The Ultimate DTC Dictionary (293 Terms Decoded)
The Ultimate DTC Dictionary is your comprehensive guide to the insider jargon of the direct-to-consumer world.
From the serious operational terms to the cultural slang, this dictionary decodes the language spoken by ecommerce founders, marketers, and operators under 40.
So if you’re struggling to follow DTC conversations online, worry no more – we’ve got every term you need to know, defined and put into context, below.
A
A/B Testing
Definition: Testing two versions of a creative, email, or landing page to see which performs better.
Example: "We're A/B testing price anchors before BFCM — apparently $59 converts better than $49, go figure."
Context: Used in both serious CRO talk and meme-style tweets about over-testing obvious things.
AKA: The more someone says they A/B test everything, the less likely they actually do.
Abandoned Cart
Definition: When a customer adds items to their cart but leaves without completing the purchase.
Example: "Our abandoned cart rate is 70%. We need to fix our checkout flow ASAP."
Context: A massive opportunity for recovery through email and SMS campaigns.
AKA: The reason your inbox is full of "You left something behind!" emails.
Above the Fold
Definition: The portion of a webpage that's visible without scrolling.
Example: "We moved the CTA above the fold and saw a 20% increase in conversions."
Context: A relic from newspaper days that's still relevant in web design.
AKA: Where you put everything important because apparently no one scrolls.
Ad Account
Definition: Your account on an advertising platform (Facebook, Google, TikTok, etc.) where you manage campaigns and budgets.
Example: "Our ad account got suspended for no reason. We're appealing the decision."
Context: A critical asset for any DTC brand running paid advertising.
AKA: The thing you have nightmares about losing.
Ad Fatigue
Definition: When your top-performing UGC starts dying after too many impressions.
Example: "My MER dropped from 3.5 to 2.1 in a week. Ad fatigue is real."
Context: The bane of every performance marketer's existence. Requires constant creative refresh.
AKA: Usually followed by a panicked post about creative strategy or "going full organic."
Ad Spend
Definition: The total amount of money spent on advertising.
Example: "We're increasing our ad spend to $100K per month for Q4."
Context: A key input for calculating ROAS, CAC, and other performance metrics.
AKA: The number that makes your CFO nervous.
Affiliate Marketing
Definition: A performance-based marketing model where affiliates earn a commission for driving sales.
Example: "We're launching an affiliate program to expand our reach without increasing our ad spend."
Context: A popular growth channel for DTC brands looking to leverage other people's audiences.
AKA: The reason every influencer has a "link in bio."
Agency
Definition: A third-party company that provides marketing, creative, or other services to brands.
Example: "We hired an agency to manage our Facebook ads because we don't have the in-house expertise."
Context: Can be a valuable partner or an expensive waste of money, depending on the agency.
AKA: The people you pay to do the things you don't want to do (or don't know how to do).
Analytics
Definition: The measurement, collection, analysis, and reporting of data about website and marketing performance.
Example: "Our analytics show that most of our traffic comes from Instagram."
Context: The foundation of data-driven decision making.
AKA: The thing you look at when you want to feel smart (or depressed).
API (Application Programming Interface)
Definition: A way for different software systems to communicate with each other.
Example: "We use the Shopify API to sync our inventory with our warehouse management system."
Context: The technical plumbing that makes integrations and automations possible.
AKA: The thing your developer mentions when explaining why something is taking so long.
AOV (Average Order Value)
Definition: The average amount of money a customer spends in a single order.
Example: "We added a post-purchase upsell and our AOV jumped by 15%."
Context: A key metric for DTC brands, often used in conjunction with CAC and LTV to measure profitability.
AKA: The metric everyone tries to hack with bundles and "frequently bought together" widgets.
Attribution
Definition: The dark art of figuring out which marketing channel gets credit for a sale.
Example: "Our attribution is a mess. We're giving Facebook credit for sales that clearly came from our podcast sponsorship."
Context: A notoriously difficult and hotly debated topic in the post-iOS 14 world. Everyone has a theory, and no one is ever completely right.
AKA: The beginning of every long, painful marketing meeting
B
B2B (Business-to-Business)
Definition: A business model where you sell to other businesses rather than consumers.
