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Fundamentals of E-Commerce > eCommerce Glossary > Flashcards

eCommerce Glossary Flashcards

1
Q

Average order value (AOV)

A

A metric which measures the average amount a shopper spends on a transaction on an e-commerce site.

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2
Q

How is AOV Calculated?

A

Calculation - total revenue in x time period, divided by total orders in x time period.

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3
Q

What is AOV also called?

A

Basket Size

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4
Q

How can AOV be increased?

A

By offering more products bundled together, ‘upselling’ or ‘cross-selling’ to other related products.

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5
Q

What is Bounce Rate?

A

A metric that measures the percentage of visitors who enter a site and leave without taking further action

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6
Q

How is Bounce Rate Calculated?

A

Calculation - total amount of one-page visits % total amount of total amount of overall visits to website/webpage within x timeframe.

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7
Q

What is Bundling?

A

an eCommerce technique that combines multiple products together, usually at a lower price than if the items were to be sold individually

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8
Q

How is bundling useful?

A

Bundling can be an effective way to increase average order value. (AOV)

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9
Q

What are Buyer personas

A

Profiles of typical eCommerce site shoppers

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10
Q

What information is held about buyer personas?

A

Shopper’s goals, motivations, buying habits, and pain points.

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11
Q

How are buyer personas useful?

A

Personas enables eCommerce sites to offer more tailored products, propositions and pricing

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12
Q

What is a Call to action (CTA)?

A

A call to action is a message or line of copy that intends to persuade the website shopper to immediately take a specific action.

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13
Q

What is a CTA in the context of an e-commerce site?

A

In the context of an eCommerce site, for example, a CTA could be ‘buy now’ or ‘add to cart’.

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14
Q

What is Cart abandonment rate?

A

The ratio of shoppers who add items to their cart but abandon the web page before they check out.

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15
Q

How is Cart abandonment rate calculated?

A

Calculation - number of completed transactions % overall number of shopping carts created.

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16
Q

What do cart abandonment rates show us?

A

Can often point to issues around payment acceptance, or, more straightforwardly, a surprise at the product or delivery price!

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17
Q

What is the checkout process?

A

The various steps a customer takes when completing a purchase online.

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18
Q

What steps are in the checkout process?

A

Call to action (CTA) - ‘buy now’ CTA, reviewing an order, adding in billing and delivery information, as well as payment details.

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19
Q

What are the most effective checkout processes?

A

Those that require the least amount of effort on behalf of the customer.

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20
Q

What is an anonymous checkout?

A

A checkout process in which a user may complete a transaction without creating an account.

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21
Q

What is a content management system

A

Software that allows you to edit, manage, and publish content on your eCommerce site

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22
Q

What is usually held on in the content management system?

A

store’s product catalogue, digital content or imagery

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23
Q

What is conversion rate?

A

Conversion rate refers to the percentage of visitors to an eCommerce site who complete a purchase

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24
Q

What could a low conversion rate indicate?

A

1) eCommerce site has a product or proposition that is not attractive to the potential customer (for example, high delivery costs), 2) a site that is hard to navigate, 3) or a payment set up that is not working.

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25
Q

Conversion rate optimisation (CRO)?

A

The process of optimising an eCommerce site in order to increase the likelihood of visitors completing a purchase.

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26
Q

What kinds of CRO Strategies can there be?

A

CRO strategies can be both quantitative and qualitative, and can include things like testing different landing pages, changing content like images or copy – or even prices.

27
Q

What is Cross-selling?

A

an eCommerce tactic that involves recommending related or additional items to the shopper based on the initial item they are buying.

28
Q

What is the aim of Cross-selling?

A

The aim is to increase the average order value. A good example is Amazon’s ‘frequently bought together’ section on its product pages.

29
Q

What is customer acquisition?

A

the process of attracting new customers to your business – also called driving website ‘traffic’.

30
Q

How can customers be acquired?

A

Tools or ‘channels’ to drive traffic include Google Ads, Facebook ads and email.

31
Q

What is Customer journey?

A

the path and sequence of interactions customers go through when visiting a website.

32
Q

What is customer journey mapping?

A

A visual representation of every interaction a customer has with an eCommerce site – including customer service and delivery

33
Q

What is Customer lifetime value (CLV)?

A

The estimated total worth of a customer to a business over the entirety of their relationship (i.e expected profit a company can hope to gain from a customer.)

