography and language.
Brand voice
The recognizable way a brand communicates. It should feel consistent across product pages, marketing and customer service, while allowing the tone to suit the situation.
Brick-and-mortar
A physical retail location. A business can operate brick-and-mortar stores alongside an ecommerce website and other sales channels.
Browse abandonment
A visit in which someone looks at products and leaves without buying. Marketing platforms may distinguish this from cart abandonment according to their tracking and flow rules.
Bundle
Several products offered together as one purchase. A bundle can provide convenience, a complete use case or a saving; a discount isn't required.
Burn rate
How quickly a business uses cash over time. Gross burn tracks cash spending, while net burn accounts for cash coming in as well.
Buyer persona
A research-based description of a customer type, including their needs, motivations and buying context. Useful personas explain behavior rather than relying on an invented name and demographics alone.
CAC: customer acquisition cost
Acquisition costs divided by new customers acquired. The scope may include media alone or broader sales and marketing costs. Our CAC guide explains those distinctions.
CAC payback period
The time it takes for a customer's accumulated contribution to recover their acquisition cost. Using revenue alone overlooks the cost of supplying the orders.
Cart abandonment rate
The share of carts started that don't become completed orders within the measurement window. Use a consistent cart or session definition in both parts of the calculation.
Cash flow
Money moving into and out of a business. Cash flow differs from profit because payments, inventory purchases and recognized revenue can happen at different times.
CDP: customer data platform
Software that brings customer information from multiple sources into profiles that can be used by other systems, such as marketing and service tools.
Channel
A route for reaching or serving customers. Marketing channels include email and paid search; sales channels include a brand's website, stores and marketplaces.
Chargeback
A payment dispute initiated through the customer's card issuer. The dispute can lead to a reversal, and the merchant may have an opportunity to provide evidence.
Chatbot
Software that responds conversationally to customer questions or requests. It may use predefined rules, AI or a combination, with human support available where needed.
Checkout
The process of confirming an order, providing required customer and delivery information, and completing payment.
Churn
Customers or subscribers stopping their relationship with a business. Cancellation is observable in subscriptions; inactivity in ordinary retail needs a definition suited to the buying cycle.
Churn rate
The percentage of an eligible customer or subscriber base lost during a period. The starting population and definition of a lost customer need to be clear.
Click and collect
Buying online and collecting the order at a store or designated location. See BOPIS.
CLV: customer lifetime value
Another abbreviation for lifetime value, also written CLTV or LTV. It can describe revenue or contribution across a customer relationship, depending on the calculation.
CMS: content management system
Software for creating, organizing and publishing content. In ecommerce, it may manage editorial pages, campaign content and some product information.
COGS: cost of goods sold
The costs assigned to the products sold during a period, such as purchase or production costs. It excludes unsold inventory and isn't the same as every variable order cost.
Cohort analysis
Comparing groups that share a starting event or characteristic over time. A first-purchase cohort can show how customers acquired in one month return and spend later.
Cold email
An unsolicited outreach email to someone without an existing relationship with the sender. It differs from a campaign sent to a subscribed customer list.
Cold traffic
Visitors who have little or no previous familiarity with a brand. The label describes an audience's relationship to the business, rather than a formal analytics category.
Composable commerce
Building an ecommerce system from modular capabilities that can evolve separately. Our composable commerce guide explains the integration and operating work involved.
Content marketing
Publishing useful or interesting material to attract and support an audience. Buying guides, tutorials and editorial stories are common ecommerce examples.
Contribution margin
Revenue remaining after the variable costs included in the calculation. The contribution margin guide explains how it helps evaluate orders and acquisition spending.
Conversion
A defined action you want someone to complete, such as a purchase or signup. Reports should specify which action they count.
Conversion funnel
A way of organizing the stages leading to a desired action, such as product view, cart, checkout and purchase. Real shoppers may move back and forth between stages.
