Welcome to Prime AI Glossary
Fashion ecommerce glossary
Please find below useful definitions for terms used in Fashion E-Commerce.
A
API
API stands for Application Programming Interface it allows ecommerce platforms to share data and
functionality with other systems, such as inventory management systems, payment gateways, and
shipping providers. This enables businesses to automate and streamline their operations, and to
integrate their ecommerce platform with a wide range of other tools and services. For example, an
ecommerce platform's API could allow a business to automatically update its inventory levels in
real-time, or to process payments directly on the platform without redirecting customers to a
separate payment gateway.
ASIN
An Amazon Standard Identification Number (ASIN) is a unique identifier assigned by Amazon to
products listed on the company's website. An ASIN is a 10-character alphanumeric code, which is used
to identify products on Amazon's platform. It is specific to the Amazon marketplace and it is not
the same as a UPC or ISBN. Each ASIN corresponds to a single product, which can include multiple
variations, such as different sizes or colours. ASINs are used by sellers to list their products on
Amazon, by Amazon to track and manage inventory, and by customers to search for and purchase
products on the site. ASINs can be used to reference a product in Amazon's API, customer service and
order management system, and other internal Amazon tools.
AdWords
AdWords is Google's advertising platform that allows businesses to create and display ads on
Google's search engine results pages (SERPs), as well as on other websites that partner with Google
to show ads. Advertisers can create text, display, video, and shopping ads and target them to
specific audiences based on factors such as keywords, location, language, and device type. They can
also set a budget for their campaigns and only pay when someone clicks on their ad. AdWords uses a
pay-per-click (PPC) model, which means that advertisers bid on specific keywords that they want
their ads to show up for when people search for those terms. The highest bidder gets the top ad
spot. AdWords is a powerful and flexible platform that allows businesses of all sizes to reach a
large audience and drive targeted traffic to their websites.
Affiliate marketing
A type of performance-based marketing in which a business rewards one or more affiliates for each
visitor or customer brought about by the affiliate's own marketing efforts.
AOV – Average Order Value
AOV stands for Average Order Value. In other words, the Average Spend per Customer per Order.
Learn More
A/B testing
A/B testing, also known as split testing or bucket
testing, is a method of comparing two versions of an
online feature against each other to determine which one
performs better.
AI
AI stands for Artificial Intelligence and is an area of
computer science that focusses on the creation of
intelligent processes.
B
B2B
B2B stands for Business-to-Business, transactions between companies, as
opposed to between a company and individual consumer (B2C)
B2C
B2C stands for Business-to-Consumer, sales transactions between companies
and individual consumers.
BFCM
BFCM stands for Black Friday Cyber Monday
Black Friday
Black Friday is the Friday following Thanksgiving Day in the United
States. It is considered the beginning of the Christmas shopping season and has become one of the
busiest shopping days of the year. Many retailers offer significant discounts and promotions on this
day, making it a popular time for consumers to purchase holiday gifts. It is called Black Friday
because it is the day when retailers start turning a profit or "move into the black" for the year.
In recent years, the term "Black Friday" has been used to refer to the entire holiday shopping
season that starts on the day after Thanksgiving and continues through the end of the year. Many
retailers now offer "Black Friday" sales and discounts that start online on Thanksgiving Day and
continue through the weekend and beyond.
Brick and Mortar
Brick-and-mortar refers to a physical store or location where a business
operates and sells products or services. It is a traditional type of retail business that has a
physical presence and customers can visit the store, browse products and make purchases in person.
The term "brick-and-mortar" comes from the fact that these types of businesses typically have a
physical building, made of bricks, and customers can come in and shop inside the store (the
"mortar"). In contrast to brick-and-mortar, an e-commerce business operates primarily online, and
customers make purchases through a website or mobile application. Online only (pure play) retailers
are starting to seek brick and mortar touchpoints with their customers in order to reach a wider
customer base and give confidence how great their products are for the shoppers.
Bounce Rate
Percentage of visitors to a particular website who navigate away from the site after viewing only
one page.
