General terminology of eCommerce – eCommerce cheat-sheet
Shopping cart abandonment is a frequently used term in the eCommerce segment. Shopping cart abandonment i.e. cart abandonment refers to the behavior of potential customers when the customer adds the product to a virtual cart and leaves the shopping cart without making the final purchase of goods or services. Particularly it is the ratio of the number of abandoned carts to the total number of carts initiated transactions. Generally, the abandonment rate varies within the range of 60-80%.
Abandonment Rate = Total number of abandoned virtual shopping carts / Total number of shopping cart transactions held at eCommerce Platform
The acquisition is an eCommerce term used in the eCommerce industry for the process of acquisition or gaining new customers on eCommerce stores. A better acquisition strategy leads to a larger customer base and hence business growth concerning the eCommerce segment.
Application Programming Interface (API):
An API is a digital communication protocol created to act as an intermediary between two software tools to allow two applications to talk to each other. API is the most commonly used term in website and software development and is used to integrate one to another.
Customer attrition is the term used in the Consumer industry to define the loss of customers by a business due to a variety of reasons including customer experience, relationship management, quality of goods and services. Therefore Attrition analysis prevents a business from losing its customers by analyzing the cause of attrition.
A blog is a type of digital content for the purpose of awareness of customers, explaining products and services of the business, making announcements of products and services, news and events. Customers get proper and authenticated information from the blog of the owning businesses. Therefore blogs play an important role in customer engagement and increasing traffic on eCommerce websites.
Bounce rate is somehow similar to the abandoned rate in user behavior but it is more rigid because of the user’s less interaction on the website. Sometimes users visit a single page of the website and leave without exploring the whole website. Bounce rate is the ratio of single page sessions to the total number of sessions. There are several reasons for high bounce rate for an eCommerce website depending upon the industry segments to user interface of eCommerce website.
Bounce Rate = Single page session / Total number of sessions
Brick and Mortar Store:
A retail store that has at least one physical store is called a brick-and-mortar store.
This digital creation of WebPages allows customers to take some actions depending upon the nature of Call-To-Action ( button, text link, and icon) and use to make orders on eCommerce website/website, order to the customer car, link to other pages of eCommerce website.
Click-Thru Rate (CTR):
Click-Thru rate is the ratio of a total number of clicks on the link to the total number of impressions. Click thru rate determines how many customers are navigating to the link after countering to the link of the website.
Click-Thru Rate = Total number of link/ad clicks / Total impressions