Conversion rate
Conversions divided by the eligible population, multiplied by 100. A store report might use sessions, while another report uses users or clicks.
Cookie
A small piece of data a browser stores for a website. Cookies can support functions such as sessions and preferences as well as measurement and advertising.
Copy
Written text used to communicate an offer or message. Product descriptions, ad headlines and checkout instructions are all forms of copy.
Copywriting
Writing copy that helps a reader understand something or take an action. Clear product information is part of the job alongside persuasion.
CPA: cost per action or acquisition
Campaign cost divided by the number of tracked actions. The action might be a lead or purchase, so CPA doesn't always mean the cost of a new customer.
CPC: cost per click
Advertising spend divided by clicks. It describes the cost of traffic, before accounting for whether those visitors buy.
CPM: cost per thousand impressions
Advertising spend divided by impressions, multiplied by 1,000. Impressions count displays, including repeat exposure to the same person.
Creative fatigue
Declining response to advertising creative as an audience becomes familiar with it. See ad fatigue.
CRM: customer relationship management
The practices and software used to manage customer information and interactions across areas such as sales, marketing and service.
CRO: conversion rate optimization
Improving the experience to help more eligible visitors complete a desired action. The commercial result also depends on order value, costs and customer satisfaction.
Cross-sell
Suggesting a complementary product, such as filters alongside a coffee brewer. It differs from an upsell, which introduces a higher-value version or option.
CRR: customer retention rate
The share of an existing customer group retained over a defined period. Retention measurement needs a buying-cycle definition that fits the business.
CTA: call to action
Text or a control that invites the next step, such as Add to cart, View sizes or Subscribe.
CTR: click-through rate
Clicks divided by impressions, multiplied by 100, for an ad or similar placement. Email click-rate reports may instead use delivered messages as the denominator.
Customer experience: CX
The customer's overall experience of a business, including finding products, purchasing, delivery, use and support.
Customer journey
The interactions a person has with a brand over time. It includes the experience before and after an individual purchase.
Customer service
Help provided before, during and after a sale, including product questions, delivery issues, exchanges and problem resolution.
D–F: data, ecommerce and fulfillment
This section covers how businesses use information, communicate with customers and get orders delivered.
Data-driven
Using evidence to inform decisions. Data still needs interpretation, including an understanding of what was measured and what the report leaves out.
Days of supply: DOS
An estimate of how long available inventory will last. A basic calculation divides units on hand by average daily unit demand.
Demographics
Population characteristics such as age, location and household income. They can describe an audience but don't fully explain why people buy.
Differentiation
The meaningful reasons customers might choose your product or brand over alternatives, such as design, performance, convenience or service.
Digital marketing
Marketing through digital channels, including websites, search engines, social platforms, email and mobile apps.
Direct mail
Physical marketing sent to a person's address, such as a postcard, catalog or offer letter.
Direct-to-consumer: DTC or D2C
A brand selling its own products directly to end customers. DTC can coexist with wholesale and other distribution channels.
Discount code
A code used to apply an offer, subject to conditions such as eligible products, minimum spend and expiry. It may be entered manually or applied through a link.
Distribution
The routes through which products reach customers. It covers choices such as direct sales, wholesale, marketplaces and retail partnerships.
Dropshipping
A fulfillment arrangement where a supplier ships the product directly to the retailer's customer. The retailer still needs to manage the experience it promises the buyer.
Dynamic pricing
Prices changing in response to inputs such as demand, stock or market conditions. The rules and frequency depend on the business.
EBITDA
Earnings before interest, taxes, depreciation and amortization. It is an earnings measure, rather than a direct measure of cash available to spend.
Ecommerce
Buying and selling through electronic networks, usually the internet. It includes consumer retail, B2B sales and digital products or services.
Email deliverability
The ability to reach recipients' inboxes. It differs from delivery, which can simply mean that the receiving server accepted the message.
Email marketing
Using email to communicate with an audience about products, content and offers, or to support customer relationships.
