Dictionary

Business, technology, and commerce terms, clearly explained.

A practical glossary of terms across business, technology, systems, and commerce. Categories identify each entry’s subject area.

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166 of 166 terms, listed alphabetically

A

B2B

Account Management

The ongoing work of maintaining a customer relationship, coordinating service, and finding ways to help the account achieve its goals.

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B2B

Account Mapping

A view of the people, roles, relationships, and decision paths inside a target customer organization.

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B2B

Account-Based Marketing (ABM)

A go-to-market approach that coordinates marketing and sales around a defined set of high-value business accounts.

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B2B

Accounts Payable (AP)

The money a business owes suppliers for goods or services it has received.

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B2B

Accounts Receivable (AR)

The money customers owe a business for goods or services already supplied.

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B2B

Acquisition Cost

The total sales and marketing expense required to win a new customer, commonly measured as customer acquisition cost.

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B2B

Annual Contract Value (ACV)

The normalized yearly value of a customer contract, often excluding one-time fees.

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B2B

Annual Recurring Revenue (ARR)

The annualized value of recurring subscription revenue at a point in time.

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B2B

Application Programming Interface (API)

A defined way for software systems to exchange data or request each other’s capabilities.

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Commerce

Average Order Value (AOV)

The average monetary value of orders over a defined period, usually calculated as revenue divided by order count.

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B

Commerce

Backorder

An order for an item that is temporarily unavailable and will be fulfilled when inventory becomes available.

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Commerce

Basket Analysis

The study of products purchased together to identify cross-sell, merchandising, and assortment opportunities.

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Commerce

Bill of Materials (BOM)

A structured list of components, materials, or subassemblies required to make or package a product.

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Commerce

Bill-to Address

The address associated with the party responsible for paying an order or invoice.

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B2B

Billing Cycle

The recurring interval at which a supplier invoices a customer for products, services, or subscription access.

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Commerce

BOPIS (Buy Online, Pick Up In Store)

An order fulfillment option where a customer places an order online and collects it at a physical location.

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B2B

Business-to-Business (B2B)

The sale of products or services by one business to another business or organization.

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B2B

Business-to-Business-to-Consumer (B2B2C)

A business model in which one company reaches end consumers through a business partner or intermediary.

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B2B

Business-to-Consumer (B2C)

The sale of products or services directly from a business to individual consumers.

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B2B

Buyer Persona

A research-based profile describing a type of buyer, including their goals, responsibilities, challenges, and buying behavior.

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B2B

Buying Committee

The group of stakeholders who influence, evaluate, approve, or use a business purchase.

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B2B

Buying Cycle

The stages an organization moves through from recognizing a need to evaluating, approving, and purchasing a solution.

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B2B

Buying Group

The set of individuals involved in a specific purchase, often spanning users, approvers, finance, procurement, and executives.

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B2B

Buying Signal

An observable action or change that suggests a business may be preparing to evaluate or purchase a solution.

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C

Commerce

Call-Off Order

A release against an existing contract or blanket purchase order that schedules delivery of agreed goods over time.

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B2B

Channel Partner

An external organization that helps a supplier market, sell, implement, or support its products.

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B2B

Channel Sales

Revenue generated through third parties such as resellers, distributors, agents, or referral partners.

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B2B

Churn Rate

The percentage of customers or recurring revenue lost during a specified period.

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B2B

Closed-Lost

A sales opportunity that has ended without a purchase, typically recorded with a reason for future analysis.

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B2B

Closed-Won

A sales opportunity that resulted in an accepted purchase or signed agreement.

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Commerce

Cloud Commerce

Commerce software and infrastructure delivered as hosted services rather than operated entirely on a customer’s own servers.

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B2B

Co-op Marketing

A joint marketing program in which a supplier and a channel partner share campaign planning, execution, or costs.

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B2B

Cold Calling

Outbound prospecting that begins with an unsolicited phone call to a potential customer.

