The Ultimate E-commerce Dictionary

The Ultimate E-commerce Dictionary

Table of Contents

If you want to join the e-commerce world and start your own business, you need to prepare yourself. You can’t just jump in dropshipping and e-commerce without knowing the market, because this is a real business, even if it don’t require you a big budget.  

Here at uDroppy the goal is to help every digital entrepreneur to reach success. This is why we are always at the forefront to find solutions and information for you. Today we want to help you get comfortable with all the e-commerce and marketing terms that you will find along your way.  

This is how the uDroppy e-commerce dictionary is born

3PL – Third Party Logistic 

The 3PL is the operator that takes care of fulfilling your order when you have a dropshipping business. In this way you can sell products on your store while the 3PL takes care of outsourcing, distribution and fulfillment. 

You may think that uDroppy is a 3PL but we are much more. We automate all the operations of e-commerce businesses. We take care of all the complex processes as product sourcing, fulfilment and shipping worldwide. We offer complementary services to help you build your own brand thanks to customization, bulk, COD, virtual warehouse and much more. 

A/B Testing  

The A/B Testing, also known as split-testing, is the process of testing two or more variants of one unique, specific variable to understand which one is more effective for your business. You can use A/B testing with every marketing or business strategy. You can test emails (headline, pre-header, CTA, etc) or your website (colors, placements, content, CTA, headline) and landing pages

AOV – Average Order Value 

The Average Order Value is an e-commerce metric that calculates the average total of every order placed with a merchant over a defined period of time. It’s a fundamental metric for every e-commerce store because it allows you to make better business decisions such as advertising spend, store layout, and product pricing.

Affiliate Marketing 

Affiliate marketing is a performance-based marketing. Affiliate marketers earn commissions by promoting third’s products. They earn according to the number of leads, sales, views, they bring to the owner of the product/service. 

Affiliate Network 

An affiliate network is an intermediary that encourage the meeting of merchants and affiliate marketers. In this way merchants that have the product can find the right person to advertise it without the need to find these people by himself. 

API – Application Programming Interface 

An Application Programming Interface is a software intermediary that allows two applications to talk to each other. For example, when you use an app as Facebook, whenever you send a message or check the weather you’re using an API.


B2B is an acronym that stands for Business to Business. The term refers to all the tools, companies, sectors, etc. that are meant to communicate between to parties that are both part of the business world/side.  


B2C is the acronym that includes all the tools, companies, sectors, etc. that focus on the relationship between business and customers. In fact it stands for Business to Consumer

Ban – Banned account 

You can receive a ban, or you can have your account banned whenever a platform (e.g. Facebook) remove your content or block your account. This can happen because your content or account has been signaled inappropriate or because you didn’t respect the policy of the platform. 

Banner adv 

When you do Banner advertising you are using a rectangular graphic display that stretches on a webpage. You can place your banner on the top, bottom, or sides of a website or any other online media property. The horizontal type of banner advertisement is called a leaderboard. The vertical banners are called skyscrapers and usually you find them on a web page’s sidebars. 

When you do Banner ads you prefer images rather than text. 


A bulk is a stock of product that you buy from a factory or manufacturer. Bulk purchases help you to reduce the unit cost of products. They are usually used by entrepreneurs with a warehouse, but with uDroppy you can buy bulk even if you don’t have any, because you can get access to the Virtual Warehouse. 

Business Automation

Business Automation is a process that allows you to automate specific operations of your business. Automation is fundamental because it allows you to save time that you can dedicate to business and marketing strategies. Moreover automation reduces errors and improve efficiency of processes. 

Buyer Persona

The buyer persona is the avatar of your ideal client. Having a buyer persona gives you insights about what prospective customers are thinking and doing as they weigh their options to address a problem that your business can solve. Actionable buyer personas reveal critical information about your buyers’ decisions: specific attitudes, concerns and criteria that drive prospective customers to choose a specific product or company. 

CTA – Call to Action 

A Call to Action is one of the most important elements of every marketing campaigns and communication. It is a statement properly created ad designed to get an immediate action from the person reading or hearing it. You should use Call To Action at the end of blog articles, social media posts, brochures, flyers, landing pages, emails, etc. 

