E-Commerce and Marketing Terms for Beginners

Introduction
Navigating the world of e-commerce and digital marketing can be overwhelming for beginners. Understanding key terms and concepts is crucial to setting up and running a successful website. This glossary explains essential e-commerce and marketing terms, helping you optimize your readyFlips website and marketing strategies.

1. E-Commerce Terms #

Shopping Cart #

• A feature that allows customers to collect products they intend to purchase.
• Example: WooCommerce provides a built-in shopping cart for seamless checkout.

Checkout #

• The final stage where a customer reviews their order and completes the payment.

Product Listing #

• The individual page for each product, displaying details like price, description, and images.

SKU (Stock Keeping Unit) #

• A unique identifier assigned to each product to track inventory.

Upselling #

• Encouraging customers to purchase a higher-end product than the one they’re considering.

Cross-Selling #

• Recommending complementary products to customers.
• Example: Suggesting a laptop bag when a customer adds a laptop to their cart.

Dropshipping #

• A business model where the seller doesn’t keep inventory but fulfills orders through a third-party supplier.

Affiliate Marketing #

• Promoting other companies’ products and earning a commission for each sale made through your referral link.

2. Marketing Terms #

SEO (Search Engine Optimization) #

• The process of improving your website’s visibility on search engines to attract more organic traffic.
• Example: Use SEOpress to optimize meta descriptions, titles, and content.

PPC (Pay-Per-Click) #

• An advertising model where you pay each time a user clicks on your ad.
• Example: Google Ads uses PPC for promoting websites.

CTR (Click-Through Rate) #

• The percentage of users who click on an ad or link out of the total who see it.
• Formula: (Clicks ÷ Impressions) × 100.

Conversion Rate #

• The percentage of visitors who complete a desired action, such as making a purchase.
• Formula: (Conversions ÷ Total Visitors) × 100.

Email Marketing #

• Sending promotional messages or newsletters to a list of subscribers.
• Example: Use tools like MailPoet to set up email campaigns.

3. Advertising Terms #

Ad Spend #

• The amount of money allocated to running advertisements.

Target Audience #

• The specific group of people your products or services are designed for.

Impressions #

• The number of times your ad is displayed to users.

Retargeting #

• A strategy to show ads to users who have previously visited your website or interacted with your products.

4. Analytics and Performance Terms #

Bounce Rate #

• The percentage of visitors who leave your site after viewing only one page.

Traffic Sources #

• The origins of your website visitors, such as organic search, social media, or direct traffic.

ROI (Return on Investment) #

• A measure of the profitability of your marketing efforts.
• Formula: [(Revenue – Ad Spend) ÷ Ad Spend] × 100.

KPI (Key Performance Indicator) #

• Metrics used to evaluate the success of your marketing campaigns or business goals.
• Example: Conversion rate, customer acquisition cost (CAC).

5. Customer Engagement Terms #

Customer Retention #

• The ability to keep customers returning to your website for repeat purchases.

Loyalty Program #

• Rewards offered to repeat customers to encourage continued business.

Abandoned Cart #

• When a customer adds items to their cart but doesn’t complete the purchase.

Call-to-Action (CTA) #

• A prompt encouraging users to take a specific action, such as “Buy Now” or “Subscribe.”

6. Social Media Terms #

Organic Reach #

• The number of people who see your content without paid promotion.

Engagement Rate #

• A metric measuring user interaction (likes, shares, comments) with your content.

Influencer Marketing #

• Collaborating with individuals who have a large following to promote your products.

Conclusion
Mastering these e-commerce and marketing terms is a crucial first step for beginners managing their readyFlips websites. With this foundational knowledge, you can confidently set up your online store, develop marketing strategies, and measure success effectively.