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Commerce

Commerce Platform

Software that supports online product discovery, pricing, ordering, payment, and related commerce experiences.

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Commerce

Company Account

A business customer record that can represent an organization, its locations, buyers, permissions, and commercial terms.

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B2B

Competitive Analysis

A structured comparison of alternatives in a market, including their positioning, capabilities, pricing, and strengths.

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B2B

Contract Lifecycle Management (CLM)

The processes and tools used to create, negotiate, approve, store, renew, and analyze contracts.

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B2B

Conversion Rate

The share of visitors, leads, or prospects who complete a defined desired action.

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Commerce

Cost of Goods Sold (COGS)

The direct costs attributable to producing or acquiring the goods a company sells.

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B2B

Cross-Selling

Recommending or selling complementary products or services to an existing or prospective customer.

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B2B

Customer Acquisition Cost (CAC)

The sales and marketing cost associated with acquiring one new customer over a defined period.

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B2B

Customer Data Platform (CDP)

A system that combines customer data from multiple sources into unified profiles for analysis and activation.

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B2B

Customer Experience (CX)

The customer’s overall perception of interactions with a company across channels and throughout the relationship.

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B2B

Customer Journey

The sequence of stages and interactions a buyer experiences while researching, purchasing, receiving, and using an offering.

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B2B

Customer Lifetime Value (CLV)

An estimate of the revenue or profit a business expects to earn from a customer over the relationship.

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B2BCRM

Customer Relationship Management (CRM)

A system and operating practice for managing customer records, interactions, sales opportunities, and relationships.

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B2B

Customer Retention

A company’s ability to keep customers active and purchasing over time.

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B2B

Customer Segmentation

The grouping of customers by shared characteristics so a business can tailor service, pricing, and marketing.

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B2B

Customer Success

A proactive practice of helping customers achieve intended outcomes and realize value from a product or service.

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Commerce

Customer-Specific Pricing

Pricing configured for an individual customer or account based on negotiated terms, agreements, or commercial rules.

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D

B2B

Data Enrichment

The process of adding useful attributes to existing records using internal or external data sources.

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B2B

Days Sales Outstanding (DSO)

The average number of days a company takes to collect payment after making a credit sale.

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Commerce

Dead Stock

Inventory that is unlikely to sell or be used and may require discounting, disposal, or write-off.

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B2B

Deal Desk

A cross-functional team or process that reviews nonstandard deals, pricing, approvals, and contract terms.

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B2B

Decision Maker

A person with authority to make or approve a purchase decision, though other stakeholders may influence it.

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B2B

Demand Generation

Marketing activity designed to create awareness, interest, and qualified demand for a company’s offerings.

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B2B

Direct-to-Consumer (D2C)

A model in which a brand sells directly to end consumers rather than relying exclusively on retail intermediaries.

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Commerce

Discount Management

The rules, approvals, and controls used to set and apply discounts across customers, products, and transactions.

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Commerce

Distribution

The movement and availability of products through channels, warehouses, partners, or other routes to market.

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Commerce

Distributor

A business that purchases products from suppliers and resells or supplies them to retailers, resellers, or end customers.

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Commerce

Drop Shipping

A fulfillment model in which a seller accepts an order and a supplier ships the product directly to the buyer.

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E

B2B

Economic Buyer

The person who controls or authorizes the budget for a purchase, whether or not they use the solution.

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Commerce

Electronic Data Interchange (EDI)

The structured computer-to-computer exchange of standard business documents such as purchase orders and invoices.

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CommerceERP

Enterprise Resource Planning (ERP)

Business software that integrates core operations such as finance, purchasing, inventory, manufacturing, and order processing.

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B2B

Enterprise Sales

The sale of complex products or services to large organizations, typically involving longer cycles and multiple stakeholders.

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B2B

Evaluation Criteria

The requirements a buying organization uses to compare solutions and determine whether an option is suitable.