Example: "We started as a DTC brand but are now exploring B2B opportunities."
Context: Often involves larger order sizes, longer sales cycles, and different marketing strategies.
AKA: Where the real money is (if you can handle the complexity).
B2C (Business-to-Consumer)
Definition: A business model where you sell directly to individual consumers.
Example: "We're a B2C brand focused on millennial women."
Context: The traditional model for most DTC brands.
AKA: What DTC actually means.
Below the Fold
Definition: The portion of a webpage that's only visible after scrolling.
Example: "We moved our testimonials below the fold to make room for the hero image."
Context: Where you put things that are important but not critical.
AKA: Where content goes to die (according to some marketers).
Bounce Rate
Definition: The percentage of visitors who leave your website after viewing only one page.
Example: "Our bounce rate is 80%. Something is seriously wrong with our landing page."
Context: A key indicator of website performance and user experience.
AKA: The metric that tells you your website sucks.
Brand Awareness
Definition: The extent to which consumers are familiar with your brand.
Example: "We're running a brand awareness campaign to reach new audiences."
Context: A long-term investment that's hard to measure but critical for growth.
AKA: The thing you spend money on when you can't figure out how to drive direct sales.
Brand Identity
Definition: The visual and verbal elements that define how your brand is perceived.
Example: "We're refreshing our brand identity to appeal to a younger audience."
Context: Includes logo, colors, typography, tone of voice, and more.
AKA: The reason you spent $50K on a logo.
Brand Voice
Definition: The consistent personality and tone a brand uses in all its communications.
Example: "Our brand voice is witty, irreverent, and a little bit sarcastic."
Context: A critical component of brand identity that helps differentiate you from competitors.
AKA: What marketing agencies charge $50K to "define" for you.
Brick-and-Mortar
Definition: A physical retail store, as opposed to an online store.
Example: "We're opening our first brick-and-mortar store in New York."
Context: Many DTC brands are now exploring physical retail as a way to build brand awareness and reach new customers.
AKA: The thing DTC brands said they'd never do, until they did.
Bundle
Definition: A group of products sold together at a discounted price.
Example: "We created a holiday bundle that increased our AOV by 30%."
Context: A popular tactic for increasing AOV and moving inventory.
AKA: The reason you bought three things when you only needed one.
Buyer Persona
Definition: A semi-fictional representation of your ideal customer based on research and data.
Example: "Our primary buyer persona is 'Busy Mom Sarah,' a 35-year-old working mother of two."
Context: A tool for understanding and targeting your audience more effectively.
AKA: The imaginary person you talk about in every marketing meeting.
BFCM (Black Friday Cyber Monday)
Definition: The four-day shopping holiday that can make or break a DTC brand's year.
Example: "Our entire Q4 strategy is built around BFCM. We're hoping to do 50% of our annual revenue in that one weekend."
Context: A period of intense competition, deep discounts, and sky-high ad costs. Brands start planning months in advance.
AKA: The most wonderful and terrifying time of the year for ecommerce operators.
Blended ROAS
Definition: A single, unified Return on Ad Spend metric that combines all marketing and advertising channels, both paid and organic.
Example: "Our Facebook ROAS is tanking, but our blended ROAS is still strong, so we're not panicking… yet."
Context: Gained popularity as a more holistic way to measure marketing effectiveness in the face of unreliable platform-specific attribution.
AKA: The metric you look at when you want to feel better about your ad spend.
BNPL (Buy Now, Pay Later)
Definition: A payment option that allows customers to split their purchase into installments.
Example: "We added Afterpay to our checkout and saw a 25% increase in AOV."
Context: Popular with younger consumers and can significantly increase conversion rates and AOV.
AKA: The reason Gen Z can afford to buy things they definitely can't afford.
Bootstrapped
Definition: Building a business without external funding, relying solely on revenue and personal savings.
Example: "We're bootstrapped and profitable, which means we don't have to answer to investors."
Context: Often contrasted with venture-backed companies. Requires discipline and slower growth.
AKA: The humble brag of the DTC world.
Browse Abandonment
Definition: When a visitor views products on your site but doesn't add anything to their cart.