C
CMS
Content Management System (CMS) is a tool or software that allows users to
create, manage, and publish digital content on a website or application.
CRM
Customer Relationship Management (CRM) is a system used to manage and
analyse interactions with customers, clients, and sales prospects.
CPA
Cost per Acquisition (CPA) is a pricing model in which advertisers pay for
each successful acquisition, such as a sale or lead.
CPL
Cost per Lead (CPL) is a pricing model in which advertisers pay for each
lead generated by an advertisement.
CPS
Cost per Sale (CPS) is a pricing model in which advertisers pay for each
sale resulting from an advertisement.
CSS
Cascading Style Sheets (CSS) is a style sheet language used for describing
the presentation of a document written in a markup language. It is primarily used to separate the
document's structure from its presentation, allowing the same content to be rendered in different
styles on different devices or screen sizes.
COGS
Cost of goods sold (COGS) is a term used to refer to the direct costs of
producing and selling a product or service. It includes the cost of materials and labour directly
involved in the production of the goods, as well as any other direct costs such as freight and
handling costs. COGS does not include indirect expenses such as overhead or administrative costs.
For example, if a company is selling a product, the COGS would include the cost of materials used to
make the product, the cost of labour to produce it, and the cost of any other direct expenses, such
as packaging and shipping. It does not include the costs of maintaining the factory or office space,
or the salaries of non-production employees.
COGS is important for e-commerce businesses to calculate as it helps them determine the
profitability of their products and services. By comparing the COGS to the selling price of a
product, businesses can determine the gross profit margin, which is an important metric for
evaluating the financial performance of a business. By monitoring their COGS, e-commerce businesses
can make adjustments to their pricing and production methods to improve profitability.
Cyber Monday
Cyber Monday is a term used to describe a day of online shopping that typically takes place on the
Monday after Thanksgiving, when retailers offer special deals and discounts to attract
shoppers.
Sales Conversion Rate
Number of item sold compared to the number of product page description visits.
D
D2C
Direct-to-Consumer (D2C) is a business model in which a company sells its
products or services directly to the end consumer, without the involvement of intermediaries like
retail stores or wholesalers.
Digital native
In e-commerce, a digital native is an individual who is comfortable with
online shopping and has grown up using technology and the internet to make purchases. They are
likely to be tech-savvy, prefer online shopping over traditional brick-and-mortar stores and are
more likely to use mobile devices for online shopping. Digital natives have different shopping
habits and preferences compared to older generations. They are more likely to research products
online before making a purchase, use social media to discover new products, and prefer to shop on
mobile devices.
Digital native companies
Digital native companies are companies that were born in the digital era
and have digital technology at their core. They are often characterised by a business model that is
based on the internet and mobile technology, and they usually have a more agile and customer-centric
approach. They are also known as pure-play companies, as they operate exclusively through their own
website or mobile application and don't have physical stores.
E
eCommerce
eCommerce, or electronic commerce, refers to the buying and selling of
goods or services over the internet.
ERP
Enterprise Resource Planning (ERP) is a software system that helps
businesses manage and automate various aspects of their operations, such as accounting, inventory,
human resources, customer relationship management and other business processes across an entire
organization. It typically includes modules for financial management, supply chain management,
manufacturing, project management, and more. ERP systems provide a centralized database that stores
data from various business functions, allowing different departments to access and share information
in real-time. This helps organizations streamline their operations, improve efficiency, and make
better-informed decisions. An ERP system is used by businesses of all sizes across a wide range of
industries, including retail. ERP systems can be implemented as on-premise software, cloud-based
software or a hybrid of both. Cloud-based ERP systems are becoming more popular as they offer
businesses more flexibility, scalability and cost-effectiveness as they eliminate the need for
hardware and software maintenance, upgrades and backups.
F
Fulfilment
Fulfilment refers to the process of receiving, packaging, and shipping
orders to customers.
FOMO
Fear of Missing Out (FOMO) is the emotional state of wanting to be a part
of something, typically driven by social media or advertising, that is perceived as desirable or
exciting.
