Shopify Academy

eCommerce Glossary

Everything you need to know to launch a successful Shopify store.

A/B Testing

The process of comparing two versions of a web page, email, or ad to see which one performs better....

AOV (Average Order Value)

The average dollar amount spent each time a customer places an order....

API (Application Programming Interface)

A set of protocols that allows different software applications to communicate....

Abandoned Cart

When a potential customer provides their contact information but leaves without completing the check...

Bounce Rate

The percentage of visitors to a particular website who navigate away from the site after viewing onl...

CAC (Customer Acquisition Cost)

The total cost of sales and marketing efforts that are needed to acquire a new customer....

CTA (Call to Action)

A marketing term for any design to prompt an immediate response or encourage an immediate sale....

CTR (Click-Through Rate)

The ratio of users who click on a specific link to the number of total users who view a page, email,...

Conversion Rate

The percentage of users who take a desired action, such as making a purchase....

Cross-selling

The action or practice of selling an additional product or service to an existing customer....

Dropshipping

A retail fulfillment method where a store doesn't keep the products it sells in stock....

Fulfillment

The process of receiving, packaging, and shipping orders to customers....

LTV (Lifetime Value)

The total worth to a business of a customer over the whole period of their relationship....

Omnichannel

A multichannel approach to sales that seeks to provide customers with a seamless shopping experience...

Payment Gateway

A merchant service provided by an e-commerce application service provider that authorizes credit car...

ROAS (Return on Ad Spend)

A marketing metric that measures the efficacy of a digital advertising campaign....

Retargeting

Online advertising targeted to consumers based on their previous Internet actions....

SEO (Search Engine Optimization)

The process of optimizing a website to increase its visibility for relevant searches in search engin...

SKU (Stock Keeping Unit)

A unique identifier for each distinct product and service that can be purchased....

Upselling

A sales technique where a seller invites the customer to purchase more expensive items, upgrades, or...