Basic Shopify Terminology

1. Abandoned Cart

An ‘abandoned cart’ refers to a situation where a potential customer adds items to their online shopping cart but exits the process without finalizing the purchase. This is a crucial metric for Shopify business owners, as understanding the reasons behind cart abandonment can help improve the customer journey and increase sales

2. Abandoned cart recovery

Abandoned cart recovery refers to the process of re-engaging customers who added items to their online shopping cart but left the website before completing their purchase. This is achieved through various marketing strategies like sending reminder emails or displaying retargeted ads. These strategies aim to prompt the customer to return to the website and complete their transaction. In Shopify, abandoned cart recovery is facilitated through customizable automated emails that remind customers about their unfinished purchases. When a customer adds items to their cart and starts the checkout process but leaves without completing the purchase, Shopify keeps track of this. After a period of time specified by the store owner, Shopify sends an automated email to the customer with a link to their abandoned cart, reminding them to complete the purchase.

3. Add to cart

‘Add to cart’ is the process by which a customer selects an item they want to buy from an online store. Once a site visitor clicks the ‘Add to Cart’ button, the item is reserved for them in their personal shopping cart until they decide to complete the purchase or remove the item.

4. API

An API (Application Programming Interface) is a set of rules and protocols that allows different software applications to communicate and interact with each other. The Shopify API allows for actions such as retrieving product information, updating inventory levels, processing orders, and synchronizing data between Shopify and other systems.

5. Apps

Apps are software applications designed to perform specific tasks on a computing platform. In Shopify, apps (both paid-for and free) can be added to extend the functionality of the platform. These apps cater for a wide range of use cases, including dropshipping, email marketing, blogging and more.

6. App store

An app store is an online marketplace where merchants can discover and install a wide range of applications, plugins, and integrations to extend the functionality of their online stores. Shopify’s app store provides over 8,000 free and paid apps, developed by both Shopify and third-party developers. These cater for various aspects of ecommerce such as marketing, sales, customer support, inventory management and more.

7. Autoresponder

Autoresponders are e-newsletters that are sent automatically to subscribers on a mailing list. They are triggered based on rules and time intervals defined by the owner of that list. In Shopify, autoresponders are routinely used for tasks like confirming orders, providing shipping notifications and sending welcome messages to new customers / subscribers.

8. Average Order Value (AOV)

‘Average Order Value’ (AOV) is a key metric in ecommerce. It represents the average total of every order placed with a merchant over a certain period. Increasing AOV is a common strategy for maximizing revenue

9. Back end

‘Average Order Value’ (AOV) is a key metric in ecommerce. It represents the average total of every order placed with a merchant over a certain period. Increasing AOV is a common strategy for maximizing revenue

10. Backorder

A backorder refers to an order for a product that is currently out of stock but still available for purchase. Shopify store owners encounter these when demand for a product exceeds its supply, and they are waiting for new inventory.

11. Blog

A blog is an online tool that lets individuals or businesses regularly publish articles, insights, and updates on various topics of interest. Shopify comes with a built-in blogging feature. A blog can enhance SEO efforts by increasing website traffic, improving search engine rankings and fostering a sense of community and brand loyalty. Consequently many Shopify store owners post regularly about topics related to their business niche.

12. Bounce rate

‘Bounce rate’ is a web analytics term that describes the percentage of visitors who enter a site and then leave (‘bounce’) rather than continuing to view other pages within the same site. A high bounce rate often indicates that the landing page is not effective in retaining visitors.

13. B2B

B2B (short for ‘Business-to-Business’), refers to transactions or interactions between two businesses, rather than between a business and individual consumers; i.e., it typically involves wholesale transactions. In a Shopify context, B2B activity might involve the sale of products to retailers and distributors.

14. B2C

B2C (short for ‘Business-to-Consumer’) describes the process where businesses sell products or services directly to individual consumers (rather than businesses).

15. Buy Button

Shopify’s ‘Buy Button’ is a sales channel that lets you sell outside your Shopify store — for example on an external blog, website, social media presence or e-newsletter. In short, customers can buy products directly from a Buy Button without leaving the digital presence they’re currently on.

16. Cart

In the context of online shopping, a cart is a virtual basket where customers can store products they intend to buy. The cart keeps a record of the customers’ chosen items, allowing them to review, add, or remove items before proceeding to checkout.

17. Checkout

The checkout is the final step in the ecommerce purchase process. Here, customers review their cart, enter shipping information, choose payment methods, apply discount codes and complete the purchase.

18. Collection

A ‘collection’ in Shopify is a group of products that are categorized together to make it easier for customers to find and browse them. Collections can be based on product type, season, sale items, etc.

19. Conversion rate

‘Conversion rate’ refers to the percentage of website visitors who complete a desired action, like making a purchase, signing up for a newsletter or adding a product to a cart.

20. Cost of Goods Sold (COGS)

The Cost of Goods Sold, or COGS, represents the total cost directly involved in creating or acquiring the products a company sells during a specific period. This includes costs directly related to the product like the cost of raw materials and the labor costs for workers who make it. In a Shopify store, COGS could include the purchase price of products you’re reselling; shipping costs you pay to get those products delivered to you; and any customs duties on them. It does not include indirect costs such as marketing expenses or office overhead. COGS is important because it’s subtracted from sales revenue to calculate the company’s gross profit.

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