Complete guide to essential terms in Ecommerce

  • Identify the main ecommerce business models, such as B2B, B2C and D2C.
  • Explore the key components of an efficient online store, including checkout and customer service.
  • Discover essential metrics such as conversion rate and AOV optimization strategies.
  • Learn how to use essential tools like Google Analytics and CRM systems to maximize performance.

Basic terminology in Ecommerce

If you are just starting your walk in the fascinating world of electronic commerce, you're bound to come across a wide variety of terms that can be confusing at first. These words and phrases are regularly used to describe products, services, strategies, and business models in the ecommerce space. Here's a look at some of them. Comprehensive guide to basic e-commerce terminology, so that you can better understand this sector and perform with greater confidence.

Business models in Ecommerce

Business models in Ecommerce

  • Business to Business (B2B): This business model refers to transactions that occur between companies. For example, suppliers selling wholesale products to distributors or other companies.
  • Business to Customer (B2C): Here, a company sells directly to end consumers, as is the case with online stores that sell clothing, electronics or books.
  • Business to Employee (B2E): This model allows companies to provide products or services to their employees directly, often through intranet platforms.
  • Business to Government (B2G): Transactions between companies and government entities. Specific services or products such as technological solutions or equipment are offered here.
  • Consumer to Consumer (C2C): This model occurs on platforms where consumers sell products and services directly to other consumers, such as eBay or Wallapop.
  • Direct to Consumer (D2C): In this format, brands sell directly to the consumer without intermediaries, allowing complete control over the customer experience.

Key components of an Ecommerce

Key components of an e-commerce

The success of an online store depends on multiple factors and elements, ranging from user experience to marketing strategy. Below we explore some of the essential components:

  • Ecommerce Platform: It is the software that allows you to manage your online store. Notable examples include Shopify and PrestaShop. If you are evaluating options, we recommend reading more about the differences between Shopify and PrestaShop.
  • checkout: Refers to the payment process where the customer completes their purchase. An optimized checkout process is essential to reduce cart abandonment rates.
  • Payment gateway: Tool that allows you to process payments securely. Popular options include PayPal and Stripe.
  • Inventory management: Effective inventory control ensures that available products are correctly reflected in the store, avoiding frustrations for customers.
  • Logistics and shipping: It includes the processes of storage, packaging and shipping of the product to the end customer.
  • Customer Support: Tools like live chat or ticketing systems make it easier to resolve issues and improve customer experience. Learn more in our article on the Importance of live chat for ecommerce.

Ecommerce metrics and strategies

Metrics and strategies in ecommerce

Measuring and optimizing the performance of an online store is crucial. Here are some of the most important metrics and strategies you should know:

  • Conversion rate: Proportion of visitors who complete a desired action, such as making a purchase. Increasing this metric can have a direct impact on revenue.
  • Average Order Value (AOV): It represents the average amount a customer spends on a purchase. Strategies such as upselling and cross-selling can increase this value.
  • Customer Lifetime Value (CLV): Estimate the total revenue a customer will generate during their relationship with your business.
  • SEO (Search Engine Optimization): Content optimization to improve organic visibility in search engines. Learn more about the On-page optimization in ecommerce.
  • Promotional strategies: Perfect the Price strategy and launching attractive promotions are key steps to capture the attention of consumers.

Essential tools in Ecommerce

Essential tools in ecommerce

Using the right tools can simplify the management of an e-commerce and optimize its performance. Below is a list of essential tools:

  • Google Analytics: It allows you to analyze page traffic, identify the most effective traffic sources and measure conversions. Find out why it is essential in the article «The importance of Google Analytics in your Ecommerce».
  • Customer Relationship Managers (CRM): They help manage customer information and personalize the shopping experience.
  • ERP Systems: They facilitate the comprehensive management of inventories, finances and logistics.
  • Content Management Systems (CMS): They usually include features to customize and optimize the online store, such as WordPress with WooCommerce.

Understanding all of these terms and strategies can seem overwhelming at first, but as you become more familiar with them, it will become easier to implement improvements to your ecommerce. The key is to stay up to date and open to trying new methodologies.


Leave a Comment

Your email address will not be published. Required fields are marked with *

*

*

  1. Responsible for the data: Miguel Ángel Gatón
  2. Purpose of the data: Control SPAM, comment management.
  3. Legitimation: Your consent
  4. Communication of the data: The data will not be communicated to third parties except by legal obligation.
  5. Data storage: Database hosted by Occentus Networks (EU)
  6. Rights: At any time you can limit, recover and delete your information.