Example: "We're running a browse abandonment campaign to re-engage visitors who didn't convert."
Context: An often-overlooked opportunity for recovery, sitting one step before cart abandonment.
AKA: The reason you get emails about products you looked at once while drunk shopping.
Burn Rate
Definition: The rate at which a company is spending its cash reserves.
Example: "Our burn rate is $200K per month. We have 18 months of runway left."
Context: A critical metric for venture-backed companies that aren't yet profitable.
AKA: The number that determines whether you're a visionary or unemployed.
C
CAC (Customer Acquisition Cost)
Definition: The total cost of acquiring a new customer, including all marketing and sales expenses.
Example: "Our CAC is getting out of control. We're spending $150 to acquire a customer with an AOV of $75."
Context: A fundamental metric for any DTC business. The eternal struggle is to keep CAC low while scaling revenue.
AKA: The number that keeps DTC founders up at night.
CAC Payback Period
Definition: The amount of time it takes for a customer to generate enough revenue to cover their acquisition cost.
Example: "Our CAC payback period is six months, which is pretty good for a subscription business."
Context: A key metric for understanding cash flow and the efficiency of your customer acquisition.
AKA: The metric that determines whether you're building a business or a money pit.
Cart Abandonment Rate
Definition: The percentage of shoppers who add items to their cart but don't complete the purchase.
Example: "Our cart abandonment rate is 70%, which is pretty typical for ecommerce."
Context: A huge opportunity for recovery through email and SMS campaigns.
AKA: The reason you get so many "You left something behind!" emails.
Cash Flow
Definition: The movement of money in and out of your business.
Example: "Our cash flow is tight right now because we just placed a big inventory order."
Context: Critical for business survival, especially for inventory-heavy businesses.
AKA: The thing that keeps founders up at night.
CDP (Customer Data Platform)
Definition: Software that aggregates customer data from multiple sources into a single database.
Example: "We implemented a CDP to get a unified view of our customers across all touchpoints."
Context: Increasingly important as brands collect data from more channels.
AKA: The expensive software you buy to make sense of all your other software.
Channel
Definition: A medium through which you reach customers (e.g., email, social media, paid ads, retail).
Example: "We're diversifying our channels to reduce our dependence on Facebook ads."
Context: A fundamental concept in marketing strategy.
AKA: The thing you're always trying to diversify but never quite do.
Chatbot
Definition: An automated program that simulates conversation with users, often used for customer service.
Example: "We added a chatbot to our website to answer common questions and reduce support tickets."
Context: Can improve customer experience and reduce support costs when done well.
AKA: The thing that frustrates you when you just want to talk to a human.
Checkout
Definition: The final step in the purchasing process where customers enter payment and shipping information.
Example: "We optimized our checkout flow and reduced cart abandonment by 15%."
Context: A critical moment in the customer journey where many sales are lost.
AKA: The page that determines whether you get paid or not.
Churn
Definition: When customers stop doing business with you.
Example: "Our churn rate is too high. We need to improve our retention efforts."
Context: A critical metric for subscription businesses and a key indicator of customer satisfaction.
AKA: The silent killer of subscription businesses.
CLV (Customer Lifetime Value)
Definition: See LTV. The total value of a customer over their entire relationship with your brand.
Example: "Our CLV is $600, which justifies our $150 CAC."
Context: A critical metric for understanding long-term profitability.
AKA: The metric that makes expensive customer acquisition seem reasonable.
COGS (Cost of Goods Sold)
Definition: The direct costs of producing the products you sell.
Example: "Our COGS is $20 per unit, and we sell for $60, giving us a 67% gross margin."
Context: A fundamental component of profitability calculations.
AKA: The number that determines whether you can actually make money.
Cold Email
Definition: An unsolicited email sent to someone who has no prior relationship with your brand.
Example: "We're doing cold email outreach to potential wholesale partners."
Context: Can be effective for B2B but is generally frowned upon for B2C.
AKA: The thing everyone hates receiving but some people swear works.
Content Marketing
Definition: Creating and distributing valuable content to attract and engage your target audience.
Example: "We're investing in content marketing to drive organic traffic and build brand authority."
