Online Stores Key Terms

Understand online stores key terms before starting up your business

Online shopping can provide extra revenue for your business whether or not you maintain a brick and mortar store. Online stores allow customers to make purchases 24/7 from anywhere in the world. The idea is simple enough: Customers visit your site and make their selections; after they checkout and pay, you ship out the products.

Starting an online store is a bit more complicated than that, though, so knowing some terminology can help you get started. Many online stores key terms correlate with the terminology of real-life stores.

 

Ecommerce

Also known as e-commerce or electronic commerce, this is any type of business conducted over the Internet. Online stores are engaged in ecommerce.
Try: EcommerceEducation.com goes into detail on the benefits of ecommerce in the digital age.

Storefront

The basics of the storefront are rooted in web design. The storefront is also known as the product catalog. This virtual display rack can oftentimes be sorted by price, type of product or by the product name. It's more than just your catalog, though; the storefront gives your online shop a unique look and directs consumers to products that you, as the seller, want to feature.
Try: Get more information about virtual storefronts at PaymentOnline.

Shopping cart

A virtual shopping cart works exactly the same as a real one: Customers put items into this "cart" to save them for purchase. They are free to add and remove products from the cart.
Try: Find out more about the different types of shopping carts at Early Impact.

Checkout

The checkout process involves customers verifying their orders and proceeding with payment. Shipping costs may be calculated at this time as well. Some checkout providers require customers to register and login before they can checkout.
Try: Check out typical checkout features at PayPal.

Secure socket layer (SSL)

The secure socket layer, or SSL, provides a safe connection for transmitting data over the Internet. Many customers look for this before they buy, as it assures them that you're taking care to keep their credit card data and other information private.
Try: Network Solutions provides useful information for an SSL rookie.

Conversion

Conversion for online stores is the percentage of people who buy an item on your site compared with the number of people who visit your site. Essentially, if 100 people visit your site and 10 people buy something, you have a 10 percent conversion rate. Tracking where your "converted" customers come from can help you with ad placement.
Try: Peterson Design has an easy-to-understand explanation of conversion for online store owners.

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