Glossary for digital commerce 2025
The most common words and terms in digital commerce 2025
The e-commerce dictionary 2025! The most common words and terms in e-commerce and digital commerce.
Starting an online store and digital sales is an exciting journey that can lead to loyal customers, better brand awareness, and more sales. However, to succeed, it’s essential to understand the terms and abbreviations commonly used in digital commerce.
We’ve put together a glossary of key concepts to help you navigate the world of online commerce.
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A/B testing – Find what works best
A/B testing compares two versions of a webpage or ad to see which performs better. This is a great way to improve customer conversions and create a better user experience.
AI – Artificial Intelligence
AI is technology that mimics human behavior to make smart decisions using data. In e-commerce, AI can help create product descriptions, recommend products, personalize websites, and optimize inventory. For example, algorithms analyze customer data to suggest products they’re likely to buy.
Accelerator – A quick start for e-commerce
An accelerator is a ready-made solution that helps businesses launch their online stores faster and more efficiently by reducing setup time and complexity.
Add-ons – Customize your platform
Add-ons are extra features or tools that can be added to your e-commerce platform to meet specific needs, such as advanced analytics or customer support. These allow you to tailor your store to stand out in the market.
API-First – building flexible systems
API-first is a strategy where APIs (tools that let systems communicate) are the foundation. This makes it easier to add new features, connect systems, and scale as your business grows.
Apps – small but powerful tools
Apps are small programs hosted in the cloud that add functionality to your e-commerce platform. They’re cost-effective, scalable, and easy to use, allowing you to adapt quickly to changing needs.
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B2B2C – a combined business model
B2B2C combines business-to-business (B2B) and business-to-consumer (B2C) models. For example, a manufacturer sells to a retailer (B2B), who then sells to the customer (B2C).
B2B Portal – simplify business transactions
A B2B portal is an online platform for business customers to handle orders, pricing, and more. It integrates with business systems to improve efficiency and the customer experience.
Best of breed – top solutions for each need
This approach uses the best individual tools for each task, such as managing content or logistics, rather than one all-in-one system. The downside? It might require extra effort to integrate these systems.
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CDN – faster content delivery
A Content Delivery Network (CDN) stores your site’s data on servers closer to your users, speeding up load times and improving the customer experience.
Channel strategy – meet customers everywhere
A channel strategy is how you connect with customers, whether through one channel (single), several (multichannel), or a seamless experience across all (omnichannel). Unified commerce takes it further, syncing all channels in real time.
Checkout – streamline the purchase
The checkout is where customers complete their purchases. A good checkout process is quick, easy to use, and integrates payment options to make buying hassle-free.
Cloud – scale your business with ease
Cloud solutions let businesses grow without heavy investments in hardware. They’re reliable, cost-efficient, and adaptable—key factors for success in e-commerce.
CMS – manage your website Content
A Content Management System (CMS) helps you create, update, and manage website content. Keeping your content fresh and relevant improves customer experience and search engine rankings.
Connector – link your systems
Connectors are tools that link systems, like your e-commerce platform and payment systems, to share data automatically. They’re key for combining specialized tools into one powerful solution.
Content Marketing – attract customers with value
Content marketing involves creating helpful and inspiring content to guide customers through the buying process. Blog posts, newsletters, and guides are great examples.
Conversion – turning visitors into customers
A conversion happens when a visitor completes a goal, like making a purchase. Improving your conversion rate is essential for e-commerce success.
CTA – guide customers to act
A Call to Action (CTA) is a clear message that prompts action, like “Add to Cart” or “Contact Us.” Strong CTAs encourage conversions and keep customers moving forward.
Customer journey – map the Experience
The customer journey covers every interaction from first contact to repeat purchase. Understanding it helps you improve their experience.
Customer portal – self-service for customers
A customer portal is a personalized platform where business customers can manage orders, view invoices, and access support. This type of solution streamlines business processes and strengthens customer relationships through increased accessibility. It can also be known as a B2B portal, self-service portal, or reseller portal.
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D2C – sell Directly to Consumers
Direct-to-Consumer (D2C) means selling products directly to customers, skipping intermediaries like retailers. This gives businesses full control over their branding and profits. Can also be mentioned as DTC.
Dropshipping – run a store without stock
In dropshipping, products ship directly from the supplier to the customer. This saves money on inventory but requires excellent coordination for customer satisfaction.
DXP – Digital Experience Platform
A DXP combines digital tools to manage customer experiences across platforms and devices, ensuring everything works together seamlessly.
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ERP integration – automate your business
Linking your e-commerce platform with an ERP (Enterprise Resource Planning) system automates tasks like inventory, orders, and finances, saving time and reducing errors.
Etailer – online-only sellers
Etailers are businesses that sell exclusively online, often leading the way in digital marketing and logistics.
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Frontend/Backend – two key parts of your store
The frontend is what customers see, while the backend handles the technical operations. Both need to work together smoothly for a great shopping experience.
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Headless – separate design and functionality
A headless system lets you choose the best tools for design and features separately, offering more flexibility but requiring integration work.
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Internationalization – sell globally
Adapting your online store for different markets—languages, currencies, and payment options—can unlock global growth.
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KPI – measure your progress
Key Performance Indicators (KPIs) track your e-commerce success. Common examples include conversion rates, average order value, and delivery accuracy.
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Last mile – the final step in delivery
The “last mile” is the final leg of the delivery process, often the trickiest but most crucial part for customer satisfaction.
Longtail keywords – specific terms with high conversion
Longtail keywords are longer, more specific search phrases that often have lower traffic but higher conversion rates. These detailed phrases indicate exactly what the visitor is looking for. Focusing on longtail keywords can help your online store attract customers ready to make a purchase.