Context: A long-term strategy that can provide sustainable, low-cost customer acquisition.
AKA: The reason your brand has a blog no one reads.
Conversion
Definition: When a visitor completes a desired action, usually making a purchase.
Example: "We had 1,000 visitors and 25 conversions, giving us a 2.5% conversion rate."
Context: The ultimate goal of most marketing efforts.
AKA: The moment when a visitor becomes a customer (and you get paid).
Cookie
Definition: A small piece of data stored on a user's browser that tracks their behavior across websites.
Example: "Third-party cookies are being phased out, which will impact our retargeting efforts."
Context: The foundation of digital advertising tracking, now under threat from privacy regulations.
AKA: The thing that makes the internet creepy.
Copy
Definition: The written text used in marketing materials, ads, and websites.
Example: "We need to improve our product page copy to increase conversions."
Context: A critical component of effective marketing.
AKA: The words that convince people to buy (or not).
Copywriting
Definition: The art and science of writing persuasive marketing copy.
Example: "We hired a professional copywriter to improve our email campaigns."
Context: A specialized skill that can significantly impact marketing performance.
AKA: What you pay someone to do when you realize your writing doesn't sell.
Cross-Sell
Definition: Encouraging customers to buy related or complementary products.
Example: "We added a cross-sell widget on our product pages and increased AOV by 15%."
Context: A common tactic for increasing revenue per customer.
AKA: The "customers who bought this also bought" section.
Customer Journey
Definition: The complete experience a customer has with your brand, from awareness to purchase to post-purchase.
Example: "We mapped out the customer journey to identify opportunities for improvement."
Context: A framework for understanding and optimizing the customer experience.
AKA: The fancy term for "how people find and buy from you."
Customer Service
Definition: The support you provide to customers before, during, and after a purchase.
Example: "Our customer service is a key differentiator. We respond to every inquiry within an hour."
Context: Critical for customer satisfaction and retention.
AKA: The department everyone blames when things go wrong.
Chargeback
Definition: When a customer disputes a charge with their credit card company and the payment is reversed.
Example: "We're getting hit with a ton of chargebacks. We need to improve our fraud prevention."
Context: A costly problem for ecommerce businesses that can also damage your relationship with payment processors.
AKA: The reason you can't have nice things (like low processing fees).
Churn Rate
Definition: The percentage of customers who stop doing business with you over a given period.
Example: "Our monthly churn rate is 5%, which means we're losing 5% of our subscribers every month."
Context: A critical metric for subscription businesses and a key indicator of customer satisfaction.
AKA: The metric that determines whether you have a business or a leaky bucket.
Click-Through Rate (CTR)
Definition: The percentage of people who click on your ad or link after seeing it.
Example: "Our CTR on this campaign is 2.5%, which is above average for our industry."
Context: A key metric for evaluating the effectiveness of your ad creative and messaging.
AKA: The metric that tells you if your ad is interesting or just annoying.
Cohort Analysis
Definition: The practice of grouping customers into "cohorts" based on shared characteristics (e.g., when they made their first purchase) to analyze their behavior over time.
Example: "Our cohort analysis shows that customers acquired during BFCM have a much lower LTV than our evergreen customers."
Context: A powerful tool for understanding customer retention and LTV.
AKA: What you use to prove that your marketing efforts are actually working, even if the short-term numbers don't look great.
Cold Traffic
Definition: Website visitors who have never interacted with your brand before.
Example: "We're running ads to cold traffic to build awareness and grow our email list."
Context: The most expensive type of traffic to convert, but necessary for growth.
AKA: The people who have no idea who you are and don't care.
Contribution Margin
Definition: The revenue remaining after deducting variable costs, used to cover fixed costs and generate profit.
Example: "Our contribution margin is 60%, which gives us plenty of room to invest in growth."
Context: A key metric for understanding unit economics and profitability.
AKA: The number that determines whether your business model actually works.
Conversion Funnel
Definition: The path a customer takes from first awareness to final purchase.
Example: "We're losing 80% of visitors at the product page. We need to optimize our conversion funnel."
Context: A framework for understanding and optimizing the customer journey.
AKA: The reason your website has more steps than a Rube Goldberg machine.
