In our continuous efforts to support Amazon sellers and all e-commerce entrepreneurs, we're launching a special E-commerce Dictionary aimed at enriching our beloved clients' knowledge even further and hopefully inspire them to develop their personal vocabulary along with their business plans or growth strategies. Enjoy & happy learning!
Alexa (full name Amazon Alexa) is Amazon’s virtual and intelligent computer-generated personal assistant first used in 2014 in the original Amazon Echo smart speakers. As a voice-controlled virtual assistant, she helps users turn words into actions, she can mimic real conversations, play music, answer questions, tell you the weather, provide accurate information, news, sports scores and allows Prime members to buy products from Amazon.
Affiliate marketing is a performance-based online sales tactic that includes earning a commission for promoting other people's (or company's) products and increasing their sales. As an “affiliate”, you find a product you like, recommend it to others through a blog, social media, or a website and earn a small share of the product owner’s profit for each sale that you make. Each time someone makes a purchase via the unique link associated with your affiliate account, the affiliate earns a commission.
Amazon Marketplace is the e-commerce platform (or online shopping network) created by Amazon where third-party sellers can list and sell new or used items on a fixed-price online marketplace where Amazon's regular offerings are also featured.
Amazon Prime is Amazon’s paid membership program launched in 2005. The subscription service gives users unique access to perks that are not available to regular Amazon shoppers or would cost extra, such as free 1 or 2-day shipping (depending on the address), free returns, streaming video, music, TV shows, and more benefits. In January 2020, Amazon Prime has 150 million subscribers from 200 countries around the world.
BigCommerce is a major paid-for e-commerce platform that allows users to create online stores, add products, and sell them. BigCommerce is famous for its impressive amount of native features, must-have SSL Security certificates, and encryption for safe payments, data tools, and it’s mainly used by large or fast-growing brands.
The term “blog” is a truncated version of “weblog” and refers to an informational website that regularly publishes information on the World Wide Web. Data recording and reporting (called “a post”) are made in the form of diary-style text entries, mostly in a conversational style.
CALL TO ACTION (CTA)
A Call to Action (CTA) is a marketing phrase (or prompt) that invites the person that hears it or reads it (online user or webpage visitor) to take a desired action, for instance, “Sign Up”, “Buy Now!”, “Sign up for free”, “Subscribe today!”, or “Join Free for a Month”.
CONTENT MANAGEMENT SYSTEM (CMS)
CMS is a computer software or application that uses a database to create and modify digital content when developing and managing a website, eliminating the need for coding.
Conversion marketing is marketing aimed at increasing conversions (website visitors who become paying customers).
Conversion rate is the number of website visitors that take action (a conversion) out of the total number of visitors of that website. Since Conversion rates for digital storefronts are usually low, often Conversion Marketing tools are used for boosting conversions.
eBay is a global e-commerce platform that connects millions of buyers and sellers around the world. It was founded in 1995 by Pierre Omidyar and is the second leading marketplace in the U.S. Individuals and businesses use eBay to buy or sell a wide range of new or second-hand items, from cars to candles, collectible baseball cards, and furniture, as well as services (for instance holidays). What makes eBay stand out from other online shopping websites is the fact that it allows direct consumer to consumer sales and auctions. Many digital merchants use it as a sales channel.
eBay is the second digital marketplace in the US (graph source: www.bigcommerce.co.uk)
Ecommerce, also known as internet commerce electronic commerce refers to commercial transactions (buying and selling of goods or services) where the transfer of data and money is conducted online (through the internet). According to bigcommerce.com, it’s estimated that between 2010 and 2020, in the US alone, e-commerce-based retail sales have soared by over 300% (jumping from 3.3% to 9.7%).
E-COMMERCE BUSINESS MODELS
An eCommerce business model is a business model that lets allows businesses and individuals to buy and sell things online. There are 4 traditional e-commerce business models:
1. Business to Business (B2B) - companies sell their product or service to other companies.
2. Business to Consumer (B2C) - companies sell to their end-users.
3. Consumer to Business (C2B) - individuals sell goods and services to businesses (affiliate websites)
4. Consumer to Consumer (C2C)- individuals to exchange goods and services (eBay, Craigslist).
An e-commerce platform is a software application that enables business owners to manage their sales online, through a digital shop.
FACEBOOK BUSINESS PAGE
A Facebook Business Page is a free public Facebook Page created by businesses in order to boost sales and brand awareness on Facebook. Unlike private personal FACEBOOK accounts, Fb Business profiles can be seen by anyone (search engines included).
A Facebook Store is a Facebook business page application where you can list products or services, get in touch with customers, and sell. A Facebook store allows potential customers to browse, share, and buy products online, without leaving their Facebook tab.
Flipkart is a B2C (business to consumer) e-commerce platform based in Bangalore, India. Although it was initially (in 2007) focused on selling books, now it’s extended to many product categories such as fashion, lifestyle products, home essentials & groceries, and consumer electronics. Since 2018 it’s been purchased by American retail giant Walmart.
A fulfillment center is a physical location from which a third-party logistics (3PL) warehouse (known as fulfillment provider) receives, processes, and fulfills customer orders for eCommerce retailers. For instance an Amazon fulfillment center, through the Fulfillment by Amazon (FBA) program, will take care of order processing, selecting, packing, and shipping products.
Google Analytics is Google’s free web analytics tool that tracks and reports your website’s traffic. Website owners get access to in-depth information and statistics about their visitors, website performance, clicks, individual pages, and more.
Inventory or stock comprises all the tangible products, finished goods, and materials held by a commercial company for reselling. Inventory constitutes a current asset because it includes raw materials and merchandise that's ready to-be-ordered or will be ready-for-sale soon - therefore can be converted into cash in less than 1 year. E-commerce businesses use a digital inventory which is much easier to create, manage, update, and navigate.
Jungle Scout is an online research tool that helps aspiring Amazon sellers find successful products, profitable market segments, research relevant keywords, “spy” on competitors, estimate sales, and grow their business from a single user-friendly dashboard. Jungle Scout’s main features include Product Database, Niche Hunter, Keyword Scout, Product Tracker, and Relevancy Score.