NTN ECOMM flashcards
NTN ECOMM · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Gross merchandise value
- The total selling price of goods transacted through a store or marketplace before returns, discounts and fees are deducted. It measures platform scale rather than company revenue.
- Take rate
- Platform revenue divided by gross merchandise value, expressed as a percentage. It shows how much of each transaction dollar the marketplace keeps as commission, fees or services.
- LTV to CAC ratio
- Customer lifetime value divided by customer acquisition cost. A ratio of roughly 3:1 or higher is the common health threshold used to justify continued paid acquisition spend.
- Contribution margin
- Selling price minus all variable costs of an order, including cost of goods, payment processing, shipping, fulfillment labor and packaging. It shows whether an order is profitable.
- Headless commerce
- An architecture where the customer-facing front end is decoupled from the commerce backend and joined through APIs, allowing independent redesign, multi-channel delivery and free choice of front-end technology.
- Core Web Vitals thresholds
- Google page-experience metrics with good thresholds measured at the 75th percentile: largest contentful paint at or under 2.5 seconds, interaction to next paint at or under 200 milliseconds, cumulative layout shift at or under 0.1.
- Product detail page
- The storefront page for a single product, showing images, price, variants, availability and the add-to-cart control. It is the primary conversion page in the purchase funnel.
- Canonical tag
- An HTML link element that names the preferred URL for a page. It consolidates ranking signals when identical or near-identical content is reachable at several different URLs.
- Return on ad spend
- Revenue attributed to advertising divided by the ad spend, expressed as a ratio or multiple. The break-even value equals one divided by the gross margin percentage.
- CPM
- Cost per thousand impressions, calculated as ad spend divided by impressions then multiplied by 1,000. It is used to compare reach-based campaigns across channels and placements.
- Data-driven attribution
- An attribution model that distributes conversion credit across touchpoints using observed conversion-path data instead of fixed rules. It is the default model in Google Analytics 4.
- Quality Score
- Google Ads' one-to-ten estimate of keyword relevance, based on expected click-through rate, ad relevance and landing page experience. Higher scores generally produce lower cost per click.
- Price elasticity of demand
- The percentage change in quantity demanded divided by the percentage change in price. Absolute values above one indicate elastic demand; values below one indicate inelastic demand.
- Initial markup
- The gap between the original retail price and product cost, expressed as a percentage of the original retail price. Maintained markup instead uses the actual selling price after markdowns.
- Sell-through rate
- Units sold divided by units received during a period. It indicates how quickly inventory clears and informs decisions about markdown timing and replenishment.
- GMROI
- Gross margin return on inventory investment, calculated as gross margin dollars divided by average inventory at cost. A value below one means margin does not cover the inventory investment.
- PCI DSS
- The Payment Card Industry Data Security Standard, a set of requirements for storing, processing and transmitting cardholder data. Merchants with fully outsourced checkout typically self-certify using SAQ A.
- 3D Secure
- An authentication protocol that redirects the cardholder to the issuing bank for verification during checkout. It supports PSD2 strong customer authentication in the EEA and shifts fraud chargeback liability.
- Chargeback
- A cardholder dispute that reverses a completed payment through the card network. Merchants respond with transaction evidence, and a high dispute ratio can trigger network monitoring programs.
- AVS check
- Address Verification System comparison of the billing address entered at checkout against the address held by the card issuer. A mismatch is a fraud risk signal used in review rules.
- Reorder point
- The inventory level that triggers a new purchase order. It equals forecast demand during the replenishment lead time plus safety stock held for demand variability.
- OTIF
- On time in full, the share of orders delivered by the promised date in complete quantities. It is a standard service-level metric for fulfillment operations and suppliers.
- Safety stock
- Buffer inventory held to absorb demand and lead-time variability. It is commonly the target service-level Z-score multiplied by demand standard deviation and the square root of lead time.
- Fill rate
- Units shipped divided by units ordered over a period. It measures the operation's ability to satisfy demand from stock already available in the network.
- Net Promoter Score
- The percentage of promoters giving 9-10 ratings minus the percentage of detractors giving 0-6 ratings on a likelihood-to-recommend question. Scores range from -100 to +100.
- Customer effort score
- A survey measure of how much effort a customer had to expend to get an issue resolved, usually on a 1-7 scale. Lower effort correlates with higher repeat purchase and loyalty.
- Contact rate
- Customer service contacts divided by orders in the same period. It drives service cost and acts as an early indicator of post-purchase friction such as delivery problems.
- First contact resolution
- The percentage of customer contacts fully resolved in the first interaction without follow-up or escalation. Higher rates reduce cost per contact and cut repeat enquiries.
- UTM parameters
- Query-string tags appended to campaign URLs for source, medium, campaign, term and content. They identify traffic origin in analytics tools and are required for accurate channel reporting.
- Statistical significance
- The probability that an observed A/B test difference is not caused by chance. Tests conventionally use a 95% confidence threshold, 80% power and one pre-declared primary metric.
- Cohort analysis
- Grouping customers by a shared start period, such as first purchase month, and tracking their behaviour over time. It separates genuine lifecycle retention from aggregate growth effects.
- Revenue per session
- Total revenue divided by the number of sessions in a period. It combines conversion rate and average order value into a single measure of storefront efficiency.