Longtail products – expand your assortment
The longtail strategy is about offering a wide range of niche products that might not always be bestsellers. By including these items, you can attract more customers and increase total sales. This is particularly effective in digital commerce, where storing and distributing less popular products is more cost-efficient.
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Machine learning – self-learning systems
Machine learning (ML) is a part of AI that develops systems capable of analyzing data and learning from it to make decisions. In e-commerce, ML is used to understand customer behavior, identify patterns, and provide recommendations that increase conversion rates.
Marketing automation – automate your marketing
Marketing automation (MA) uses digital tools to streamline marketing processes. By analyzing customer data and tailoring content to their buying behavior, you can create more relevant communication and move leads through the sales journey without manual work.
Marketplace – reach a wider audience
A marketplace is an e-commerce platform that gathers products from different sellers. Major marketplaces like Amazon and Alibaba allow businesses to reach larger audiences and boost sales. Many companies choose marketplaces to strengthen their brand and increase visibility.
Monolith – an all-in-one platform
A monolithic e-commerce solution integrates all functions, from backend to frontend, into a single system. This provides stability and simplicity but may limit flexibility since updating or replacing individual components can impact the entire system.
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Omnichannel – seamless customer experience everywhere
Omnichannel is a strategy that connects all customer touchpoints—from web and mobile to physical stores—into a unified experience. Customers can start a purchase on one channel and finish it on another without interruptions. This integrated approach enhances loyalty and boosts conversion rates.
OMS – order management system
An Order Management System (OMS) is a platform that handles sales, orders, and inventory. It ensures smooth processes from order placement to delivery, making it an essential tool for efficient e-commerce.
Order management – smooth flow from order to delivery
Order management is the process of receiving, processing, and delivering customer orders. Efficient order management reduces errors, improves delivery times, and increases customer satisfaction, making it a key part of successful e-commerce.
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Payment solutions – boost sales with options
Offering multiple payment methods—like credit cards, invoices, or installments—improves the shopping experience and can increase sales.
Personalization – tailored customer experiences
Personalization is about creating customized experiences for customers with offers, information, and inspiration based on their preferences and behavior. By analyzing customer data and using algorithms, e-commerce can automate personalized recommendations.
PIM – product information management
PIM stands for Product Information Management, a system that organizes and enhances product information. A PIM system helps create inspiring and relevant product presentations across all channels. [Learn more about PIM] (link).
Platform – the foundation of your e-commerce
An e-commerce platform is the technical solution that enables online sales. It includes tools for showcasing products, processing payments, and managing logistics. Choosing a scalable and flexible platform tailored to your needs is vital for success.
Private and public cloud – tailored cloud solutions
Private clouds offer greater control and security for individual companies, while public clouds provide scalability and cost-efficiency. Many businesses choose a hybrid solution to benefit from both.
Product enrichment – detailed product information
Product enrichment is about creating detailed and appealing descriptions of your products. A PIM system allows you to add attributes, descriptions, and manuals, making the shopping experience more engaging.
Punchout – smooth purchasing via your e-commerce
Punchout is a technology that connects your e-commerce platform with the customer’s purchasing system. It lets customers shop directly from your catalog without leaving their system, simplifying the procurement process. [Learn more about punchout] (link).
Pure player – online-only retailers
A "pure player" is an online-only retailer without physical stores. Many pure players have built successful businesses online but are now considering physical stores to complement their digital presence.
PWA – progressive web app
A PWA, or Progressive Web App, is a website that works like an app but is accessed through a browser. It provides a faster, better user experience, works offline, and can be added to mobile home screens like a traditional app.
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ROI (return on investment) – measure your profitability
ROI is a measure of how profitable an investment is. In e-commerce, ROI is used to evaluate the effectiveness of campaigns, technology, and marketing activities.
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SaaS – simple cloud-based solutions
SaaS (Software as a Service) allows you to access software through the cloud instead of buying it outright. For e-commerce, this means faster setup, lower costs, and easier updates.
Self-service portal – customers in control
A self-service portal allows customers to manage orders, view invoices, and find support. It gives customers more independence and convenience, letting them handle tasks 24/7. For businesses, this frees up time for more complex work.
SEO and SEM – search engine visibility
SEO (Search Engine Optimization) improves your website's ranking in search results, while SEM (Search Engine Marketing) uses paid ads to drive traffic. Together, they are essential for e-commerce marketing.
Serverless – future technology for e-commerce
Serverless technology enables services and applications to run without traditional servers. For businesses, this means lower costs, better scalability, and faster development.
SKU – unique product code
A SKU (Stock Keeping Unit) is a unique code used to identify products. Managing SKUs is essential for inventory control and tracking, especially as your product range grows.
Solution – customized for your needs
An e-commerce solution combines technology, design, and functionality to meet your business requirements. The right solution is flexible and scalable to grow with your business.
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Unified commerce – a seamless customer experience
Unified commerce focuses on providing a consistent and personalized customer experience in real-time, across all channels. It uses data to enhance the customer journey and create a unified communication strategy.
Uptime – reliability for peace of mind
Uptime refers to the amount of time your e-commerce platform is available and operational. High uptime is crucial for building trust and ensuring no sales opportunities are missed.
UX and UI – user experience and interface
UX (User Experience) is the overall impression a user has of your product or service, while UI (User Interface) is the visual and interactive design. Both are vital for creating a positive shopping experience.
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Wireframe – structuring your website
A wireframe is a simple sketch showing the layout and structure of a webpage. It focuses on space, content placement, and user flow, without design details. A good wireframe helps clarify functionality before finalizing the design.
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Need help navigating the world of e-commerce?
Understanding e-commerce terminology is key to building a successful digital sales strategy. By mastering these concepts, you can make better decisions, enhance customer experiences, and grow your online sales. Missing a term? Contact us at curious@litium.com.
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