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B2B

Extended Payment Terms

An agreed period that gives a buyer additional time to pay an invoice after it is issued.

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F

B2B

Forecasting

The practice of estimating future sales, demand, revenue, or inventory needs from historical data and current signals.

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Commerce

Fulfillment

The process of receiving, picking, packing, shipping, and confirming an order.

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G

B2B

Gatekeeper

A person who controls access to a decision maker or buying process, such as an assistant or initial evaluator.

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B2B

Go-to-Market (GTM) Strategy

A coordinated plan for reaching target customers, positioning an offering, selling it, and delivering value.

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B2B

Gross Margin

Revenue remaining after subtracting the direct costs of goods or services sold, commonly expressed as a percentage of revenue.

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Commerce

Gross Merchandise Value (GMV)

The total value of merchandise sold through a commerce channel before deductions such as returns or fees, according to the chosen definition.

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H

Commerce

Headless Commerce

An architecture that separates the customer-facing presentation layer from commerce services delivered through APIs.

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I

B2B

Ideal Customer Profile (ICP)

A description of the type of organization most likely to benefit from, buy, and remain successful with an offering.

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B2B

Inbound Sales

Sales activity responding to prospects who initiate contact or demonstrate interest through marketing and other channels.

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B2B

Inside Sales

Sales conducted remotely through phone, email, video, and digital tools rather than primarily through in-person visits.

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B2B

Integration

A connection between systems that allows them to exchange data or coordinate business processes.

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Commerce

Inventory Management

The planning and control of stock levels, movements, replenishment, and availability across locations.

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Commerce

Invoice

A commercial document requesting payment for goods or services and describing amounts, terms, and transaction details.

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K

B2B

Key Account Management

A strategic approach to serving a company’s most important customers through coordinated relationships and growth plans.

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L

B2B

Lead

A person or organization that may become a customer and has been identified for further qualification or engagement.

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B2B

Lead Generation

Activities that identify and attract potential customers for a company’s sales and marketing process.

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B2B

Lead Nurturing

Relevant, ongoing communication that helps a potential buyer learn and progress toward a purchase decision.

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B2B

Lead Qualification

The evaluation of a lead’s fit, needs, authority, timing, and likelihood to become a customer.

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Commerce

Lead Time

The elapsed time between initiating a process, such as placing an order, and its completion or delivery.

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B2B

Lifetime Value (LTV)

An estimate of the total economic value a customer contributes over the duration of the relationship.

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M

Commerce

Made-to-Order

A production or procurement approach in which a product is made or sourced after a customer places an order.

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B2B

Marketing Qualified Lead (MQL)

A prospect that meets marketing-defined engagement or fit criteria and is ready for further sales review.

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Commerce

Marketplace

A digital or physical platform that brings multiple sellers together to offer products or services to buyers.

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B2B

Master Services Agreement (MSA)

A contract establishing general terms that govern future statements of work, orders, or projects between parties.

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Commerce

Minimum Advertised Price (MAP)

A supplier’s policy setting the lowest price at which a reseller may publicly advertise a product.

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Commerce

Minimum Order Quantity (MOQ)

The smallest quantity a supplier will accept for a product, order, or production run.

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B2B

Monthly Recurring Revenue (MRR)

The normalized monthly value of recurring subscription revenue.

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Commerce

Multi-Channel Commerce

Selling through more than one channel, such as a web store, marketplace, sales team, or physical location.

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N

Commerce

Net 30

A payment term requiring the invoice balance to be paid within 30 days, subject to the contract’s stated start date and conditions.

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Commerce

Net 60

A payment term requiring the invoice balance to be paid within 60 days, subject to the contract’s stated start date and conditions.

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Commerce

Net 90

A payment term requiring the invoice balance to be paid within 90 days, subject to the contract’s stated start date and conditions.

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B2B

Net Revenue Retention (NRR)

A measure of recurring revenue retained from existing customers after expansion, contraction, and churn.