FTP
File Transfer Protocol (FTP) is a standard network protocol used to
transfer files from one host to another over the internet. FTP is a client-server protocol where an
FTP client establishes a connection to an FTP server, and then the client can upload or download
files to or from the server. FTP is widely used to upload and download files to and from a web
server, it also allows users to create and delete directories, and to move, rename, and delete
files. FTP uses two channels, one for sending commands and the other for sending data. The commands
channel is used to establish the connection and authenticate the user, while the data channel is
used to transfer the files. FTP can be used in both active and passive mode, and it can transfer
files in both ASCII and binary mode. FTP is considered an insecure protocol, as it sends login
credentials and data in clear text, and it is recommended to use SFTP (Secure File Transfer
Protocol) or FTPS (FTP Secure) which are more secure alternatives that encrypt the
communication.
G
Gross Margin
Gross margin is a financial metric that measures the profitability of a
business by calculating the difference between the cost of goods sold (COGS) and the revenue
generated from the sale of those goods. It is typically expressed as a percentage of the revenue.
The formula for gross margin is: Gross Margin = (Revenue - COGS) / Revenue * 100.
For example, if a business generates 100,000 EUR in revenue and has 60,000 EUR in COGS, the gross
margin would be 40%. This means that the business has a profit of 40% on every EUR of revenue
generated.
Gross margin is an important metric for e-commerce businesses as it indicates how much profit they
are making on each sale. High gross margin means that the business is able to generate a significant
profit on each sale and can afford to invest in marketing and other growth strategies. A low gross
margin can indicate that the business is not pricing its products or services correctly or is not
efficiently managing its costs.
H
Hypertext Markup Language (HTML)
HTML is a markup language used to create the structure and layout of web pages.
Headless Commerce (HC)
HC refers to the separation of the front-end customer-facing interface and the back-end system of an
e-commerce platform. In a traditional e-commerce platform, the front-end and back-end are tightly
integrated, meaning that changes to one side of the platform often require changes to the other
side. In a headless commerce setup, the front-end is decoupled from the back-end, allowing
businesses to use different technologies for each. This allows businesses to easily update their
front-end customer-facing interface without affecting the back-end system and vice versa. The
front-end in a headless commerce setup is typically built using technologies such as React, Vue or
Angular, and it is connected to the back-end through an API (Application Programming Interface)
which allows it to fetch data from the back-end and render it on the front-end. This allows for
greater flexibility, scalability, and faster time to market for businesses, as they can easily make
changes and updates to their front-end without affecting the back-end system. Headless commerce is
becoming increasingly popular as it allows businesses to create personalised, highly interactive
shopping experiences across multiple channels and devices, such as mobile, web, and in-store.
I
ISP
Internet Service Provider (ISP) is a company that provides internet access
to customers, typically through a wired or wireless connection.
J
JSON
JavaScript Object Notation (JSON) is a lightweight data-interchange format that is easy for humans
to read and write, and easy for machines to parse and generate. It is based on a subset of the
JavaScript Programming Language, Standard ECMA-262 3rd Edition - December 1999. JSON is a text
format that is completely language-independent but uses conventions that are familiar to programmers
of the C family of languages, including C, C++, C#, Java, JavaScript, Perl, Python, and many others.
JSON is often used to transmit data between a server and a web application, or between different
parts of a web application. It is also commonly used in APIs (Application Programming Interfaces) to
exchange data between systems. JSON data is represented as a collection of key-value pairs, where
the keys are strings and the values can be strings, numbers, booleans, arrays, or other JSON
objects. JSON is very similar to JavaScript objects, but it is a separate format and can be used in
many different programming languages. JSON is a widely adopted standard for data interchange format
as it is lightweight, easy to parse, and can be easily integrated with other technologies. JSON is
also supported by most of the programming languages like python, javascript, java, C#, Ruby and many
others.
JIRA
Jira is a software development tool used for issue tracking and project management.
JS
JS is an abbreviation for JavaScript, a programming language that is primarily used to create
interactive front-end web applications. JavaScript is a client-side scripting language, which means
it runs directly in the user's web browser and doesn't require a connection to a server to execute.
