So you have decided to make the transition to online sales and launched your own eCommerce site. Like many others before you, though, you might be struggling to work through all of the new and unfamiliar eCommerce terms.
In order to help, we created this tech talk guide for business owners. Below, we’ll define several of the most common eCommerce terms that you need to know when you’re making the leap to an online sales model.
The first of our must-know eCommerce terms is “SEO,” which stands for search engine optimization.
SEO is a broad topic that refers to tactics designed to improve search rankings. The better your SEO strategy is, the higher your site will rank on Google and other search engines. The goal of SEO is to make it to page one of search engine results pages (SERPs).
Implementing a comprehensive SEO strategy and improving rankings takes time. There are no shortcuts when it comes to search engine optimization. That is why many businesses supplement SEO efforts with paid search and other forms of marketing.
Speaking of paid advertising, search engine marketing (SEM) is the phrase used to describe ranking specific advertising efforts. SEM and SEO are closely related eCommerce terms that you will encounter frequently as you’re researching information for your new business venture.
In the online sales industry, SEM is invaluable. A well-designed search engine marketing strategy will allow your site to generate traffic and revenue quickly. The most successful eCommerce organizations use a good mix of both SEM and SEO strategies.
Third on our list of eCommerce terms that you need to know? “SSL.”
An SSL or secure sockets layer is a type of technology that forms a secure connection between your site and consumers.
With cybersecurity threats on the rise, SSLs are vital for eCommerce stores. This technology allows consumers to safely provide you with personal information that is necessary to make a purchase.
A/B testing is another eCommerce term that you will encounter in just about any article on digital marketing.
A/B testing involves trying out two different versions of your site so that you can determine which one performs best with consumers. Each group of users will only have access to one version of the site. After testing is complete, you can fully implement the features of the version of the site that generated better results.
Average Order Value
The AOV or average order value is an important metric for eCommerce. By tracking AOV, you can determine how much the average customer is spending when they make a purchase from your online store.
AOV is calculated by dividing your total revenue by the number of orders placed in a given period of time.
In the eCommerce world, B2B refers to business-to-business sales. B2C is the opposite of B2B and refers to business-to-consumer sales.
As you’re conducting research or seeking development partners, it is important that you pay attention to these two terms. For instance, if you are operating a B2B eCommerce site, then you should focus on resources that are designed for business-to-business sales.
KPIs or key performance indicators refer to the various data sets that you can track in order to measure the success of your business.
A few examples of KPIs for eCommerce include average order value, lifetime customer value, leads generated, conversion rate, and churn rate. By tracking and analyzing relevant KPIs, you can gain valuable insight into your business.
Return on investment or ROI refers to how much you are making back on the money you put out for marketing.
For instance, let’s say that you spend approximately $100 to acquire each new client. If the average LCV or lifetime customer value for your clients is $500, then you have a 500% return on investment.
You should focus on advertising strategies that yield the highest ROI, as this will benefit your bottom line.
Adwords is a Google service that you can use to advertise on search engine results pages. You can implement an Adwords campaign in order to target specific keywords. To do so, you will need to set a budget.
Adwords is a popular marketing tool because you are only charged for the service if users click on the ad that is displayed.
With Pulp: Creating eCommerce Sites that Customers Love
Launching an online store is both exciting and nerve-racking. Before you can start making sales, you will need a high-performing site that can handle massive surges in traffic.
Your site will also need to provide visitors with a streamlined and enjoyable purchasing experience.
Fortunately, you don’t have to tackle this project alone!
With Pulp has a reputation for creating eCommerce sites that customers love. Our experts will take the time to learn about the unique needs of your organization. We have experience designing websites for both B2B and B2C commerce, which means that we can help no matter what industry you are involved in!
If you are ready to learn more, contact our experts today for a free consultation.