Topic guide
Ecommerce
Every glossary term attached to Ecommerce, with the one-line answer for each.
Average order valueLearn the AOV formula, see a worked calculation, and understand why revenue scope makes two tools report different results.BackorderHow accepted backorders differ from preorders, stockouts, and back-in-stock alerts.BOGOThe mechanics of buy-one-get-one offers, qualifying items, and reward items.BundlesHow ecommerce bundles combine pricing, component inventory, and fulfilment.CheckoutWhere ecommerce checkout starts, what it collects, and when it is complete.Cost of goods soldHow cost of goods sold feeds gross profit and why cost scope matters.Compare-at priceLearn how compare-at price drives Shopify sale display, why the reference must be genuine, and how it differs from MSRP and MAP.Cross-sellHow complementary product recommendations differ from upsells.DiscountHow ecommerce discounts differ from markdowns and what must be defined before launch.Free shipping thresholdLearn how a free shipping threshold trades delivery cost against checkout friction, how to choose an amount, and how it compares with always-free or paid shipping.Gross marginHow gross margin connects net sales, cost of goods sold, and gross profit.Keystone pricingWhat the twice-cost shortcut produces in markup and margin.Lead timeHow to define supplier or fulfilment lead time without confusing it with delivery time.Minimum advertised priceHow minimum advertised price differs from MSRP and the final selling price.MarginThe margin formula, its selling-price denominator, and how it differs from markup.MarkdownHow a markdown changes product price and differs from a conditional discount.MarkupThe markup formula, its cost denominator, and how it differs from margin.MerchandisingHow product ordering, grouping, and proof shape ecommerce buying decisions.MSRPHow manufacturer suggested retail price differs from selling price and advertised-price rules.PreorderHow preorders differ from backorders and what shoppers need to know before purchase.ROIThe return-on-investment formula and the attribution choices needed before comparing results.SKUHow merchant-defined SKUs differ from globally standardized UPCs.StockoutHow an unavailable inventory state differs from a preorder or accepted backorder.SubscriptionsHow recurring ecommerce purchases differ from repeat orders and one-time checkout.UPCHow UPC identifies a trade item and differs from a merchant's internal SKU.UpsellHow an upsell changes the shopper's current choice and differs from a cross-sell.