The most comprehensive summary of e-commerce operation and marketing terms!

The fastest way to understand an industry is to master the industry's specialized terminology. This article selects a series of e-commerce (marketing) industry terms that can help you quickly and initially understand e-commerce.

01. Image completion rate

It refers to the percentage of every 100 users who purchase a product that will spontaneously take photos and share them.

It is reported that the image creation rate of Sandunban Coffee is much higher than that of ordinary companies. Many mid-level KOLs and amateurs take the initiative to shoot videos and share them. The company has not invested a lot of money. This shows the important reasons for the success of Sandunban Coffee. Some people even suggest that the image completion rate should be a key evaluation indicator of whether a product can become a hit.

02. Standard products/non-standard products

Standard products generally have official specifications and models, and are the same in style and appearance. For example, mobile phones, computers, and home appliances are all standard products.

Non-standard products refer to goods that do not have clear specifications and models, such as clothing, shoes, etc. These goods often have a variety of styles.

03. Inventory Depth

Inventory depth = current month’s inventory/next month’s sales plan.

Based on the sales cost of the current month and the existing inventory number, how many months can it be turned over? An inventory depth of 2-3 is most appropriate. If it is higher than this range, it will cause inventory backlogs and reduce the annual inventory turnover times. If it is lower than this range, it will cause a shortage of supply and cannot meet normal production needs.

04. SPU/SKU

SPU = Standard Product Unit

SKU=stock keeping unit

SPU: iPhone 6 (the smallest unit of product aggregate information), such as mobile phone -> iPhone -> iPhone 6, iPhone 6 is the SPU.

SKU: Gold 16G iPhone 6 (the smallest indivisible unit of the product).

In a broad sense, Category > SPU > SKU

05. Combo

The meaning of combination items is that in e-commerce sales, merchants often combine several items together for sale.

06. DSR

The full English name is Detail Seller Rating, which refers to the seller service rating system.

There are three indicators: whether the product is consistent with the description, the seller's service attitude, the seller's delivery speed, and the logistics company's service. Each store rating is the arithmetic mean of the ratings given by all buyers within six consecutive months.

07. OEM/ODM

OEM can be called: OEM or OEM production, using other people's technology and brands, the factory is only responsible for production. ODM can be called: OEM, which means the factory's products are labeled with other people's brands.

08. Price range

Refers to the range between the upper and lower limits of the sales price of each commodity variety. In order to meet customers' needs for a rich and efficient merchandise mix within the store, it is necessary to reduce the number of sales levels and narrow the price range. If there are too many types of sales prices, it will inevitably lead to an increase in the number of products that customers do not need, making it difficult for customers to choose products and losing the characteristics of the store.

09. Pit location/pit production

The pit is a fixed advertising position, and the pit is the sales volume of the product in this fixed advertising position.

10. Month-on-month/Year-on-year

It is the comparison of the current period's statistical data with the previous period, for example, comparing July 2014 with June 2014, which is called month-on-month comparison. Comparison with the same period in history, for example, comparing July 2014 with July 2013, is called year-on-year comparison. The formula is as follows:

1) Month-on-month growth rate = (current period number – previous period number) / previous period number × 100%.

2) Year-on-year growth rate = (current period number - same period number) / same period number × 100%.

11. Sales rate/unsale rate

The turnover rate refers to the ratio of the sold goods in the store to all the goods in the store; the corresponding to the turnover rate is the unsalable rate, which is the ratio of the unsalable goods to all the goods in the store.

12. Gross Profit

Gross profit refers to: selling price - directly allocable costs

Directly allocable costs are costs that you can directly control, such as raw materials, employee wages, etc.

For example: a pair of shoes, priced at 1,000 yuan;

Directly allocable costs of manufacturing shoes: raw materials, employee wages, etc. 300 yuan.

Gross profit is 1,000 yuan - 300 yuan = 700 yuan.

13. Net profit/pure profit

Net profit refers to: gross profit minus costs that cannot be directly allocated. Costs that cannot be directly allocated refer to: water and electricity charges, business tax and other costs that cannot be directly controlled.