Conversion Rate
Definition: The percentage of visitors who complete a desired action (usually making a purchase).
Example: "Our conversion rate is 2.5%, which is pretty good for a DTC brand."
Context: A fundamental metric for ecommerce success. Small improvements can have a massive impact on revenue.
AKA: The metric that determines whether you're a genius marketer or just lucky.
Conversion Rate Optimization (CRO)
Definition: The process of optimizing your website and marketing funnels to increase the percentage of visitors who take a desired action.
Example: "We're focusing on CRO this quarter. We think we can get our conversion rate from 2% to 3% with a few tweaks to the product page."
Context: A discipline that combines data analysis, user experience design, and A/B testing.
AKA: The reason your landing page changes every other week.
CPA (Cost Per Acquisition)
Definition: The cost to acquire a single customer. Often used interchangeably with CAC, but can also refer to the cost of acquiring a lead or other non-paying user.
Example: "Our target CPA for this campaign is $50."
Context: A more granular version of CAC, often used to evaluate the performance of specific marketing campaigns or channels.
AKA: The metric that determines whether your ad campaign was a success or a waste of money.
CPC (Cost Per Click)
Definition: The amount you pay each time someone clicks on your ad.
Example: "Our CPC on Facebook has doubled in the last six months. Competition is getting fierce."
Context: A key metric for paid advertising that directly impacts your CAC.
AKA: The reason your ad budget disappears faster than you expected.
CPM (Cost Per Thousand Impressions)
Definition: The cost to show your ad to 1,000 people.
Example: "Our CPM during BFCM was $80, which is insane."
Context: A metric used to evaluate the efficiency of your ad spend and the competitiveness of your market.
AKA: The metric that makes you realize how expensive it is to get anyone's attention.
Creative Fatigue
Definition: See Ad Fatigue. When your ad creative loses effectiveness due to overexposure.
Example: "We're experiencing creative fatigue on our best-performing ad. Time to refresh."
Context: A constant battle for performance marketers who need to keep creative fresh.
AKA: The reason your creative team is always stressed.
CRR (Customer Retention Rate)
Definition: The percentage of customers who continue to do business with you over a given period.
Example: "Our CRR is 85%, which means we're keeping most of our customers happy."
Context: A critical metric for long-term business success. It's much cheaper to retain customers than to acquire new ones.
AKA: The metric that separates sustainable businesses from flash-in-the-pan trends.
CTA (Call to Action)
Definition: A prompt that tells the user what action to take next (e.g., "Buy Now," "Sign Up," "Learn More").
Example: "We changed our CTA from 'Learn More' to 'Shop Now' and saw a 15% increase in conversions."
Context: A critical element of any marketing message or landing page.
AKA: The button you desperately want people to click.
D
Days of Supply (DOS)
Definition: The number of days your current inventory will last at the current sales rate.
Example: "We have 45 days of supply left. We need to place a new order soon."
Context: A key metric for inventory management and avoiding stockouts.
AKA: The number that determines whether you're about to run out of product or drown in inventory.
Direct-to-Consumer (DTC)
Definition: A business model where a brand sells its products directly to customers through its own channels (e.g., its website), bypassing traditional retailers and wholesalers.
Example: "We decided to go DTC because we wanted to own the customer relationship and have full control over our brand."
Context: The dominant business model for a new generation of digitally native brands.
AKA: The three letters that launched a thousand startups.
DTC Bro
Definition: A stereotype of a certain type of male DTC founder or operator, often characterized by a focus on hustle culture, growth hacking, and a particular style of online discourse.
Example: "That guy is the ultimate DTC bro. All he talks about is scaling, his morning routine, and his latest Twitter thread."
Context: A term used both affectionately and critically within the DTC community.
AKA: You either are one, or you know one.
Dropshipping
Definition: A fulfillment model where you don't hold inventory. Instead, when a customer orders, you purchase the product from a third party who ships it directly to the customer.
Example: "We started with dropshipping to test the market before investing in inventory."
Context: A low-risk way to start an ecommerce business, but with lower margins and less control.
AKA: The business model everyone tries first and most people regret.
