The marketing and e-commerce glossary: every term with its meaning and an example

CPM (cost per thousand impressions)What you pay for your ad to be shown a thousand times. CPC (cost per click)What you pay on average for each tap on your ad. CTR (click-through rate)The share of people who saw your ad and tapped it. ROAS (return on ad spend)How much in sales came back for every unit spent on ads. ConversionThe action you want from the person you advertise to: a purchase, a message, a sign-up. LeadsPeople who left their details because they are interested in what you sell. ReachThe number of different people who saw your ad or post. RetargetingAn ad shown to people who visited or engaged with you but did not buy. The pixel (Meta Pixel)Code in your store that tells Meta what visitors do. Click-to-WhatsApp adA paid ad that opens a WhatsApp chat with you in one tap. EngagementLikes, comments, shares and saves on your post. Lookalike audienceAn audience Meta builds from people who resemble your customers. A/B testTrying two versions to learn which works better. CTA (call to action)The line or button that tells the customer what to do now. Campaign objectiveWhat you ask Meta for: awareness, engagement, messages or sales. Target audienceWho you want to see your ad: where they are, their interests and behaviour. Content planA schedule of what you will post, when and on which platform. MentionSomeone naming your account in a post, story or comment. ReelsA short vertical video on Instagram and Facebook. Facebook PageA business's account on Facebook, not a personal profile. InsightsThe reach and engagement numbers a platform shows for your page. CopywritingWriting text that persuades the reader to one action: order, message or tap. Digital marketingMarketing online: ads, social media, search and messaging.

Cash on delivery (COD)The buyer pays the courier for the order when it arrives. DropshippingYou sell a product you do not stock, and the supplier ships it to the buyer. Landing pageOne page for one product that the customer lands on from the ad. UpsellOffering the buyer an add-on or a higher version before they pay. SKU (stock-keeping unit)A code for each version of a product that stock is counted by. Abandoned cartProducts a visitor added to the cart before leaving without ordering. Coupon (discount code)A code the buyer types to get a discount or free shipping. CashbackPart of the purchase price returned to the buyer as credit. Free shippingThe buyer pays no shipping, usually above a set amount. Average order value (AOV)What a buyer spends per order on average. Pre-orderSelling a product before it arrives or is made, with a stated delivery date. Return rateThe share of orders that came back unpaid or were returned after delivery. Gift cardA code with a balance the recipient pays an order with, in part or in full. Loyalty pointsPoints the customer earns on purchases and spends later. Subscription («subscribe and save»)An order that repeats itself every week or month at a subscriber discount. Payment gatewayThe service that lets your store take cards and wallets. Shipping waybillThe shipment's paper with its tracking number, the recipient's details and the amount. Affiliate marketingA marketer who brings you orders through their link and earns a commission. Product catalogYour product list with photos and prices inside WhatsApp and Meta ads. Cross-sellingOffering a product that goes with what the customer chose. Profit marginWhat is left of the selling price after cost, as a percentage. Stock (inventory)The quantity available to sell of each product, size and colour. FulfilmentEverything that happens to an order from confirmation to delivery. QR codeA square scanned with a phone camera to open a link or a chat.

WhatsApp message templateA Meta-approved message you start a conversation with. The 24-hour windowThe time you can reply freely after the customer's last message. WhatsApp quality ratingGreen, yellow or red, based on how customers react to your messages. WhatsApp messaging limitHow many customers you can start conversations with in 24 hours. The WhatsApp green tickMeta's badge for a well-known official business account. WhatsApp API provider (BSP)A company that gives you WhatsApp's official API and its tools. WhatsApp coexistenceThe same number on the WhatsApp Business app and on the platform at once. Opt-out (stop offers)The customer's request not to receive your marketing messages. WhatsApp broadcastSending one approved-template message to a list of customers. AI agent (AI chatbot)Software that understands the customer's question, answers from your information and takes a step. Knowledge base (for the bot)The information the AI agent answers from: prices, policies and questions. API (application programming interface)A door two systems exchange data through, with no human in between. OTP (one-time password)A short code sent to you to prove the number or card is yours.

Moderator (page moderator)The person who answers a page's messages and comments and takes orders. Follow-upA message that goes back to a customer after a question, an order or a booking. CRM (customer relationship management)An organised record of every customer: who they are, what they said, what they bought. Sales funnelThe customer's stages from seeing the ad to receiving the order. InboxWhere customers' private messages arrive. AutomationA system doing a repeated job by itself instead of a person. B2BBusiness selling to business: wholesale, distributors and contracts.