JavaScript was first developed in 1995 by Brendan Eich at Netscape, and it quickly became the
standard programming language for creating dynamic web pages. Today, JavaScript is used not only to
create interactive web pages but also to build complex web and mobile applications, server-side
applications, and even desktop applications. JavaScript allows developers to create complex
interactions, animations, and dynamic content on web pages. It can also be used to validate user
input, create cookies, and communicate with a server using AJAX (Asynchronous JavaScript and XML) to
create a more responsive web experience. JavaScript is a versatile language, it can be used for a
wide range of purposes, such as: Making web pages more interactive, Creating games and
visualisations, Building browser extensions, Building mobile apps using frameworks like React Native
and Ionic, Building server-side applications using Node.js, Building real-time applications with
WebSockets, Building desktop apps using Electron, Building command-line tools and scripts. It also
has a large and active developer community that creates and maintains a wide variety of open-source
JavaScript libraries and frameworks that can be used to speed up development and reduce the amount
of code you need to write.
K
K-fold Cross-validation
K-fold cross-validation is a technique used to evaluate the performance of a machine learning model.
The goal of cross-validation is to estimate the performance of a model on unseen data, by training
the model on a subset of the available data and evaluating its performance on a different, hold-out
subset of the data.
In K-fold cross-validation, the data is divided into k equal-sized "folds". The model is then
trained and evaluated k times, with a different fold of the data used as the evaluation set in each
iteration. In each iteration, k-1 folds are used as the training set, and the remaining fold is used
as the evaluation set. The performance of the model is then averaged across all k iterations to give
an estimate of its performance on unseen data.
The main advantage of K-fold cross-validation is that it makes efficient use of the data, as each
example is used for both training and evaluation. This can be particularly useful when the amount of
data is limited.
The value of k should be chosen based on the size of the data set: a larger value of k will result
in a larger training set and a smaller evaluation set, which can lead to a more robust estimate of
the model's performance, but it also increases the computation time. Common values for k include 5
and 10.
K-fold cross-validation is a widely used technique to evaluate the performance of machine learning
models and to select the best model and its hyperparameters. It is also used to prevent overfitting,
which occurs when a model is too complex and performs well on the training data but poorly on new
unseen data.
KNN
The k-nearest neighbours (KNN) algorithm is a type of instance-based and supervised learning
algorithm that can be used for classification and regression tasks. The algorithm works by
identifying the k number of training examples that are closest in distance to a given test example,
and then using the majority class or average value of those k nearest neighbours to make a
prediction.
The KNN algorithm is based on the idea that similar data points are likely to have similar class
labels. It uses a distance metric to measure the similarity between the test example and the
training examples. Common distance metrics include Euclidean distance, Manhattan distance, and
cosine similarity.
The value of k is a hyperparameter that needs to be chosen by the user. A small value of k will
result in a model that is more sensitive to noise and outliers, while a larger value of k will
result in a model that is more robust but less sensitive to individual data points. An optimal value
of k can be found by using techniques like cross-validation.
KNN is a simple and efficient algorithm that can be used for both classification and regression
tasks, and it can be used with both continuous and categorical variables. It is a non-parametric
algorithm, meaning that it makes no assumptions about the underlying probability distribution of the
data. However, the algorithm can be computationally expensive, especially when dealing with large
datasets.
KPI
Key performance indicator. In other words an indicator that allows to measure how successful
activity is/was.
L
LTV
Lifetime Value (LTV) is a prediction of the net profit attributed to the entire future relationship
with a customer. It is a key metric used in e-commerce and other businesses to estimate the value of
a customer over their entire time as a customer. LTV is often used to determine the maximum amount
of money that a business can afford to spend on acquiring a new customer (customer acquisition cost,
CAC) and still make a profit. LTV is calculated by multiplying the average purchase value by the
average purchase frequency rate and then by the average customer lifespan. By calculating LTV,
businesses can make data-driven decisions about customer acquisition, retention, and marketing
strategies. Businesses can use LTV to identify their most valuable customers and target their
marketing efforts accordingly. LTV can also be used to identify the lifetime value of a customer
segment and compare it to the cost of acquiring a customer in that segment. LTV is a key metric for
e-commerce businesses, as it helps them to understand the value of customer retention and lifetime
customer value, which can be used to make informed decisions about marketing and customer
acquisition strategies.