Dynamic Pricing
Definition: A pricing strategy where prices change based on demand, competition, or other factors.
Example: "We use dynamic pricing to maximize revenue during peak demand periods."
Context: Common in industries like travel and hospitality, increasingly used in ecommerce.
AKA: The reason the price changed between when you added it to your cart and when you checked out.
Data-Driven
Definition: Making decisions based on data analysis rather than intuition.
Example: "We're a data-driven company. Every decision is backed by analytics."
Context: A best practice for modern marketing and business operations.
AKA: What everyone claims to be but few actually are.
Demographics
Definition: Statistical characteristics of a population, such as age, gender, income, and location.
Example: "Our target demographics are women aged 25-40 with household income over $75K."
Context: A basic framework for understanding and targeting your audience.
AKA: The boring but important stuff about your customers.
Differentiation
Definition: What makes your brand unique compared to competitors.
Example: "Our differentiation is our sustainable sourcing and carbon-neutral shipping."
Context: Critical for standing out in a crowded market.
AKA: The thing you spend hours debating in strategy meetings.
Digital Marketing
Definition: Marketing efforts conducted through digital channels like websites, social media, email, and paid ads.
Example: "We're shifting our budget from traditional to digital marketing."
Context: The dominant form of marketing for DTC brands.
AKA: What marketing is now.
Direct Mail
Definition: Physical marketing materials sent through the postal service.
Example: "We're testing direct mail as a way to stand out in a crowded digital landscape."
Context: An old-school tactic that some DTC brands are rediscovering.
AKA: The thing your grandparents called "junk mail."
Discount Code
Definition: A code that customers can enter at checkout to receive a discount.
Example: "Use code SAVE20 for 20% off your first order."
Context: A common tactic for driving conversions and tracking campaign performance.
AKA: The reason no one buys at full price anymore.
Distribution
Definition: How and where your products are made available to customers.
Example: "We're expanding our distribution by entering wholesale and retail partnerships."
Context: A key strategic decision that impacts growth and profitability.
AKA: The fancy word for "how we get products to customers."
E
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)
Definition: A measure of a company's overall financial performance.
Example: "We're not profitable yet, but our EBITDA is positive, which is a good sign."
Context: A key metric for investors and a way for companies to show their financial health before accounting for non-operating expenses.
AKA: The number you use to impress investors when your net income is still in the red.
Email Deliverability
Definition: The ability of your emails to reach your subscribers' inboxes (as opposed to spam folders).
Example: "Our email deliverability has been declining. We need to clean our list and improve our sender reputation."
Context: A critical but often overlooked aspect of email marketing.
AKA: The reason your brilliant email campaign is sitting in spam folders.
Email Marketing
Definition: Using email to promote products, build relationships, and drive sales.
Example: "Email marketing drives 30% of our revenue."
Context: One of the most effective and profitable marketing channels for DTC brands.
AKA: The reason your inbox is always full.
Engagement
Definition: How actively customers interact with your brand (likes, comments, shares, opens, clicks, etc.).
Example: "Our engagement rate on Instagram is 5%, which is above average."
Context: A key indicator of brand health and audience interest.
AKA: The metric social media managers obsess over.
Exit Intent Popup
Definition: A popup that appears when a visitor is about to leave your website.
Example: "We added an exit intent popup offering 10% off and captured 500 new email subscribers."
Context: A last-ditch effort to convert or capture visitors before they leave.
AKA: The annoying popup that sometimes works.
F
First-Party Data
Definition: Data that you collect directly from your customers (e.g., email addresses, purchase history, website behavior).
Example: "With third-party cookies going away, first-party data is more valuable than ever."
Context: The most valuable type of data for marketing, especially in a privacy-first world.
AKA: The reason everyone is so obsessed with getting your email address.
Flash Sale
Definition: A short-term sale with deep discounts designed to create urgency and drive immediate purchases.
Example: "We're running a 24-hour flash sale to clear out excess inventory."
Context: An effective tactic for driving short-term revenue, but can train customers to wait for discounts.
AKA: The reason your customers never buy at full price.
FOMO (Fear of Missing Out)
Definition: The anxiety that others might be having rewarding experiences from which one is absent. Used in marketing to create urgency.
