For those newly initiated to the world of ecommerce, understanding commonly used terminology and the entire ecommerce process can help to demystify the scary of getting started.

Ecommerce, or selling on the internet, requires having a place where sales occur, and getting customers to that place (the shop) to close the sale.

In ecommerce, the shop is the website, and is often called the storefront, and an Ecommerce platform is the software that controls the appearance and functionality of the storefront. .

Marketing these stores includes advertising the storefront on other websites, using search-driven traffic (known as search engine marketing), or creating information-packed email publications called ezines, which all direct potential customers to the storefront.

When customers click on the link in a newsletter, ezine, or ad, they are taken to the online store, with each new visitor being tracked from click, to exit or purchase. Tracking these numbers gives the store owner (known as the etailer) an idea of how effective the marketing efforts are.

When customers visit a storefront, cookies are deposited in their computers. These small files (the cookie file) tracks the customer’s preferences. For example, cookies record what pages have been visited and what products have been placed in the customer’s shopping cart.

The shopping cart is the software that tracks items the customer selects for purchase, calculates the sales total, and collects payment information. This software can be incorporated into the storefront and managed by the etailer, or into a separate program that etailers contract an independent party to maintain and host.

When a customer takes action to purchase, this is called a conversion. High conversion rates are as important as page impressions, so etailers strive to make their websites easy to use and often offer customers incentives for completing the purchase.

Offering multiple payment options is one way to make the process easier for customers. Etailers typically accept payment via PayPal (an online funds transfer service), by credit cards, and through echecks which take funds directly from the customer’s checking account.

Customer relations management (CRM) refers to all practices and procedures the etailer uses to ensure a positive experience for customers.

This can include providing live support or a toll-free number, sending confirmation and thank-you emails following a purchase, offering a fair and efficient return and refund policy, and maintaining contact after the purchase to encourage repeat business.

Like any new field, ecommerce has its own language and culture. Understanding the vocabulary removes the confusion and frees etailers to become more effective in their internet marketing and sales efforts.