Entry-level Tech Terms You Need to Know Before Starting an E-commerce Brand

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When you open an e-commerce business, you’ll work with web developers, digital marketing agencies, and IT specialists. As such, you may hear terminologies you won’t often encounter if you manage a traditional company. These words may sound foreign at first, and it’s not always easy to understand what they mean, especially if you don’t have an IT background. But it’s imperative to understand them because the terms play a role in making your online business succeed.

Learning the definition of 70+ tech terms will overwhelm you, so we’ll keep to the entry-level terms in this article. Without further ado, start taking note of the following:

1. Algorithm

Even if you don’t run a business, you’re probably familiar with this term. An algorithm is a unique sequence of actions that resolve a mathematical problem. The algorithm works by tracking and saving your data on the internet so that the web can predict what you’d want to see next.

For example, if you searched for “boots for sale” on Google, you might find your social media feeds with ads of footwear brands later. That’s because the algorithm has identified your problem, which is not having new boots, so it provided you with solutions through ads.

Running an e-commerce business can allow you to manipulate your audience’s algorithm. For example, if a piece you post always earns more likes than other content, keep posting similar content. That way, it would always pop up on your audience’s feed, making them remember your business all the time.

2. Content Management System

Speaking of content, every e-commerce business should use a content management system (CMS). It is a software application that allows users to create, edit, publish, collaborate on, and store digital content. Their features vary depending on the provider, but typically, their core functions are:

  • Intuitive indexing, search, and retrieval of data
  • Format management (e.g., converting scanned documents to PDF)
  • Revision
  • Publishing

Some CMS’s also offer personalization tools or one-to-one marketing. One-to-one marketing is a website’s ability to tailor its content according to a user’s specific characteristics or data collected by the website. This is the same as an algorithm. If a user searches for boots for sale, then the website’s CMS will show ads for boots.

One example of a CMS is the Kontent Partner program by Kentico. Kentico is a leading e-commerce and online marketing platform that allows businesses to create cutting-edge and engaging websites.


3. Customer Relationship Management

A customer relationship management (CRM) system lets you keep track of your interactions with your audience. Like CMS, it also allows you to tailor your content based on the encounters you’ve had with a specific customer. For example, if they ordered skincare products from your website, they’ll see other skincare products when they visit your website again. This optimizes your engagement strategies, helping you increase sales in turn.

4. “Content is King”

This catchphrase emphasizes the importance of a content strategy. Since both consumers and companies are online, digital marketing tactics should focus on an effective content plan. If cash is king in accounting, then content is king in e-commerce.

5. Pay-per-click Ads

A pay-per-click (PPC) ad is a search engine optimization (SEO) strategy. It is when an advertiser pays a pre-established fee to a publisher every time a user clicks on an advertised link on the search engine results page. For example, if you Googled “banks in America,” and you saw a link to the website of Bank of America with an “Ad” inserted below or beside it, that’s a PPC ad.

6. Search Engine Optimization

Speaking of SEO, it is a digital marketing strategy that drives traffic to a website. It’s achieved in multiple ways, such as designing a website strategically, uploading relevant content frequently, posting on social media, and using PPC ads.

7. Conversion Rate

Last but not the least, you’ll hear this term a lot when you manage an e-commerce site. Conversion rates refer to the number of users who took a certain action versus those who only had the opportunity to take the same action. It typically refers to sales, such as when a user visits and orders something from a website. But it can also refer to other goals, such as the number of users who subscribed to a newsletter or e-mail alerts.

Tech terms can be a little confusing to understand, but don’t worry; you don’t have to memorize all those definitions right away. You’ll understand them more profoundly as you gain more experience in e-commerce. In the meantime, focus on getting settled and obtaining all the help you need. That’s why there are business service professionals around us. They help us handle the things outside our forte.

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