For example, the gross profit of shoes: 700 yuan;

Costs that cannot be directly controlled: water and electricity bills, various taxes, etc., totaling RMB 600.

Net profit is 700 yuan - 600 yuan = 100 yuan.

Net profit is another term for net profit.

14. People/Cargo/Venue

People: People-oriented, infinitely close to consumers' inner needs

Goods: different styles/different levels of goods structure management

Field: The touch points between brands and users, stores, e-commerce, mobile, TV, etc., consumption scenarios are everywhere.

15. Eight major groups of people on Taobao

It is also a classification of all people by mainstream e-commerce, including the following 8 categories of people:

New white-collar workers, senior middle class, sophisticated mothers, small town youth, GenZ, urban silver-haired, small town middle-aged and elderly, urban blue-collar workers

16. Warm up

Warm-up refers to the preview and atmosphere creation before the event begins. During this period, there are no activities. It is just to let consumers see the intensity of the upcoming activities. What consumers need to do at this time is to see if there is anything they need and add it to the shopping cart.

17. Pre-sale

Pre-sale means that the product is already on sale. This product may not be in stock or even if it is in stock, there is generally no way to pay the full amount. The pre-sale for Double 11 requires a deposit and a final payment. During the pre-sale period, you can only pay a deposit. For example, if the product is sold for 100 yuan during the promotion, you can pay a deposit of 10 yuan during the pre-sale period, and then pay the remaining 90 yuan when the final payment is due. The merchant will then ship it to you

18. Break-even point

Also known as zero profit point, break-even point, break-even point, profit and loss divergence point, and income turning point. It usually refers to the output when total sales revenue equals total costs (the intersection of the sales revenue line and the total cost line). Based on the break-even point, when sales revenue is higher than the break-even point, the company makes a profit, otherwise, the company suffers a loss. The break-even point can be expressed in terms of sales volume, that is, the sales volume at the break-even point; it can also be expressed in terms of sales revenue, that is, the sales revenue at the break-even point.

19. E-commerce Marketing IP

Refers to various marketing activity columns created by e-commerce platforms led by Tmall, such as: Super Brand Day, Gathering Day, Hey Box, Ideal Life Club, Super Category Day, Tmall Big Brand Day, etc.

When brands conduct this type of marketing IP activities, they can exchange them for the platform’s traffic resources, but the prerequisite is that the brand also needs to invest its own market resources to compete with the plan.

20. S-level/A-level/B-level

It refers to the classification of e-commerce promotional activities. Different levels of promotional traffic are different, S level>A level>B level.

Usually, S-level refers to platform-level promotions, such as Double 11 and 618; A-level refers to industry category-level promotions, such as 3C Digital Festival and New Fashion; B-level refers to regular store-level promotions.

21. Top Products

In e-commerce, it refers to goods that are scarce, hard to sell, and unusually priced.

22. Product Structure

It refers to merchants classifying a batch of goods into a "pyramid" shape according to their scarcity.

Usually, the top of the pyramid is the topic-generating model, also known as the "top product", the middle one is the starting volume model or the evergreen model, and the bottom one is the follow-up model or the long-tail model.

23. Crowd Assets

It was first proposed by Alibaba, and for the first time, the online user base of brand merchants was quantified and counted. The statistical model was AIPL.

A represents the cognitive group, I represents the interested group, P represents the purchasing group, and L represents the loyal group. All population quantities at these different stages can be stored in Alibaba’s data bank, constituting the crowd assets of brand merchants.

24. Global Marketing

It was first proposed by Alibaba. To put it simply, users will have a universal ID account in the Alibaba ecosystem. This ID allows brand merchants to track the entire chain and all channels from the media communication end to the e-commerce shopping end. The effect achieved is to visualize the consumer's behavior and traces. The ultimate goal is to operate each user accurately and effectively.

25. Inside/outside the site

Relative to the e-commerce platform, the things inside the e-commerce platform are generally called internal sites, and everything outside is called external sites.

For example, on-site marketing methods generally refer to interactions within brand stores, promotional methods, e-commerce content, live streaming, etc.; off-site methods generally refer to brands on social platforms, offline, etc.

