The online business wiki

Every term you will meet while building a store, explained in plain language. No jargon, no assumed knowledge.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A

Comparing two versions of a page or ad against real traffic to see which one performs better.

A cart a shopper fills but leaves without completing the purchase.

Average Order Value (AOV)

"Average order value" — the average amount a customer spends in a single order.

B

Break-Even Point

What Is the Break-Even Point? Below the break-even point, you’re operating at a loss. Above it, every additional…

C

What Is a Chargeback? Instead of contacting the store, the customer contacts their card issuer and disputes the…

Conversion rate

The share of visitors who complete the action you wanted — usually a purchase.

Customer Acquisition Cost (CAC)

What Is Customer Acquisition Cost? CAC takes your total marketing spend over a period and divides it by…

D

Digital product

A good delivered electronically, with no inventory, packing or shipping involved.

A retail model in which an online store sells products without keeping them in stock.

F

Everything involved in getting a paid order delivered to the customer.

M

The share of a product's price that is left as profit once all costs are subtracted.

Minimum Order Quantity (MOQ)

What Is MOQ? MOQs are common with private-label and wholesale suppliers, where manufacturing setup costs make very small…

N

A focused segment of a wider market that a store deliberately serves.

What Is a Niche Store? A store selling only yoga gear is a niche store. A store selling…

P

Print-on-demand

Custom products printed and shipped only after a customer has ordered them.

What Is Profit Margin? For example, if an item sells for $50 and costs $20 to source and…

S

Work that makes your pages easier for search engines to understand and rank.

The business that provides the products you sell.

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