Engagement
Interaction with a brand or message. The useful measure depends on the task: reading content, clicking a product, replying or returning to shop.
ERP: enterprise resource planning
Software that coordinates business functions such as finance, purchasing, inventory and operations. It may exchange data with the ecommerce platform and warehouse systems.
Exit-intent popup
An overlay triggered by behavior that suggests a visitor may leave. Detection varies by device, and an exit signal doesn't reveal the person's reason for leaving.
First-order profitability
Whether the initial order covers the costs included in your model, including acquisition when assessing customer economics. It helps show how much the business relies on later purchases.
First-party data
Information a business collects through its own customer interactions, such as purchases, support conversations or site activity. How it can be used still depends on permissions and context.
Fixed costs
Costs that don't change directly with order volume over the relevant range and period, such as a base rent payment. They can change when the operation expands.
Flash sale
A promotion available for a short, defined period. Its terms and deadline should match what customers see in the store and marketing.
Flow
An automated sequence triggered by an event or customer condition. A post-purchase flow may adapt to what someone bought and when it was delivered.
FOMO: fear of missing out
The concern that an opportunity or experience will be missed. In retail, genuine product availability or an offer deadline can create this feeling.
Founder-market fit
How a founder's knowledge, experience and interests equip them to understand and serve a particular market.
Freemium
A model that provides a basic product or service free, with payment required for additional capabilities or usage.
Free shipping
Delivery for which the customer pays no separate shipping charge under the offer's terms. The business still incurs the delivery cost.
Fulfillment
The work of preparing and delivering an order, including picking, packing and shipping. The broader operation may also handle returns and customer notifications.
Fulfillment center
A facility that stores inventory and processes orders for delivery. It may be operated by the brand or a logistics partner.
Funnel
A model of the stages leading toward an action. See conversion funnel.
G–L: growth, inventory and lifetime value
These terms connect commercial performance with the products, audiences and customer relationships behind it.
GMV: gross merchandise value
The value of merchandise sold through a platform during a period under its reporting definition. It is different from a marketplace's own commission revenue.
Go-to-market strategy: GTM
A plan for bringing a product or business to its intended customers, including positioning, pricing, distribution and acquisition.
Gross margin
Gross profit expressed as a percentage of revenue. A basic formula is (revenue − cost of goods sold) ÷ revenue × 100.
Gross profit
Revenue minus cost of goods sold. It leaves other expenses, such as marketing and overheads, to be accounted for separately.
Gross revenue
Sales revenue before deductions such as discounts and returns, according to the report's definition.
Growth
An increase in a business measure over time. Revenue, customers and contribution can grow at different rates, so specify which result you mean.
Growth hacking
A broad term for experimentation aimed at finding growth opportunities. It describes an approach to testing ideas, rather than a distinct business metric.
Headless commerce
Separating the customer-facing storefront from backend commerce services. The headless ecommerce guide explains what that changes for developers and business teams.
Headline
The main text introducing a page, section, advertisement or other piece of content. It should make the subject or offer clear enough to encourage further attention.
Hero image
A prominent image near the top of a page. In ecommerce, it may introduce a campaign, product range or editorial story.
Hero product
A product strongly associated with a brand or central to its offer. It may drive substantial sales or attract customers to the wider range.
Holdout group
A group deliberately excluded from a campaign or treatment so its outcomes can be compared with those of an exposed group.
Hot traffic
An informal description of an audience believed to be close to purchasing. Prior interactions may suggest intent but don't guarantee a sale.
ICP: ideal customer profile
A description of the customer or organization that is a strong fit for the offer. It can include needs, buying circumstances and commercial suitability.
Impression
A recorded display of an ad or piece of content. One person can generate multiple impressions.
Impulse purchase
A purchase made without much prior planning, often in response to a product, need or offer encountered in the moment.
Incentive
A benefit offered to encourage an action, such as a gift, reward or shipping offer.