LPO
Landing Page Optimization (LPO) is the process of improving the elements on a landing page to
increase its conversion rate. A landing page is the web page that a user "lands" on after clicking
on a link, usually an advertisement or a search engine result. The goal of LPO is to design and test
different versions of a landing page to see which one performs best in terms of driving conversions.
In LPO, businesses optimise different elements of the landing page, such as the headlines, images,
copy, and call-to-action (CTA) buttons, to see which elements have the most impact on conversion
rates. They also test different layouts, colours, and placement of elements to see which combination
produces the highest conversion rate. Common techniques used in LPO include A/B testing and
multivariate testing. LPO can be used to optimise different types of landing pages, such as product
pages, lead generation pages, and thank you pages. By continually testing and optimising landing
pages, businesses can improve the user experience, increase conversions, and drive more revenue. In
e-commerce, Landing Page Optimization can be used to optimise the product page and improve the
conversion rate of the product page, which can lead to increased sales. By using LPO, businesses can
increase the effectiveness of their online marketing campaigns by making sure that the landing pages
are optimised to convert visitors into customers.
M
ML
Machine Learning (ML) is a subfield of artificial intelligence that uses algorithms to enable a
computer to learn from data, without being explicitly programmed. Machine learning algorithms use
statistical models and computer algorithms to analyse and understand data, and make predictions or
decisions without being explicitly programmed.
There are three main types of machine learning:
Supervised Learning: where the algorithm is trained on a labelled dataset, meaning the dataset
contains input-output pairs and the algorithm learns to predict the output given a new input.
Unsupervised Learning: where the algorithm is trained on an unlabeled dataset, meaning the dataset
contains only inputs and the algorithm must find patterns and structure in the data.
Reinforcement Learning: where the algorithm learns from the feedback of its actions, it receives
rewards or penalties for certain actions, and it learns to optimise its actions to maximise the
rewards over time.
There are various applications of machine learning in e-commerce such as:
-
Product recommendation
-
Search and navigation
-
Pricing optimization
-
Inventory management
-
Fraud detection
-
Customer segmentation
-
Personalization
Machine learning algorithms can be divided into two main categories: parametric and non-parametric.
Parametric models have a fixed number of parameters, and the model is chosen based on the data.
Non-parametric models do not have a fixed number of parameters and can adapt to the data.
Machine learning is a rapidly growing field, and new techniques and algorithms are being developed
all the time. It is an interdisciplinary field that draws on many other fields, including
statistics, computer science, and mathematics, and it has the potential to revolutionise many
industries, including e-commerce.
N
Neural Network
Neural networks are a set of convolutional algorithms, modeled loosely after the human brain, that
are designed to recognize patterns.
NPS
Net Promoter Score (NPS) is a customer loyalty metric that measures the likelihood of a customer to
recommend a company's product or service to others. It is based on a single question survey that
asks customers to rate their likelihood of recommending the company to a friend or colleague on a
scale of 0 to 10, where 0 is not at all likely and 10 is extremely likely. Customers are then
grouped into three categories: Promoters (9-10 rating) are customers who are most likely to
recommend the company, Passives (7-8 rating) are customers who are neutral about the company,
Detractors (0-6 rating) are customers who are least likely to recommend the company. The NPS is then
calculated by subtracting the percentage of Detractors from the percentage of Promoters. A positive
NPS score indicates that the company has more Promoters than Detractors, while a negative NPS score
indicates the opposite. A score of 0 means that the percentage of Promoters and Detractors is the
same. NPS is widely used as a benchmark for customer loyalty, and it is often used to track customer
satisfaction over time and to compare the performance of different products, services, or customer
segments. NPS can be used to identify areas of strength and weakness in a company's customer
relationships, and to identify opportunities for improvement.
