Ultimate eCommerce Glossary

A/B Testing: This involves creating two versions (A and B) of a webpage, a Call to Action, an image in an ad (anything really) and comparing them to see which one performs better. Through A/B testing, you can measure the effectiveness of different elements and make data-driven decisions.

Abandoned Cart Rate: The number of people who have added something to their cart but have not checked out or purchased. This is also known as the percentage of visitors who add items to their cart but do not complete the purchase. The lower your abandoned cart rate the better.

Ad Spend Budget: The amount of money you allocate to the platforms to run your Google or Meta Ads. We generally recommend a starting ad spend budget of $2,000 to $3,000 per month. This budget gives the platforms enough data to test, learn and start optimising for sales efficiently.

Average Order Value (AOV): Your total sales value, including shipping and taxes, divided by your total number of sales in the same period. This is the average amount spent by customers in a single transaction. If you can increase your average order value, your store's revenue increases without having to send more traffic.

Average Session Duration: The average amount of time a visitor spends on your website. Normally, the longer a website visitor spends on your website, the more they are exploring and the more inclined they are to buy from you or engage with you.

Bounce Rate: The percentage of visitors who leave your website without taking any action. No scrolling, no clicking, no engaging at all.

Call to Action (CTA): These are the buttons or prompts that tell customers what the next step in the buying journey is. We recommend that you make your calls to action clearly stand out.

Campaign, Newsletter, or Broadcast Emails: These are the emails that require you to set them up for every single send-out. We believe that an ongoing campaign/newsletter strategy is one you should have in place to continually educate your amazing subscribers.

Conversion Rate (CR): The percentage of sessions that result in an order, out of the total number of visits to your site for the same period. The higher you can nudge your site’s conversion rate, the more sales you make for the same volume of website traffic.

Conversion Rate Optimisation (CRO) / Website Optimisation: Simply put, website optimisation is the process of making strategic changes to your eCommerce website to enhance its performance and drive more conversions. It involves analysing user behaviour, identifying areas for improvement, and implementing targeted experiments to optimise your site's elements, design, and user experience.

eCommerce Ecosystem: Every little thing that feeds into your business, your emails, your customer service, your eCommerce website, your advertising, your brand voice. Get the idea? It is everything and anything that connects into your business. No one piece operates in isolation it all behaves in an ecosystem.

Flows or Automatic Emails:These happen when a specific action by someone occurs. These tend to be lots of work to set up but when set up they run on autopilot – even while you sleep.

Google Ads & Meta Ads: Paid traffic sources that help send visitors to your store. We manage your ads so you can step away from the stress and overwhelm of advertising management so you can focus on what you enjoy and what you are best at.

Organic SEO: A strategy used to naturally increase your store's visibility in search results.This is a touchpoint that forms a part of your eCommerce store's ecosystem.

Pixel: A piece of tracking data inside your ad accounts that connects to your online store and ecosystem. When you work with us you 100% own all of your advertising accounts, pixels, data and assets.

Return on Ad Spend (ROAS): This is your total revenue generated by the advertising divided by the amount you spent on that advertising. We use this as a goal we actively set for the advertising account (what return on your advertising spend we have to get to ensure you are profitable).

Returning Customer Rate: The percentage of customers who have placed more than one order on your store out of all customers that placed an order within the same date range. It is one indicator of a great customer experience if people come back.

Sessions: Sessions are the number of visits your site has had during a specific period. Think of this as the number of pairs of eyeballs that have seen your site in that period.

Sessions By Device: The number of sessions by all site visitors and the device type they viewed your site on. It will give you insights into what device type you need to optimise your website for.

Time on Page: The average time visitors spend on a specific page.