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O

Commerce

Omnichannel Commerce

A coordinated commerce approach that connects customer experiences, information, and operations across channels.

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B2B

Onboarding

The process of setting up a new customer, account, or user so they can begin using a product or service successfully.

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Commerce

Open-to-Buy (OTB)

A budgeting method that tracks how much purchasing capacity remains for planned inventory during a period.

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CommerceOMS

Order Management System (OMS)

Software that coordinates order capture, routing, inventory availability, fulfillment, and order status.

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Commerce

Order-to-Cash (O2C)

The end-to-end business process from receiving a customer order through fulfillment, invoicing, and payment collection.

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B2B

Outbound Sales

Sales activity initiated by a seller through outreach to selected prospects or existing accounts.

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Commerce

Overstock

Inventory held in quantities beyond expected near-term demand or operational requirements.

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P

Commerce

Pallet

A portable platform used to unitize, store, and move goods during warehouse and freight operations.

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Commerce

Payment Gateway

A service that securely transmits payment information between a commerce experience, payment processor, and financial institutions.

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Commerce

Payment Terms

The agreed conditions for when and how a buyer must pay, including due dates, methods, and possible discounts or fees.

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B2B

Pipeline

The set of active sales opportunities organized by stage and used to understand potential future revenue.

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Commerce

Price List

A defined set of product prices that can be applied to a customer, customer group, channel, region, or time period.

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Commerce

Procure-to-Pay (P2P)

The process through which an organization requests, approves, purchases, receives, and pays for goods or services.

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Commerce

Procurement

The business function and process for sourcing, evaluating, purchasing, and managing external goods and services.

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Commerce

Product Information Management (PIM)

A system for managing and distributing product attributes, descriptions, media, and related catalog information.

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Commerce

Purchase Order (PO)

A buyer-issued document authorizing the purchase of specified goods or services under stated terms.

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Commerce

Purchase Requisition

An internal request for approval to purchase goods or services before a purchase order is issued.

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Q

B2B

Quarterly Business Review (QBR)

A recurring meeting where a supplier and customer review outcomes, performance, priorities, and plans.

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B2B

Quote-to-Cash (Q2C)

The connected processes for creating a quote, agreeing terms, fulfilling the sale, invoicing, and collecting payment.

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R

Commerce

Reorder

A subsequent purchase of a product or service previously purchased by the same customer.

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Commerce

Reorder Point

The inventory level at which replenishment should be initiated to reduce the risk of running out of stock.

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B2B

Request for Information (RFI)

A document used to gather background information about potential suppliers, solutions, or market capabilities.

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B2B

Request for Proposal (RFP)

A formal document inviting suppliers to propose solutions, delivery approaches, and commercial terms for a defined need.

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B2B

Request for Quotation (RFQ)

A request asking suppliers to provide pricing and terms for specified products, quantities, or services.

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B2B

Reseller

A business that purchases products or services and sells them to its own customers, sometimes with added services.

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B2B

Retention Rate

The percentage of customers or revenue that remains over a defined period, based on a stated calculation.

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Commerce

Return Merchandise Authorization (RMA)

An approval or reference process used to manage the return of a product to a seller or supplier.

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B2B

Revenue Operations (RevOps)

The alignment of sales, marketing, customer success, data, and systems around predictable revenue processes.

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S

Commerce

Safety Stock

Extra inventory held to help absorb demand variability, supply delays, or other uncertainty.

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B2B

Sales Cycle

The time and sequence of activities from initial sales engagement to a purchase decision.

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B2B

Sales Development Representative (SDR)

A sales professional focused on prospecting, initial qualification, and creating opportunities for account executives.

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B2B

Sales Enablement

The content, training, tools, and processes that help sales teams engage buyers and perform effectively.

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B2B

Sales Funnel

A model of the stages prospects move through as they progress from awareness to purchase.