O
OMS
Order Management System (OMS) is a software system that manages the entire process of receiving,
processing, and fulfilling customer orders in e-commerce.
P
PDP
Product Detail Page (PDP) is a web page that provides detailed information about a specific product
or service.
PPC
PPC (Pay-Per-Click) is a type of online advertising where businesses pay a fee each time one of
their ads is clicked. PPC ads are typically displayed on search engines, such as Google and Bing,
and on social media platforms, such as Facebook and Instagram. Businesses create ads and bid on
keywords that they want their ads to show up for when people search for those terms. The cost of PPC
advertising is determined by the bid amount, the relevance and the quality of the ad, and the ad's
performance. PPC can be a cost-effective way for e-commerce businesses to generate sales, leads, and
website traffic.
POS
Point of Sale (POS) is a system used to process sales transactions in a physical retail store, also
known as till or cash register.
PIM
Product Information Management (PIM) is a system used to manage and distribute product information
across multiple channels, including e-commerce websites, and mobile apps. PIM systems are used to
collect, store, and distribute product information such as product names, descriptions, images,
pricing, and availability. They provide a single source of truth for product information, ensuring
that all channels have access to the most up-to-date and accurate information.
PIM systems typically include features such as data normalisation, data validation, and data
enrichment. Data normalisation ensures that product data is consistent across different channels,
and data validation ensures that product data is accurate and complete. Data enrichment is the
process of adding additional information to product data, such as product images, videos, and
customer reviews.
PIM systems can also include advanced features such as product categorization, product hierarchy,
and product relationships. Product categorization is the process of grouping products into
categories, such as shoes, clothing, and electronics. Product hierarchy is the process of organising
products into a hierarchical structure, such as by brand, product line, and product category.
Product relationships are used to link related products together, such as accessories or
complementary products.
PIM systems can help e-commerce businesses to improve their product data management by providing a
centralised location to store, manage and distribute product information, which can improve the
shopping experience and increase sales. PIM can also help businesses to improve their product data
management and reduce the time and cost of maintaining product information across multiple channels.
Pure play
In e-commerce, a pure-play e-commerce company is an online retailer that operates exclusively
through its own website or mobile application. They don't have physical stores and rely solely on
the internet to reach their customers and sell their products. They typically have a specific niche
or focus and they specialise in a particular category of products or services.
Pure-play e-commerce companies are also known as "digital natives" because they were founded and
have grown during the digital era, and have been able to take advantage of the latest e-commerce
technologies, such as personalization and automation, to improve the customer experience.
Pure-play e-commerce companies are different from "clicks-and-mortar" companies which have both
physical stores and an online presence.
Pure-play companies can have certain advantages over traditional brick-and-mortar retailers. For
example, because they don't have the overhead costs of maintaining physical stores, they can often
offer lower prices, and they can also be more agile in responding to changes in consumer behaviour
and technology.
Q
QA
Quality Assurance, a process used to check or test if product or work quality meets the set expectations.
QoQ
QQuarter over Quarter, a comparison of a metric from one quarter to the same quarter in the last year
R
ROI
Return on Investment (ROI) is a financial metric used to measure the efficiency of an investment or
to compare the efficiency of a number of different investments. The formula to calculate ROI is:
(Gain from Investment - Cost of Investment) / Cost of Investment. ROI can be expressed as a
percentage, and it represents the amount of return on an investment, relative to the investment's
cost. A positive ROI means that the investment has generated a profit, while a negative ROI means
that the investment has resulted in a loss. It is a useful metric for evaluating the performance of
an ecommerce business. In e-commerce, ROI is a way to measure the effectiveness of a website or
software as a service by calculating the revenue generated per Great British Pound spent on it. A
high ROI indicates that the investment is generating a good return, while a low ROI indicates that
the investment is not performing well.
ROAS
Revenue on ad spend is a key performance indicator in digital marketing.
S
SERP
SERP stands for Search Engine Results Page. It is the page that appears when a user enters a query
into a search engine, such as Google or Bing. The SERP includes a list of relevant websites, images,
videos and other information that the search engine has determined to be the most relevant to the
user's query.