COD – Cash On Delivery  

Cash on delivery is a payment method that allow businesses to sell products to clients that don’t have credit card or that can’t use online payment. In this way clients are required to pay the cost of products when delivered. 


CTR – Click-Through Rate  

The Click-Through Rate is a critical metric for every marketing campaigns (PPC, email marketing, etc.). Essentially this metric tells you the percentage of people that clicked on your CTA after reading your message. 

It helps you understand how effective your CTA and your overall communication are

CMS – Content Management System

A content management system is a software application or set of related programs that are used to create and manage digital content. Examples of CMS are WordPress, Drupal, etc. 

A CMS allows you to create a store, a blog, or a webpage. 

Conversion Rate 

The conversion rate is the percentage of people that visited your web page and converted on your offer. For exampl
e, in e-commerce conversion rate is the number of people that bought your products. This is as important, if not more, as the Conversion Rate. 


Copywriting is the writing techniques that allows you to sell products and services with words by using persuasive content and messages. You can and should use copywriting for every channel and message your produce. The website, the emails, the social media posts, the brochures and even more your sales pages and landing pages should be written using copywriting. 

Custom Clearance

Custom clearance is the totality of documents that are needed to import and export goods worldwide. If you are a dropshipper or an e-commerce owner you will need to take care of the entire documentation to make sure that the products you bought can safely reach the final destination. If you work with uDroppy, though, you don’t have to take care of this process because we give you a complete service

Customer Acquisition 

Customer acquisition is the process of gaining new customers through multiple channels. You can use paid ads, social media, word-of-mouth, and email marketing, for example. 

CLTV – Customer Lifetime Value 

The Customer lifetime value is used to predict or calculate how much net profit a customer is worth over their lifetime relationship with your company. Is one of the most important KPIs you should focus your business and marketing strategies on.

Customer Retention

Customer retention is the process put in place to keep one’s customers loyal, so that they will come and buy from you instead of switching to your  competitors. While most businesses consider customer acquisition to be their main method of growing revenue, studies have shown that it’s customer retention that provides the biggest boost (CoD and Email marketing are good ways to do customer retention). 



Customization is the process of creating products on the base of your business needs. For example you could print your logo on products or you could have products created on the base of your own designs. 

Digital Marketing 

Digital marketing is the term used to include all the marketing strategies and channels that are used online to promote businesses, products and services. 

Display Adv

Display advertising is the process of advertising a product or service through visuals content as images and videos on networks of publisher websites.


Dropshipping is  a business model of e-commerce where sellers can deal with products without having them physically. This makes the business low risk because you don’t have to buy stock of products or rent a warehouse. 

Email Marketing 

Email marketing is a marketing method businesses use to reach prospects and customers through electronic mail with highly targeted and personalized campaigns. Is the marketing strategy with the highest ROI and the best one to engage clients and turn them into loyal advocates. 

Facebook Ads 

Facebook ads are paid campaigns to advertise on both Facebook and Instagram. Facebook allows you to personalize your ads thanks to extremely precise targeting options


The sales funnel is the process that prospects are meant to go through in order to become clients. Today the funnel method is not sustainable anymore because both the clients and the market deeply changed. This is why is better to adopt the customer lifecycle strategy. 

Geo Targeting

Geo-targeting is the process of targeting customers with advertisements based on their location. This is one of the most efficient features for businesses that has to sponsor a promotion in one specific location, making it relevant for users and cost-effective for the business. 


Impressions, also called views or ad views, refer to the moment in which an ad is viewed once by a visitor, or displayed once on a web page.

An impression is an estimate of the number of people a particular advertisement is reaching, and may be counted in different ways according to specific criteria. Moreover impressions can also be a criteria for paid advertising (e.g. cost per mille). 

Influencer Marketing 

Influencer marketing is a marketing strategy where businesses partner up with influencers to promote the products or services. 

KPI – Key Performance Indicator

The key performance indicators (KPIs) are performance statistics that monitor the efficiency of a specific process. Thanks to KPIs you can set future goals and the check if you achieved them. 