Incrementality
The additional result caused by an activity compared with what would have happened without it. It differs from assigning attribution credit to observed sales.
Influencer marketing
Working with people who have an audience to introduce or promote a product. Arrangements can include payment, gifting, commissions or longer-term partnerships.
Integration
A connection that lets systems exchange information or coordinate actions. Reliable integrations also account for errors, updates and differences in data formats.
Inventory
Goods a business holds, such as finished products available for sale. Available-to-sell stock can differ from physical stock because some units are reserved or unavailable.
Inventory management
Planning and controlling stock levels, locations and replenishment so products are available without tying up unnecessary cash.
Inventory turnover
How often inventory is sold over a period. A common financial calculation divides cost of goods sold by average inventory value, both measured at cost.
iOS 14.5 privacy changes
Shorthand for the introduction of App Tracking Transparency requirements. The specific change concerns permission for defined tracking activities, rather than all customer data collection.
Iteration
Improving something through successive versions, using feedback or evidence from the previous version.
Journey
The sequence of interactions someone has with a business. See customer journey.
Key performance indicator: KPI
A measure chosen to judge progress toward a specific business objective. A KPI should have an owner, a definition and a reason for being tracked.
Keyword
A word or phrase used in search or search marketing. The intent behind the query helps determine what content or product would satisfy it.
Landing page
The page where a visitor arrives. Marketers also use the term for a page designed around a particular campaign or audience.
Launch
Introducing a product, offer or business to its intended audience, including the work needed to make it available and support customers.
Lead
A potential customer whose details or interest have been captured. A lead is different from a paying customer.
Lead generation
Attracting potential customers and collecting a way to continue the conversation, such as through a signup or enquiry.
Lead time
The time between starting a process and receiving its result. In inventory planning, this often means the time from ordering stock to having it available.
Lifetime value: LTV
The value generated by a customer across their relationship with a business. LTV models can use revenue or contribution and may be observed or predictive.
Limited edition
A product offered in a genuinely limited quantity or release. The limit should be clear enough for customers to understand what makes it different.
List
A collection of contacts, often grouped by their permission to receive a particular type of communication. An email list and an SMS list can have different memberships.
Logistics
Planning and managing the movement and storage of goods, including transport, warehousing and distribution.
Logo
A visual mark identifying a brand. It forms one part of the wider brand identity.
Lookalike audience
An advertising audience modeled from the characteristics of a source group, such as existing customers. Available targeting controls depend on the platform.
Loss leader
A product deliberately sold at a loss to support another commercial goal, such as profitable additional purchases. That later value needs to materialize for the strategy to work.
Loyalty program
A structured way to reward a customer relationship, using benefits such as points, access or service. Its usefulness depends on what customers value and how easily they can participate.
LTV:CAC ratio
Customer lifetime value divided by customer acquisition cost. The ratio's meaning depends heavily on whether LTV uses revenue or contribution and how much is forecast.
M–O: merchandising, channels and offers
This section covers how products are presented, how customers shop across channels and how ongoing relationships are supported.
MACH
Microservices, API-first, cloud-native and headless: architectural ideas associated with modular systems. See composable commerce for the broader business approach.
Macro-influencer
An influencer with a relatively large audience. Exact follower thresholds vary, so audience relevance and performance are more useful than the label alone.
Mail Privacy Protection: MPP
An Apple Mail feature that obscures information about email activity. Remote content can load in the background without a person opening the message, affecting open-based measurement.
Margin
The share of revenue remaining after a specified set of costs. Gross, contribution and net margins describe different stages of the calculation.
Marketing efficiency ratio: MER
Revenue divided by marketing spend under the chosen definition. Some teams use media spend only; others include broader marketing costs, so label the denominator.
Marketplace
A platform where multiple sellers offer products. The marketplace sets rules for participation and may also provide payments, advertising or fulfillment services.