In ecommerce, businesses aim to rank high in SERP for their targeted keywords, as it can drive a lot
of targeted traffic to their website. The higher a website is ranked on the SERP, the more
visibility it will have to users searching for related products or services.
Ecommerce businesses can improve their ranking in SERP by using SEO (Search Engine Optimization)
techniques, such as optimising their website's content and technical structure, building backlinks,
and creating high-quality, relevant content. They can also use paid advertising methods like PPC
(Pay-Per-Click) to secure a spot on the SERP.
SEO
Search Engine Optimization (SEO) is the process of optimising a website or online store to improve
its visibility and ranking in search engine results pages (SERPs).
SMM
Social Media Marketing (SMM) is the process of promoting a product, service, or brand on social
media platforms, such as Tik Tok, Facebook, Instagram, and Twitter.
SaaS
Software as a Service (SaaS) is a software delivery model where the software is hosted by a
third-party provider and made available to customers over the internet.
SKU
A Stock Keeping Unit (SKU) is a unique identifier assigned to a product by a retailer or supplier
for inventory management purposes. It is used to track and identify individual products within a
company's inventory. Each product within a company's inventory will have a unique SKU assigned to
it.
A SKU is typically composed of several parts, each of which conveys specific information about the
product. For example, a SKU for a t-shirt might include information such as the t-shirt's size,
colour, and style. This information is often encoded into the SKU in a standardised format, making
it easy to read and understand.
SKUs are used in e-commerce to track inventory levels and to identify products in the warehouse, in
the store, or in the ecommerce platform. They are also used for order tracking, invoicing, and for
generating purchase orders. They allow retailers to manage their inventory and stock levels more
efficiently, and to keep track of which products are selling well and which ones are not.
SKUs can also be used to track pricing, promotions, and discounts. By using different SKUs for
different pricing or promotion strategies, retailers can easily track the effectiveness of these
strategies and make adjustments as needed.
Overall, SKU is a crucial aspect of inventory management and supply chain management in ecommerce,
and it allows companies to track inventory levels, sales, and customer demand, which in turn helps
them to make better business decisions.
Singles day
Singles Day is a Chinese shopping holiday that takes place on November 11th every year. The name
"Singles Day" comes from the date 11/11, which has four "ones" (or "singles"), representing being
single. The holiday has been celebrated in China since the 1990s as a day for single people to treat
themselves and buy things for themselves.
In recent years, Singles Day has evolved into a massive shopping event, with retailers offering
major discounts and promotions on a wide range of products. Online marketplaces such as Alibaba's
Tmall and JD.com, have turned it into the world's largest shopping event, surpassing Black Friday
and Cyber Monday in terms of sales.
Singles Day has become an opportunity for retailers to boost their sales and reach new customers,
both in China and internationally. Many international brands and retailers now participate in
Singles Day sales, making it a global shopping event.
Singles Day is also considered as an opportunity for consumers to buy things they need or want and
treat themselves. It has become a cultural phenomenon in China, with many people looking forward to
the day for discounts on everything from clothes to electronics and home goods.
T
TOFU
Top-of-the-funnel (TOFU): The early stage of the marketing and sales funnel, where potential
customers are first made aware of a product or service.
Tokenization
Tokenization: The process of replacing sensitive data with a unique, non-sensitive value, known as a
token, to enhance security.
3PL
Third-party logistics (3PL): The use of external companies to manage logistics and supply chain
operations.
Touchpoint
Touchpoint: Any point of interaction between a customer and a brand, such as a website, email, or
store visit.
U
UI
User Interface (UI) refers to the elements of a website or application that users interact with, such as buttons, menus, and text fields.
UX
User Experience (UX) refers to the overall experience of a user when interacting with a website or application, including factors such as ease of use, navigation, and design.
URL
Uniform Resource Locator (URL) is the address of a website or web page that is used to access it over the internet.
UTM
Urchin Tracking Module (UTM) is a simple code that can be added to the end of a URL in order to track the effectiveness of online marketing campaigns, such as email, social media and paid search.