26. Crowd data return

Generally speaking, it refers to data such as crowd tags placed by brands on off-site media, which are returned to Alibaba’s data bank and used for secondary reach on the site to achieve precise conversion.

27. UNIDESK

One of Alibaba’s core omni-channel marketing products, it helps achieve “full-link”, “full media”, “full data” and “full channel” marketing.

By returning audience interaction data from marketing activities to the data bank and accumulating it into brand data assets, it can help further optimize marketing and user operations.

28. Crowd Granularity

We often hear phrases like "the granularity of the population is too coarse", which actually means that the description of the population portrait is too broad and not focused enough on segmentation.

29. Grand Theft Auto

The full abbreviation is GMV To AIPL. It refers to reversely calculating the population demand in each link of AIPL through GMV sales.

The standard for reverse calculation is to calculate the required volume of A, I and P, L based on the sales proportion of new and old customers in the past, and then calculate the corresponding required population size based on the conversion rate of people in different links. The purpose is to make the brand's marketing investment more targeted.

30. FAST

Compared with AIPL, Alibaba's marketing model is a model that quantitatively counts the total amount of brand population assets, while FAST is a model that qualitatively measures the health of brand population assets.

F, full name Fertility, refers to the total amount of AIPL

A, full name Advancing, refers to AIPL conversion rate

S, full name Superiority, refers to the total number of members

T, full name Thriving, refers to the member activity rate

31. GROW

Tmall proposed a growth model to guide the fast-moving consumer goods apparel industry categories. GROW represents the four decision-making factors for brand growth:

G, the full name is Gain, which means improving penetration;

R, the full name is Retain, which means to increase repurchase power;

O, full name bOOst, refers to improving price power

W, full name Widen, refers to improving the extension of new products

32. KA Merchant

The full name is Key Account. In e-commerce, KA merchants refer to high-quality large sellers in this category, and merchants whose sales volume ranks among the top in the industry category. Becoming a KA merchant on the platform will provide you with a series of priority privileges and support.

33. ATV

The English abbreviation of average transaction value is average transaction value, which refers to the average amount of goods purchased by each customer.

ATV = turnover / number of orders

34. CVR

The abbreviation of conversion rate, the full name is conversion rate, which is the ratio of the number of visitors who have completed transactions to the total number of visitors in a day. The higher the conversion rate, the higher the quality of the visitors.

35. CTR

The abbreviation of click-through rate, the full name is click through rate. The ratio of click volume to impression volume over a period of time can be used to test whether the advertisement is attractive.

Usually, A/B testing is done when the media is placed to select materials with high CTR to increase subsequent placement costs.

36. CPS

The full English name is cost per sales, which refers to charging based on sales commission. Nowadays, many influencers and top anchors who sell goods through live streaming will negotiate with brand merchants about charging based on CPS.

37. CPUV

The full English name is cost per UV, which refers to the cost of each store traffic brought by media placement.

It is different from CPC (cost per click) because some clicks on media locations may not lead to entering the store, there is at least a 20% gap in between.

38. Bounce rate

The bounce rate refers to the ratio of the number of visits in which customers enter through the corresponding entrance and leave after visiting only one page to the total number of visits to the page.

39. DAU

The full English name is Daily Active User, the number of daily active users. It is generally used to reflect the operation status of websites, Internet applications, etc. The same goes for MAU (monthly active users).

40. TGI

The full English name is Target Group Index, which reflects the strength or weakness of the target group within a specific research scope (such as geographical area, demographic field, media audience, product consumers).

41. Social e-commerce

Different from the e-commerce ecosystem based on large e-commerce platforms such as Tmall and JD.com, it refers to commodity transactions that rely more on social relationships between people. For example, the most typical ones are the e-commerce mini-programs and communities in the WeChat ecosystem. Pinduoduo initially relied on social e-commerce to grow.

42. Content e-commerce

It is different from the shelf-type e-commerce ecosystem such as Tmall and JD.com, which has transactions as its direct purpose.