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B2B

Sales Operations (Sales Ops)

The processes, systems, analytics, and planning that help a sales organization operate efficiently.

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B2B

Sales Qualified Lead (SQL)

A prospect that sales has reviewed and considers sufficiently qualified for direct sales engagement.

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B2B

Salesforce Automation

Software-supported workflows for sales tasks such as lead assignment, activity tracking, follow-up, and opportunity management.

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Commerce

Sell-Through Rate

The share of available inventory sold during a defined period.

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B2B

Service Level Agreement (SLA)

An agreement that defines measurable service expectations, responsibilities, and sometimes remedies.

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Commerce

Ship-to Address

The destination address where the products in an order should be delivered.

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Commerce

Shipping Terms

The agreed conditions that describe shipping responsibilities, costs, risk, and delivery arrangements.

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B2B

Single Sign-On (SSO)

An authentication method that allows a user to access multiple authorized applications through one identity provider session.

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Commerce

SKU (Stock Keeping Unit)

A unique identifier used by a business to distinguish and manage a product or product variant in inventory.

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B2B

Solution Selling

A sales approach that connects a customer’s business needs to a tailored combination of products, services, and outcomes.

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B2B

Stakeholder

A person or group that can affect, is affected by, or has an interest in a business decision or project.

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B2B

Statement of Work (SOW)

A document describing the scope, deliverables, schedule, responsibilities, and commercial details of a project or service.

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Commerce

Subscription Commerce

A commerce model in which customers receive products or services through recurring orders or access plans.

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Commerce

Supplier

A person or organization that provides goods, materials, or services to another business.

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Commerce

Supply Chain

The network and processes involved in sourcing materials, making products, and moving them to customers.

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B2B

System of Record

The authoritative system designated to maintain a particular type of business data.

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T

B2B

Territory Management

The assignment and organization of markets, accounts, or regions among sales representatives or teams.

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Commerce

Tiered Pricing

A pricing structure in which the unit price or discount changes at defined quantity, spend, or usage thresholds.

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B2B

Total Cost of Ownership (TCO)

The full cost of acquiring, operating, maintaining, and eventually replacing a product or system over time.

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Commerce

Trade Credit

An arrangement that allows a business buyer to receive goods or services before paying the supplier.

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U

Commerce

Unified Commerce

An operating model that connects commerce channels and back-office processes through shared data and coordinated systems.

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B2B

Unit Economics

The revenue and costs associated with one defined unit, such as a customer, order, product, or transaction.

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B2B

Upselling

Encouraging a customer to choose a higher-value version, larger quantity, or expanded package.

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V

B2B

Value Proposition

A clear explanation of the value an offering provides to a particular customer and why it is relevant.

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B2B

Value-Based Pricing

A pricing approach that considers the value an offering creates for the customer rather than relying only on cost or competitor prices.

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B2B

Vendor Management

The processes for selecting, coordinating, monitoring, and maintaining relationships with external suppliers.

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Commerce

Vendor-Managed Inventory (VMI)

An arrangement in which a supplier monitors a customer’s inventory and manages replenishment under agreed rules.

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Commerce

Volume Discount

A price reduction offered when a customer purchases a specified quantity or spend level.

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W

Commerce

Warehouse Management System (WMS)

Software that supports warehouse activities such as receiving, putaway, picking, packing, and inventory control.

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B2B

White Label

A product or service made by one company and branded or sold by another company as its own.

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Commerce

Wholesale

The sale of goods in larger quantities, typically to businesses that resell, distribute, or use them commercially.

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Commerce

Wholesale Ecommerce

Online buying and selling of products between businesses, often with account-specific pricing, bulk quantities, and payment terms.

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B2B

Working Capital

The short-term financial resources available to fund a company’s day-to-day operations.

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Z

B2B

Zero-Based Budgeting

A budgeting method in which each period’s expenses must be justified from a zero base rather than inherited from prior budgets.

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