USP
Unique Selling Proposition (USP) is a unique feature or benefit of a product or service that sets it apart from its competitors.
Upselling
Upselling is the practice of encouraging customers to purchase related or higher-priced products or services. The goal of upselling is to increase the value of a customer's purchase, either by selling them a higher-priced version of the product they are currently interested in or by selling them additional products or services that complement their purchase.
Upselling can be done in a number of ways, such as suggesting a more expensive version of the product a customer is looking at on an e-commerce website, offering add-ons or upgrades at checkout, or providing personalised recommendations based on a customer's browsing history or purchase history.
Upselling can be an effective way for e-commerce businesses to increase their revenue and profitability, as it allows them to sell more products and services to existing customers without having to acquire new customers. It can also improve the customer experience by offering them products or services that are more tailored to their needs and interests.
However, it's important to ensure that upselling is done in an ethical and customer-focused way, and not to be pushy or manipulative. It's important to provide clear information and to be transparent about the additional costs, and to make sure that the upselling offer is relevant to the customer and of value to them, otherwise it could be perceived as a negative experience.
V
Visual search
Visual search is a technology that allows users to search for products by uploading an image or taking a picture, rather than using keywords. This technology uses image recognition to identify specific features of the image and match it to similar products available for purchase.
Visual search can be done through a mobile device camera, a computer webcam, or by uploading an image from the user's device. It can be used for various types of products, such as clothing, furniture, home decor and more.
Visual search technology
is becoming more popular in e-commerce as it allows customers to search for products by providing a visual representation of what they are looking for, rather than having to rely on text-based search queries. This can make the search process more efficient and accurate, especially for items that are hard to describe with keywords, such as patterns, colours or shapes.
Overall, visual search is a powerful tool for e-commerce businesses, as it allows them to better understand and serve the needs of their customers, and to improve the customer experience by making it easier for them to find the products they are looking for.
it's important to ensure that upselling is done in an ethical and customer-focused way, and not to be pushy or manipulative. It's important to provide clear information and to be transparent about the additional costs, and to make sure that the upselling offer is relevant to the customer and of value to them, otherwise it could be perceived as a negative experience.
W
White-label
White-label: A product or service that is produced by one company but is sold under another company's brand.
Wishlist
Wishlist: A feature on ecommerce platforms that allows customers to save products for future purchase.
Workflow automation
Workflow automation is the use of technology to automate repetitive tasks and processes in an organisation. This can include tasks such as data entry, document management, email marketing, inventory management, and customer service. The goal of workflow automation is to increase efficiency, reduce errors, and improve overall organisational performance.
In ecommerce, workflow automation can help to streamline various business processes, such as order processing, inventory management, and customer service. For example, an ecommerce platform could use workflow automation to automatically send out order confirmation emails, update inventory levels, and send out shipping notifications. This can save time, reduce errors, and improve the overall customer experience.
Workflow automation can be achieved through the use of various tools such as software, scripts, and bots. These tools can be programmed to perform specific tasks, such as sending out email campaigns, updating customer data, or tracking inventory levels. They can also be integrated with other systems, such as customer relationship management (CRM) software, to automate and streamline business processes.
Overall, workflow automation is an important aspect of ecommerce, as it allows businesses to operate more efficiently, reduce costs and improve the customer experience.
X
XML
XML: Extensible Markup Language, a markup language used for encoding documents in a format that is both human-readable and machine-readable.
X-axis
X-axis: The horizontal axis on a graph, often used to display time or other numerical data.
X-commerce
X-commerce: A business model that combines the benefits of e-commerce and brick-and-mortar retailing.
Y
YOY
Year-over-year (YOY): A comparison of a metric (such as revenue or profits) from one year to the same period in the previous year.
Y-Axis
Y-Axis: The vertical axis on a graph, often used to display numerical data or values.
Y-disruption
Y-disruption: A term to describe the disruption that technology has brought to the retail industry.
Z
Z-generation
Z-generation: A term used to describe individuals born in the late 1990s and early 2000s, who are considered to be digital natives.
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