Market research
Gathering information about customers, competitors and buying conditions to inform decisions about products and how to sell them.
Merchandising
Choosing and presenting products to help customers shop and support commercial goals. It includes assortment, placement, filtering, recommendations and offers.
Metrics
Defined measurements of activity or performance. They become useful when people understand how they're calculated and what decision they support.
Micro-influencer
An influencer with a smaller audience than a macro-influencer. Follower bands vary, and a smaller following doesn't automatically mean higher engagement or better results.
Minimum order quantity: MOQ
The smallest order a supplier accepts for a product or production run. It can apply per style, color, size or total order.
Minimum viable product: MVP
A version of a product with enough capability to test an important assumption with customers and learn from real use.
Mobile commerce
Commerce conducted through mobile devices, including shopping in a browser or app. Our mobile commerce guide explains the main types and their role in retail.
Mobile-first
Designing around the needs and constraints of phone users from the outset, then adapting the experience for other screen sizes.
Multichannel
Using more than one channel to sell or communicate. The channels may operate separately, unlike an omnichannel approach that connects the experience between them.
Nano-influencer
An influencer with a comparatively small audience, often focused on a community or niche. There is no universal follower threshold.
Net promoter score: NPS
A recommendation survey score calculated as the percentage of promoters rating 9–10 minus detractors rating 0–6. Bain's definition uses a 0–10 response scale; the final score ranges from −100 to 100.
Net revenue
Revenue after deductions such as discounts, returns and allowances. It still has costs to cover before it becomes profit.
Newsletter
A recurring publication delivered to subscribers, commonly by email. It may focus on useful content, brand updates, products or a combination.
Niche
A focused part of a market defined by particular needs, interests or circumstances.
Offer
The product or combination of products, price, benefits and conditions presented to a customer. A discount is one possible part of an offer.
Omnichannel
An approach that connects customer experiences across channels. Shared order information or the ability to collect an online purchase in store are practical examples.
OMS: order management system
Software that coordinates orders through their lifecycle, including routing, fulfillment status and changes such as cancellations or returns.
Onboarding
Helping a new customer understand and use a product or service. In retail, this can include setup instructions, care advice and guidance for a first routine.
Open rate
The share of delivered emails recorded as opened. Privacy features and automated activity mean recorded opens don't reliably prove that a person read the message.
Optimization
Improving an experience or process against a defined goal. It requires deciding which result matters and what tradeoffs are acceptable.
Opt-in
An affirmative choice to receive a communication or participate in an activity. The channel and purpose of that permission matter.
Order confirmation
A record sent or shown after an order is accepted, including the purchased items and relevant details. It is different from a dispatch confirmation.
Organic traffic
Traffic that isn't bought through advertising, such as unpaid search results or social posts. Producing the content that earns it still has a cost.
Owned channel
A channel where a business has a more direct, permission-based relationship with its audience, such as an email list. Technology providers and delivery rules still influence access.
P–R: product, performance and retention
These definitions connect the buying decision with the costs, service and repeat behavior that follow it.
Packaging
The materials used to contain, protect and present a product. Shipping packaging also needs to suit the handling and delivery conditions the order will encounter.
Partnership
A working relationship between businesses or creators, such as a co-created product, distribution agreement or joint campaign.
Payback period
The time required to recover an investment. In customer acquisition discussions, it usually refers to CAC payback.
Payment gateway
A service that securely passes payment information between a checkout and payment-processing systems. Providers may bundle gateway and processing functions together.
PDP: product detail page
A page dedicated to one product, with its images, description, price, options and purchase controls.
Performance marketing
Marketing evaluated against measurable actions such as leads or purchases. The payment model and the business's reporting method may differ.
Personalization
Adapting content, recommendations or communication using relevant information about a customer or context, such as previous purchases or selected preferences.
PIM: product information management
Software for organizing and maintaining product information for distribution across channels. It can support attributes, descriptions, translations and completeness checks.
