25 terms
The operator's vocabulary.
Every term defined in plain words, with the formula behind it and a worked cash-on-delivery example. No jargon without an explanation.
A
- Abandoned cartAn abandoned cart is a visit where the visitor reached the checkout step—they added a product to their cart or opened an order form and started filling it—then left without sending the order.
- Ad angleAn ad angle is the approach through which you present the product's benefit: which problem you're solving, for whom, and at what moment in their life.
- Average order value (AOV)Average order value is the average amount a customer pays per order, calculated by dividing your total revenue by the number of orders in the same period.
B
C
- Cash flow cycleThe cash flow cycle is the number of days between when money leaves your pocket and when it comes back.
- Cash on delivery (COD)Cash on delivery is a sales method where the buyer requests the product with no upfront payment, and pays cash to the delivery agent when the package arrives.
- Click-through rate (CTR)Click-through rate is the share of people who clicked your ad out of everyone who saw it, calculated by dividing clicks by impressions and multiplying by 100.
- Confirmation rateConfirmation rate is the share of orders where the customer agreed to buy after you contacted them, out of all orders submitted through your site in the same period.
- Conversion rateConversion rate is the percentage of visitors who complete the desired action on your page out of total visitors.
- Cost per click (CPC)Cost per click is what you pay for each click on your ad, calculated by dividing your ad spend by the number of clicks in the same period.
- Cost per order (CPA)Cost per order is what you spend on advertising to get a single order.
- Cost per thousand impressions (CPM)CPM is what you pay the ad platform for your ad to appear on screen a thousand times, whether people click or not.
- Customer lifetime value (LTV)Customer lifetime value is the total profit one buyer leaves across all their orders with you, not just the first.
R
- RetargetingRetargeting is showing ads to people who have interacted with you before: they visited a product page, started an order form but didn't complete it, or watched your ad video.
- Return on ad spend (ROAS)ROAS is a number measuring how many dinars of revenue each dinar spent on ads brought back.
- Return rateReturn rate is the share of parcels that came back to the merchant unpaid out of all parcels shipped in the same period.
U
- UGC videoA UGC video is a short vertical ad that looks like creator content, not a brand commercial: a person speaking to the camera about a product, with a hook in the first seconds, then problem and solution, then call to action.
- UpsellAn upsell is an offer presented to a buyer as they're checking out, inviting them to take a higher version of the product or a larger quantity at a better per-unit price.