The eCommerce Issue
Description:
With annual sales topping more than a trillion dollars, eCommerce is bigger than ever. It’s also more competitive. In this issue, we’ll explore ways to give your brand an edge, so you not only attract online and mobile shoppers, but turn them into buyers, too.

The eCommerce Issue

Fall 2013

Affiliate, Marketplace, CSE, Oh My!

by: Hailey Heishman
Affiliate marketplace header

AFFILIATE

An affiliate is a website or business that earns a percentage of a merchant’s revenue (usually commission-based) from each conversion or lead they drive to a designated website. Affiliates provide their users links to a site through their own marketing efforts. They publish provided links or images on their site in order to get conversions of clicks, sales or leads. Through affiliate marketing there is greater chance to reach a larger audience for a lower cost.

Examples: retailmenot.com | savings.com | dealmoon.com 

MARKETPLACE

A marketplace is an online shopping site, similar to a flea market, where third parties provide product and inventory information, and the marketplace operator processes the transactions.

Examples: Ebay | Amazon | Etsy | Rakuten 

COMPARISON SHOPPING ENGINE

A comparison shopping engine (CSE) is an Internet service used to price online advertisements. These sites allow you to compare prices of specific products by merchant product feeds submitted to each platform. 

Examples: Bing shopping | Google shopping | pricegrabber.com 

ADVERTISERS & MERCHANTS

An advertiser or merchant pays money to each affiliate for completing a transaction via an affiliate link, which is generally embedded in a creative asset.

AFFILIATE NETWORKS

Affiliate Networks are kind of like the middleman. They contain offers for the affiliate to choose from and also take care of the payments to affiliates. As an affiliate site, you can join these networks. Advertisers and merchants use them for ease of distributing commissions and management of a large number of affiliates.

Examples: Google Affiliate Network | ShareASale | Commission Junction 

COOKIE

A cookie is a small piece of data sent from a website that is stored in a user’s browser while they are perusing a site. Every time the website is loaded a cookie is sent back to the site to notify them of the user’s activity. Cookies remember users’ shopping carts and behavior prior to them creating an account on the site. You can also prepare customized pages for users with the help of cookies. 

SHOPPING CART

The shopping cart is where the selected products are housed until checkout. 

CONVERSION RATE

A conversion rate is the percentage of people who take a desired action. 

ABANDONMENT RATE

The ratio of abandoned shopping carts to the total transactions completed. 

CPA = COST PER ACQUISITION

Cost / (total impressions x click-through rate x conversion rate) 

SECURE PAYMENT GATEWAYS

Help conduct secure transactions on the Internet using SSL technology. 

SSL = SECURE SOCKET LAYER

A secured layer of a website used to pass encrypted data, typically requiring a login
and denoted by https.