Pixel
A small image request or tracking implementation used to record events. Marketers also use the word for larger advertising tags that collect site activity.
Platform
A software foundation that supports a set of business functions. An ecommerce platform typically provides tools for managing products and orders.
PLP: product listing page
A page displaying a collection or search result, often with filters and sorting to help customers choose which products to examine.
Podcast
An episodic audio or video program that audiences can follow and listen to or watch on demand.
Point of sale: POS
The place or system used to complete a sale. In retail operations, POS often refers to the software and hardware used in a physical store.
Pop-up
An overlay or window displayed over page content. In physical retail, the same term can mean a temporary store.
Positioning
How a brand or product is presented relative to alternatives, including who it's for and the reasons it suits those customers.
Post-purchase flow
An automated sequence following an order. It may cover delivery, product use, feedback and a relevant next purchase.
Pre-order
An order placed before a product's release or planned availability. The customer should understand the expected timing and payment arrangement.
Press release
An announcement prepared for journalists or other audiences about something newsworthy. Publishing a release doesn't guarantee independent coverage.
Price anchoring
Using a reference price or option to influence how people assess another price. Comparisons should accurately represent the products and offer involved.
Pricing strategy
The approach a business uses to set prices in relation to costs, customer value, positioning and competition.
Privacy policy
A statement explaining how a business handles personal information, including collection, use and sharing. It should reflect the business's real practices.
Product description
Written information explaining what a product is, how it is used and the details a customer needs to decide whether it fits their needs.
Product launch
The introduction of a new product to customers, including its availability, communication and operational preparation.
Product-market fit
The extent to which a product meets meaningful demand in its intended market. Continued use, repeat purchasing and customer feedback can help assess it.
Product photography
Images that help customers understand a product's appearance, scale, details and use. Useful coverage matters more than having many nearly identical shots.
Profit
Revenue remaining after the costs included at a particular accounting stage. Specify gross, operating or net profit when the distinction matters.
Profitability
The ability to generate profit from the business or activity being evaluated. Strong sales alone don't establish profitability.
Promotion
An activity or offer intended to encourage interest or purchasing, such as a launch campaign, gift offer or sale.
Psychographics
Audience characteristics relating to attitudes, interests, values and lifestyles. They add context to demographic information.
Purchase frequency
How often customers order during a defined period. A simple average divides orders by purchasing customers for that same period.
Push notification
A message delivered through an app or supported web service to a person's device. Permission, device settings and implementation affect whether it reaches them.
PWA: progressive web app
A web application designed to offer capabilities such as installation or offline behavior where supported. It remains web technology and is separate from the choice to use a headless backend.
Quality assurance: QA
The work of checking whether a product, system or process meets its requirements. In ecommerce, that can include physical product inspection and testing shopping journeys.
Reach
The estimated number of distinct people or accounts exposed to content. It differs from impressions, which include repeated displays.
Reactivation
Encouraging an inactive customer to return. The timing should reflect when someone is meaningfully overdue for the type of product they buy.
Referral
A recommendation or introduction from another person or business. It can happen naturally or through a formal program.
Referral program
A structured arrangement that rewards referrals, often when a referred person becomes a customer. Rewards may go to the referrer, new customer or both.
Remarketing
Reaching people who have previously interacted with a business. It is often used interchangeably with retargeting, though some teams also include direct follow-up channels.
Reorder point
The inventory level that triggers replenishment. It typically accounts for expected demand during lead time and any safety stock.
Repeat purchase rate: RPR
The share of a defined customer group that makes another purchase within the chosen observation period. Different windows can produce very different results.
Replenishment
Replacing stock or a product that has been used. Customer replenishment describes a repeat purchase; inventory replenishment describes restocking the business.
Responsive design
A design approach in which layouts and controls adapt to the available screen. It should preserve useful content and functionality across devices.