34
Q

What is Customer retention?

A

the process of retaining your existing customers by encouraging those who have purchased before to return again.

35
Q

What is a discount code?

A

an eCommerce sales tactic used to incentivise purchases, attract new customers or encourage repeat shoppers. Most eCommerce platforms include this capability.

36
Q

What is Product discovery?

A

a shopper arriving on an eCommerce site and discovering a product they want to buy.

37
Q

Why does product discovery matter?

A

eCommerce sites should make it as easy as possible for customers to find what they are looking for.

38
Q

What is Dropshipping?

A

an eCommerce fulfilment method whereby the eCommerce store does not own the stock or inventory it sells. Instead, the store partners with a third-party manufacturer who will then ship items once they have been purchased by a customer.

39
Q

What is fulfillment?

A

the process of getting an eCommerce order delivered to a customer’s door.

40
Q

What does fulfillment require?

A

It involves managing the inventory (stock), picking and packing products, and shipping them direct to the customers.

41
Q

Where does fulfillment take place?

A

Fulfilment can be undertaken in-house or through a third-party company.

42
Q

What are Landing pages?

A

A standalone eCommerce page that potential customers can ‘land’ on when they click through from marketing that is specifically designed to encourage the shopper to take a particular action when they arrive, such as reading about a special offer or more detail about the product.

43
Q

What is a marketplace?

A

An online platform through which third-party retailers can sell their products.

44
Q

How does a marketplace work?

A

All transactions are processed by the marketplace operator but delivered and fulfilled by the participating sellers. Example include eBay, Amazon and Etsy.

45
Q

What is Online value proposition (OVP)?

A

what helps to persuade customers to buy from a particular eCommerce site instead of a competitor

46
Q

Examples of OVP?

A

Free or fast shipping, extended returns compared to competitors or the widest product range.

47
Q

What is On-site navigation?

A

All the steps a customer must take in order to find what they’re looking for on an eCommerce website.

48
Q

What is a Payment gateway?

A

is the technology that processes credit card payments on eCommerce sites (e.g paypal, stripe).

49
Q

What does a payment gateway offer?

A

the secure encryption of payment, as well as screenings for security purposes. It also gets approval from the credit card or bank and calculates tax costs like VAT.

50
Q

What do cloud-based e-commerce platforms do?

A

provide packages that include all the functionality required for eCommerce sites to allow customers to access the software and for the organisations to store their eCommerce data

51
Q

Examples of cloud based e-commerce platforms?

A

Shopify and BigCommerce

52
Q

Benefit of cloud based e-commerce platforms?

A

Remove the requirement for on-site hosting expertise. far easier to manage, and they allow businesses to focus more on the ‘nuts and bolts’ of eCommerce, such as product selection or marketing.

53
Q

What is the product description?

A

The product description is the words used – ‘copy’ that explains more about a product and its features.

54
Q

What is the aim of the product description?

A

he aim is to inform and persuade the customer to buy.

55
Q

What is a Product listings page?

A

also known as a category page – lists multiple products within the same category. For example, this could be ‘women’s tee-shirts’ or ‘men’s hoodies’.

56
Q

What are Ratings and reviews?

A

consumer testimonials written by past customers who have purchased and used, or had experience with, the product on an eCommerce site and are usually accompanied by a rating

57
Q

Why are ratings and reviews important?

A

The majority of customers will check online reviews and ratings before making a purchase.

58
Q

What is Segmentation?

A

the practice of dividing potential customers into different groups based on different characteristics and traits

59
Q

What can different segments include?

A

Different segments can include 1) demographics (eg based on age or gender), 2) behaviours (eg past purchases or abandonment) or 3) psychographics (beliefs or values).

60
Q

What is the Shopping cart or basket?

A

the name given to the eCommerce functionality that enables shoppers to select products, review what they selected, make changes or add extra items and purchase.

61
Q

What is Social commerce?

A

the ability to make a purchase through a third-party social media platform such as Facebook or Instagram.

62
Q

What is User Experience (UX?)

A

the label given to the task of providing a simple, logical, and enjoyable shopping experience to customers that will result in a sale

63
Q

What does UX include?

A

easy-to-use menus and product pages, working payment options, and a design that doesn’t overshadow the eCommerce site experience.

Fundamentals of E-Commerce (7 decks)

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