Content e-commerce is more about attracting users through content first, then softly implanting product-related information into it, triggering consumers' potential shopping desire, and finally achieving the purpose of transaction.

43. GWP

The full English name is gift with purchase. Refers to the reward mechanism set up by brand merchants in e-commerce shopping to stimulate consumers to purchase when the purchase amount reaches a certain threshold.

44. PDP

The full English name is product detail page, which refers to the product details page or product details page in the brand merchant’s store.

45. DTC

The full English name is direct to consumer. In simple terms, it means eliminating the middleman and not making a profit from the price difference.

DTC shortens the intermediate links, eliminates the need to rely on traditional wholesalers and intermediary channels, interacts directly with consumers, and keeps abreast of consumers' shopping behaviors and user portraits. It has become a business model that is popular and practiced by many emerging brands.

46. ​​C2M

The full name of this model is consumer to manufacture. It is a model that collects and integrates consumer information through the Internet, analyzes consumer demand, and then sends this information to manufacturers to generate orders.

The factory directly connects with consumer demand, which not only significantly reduces the selling price of goods and reduces sales costs, attracting more consumers, but also meets the personalized needs of niche consumers and promotes deeper consumption among consumers.

47. FAB

The full English names are feature, advantage and benefit, which refer to characteristics, functions and benefits respectively.

The FAB sales rule is that when marketers are introducing, promoting and selling products, they use selective, logical and purposeful persuasion based on customer needs and intentions. First introduce the features, then the functions, and finally point out the benefits to stimulate users to place orders.

48. FSS

The full English name is flagship store, which refers to the official flagship store opened by a brand on e-commerce platforms.

49. Store B/Store C

B store refers to the store on Tmall Mall. Those who open Tmall stores are generally large merchants and brand owners. We call this model "B2C".

C store refers to sellers who open stores on Taobao. They are stores for individual users. Currently, you can apply for free store opening without paying any fees. We call this model "C2C"

50. Performance Marketing

In contrast to brand marketing, this is a marketing model that is oriented towards the pursuit of data results.

Performance marketing in a narrow sense includes SEO/SEM, purchasing advertisements on e-commerce sites, being a Taobao customer, and live streaming sales. Many brands have departments dedicated to performance marketing.

51. DMP

Dharmapan is a targeted middle platform for refined operations of the crowd created by Alimama based on commercial marketing scenarios. It covers massive data tags such as consumer behavior, interest preferences, and geographic location. It provides merchants with personalized crowd selection, identification of high-value store populations, crowd portrait insights and preference analysis, as well as user link tracking capabilities to meet merchants' personalized and precise marketing needs.

52. Rundown

The activity flow chart is used to plan the time schedule of the activity execution period, which can be accurate to the minute.

Generally, when doing offline activities or special live broadcasts to sell goods, the executives need to use Excel to draw up a detailed rundown before doing so.

53. TP/DP

TP, the full name of which is Taobao Partner, originally referred to the hosting of service merchants certified by Taobao, and now generally refers to e-commerce agency service providers.

DP, the full name of which is Douyin Partner, refers to the operation service provider officially certified by Douyin. As Douyin begins to vigorously promote its e-commerce business, it needs a large number of service providers to serve Douyin merchants.

54. TopView

Douyin has launched a super first-place advertisement, which dominates the screen for the first 3 seconds, providing an immersive viewing experience without interference, and starts to be natively integrated into the information flow from the 4th second. Users can appreciate the native picture quality visually and enjoy the immersive experience sensorily, thereby quickly occupying the user's mind and meeting the user's need for in-depth communication with advertisements. It fully reflects the advertiser's brand concept, deepens the user's impression, and helps brand advertisers achieve strong exposure and efficient reach.

55. UED

The full name is User Experience Design. This term is often used in e-commerce to regulate the display of goods in brand stores and the visual design of pages. For example, we often hear that the UED of this store needs to be redesigned.

56. URL

In e-commerce, it generally refers to a network address beginning with www.

57. Call for action

Calling users to take action. For example, we often say that your copy is not call for action enough, which means that the copy is not inspiring enough to customers.

58. FMCG

The full English name is Fast Moving Consumer Goods, which refers to the fast-moving consumer goods industry.