Retargeting
Advertising aimed at people with a previous interaction, such as a site visit or product view, where the platform can identify an eligible audience.
Retention
Keeping a customer relationship active over time. For ecommerce, what counts as retained should reflect the natural reasons and timing for buying again.
Retention marketing
Communication and offers intended to support existing customer relationships and repeat behavior. It works alongside the product and service experience customers receive.
Return on ad spend: ROAS
Revenue attributed to advertising divided by ad spend. It measures attributed revenue efficiency, rather than profit or the incremental effect of the campaign.
Return on investment: ROI
Net return divided by the investment, usually expressed as a percentage. Costs and benefits need a consistent scope and time period.
Return rate
The share of sold units or orders returned during the measurement window. Specify which denominator is used and allow for returns arriving after the initial sale.
Returns
Products sent back after purchase, potentially leading to a refund, exchange or credit according to the applicable arrangement.
Revenue
Income recognized from sales and other relevant business activity. It isn't necessarily the same as cash received during the period.
Review
Feedback about a product or business. Specific details about use, fit or service can help other customers make a decision.
RFM: recency, frequency and monetary value
A way to group customers using how recently they bought, how often they buy and how much they spend.
Runway
An estimate of how long available cash will last. Dividing cash by monthly net burn gives a simple estimate when spending patterns remain stable.
S–Z: sales, operations and customer communication
The final section covers the practical work of selling and delivering products, along with terms used to describe audiences and experiences.
SaaS: software as a service
Software operated by a provider and accessed as a service, commonly through a subscription. Pricing may depend on usage, features or users.
Safety stock
Extra inventory held to absorb uncertainty in demand or replenishment. The appropriate amount depends on service expectations and the cost of holding or running out of stock.
Sales
Transactions completed by the business, often reported as an order count, unit count or monetary value. Label the measure when comparing results.
Sales funnel
A model of the progression toward a sale. See conversion funnel.
Sampling
Providing a small quantity or trial of a product so customers can experience it before a larger purchase.
Scarcity
Limited availability of a product or opportunity. Accurate stock limits and genuinely limited releases can affect purchasing decisions.
Seasonality
Recurring changes in demand associated with the time of year, weather, holidays or other predictable events.
Segmentation
Dividing an audience into groups with relevant shared characteristics, such as purchase history, needs or stage in the customer relationship.
Sell-through rate
The share of available inventory sold over a defined period. Specify how opening stock and receipts are treated in the available-inventory figure.
Sentiment
The attitude expressed toward a product, brand or experience. It can be assessed through reviews, conversations, surveys or other feedback.
Shipping policy
Information about delivery arrangements, including coverage, charges, timing and relevant conditions. It should match what the checkout offers.
SKU: stock keeping unit
An identifier used to manage a distinct item or variant. A shirt in two sizes and three colors may need six separate SKUs.
SMS marketing
Marketing sent by text message to subscribed recipients. Channel preferences and the message's relevance affect how useful it is to the customer.
Social commerce
Shopping connected to a social platform, including product discovery and purchase features. The checkout location and available functions vary by platform and market.
Social media marketing
Using social platforms to reach and communicate with an audience through content, community activity, creators or advertising.
Social proof
Information about other people's behavior or experience that helps someone assess a choice. Reviews and customer photos are common retail examples.
Sourcing
Finding and selecting suppliers or production partners that can meet product, quality, cost and delivery requirements.
Spam
Unwanted or unsolicited messages, often sent at scale. In email operations, spam complaints are a signal that recipients don't want the communication.
Split testing
Another name for A/B testing: comparing versions through a controlled assignment of audiences and a defined outcome.
Stock
Goods held by the business. See inventory.
Stockout
A situation where an item isn't available to meet demand. It can affect one variant or location even when the business has other inventory.
Subscriber
Someone signed up for a recurring communication or product arrangement. A newsletter subscriber isn't necessarily a paying product subscriber.
