A merchant's guide to ecommerce terms that define revenue, profit and productivity. This is a great tool for new hires such as Assistant Buyers and Business Analysts. Mech/ Merchandise /Revenue/Gross Profit/Margin/Dollars/Data/Ecommerce/Omnichannel/Retail

1. Ecommerce
Glossary
J O A N B R A A T Z
V P M E R C H A N D I S I N G

2. Why Ecommerce?
Omni-channel efforts were well
underway +10 years ago as traditional
retails transition from catalog to on-line
selling. The COVID-19 pandemic was an
accelerant that permanently altered the
way consumers buy products.
Convenience now drives more purchase
decisions with options for curbside pick
up, BOPIS, SSD and more.

3. Ecommerce Glossary
Demand Sales:
What could have been sold had conditions been
favorable to complete the sale, before friction at check
out.

4. Ecommerce Glossary
Fill Rate:
An inventory productivity percentage measuring
consumer purchase fulfillment without causing
backorder or stockouts.

5. Ecommerce Glossary
Shopping Cart Abandonment:
KPI measurement of customer activity with the intent
to purchase, but not completing transaction.

6. Ecommerce Glossary
Customer Conversion Rate (CVR):
Relationship between consumer browsing and buying
on site. Web traffic or sessions that convert to net
sales.

7. Ecommerce Glossary
Net Sales:
The difference of demand total sales minus cart
abandonment, and customer returns.

8. Ecommerce Glossary
Web Traffic:
Productivity measurement that identifies the number
of views on website, individual pages, or product
views.

9. Ecommerce Glossary
Product Views:
Productivity measurement that quantifies the number
of consumer views of item level product on site.

10. Ecommerce Glossary
Average Order Value (AOR):
A measurement of the retail dollar quantity of products
purchased in an average customer shopping trip.

11. Ecommerce Glossary
Customer Acquisition Cost (CAC):
The operational costs to convert browser to buyer. The
funds spent to acquire customers divided by number of
customers.

12. Ecommerce Glossary
Customer Lifetime Value (CLV):
The average net profit each customer is predicted to
contribute to business. Defines how much a customer
is worth to category business.

13. Ecommerce Glossary
Gross Profit:
The remainder after subtracting total cost of goods
sold from net sales.

14. Thank You
Reach Me
Joan Braatz
Vice President Merchandising
Retail | B2C | B2B
braatzjoan@gmail.com
214-733-9677
https://www.linkedin.com/in/joanbraatz/
https://joanbraatz.com/