59. OMS

The full English name is Order Management System, which means order management system.

60. WMS

The full name is Warehouse Management System, which means warehouse management system.

61. PR seeding

Generally refers to a soft-implantation public relations method. For example, a clothing brand sends a set of limited edition new products to a celebrity agent and asks the celebrity to wear them when attending an event. There will be no direct promotion by the celebrity in the future, but the brand's new products can be exposed and promoted through media reports.

62. Self-broadcast/store broadcast

It refers to the e-commerce live broadcast initiated by brand merchants on the platform, which is usually different from the live broadcasts by celebrities and top anchors.

63. Live Broadcast

During a live broadcast, two people in different broadcast rooms talk to each other. For example, we often hear Li Jiaqi talking to a CCTV host on a live broadcast.

64. Cold Start

In the Internet industry, the beginning of a website/account with no content and no users is often called a "cold start."

Cold starts usually require a certain level of paid promotion to support.

65. Celebrity ID

In fact, it is to find a celebrity to record a brand announcement video, which is usually used when you want to use the celebrity's influence to call on fans to go to the brand to participate in activities.

For example, in some brands’ large-scale e-commerce activities, they often need to invite celebrities to record a video ID.

66. WOM

The full name is word of mouth, which refers to word-of-mouth marketing. In e-commerce, it is often necessary to collect buyers’ showroom displays and post their orders, which is actually a form of word-of-mouth marketing.

67. Mar-tech

The full name is marketing technology, which refers to the measures and tools that use technological means to achieve marketing goals.

Mar-tech provides marketers with the opportunity to establish one-to-one relationships with consumers. With it, brands can more effectively find the right consumers and provide corresponding value.

68. Public Domain/Private Domain/Commercial Domain

Public domain traffic refers to the traffic actively allocated by the platform.

Private domain traffic refers to traffic that can be used freely and repeatedly by oneself and can be reached stably, such as WeChat friends, public account fans, Weibo fans, brand members, etc.

Commercial domain traffic refers to traffic that the platform separates from public domain traffic and is distributed based on payment as the main standard. Commercial domain traffic is essentially public domain traffic, but the standard for distributing traffic has become payment-based. The higher we bid, the more opportunities we have to obtain more and better traffic positions.

69. Premium

Product premium refers to the price that is higher than the market price determined under normal competitive conditions.

For example, the cost of an ordinary shirt may be 50 yuan, while the cost of a high-quality shirt may be 100 yuan. If the former is priced at 100 yuan and the latter is priced at 200 yuan, it will be considered normal pricing because high-quality products should be charged a higher price. However, if the latter is priced at 300 yuan or even higher, we say that the product has a premium.

70. Ingredients Party

Refers to the consumer group who will carefully study the ingredients of products such as cosmetics and daily chemical products when purchasing them.

71. Incremental/Stock

The incremental market refers to the potential market share that may be stimulated. The market boundaries are expanding, the overall volume is increasing, and it can even cannibalize the markets of other similar categories. The overall scale of the market is increasing. It is a process from nothing to something.

The existing market refers to the existing and established market share. It is a process from having to being better.

72. Traffic depression

It refers to an entrance with higher value, lower price and more traffic. For example, the early Apple Store, the early Weibo, the early public accounts, and the early Xiaohongshu and Douyin.

They have one thing in common, early stage! Therefore, traffic depression is judged based on time. In the middle and late stages, the bonus disappears and there is no such thing as traffic depression.

73. General Investment Mode

Generally speaking, when placing media, you do not circle the population label, but choose to place it to all user groups.

74. Waiter

Originally, it referred to the staff on the Taobao platform who served brand merchants and users. Now it has been expanded to describe the staff of almost all e-commerce platforms, including Tmall Xiaoer, JD Xiaoer, Pinduoduo Xiaoer, etc.

75. Pop-up Store

Also known as Pop-up shop in English, it is a brand guerrilla store that does not stay in the same place for a long time. It refers to setting up temporary shops in commercially developed areas for retailers to promote their brands in a relatively short period of time (several weeks).

