E-commerce and Sales Terms Every Entrepreneur Should Master

Running a business today is no longer limited to setting up a shop and waiting for customers to walk in. The battlefield has shifted online, where algorithms, customer psychology, and evolving sales models determine who wins and who fades out.

Yet, for many entrepreneurs, the language of digital business feels like a maze. Terms get thrown around like CRO, CLV, AOV, and it can feel as though you need a translator just to keep up.

That’s why mastering key e-commerce and sales terms is no longer optional; it’s how your business survives. These are the strategies, tools, and metrics that separate thriving entrepreneurs from struggling ones.

Let’s break them down in simple, practical language.

15 Essential E-commerce & Sales Terms

1. Upselling

The first on the list of e-commerce and sales is upselling. Upselling means persuading a customer to buy a more expensive or upgraded version of a product they are already considering.

Think of when you’re about to buy a phone online, and the platform suggests the “Pro” version with better storage and camera for just a little extra.

For entrepreneurs, upselling boosts profit margins without acquiring new customers, simply by offering more value to existing ones.

2. Cross-Selling

Cross-selling is encouraging customers to buy complementary products. If someone buys a laptop, suggesting a laptop bag or external hard drive is cross-selling in action.

When done right, it enhances the customer experience while increasing sales. This is often common among fashion businesses to do this a lot by recommending matching accessories with an outfit.

3. Shopping Cart Abandonment

This occurs when customers add items to their online cart but don’t complete the purchase.

High abandonment rates often point to problems like unexpected shipping costs, poor payment options, or slow checkout processes.

Smart businesses use reminders like emails or WhatsApp messages to bring customers back.

4. Affiliate Marketing

Affiliate marketing lets third parties (affiliates) promote your products for a commission.

Jumia, for example, thrives on this system where bloggers, influencers, and content creators earn a commission for driving sales. For entrepreneurs, this expands reach without heavy advertising costs.

5. Dropshipping

Dropshipping allows you to sell products without holding inventory. You take the orders, but your supplier handles packaging and shipping.

While it lowers start-up risks, competition is fierce, so entrepreneurs must differentiate through branding, customer service, or niche focus.

6. Product Listing Optimization

This is one of the e-commerce and sales terms. Think of this as making your product pages irresistible.

From keyword-rich descriptions to high-quality images and persuasive copy, optimised listings improve visibility on marketplaces like Jumia, Konga, or Amazon and ultimately increase sales.

7. Sales Enablement

Sales enablement equips your sales team (or yourself, if you’re solo) with the tools, content, and strategies to close deals faster. This could include pitch decks, CRM tools, or customer data insights. In short: preparation plus resources equals results.

8. DTC (Direct-to-Consumer)

DTC means selling directly to customers without middlemen like wholesalers or retailers. Brands like Nike and Warby Parker use this to control their messaging, build loyalty, and increase profit margins.

For Nigerian entrepreneurs, platforms like Instagram shops make DTC a low-barrier entry strategy.

9. Click-and-Collect

Also known as “buy online, pick up in-store,” this blends convenience with cost-saving. Customers order online but pick up at a physical store, avoiding shipping fees.

Supermarkets and fashion outlets in Nigeria are increasingly adopting this hybrid model.

10. Live Commerce

Live commerce combines live video streaming with real-time selling. Picture an Instagram Live where a seller showcases products and buyers order instantly in the comments.

It creates urgency, trust, and an interactive shopping experience.

11. Conversion Rate Optimization (CRO)

CRO is about turning browsers into buyers. It’s the art of improving your website or sales process so that more visitors actually purchase.

This might involve redesigning your checkout, testing different call-to-action buttons, or simplifying navigation.

12. Average Order Value (AOV)

AOV measures the average amount customers spend per purchase. If customers usually buy items worth ₦10,000, you can increase AOV through upselling, cross-selling, or bundling products. It’s a simple yet powerful metric to track revenue growth.1

13. Customer Lifetime Value (CLV)

CLV predicts how much money a customer will bring your business over time.

For example, a loyal customer who buys skincare monthly for two years is worth more than a one-time big spender. Entrepreneurs should focus on strategies that retain customers, not just acquire them.

14. Omnichannel Retailing

Omnichannel means creating a seamless experience across online and offline touchpoints.

A customer might discover your product on Instagram, research it on your website, and finally buy in-store, without feeling a disconnect. It’s about consistency everywhere.

15. Subscription Model

This involves offering products or services on a recurring basis. Think Netflix, Canva Pro, or even local food delivery services.

Subscriptions create steady revenue and deepen customer loyalty—two things every entrepreneur craves.

Conclusion

Knowing these e-commerce and sales terms gives you an advantage: you stop guessing and start playing the game with clarity.

Whether you’re testing dropshipping, tracking CLV, or building an omnichannel experience, these terms equip you to think smarter and act faster.

And in a marketplace like Ilorin where attention is scarce and competition is fierce, understanding the language of e-commerce could be your biggest sales weapon.