Subscription model
An arrangement for recurring access, services or deliveries in exchange for recurring payment under defined terms.
Supply chain
The connected organizations and processes that move products from materials and production through distribution to the customer.
Sustainability
The long-term environmental, social and economic effects of how a business operates. Specific claims need to identify the practice or outcome being described.
Target audience
The group a message, product or campaign is intended to reach. It may be narrower than the brand's full customer base.
Targeting
Choosing where and to whom marketing is shown using available audience, contextual or behavioral criteria.
Testimonial
An account of a customer's experience used to support a brand's claims or explain its value. It should accurately reflect the person's experience.
Testing
Checking behavior or comparing approaches against a defined question. A functional checkout test and a marketing experiment answer different questions.
Third party
An outside organization involved in a process, such as a payment provider, logistics company or software service.
Third-party logistics: 3PL
An external provider of logistics services, potentially including warehousing, picking, packing, shipping and returns.
Time to second purchase
The elapsed time between a customer's first and second orders. Looking at its distribution helps reveal the buying cycle beyond a single average.
Top of funnel: TOFU
The early stage of a marketing model focused on reaching people and introducing a need, category or brand.
Traffic
Visits to a website or other destination. Reports may count sessions, users or clicks, which shouldn't be treated as interchangeable.
Transaction
A completed exchange recorded by a payment or commerce system. Reporting may treat authorizations, captures and refunds as separate transaction types.
Trust badges
Visible marks such as accepted payment logos or relevant certifications. They should be accurate and verifiable, rather than decorative claims of security.
UGC ads
Advertisements using customer content or a creator-led style. The advertising context and any paid relationship still matter, even when the presentation feels informal.
UGC: user-generated content
Content created by customers or other users, such as photos, reviews and videos. Paid creator content may use a similar style without being an independent customer endorsement.
Unique selling proposition: USP
A clear reason the intended customer should choose the offer over alternatives. It should be specific enough to explain a meaningful difference.
Unit economics
Revenue and costs associated with a defined unit, such as an order, product or customer. Choose the unit before comparing results.
Unsubscribe
A request to stop receiving a type of communication. It should update the relevant channel preferences and future messaging.
Upsell
Offering a higher-value version or option, such as a larger capacity or upgraded model. Complementary additional products are generally cross-sells.
User experience: UX
The experience of using a product or interface, including how understandable, accessible and effective it is for the task.
User interface: UI
The controls and presentation through which someone interacts with a system, including navigation, forms, buttons and visual states.
Vanity metric
A measure presented as evidence of success without a useful connection to the objective. The same metric can be valuable in one context and distracting in another.
Viral coefficient
An estimate of how many new users each existing user brings through a referral process. It depends on both sharing behavior and the conversion of those referrals.
Waitlist
A list of people interested in a product or opportunity that isn't yet available to them. Joining expresses interest, rather than guaranteeing a future order.
Warm traffic
Visitors who already have some familiarity with a brand, such as through previous browsing or content. Familiarity doesn't establish how close they are to purchasing.
Webhook
An event notification sent from one system to another, such as an order-created message that starts a fulfillment process.
Wholesale
Selling products to another business for resale. A brand can combine wholesale distribution with direct consumer sales.
Win-back campaign
Communication intended to bring back lapsed customers. Its relevance depends on why they stopped buying and whether the brand has a useful reason for them to return.
WMS: warehouse management system
Software used to organize warehouse activity, including inventory locations, picking, packing and stock movements.
Zero-party data
Information customers deliberately share about themselves, such as preferences or purchase intentions in a quiz. It is often treated as a subset of first-party customer information.
Final thoughts
Knowing the terminology makes it easier to ask useful questions and understand what a team or report is telling you. The most important distinctions often sit behind familiar abbreviations, such as whether a metric measures revenue, contribution or an attributed result.
Keep the language tied to the work it describes. When everyone understands the same term in the same way, conversations about customers, performance and priorities become much clearer.