For example, when we plan a marketing campaign, we often organize various offline activities of pop-up stores.

76. ISV Service Provider

ISV is the abbreviation of Independent Software Vendors, which means independent software developers in English.

For example, ISV in Taobao refers to developers and enterprises that have joined Taobao's service channels or open platforms and have open permissions to all industries on Taobao. Ordinary service providers only have permissions to a small number of industries, their product functions are relatively simple, and the applicable industries are limited.

77. Tianhe Project

Full name: Tmall Brand Joint Marketing Plan, abbreviated as Tianhe Plan. Tmall brand merchants place advertisements in designated media outside the Taobao system and embed Tmall VI elements in the advertising images. Tmall will give them exposure traffic of Tmall's non-sale resource positions of corresponding proportion value based on the value of their advertising resources, and help brands reach potential target users on the site through precise algorithms. (In layman's terms, brand advertisements display the Tmall logo to direct traffic to Tmall flagship stores/supermarkets)

78. Fake orders

A derivative term of e-commerce, it refers to a situation where a store pays someone to pretend to be a customer, using a fake shopping method to improve the ranking and sales of the online store, gain sales and good reviews, and attract customers. Brushing orders usually involves the seller providing the purchase fee to help designated online store sellers purchase goods to increase sales and credit, and filling in false positive reviews.

79. Selling point/Buying point

The selling point is viewed from the brand perspective, referring to the inherent benefits of the product; the buying point is viewed from the user perspective, referring to the point that impresses the user to buy the product.

Sometimes there is a big difference between brand selling points and user buying points. For example, in the story of "selling a comb to a monk", the selling point of the comb itself may be that it is sandalwood and hand-carved, but the monk obviously does not get this selling point, so the monk creates the selling point of making the comb into a "token of incense".

80. Pain points/itch points/satisfaction points

Pain points are essentially fear. For example, Wanglaoji targets consumers’ pain point of being afraid of getting angry.

The itch point is to satisfy everyone's virtual self, such as the various lifestyles sold by many brands;

The cool thing is instant gratification. For example, Hema’s pitch is: if you don’t want to go out to buy groceries and cook, you can place an order for fresh food online, and the fresh food will be delivered to your home within half an hour, so you can “have it whenever you want it, right away”

81. Celebrity peripherals

It refers to things that are not produced by the stars themselves, nor by the star's agency, such as postcards, posters, pillows, umbrellas, backpacks, books, bracelets, key chains, necklaces, etc. As long as they have a celebrity's photo and are the same things used by the celebrities, they can be said to be celebrity peripherals.

82. Taoke

It is a promotion model that charges according to transactions, and also refers to a type of people who earn income through promotion. As long as Taobao customers obtain product codes from the Taobao promotion zone, any buyer (including yourself) who enters the Taobao seller's store and completes the purchase through your promotion (link, personal website, blog or community, WeChat group, post in Moments) can get a commission paid by the seller.

83. Taobao password

It is a secret code used by Taobao, which is shared in WeChat Moments in the form of text and is relatively complicated to operate. Taobao passwords also come in different forms. One is the standard version, which means that users can go directly to the product page with the password; the other is a personalized password, where sellers can customize the text and links, and users can open an H5 page, store or product page.

84. Channel sinking

Channel sinking refers to the expansion of the network that was originally only sold in cities and penetrates into the grassroots level of rural areas. It is a new marketing strategy and is targeted at rural areas with more developed economies.

85. Shop 2nd Floor

It was first launched by Tmall. By entering the brand flagship store and scrolling down according to the instructions, you can enter the second floor, which is usually used as a carrier area for brand interaction and is now also called the brand area.

86. Blue V/Orange V

Blue V is an institutional certification. Official accounts of governments, media, campuses, enterprises, websites, applications, etc. can apply for institutional certification.

Orange V is a personal certification. The scope of certification includes supporting certification applications from celebrities in the fields of entertainment, sports, media, finance, technology, literature and publishing, government officials, humanities and arts, games, military aviation, animation, tourism, fashion, etc.

Author: Pulang

Source: Planner (ID: planner2333)