A keyword or keyword phrase is a word or phrase central for the business or the message your are creating. Keywords are fundamental to optimize your website, blog and content for Search Engine. 

Landing Page 

A landing page is a standalone page that a visitor lands on after clicking an ad or a search result. The landing page is used to both convert prospects into clients or to gather leads


In marketing, a lead is an user that shown interest in either your brand or your product/service. The interest is shown by sharing contact information, like an email address, a phone number, or even a social media handle.

Lead Generation

Lead generation is the process of gathering personal information about users and consumers (e.g. name, email address, phone number) that will be used for future marketing campaigns. 

Lead Nurturing

Lead nurturing is a process that allows you to focus on the leads’ needs so that you can provide them the best solutions. Lead nurturing is a process deeply related to relationship marketing because they both focus on creating relationships with users. 

Mobile-friendly or Mobile responsive 

Mobile friendly or mobile responsive is the adjective that you attribute to all the pages and content that are designed to be easy to use on mobile devices

Native Adv 

Native advertising is a type of advertising that matches the content of the platform on which it is published to make the message more easily usable and readable by the users. Native advertising is non-disruptive and some examples are suggested posts on Facebook or promoted posts on Twitter.

NPS – Net Promoter Score

The Net Promoter Score measures if your product or service satisfies your clients needs enough as to make them promote it for free. It helps you understand if you have a long-lasting business or not.

This index is calculated with customer satisfaction surveys by asking them one simple questions: How likely would you be to recommend our product or service to a friend or colleague?

Open Rate

Open rate is an email marketing metric. It is the percentage of subscribers who received your email and opened it. That percentage serves as a benchmark to compare the performa
nce of your campaign against future ones.

PPC – Pay Per Click 

PPC is a form of digital advertising in which advertisers pay publishers every time one of their ads is clicked. This happens when they bid to have their ads shown on frequently visited websites to generate traffic or conversion.


Remarketing is a tool that allows you to connect with people who previously interacted with your website or mobile app. In this way you can show them your ads when they browse Google or partner websites, helping you increase your brand awareness or remind these users to complete a purchase.


Retargeting is a marketing strategy that allows you to target those users who have visited your website with ad-hoc ads across the web

Retargeting is so powerful because it targets users that are interested in your brand or products. This is why it’s such a popular marketing strategy in the digital world.

Sales Page 

A sales page is a standalone page that has a unique, specific purpose: convince users and prospects to buy your product or service.


Scarcity is a psychological principle used in marketing to convert prospects into customers. You can activate scarcity by using tools like a countdown timer or limited availability for products. 

SEM – Search Engine Marketing 

SEM is the totality of advertising strategies that involve search engines. Depending on the web page, ads can be text-based, banners, or video.

SEO – Search Engine Optimization

SEO stands for Search Engine Optimization. It’s a process that raise your free or organic traffic by allowing you to rank better on search results. 

Being one of the first results to show up on search engines is critical if you want to improve your results without spending extra money.

Social proof

Social proof is the strategic tool that you can use to influence the choices and behaviours of prospects by using testimonial from experts, clients and influencers. 

In fact, it is true that preferences, opinions and actions of other people can influence ours.


Squeeze Page 

A squeeze page is designed to capture the visitor’s email address prior to granting them access to the website. In this way you can do lead generation and then pass to lead nurturing. 


A testimonial is one element of social proof. It consists in the review about your products, your brand or your service coming from either a client, a celebrity or influencer or an expert. 

Thank you Page 

A thank you page is the page your users reach after converting on your offer. It is designed to make them feel appreciated. Here you have to explain how they will receive the content they converted on and any related offer. 

UVP – Unique Value Proposition 

The Unique Value Proposition is the statement that makes it clear to users how your brand is different from other competitors in satisfying their needs. 


UX – User Experience 

The user experience is the result of the overall processes that the user have to go through to complete the purchase from your store. It has to be the most satisfying possible, this is why it must be fast and friction-less. 

Virtual Warehouse

The Virtual Warehouse is a uDroppy service that allows you to buy stock of products (or use your own stock of products) and store them into a warehouse to automate all the fulfilling and shipping operations, as you were doing dropshipping, but with lower costs. 


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