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Ecommerce glossary: all you need to know to create a successful online business

With all the user-friendly website builders and marketplaces out there, setting up an online store is as easy as pie these days. But things start to get complicated as you dive deeper into conversion optimization and customer behavior analytics.

Last updated

30 Nov 2022

Reading time

1 min


After you set up your website and start attracting visitors to your online store, the real work begins. 

To set achievable ecommerce goals, you need to know how to measure customer lifetime value and return on investment. To optimize your conversion funnels and increase sales on your website, you need to know how to calculate your checkout abandonment rate, how to track ecommerce conversions, and how to distinguish between micro and macro conversions.  

This knowledge helps you better understand your customers’ behavior and optimize your ecommerce website and sales funnel to maximize conversions.

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5 major ecommerce concepts and metrics explained

You’ll work with ecommerce terminologies at every stage of your online journey, from setting business and user goals, to evaluating your website’s performance.

This ecommerce glossary explains five major terms everyone in the ecommerce world—whether you’re a marketer, designer, or do-it-yourself business owner—needs to know to create a thriving online business: 

  1. 🛒Checkout abandonment rate 

  2. 💁Customer lifetime value (CLV, LTV, CLTV) 

  3. 👩‍💻Ecommerce conversions 

  4. 💸Return on investment (ROI)

  5. 🔔Micro and macro conversions

Bookmark this glossary if:

  • You’re looking for ways to increase online sales 

  • You’re about to set up an ecommerce marketing campaign

  • You feel overwhelmed by the variety of ecommerce key performance indicators (KPIs) and need to decide which metrics to track

  • You need to set business and customer goals for your ecommerce website 

  • You want to optimize your ecommerce marketing strategy