Glossary of eCommerce Terms

Glossary of Online Sales 20 Common eCommerce Terms

Get the essential knowledge of helpful terms for the eCommerce professionals and turn your eCommerce ideas into profitable business

eCommerce terms to build custom shopping platform

Our eCommerce experts leverage the strengths of each sales platform and deliver ecommerce stores that provide better solutions in much less time. Check how we explain online shopping industry terminology.

3PL (Third Party Logistics)

3PL is a service delivered by third-party businesses that allows you to outsource operational logistics from warehousing, all the way through to the delivery and fulfillment services.


Occurs when a shopper adds items to their cart then leaves the site without making a purchase. Sending abandoned cart emails can help retailers win back this business. A cart is considered abandoned 30 minutes after the visitor leaves the site without purchasing.

Address Verification Service (AVS)

A process that every credit card company implements in their system which allows them to verify whether the billing addresses of your customers match the addresses on their credit card statements.


The process when your customer’s credit card issuer confirms that the mode of payment is valid by determining that the cardholder has sufficient funds to perform the transaction and allows a payment transaction to proceed.

Content Optimization System (COS)

A COS is basically a CMS (Content Management System), but optimized to deliver customers the most personalized web experience possible. It is a holistic solution designed to help you manage your website and other components of digital marketing all together in one system.

Digital Wallet

A digital wallet (or e-wallet) is a software-based system that securely stores users' payment information and passwords for numerous payment methods and websites. It’s a service that allows a customer to pay through a payment provider without entering their credit card information i.e. Apple Pay, PayPal or AliPay.


Dropshipping is a type of eCommerce arrangement where the retailer does not keep goods in stock, but instead the goods are directly shipped from the manufacturer to the retailer or customer.

Ecommerce Analytics

E-commerce analytics is a system or tool that allows online retailers to understand their user’s behaviour. Onsite, eCommerce analytics can tell where visitors came from, how much time they spent looking at a particular product, where they spend most of their time, and much more.

ERP (Enterprise Resource Planning)

It is a comprehensive software platform used to help a business run more efficiently and effectively, by automating core processes such as taking orders from customers, managing financial records, updating inventory after each sale, and anticipating labor needs based on the level of orders received.


All steps involved in receiving, processing, packaging and shipping orders to customers. In eCommerce terminology, fulfillment is also called as Order fulfillment.

Intelligent Product Recommendation Systems

The system collects information about correlation between products and about customers' behaviour in order to generate high quality recommendation models to telling the customer what they might like, based on their purchase patterns.


It’s a list of products and their types currently in stock, waiting to be sold. Inventory list can contain SKU, barcode, tracking information, quantity, and locations of each item which is stocked.

Inventory Management System

An inventory management system is a combination of technology (hardware and software), processes and procedures that control the monitoring and maintenance of products movements.

Marketing Automation

Marketing automation sends personalized marketing messages based on a customer's activity and preferences to brings him closer to making an initial purchase or even upgrading. This is an integral component of Customer Relationship Management (CRM).

Order Fulfillment

It is also called as Fulfillment and reffers to all steps involved in receiving, processing, packaging and shipping orders to customers.

Order Management System

Order Management System is the application that enables online merchants to process, track, and organize orders.

Payment Card Industry (PCI) compliance

A set of requirements to ensure that customers’ credit card information is protected when stored, processed, or transmitted, That requirements are maintained through a set of strict regulations merchants and payment service providers must follow to collect and transfer credit card information.

Payment Gateway

This is a software that facilitates payment transaction by transferring information within banks and transmits responses like transaction approved or declined. Payment Gateway helps to protect sensitive information by encrypting the data they transmit to merchants and payment processors.

Payment Service Provider

It is an online a third party service for accepting electronic payments by using various payment methods like credit card, direct debit, bank transfer, and real-time bank transfer based on online banking.

Shopify POS, Shopify Point of Sale

That's an app being used on tablets and smartphones, or any other device to sell in person and accept payments.

Shopping Cart

An eCommerce shopping cart refers to the place which allows a customer to add and store all products intended to be purchased.

SKU (Stock Keeping Unit)

A unique alphanumeric identification code for each product or service which helps track movement of inventory.
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