Example: "We use FOMO tactics like countdown timers and low stock alerts to drive conversions."
Context: A powerful psychological trigger that can increase conversion rates.
AKA: The reason you bought that thing you didn't need at 2 AM.
Founder-Market Fit
Definition: The degree to which a founder's background, skills, and passion align with the market they're targeting.
Example: "She has incredible founder-market fit. She's been passionate about sustainable fashion her entire life."
Context: A key factor that investors look for when evaluating startups.
AKA: The reason some founders succeed and others don't, even with the same idea.
Fulfillment
Definition: The entire process of receiving, processing, and delivering customer orders.
Example: "Our fulfillment is a mess. We're taking way too long to ship orders, and our customers are complaining."
Context: A critical but often overlooked part of the ecommerce customer experience. Can be handled in-house or outsourced to a 3PL.
AKA: The reason you can't have nice things (like free two-day shipping).
Fixed Costs
Definition: Business expenses that don't change based on sales volume (e.g., rent, salaries, software subscriptions).
Example: "Our fixed costs are $50K per month, which we need to cover before we're profitable."
Context: A key component of financial planning and break-even analysis.
AKA: The expenses that haunt you even when sales are slow.
Free Shipping
Definition: Offering to cover shipping costs for customers.
Example: "We offer free shipping on orders over $50 to increase AOV."
Context: A powerful conversion driver but can significantly impact margins.
AKA: The thing customers expect but you can't always afford.
Freemium
Definition: A business model where basic services are free but advanced features cost money.
Example: "We're launching a freemium model to lower the barrier to entry."
Context: Common in software but less common in physical product businesses.
AKA: The "free" that's not really free.
Fulfillment Center
Definition: A warehouse where products are stored and orders are processed and shipped.
Example: "We're opening a second fulfillment center on the West Coast to reduce shipping times."
Context: A critical component of ecommerce operations.
AKA: The place where your products sit before they get to customers.
Funnel
Definition: See Conversion Funnel. The path customers take from awareness to purchase.
Example: "We're optimizing our funnel to reduce drop-off at each stage."
Context: A fundamental framework for understanding and improving marketing performance.
AKA: The thing marketers draw on whiteboards to look smart.
G
Go-to-Market (GTM) Strategy
Definition: A company's plan for launching a new product or entering a new market.
Example: "Our GTM strategy for the new product is focused on influencer marketing and a big PR push."
Context: A comprehensive plan that covers everything from product positioning and pricing to marketing and sales.
AKA: The document you spend months creating and then completely ignore once the product launches.
Gross Margin
Definition: The difference between revenue and cost of goods sold, expressed as a percentage of revenue.
Example: "Our gross margin is 70%, which gives us plenty of room for marketing and overhead."
Context: A fundamental metric for understanding profitability and business viability.
AKA: The number that determines whether you're running a business or a charity.
Growth Hacking
Definition: A marketing approach focused on rapid experimentation and unconventional tactics to achieve growth.
Example: "We're growth hacking our way to 10K subscribers using viral loops and referral programs."
Context: A buzzword popularized by Silicon Valley startups. Sometimes brilliant, often overhyped.
AKA: What people call marketing when they want to sound innovative.
Gross Revenue
Definition: Total revenue before any deductions.
Example: "Our gross revenue last month was $500K."
Context: A top-line metric that doesn't account for returns, discounts, or costs.
AKA: The number that sounds impressive until you subtract everything else.
Growth
Definition: An increase in key business metrics like revenue, customers, or market share.
Example: "We're focused on growth this year. We want to double our revenue."
Context: The primary goal for most venture-backed startups.
AKA: The thing everyone wants but few achieve sustainably.
H
Headline
Definition: The main text at the top of an ad, email, or webpage designed to grab attention.
Example: "We A/B tested different headlines and found that questions perform best."
Context: One of the most important elements of any marketing message.
AKA: The thing you spend way too much time writing.
Hero Image
Definition: The large, prominent image at the top of a webpage.
Example: "We updated our hero image to better showcase our product."
Context: A key element of web design that sets the tone for the page.
AKA: The big pretty picture at the top of every website.
Hype
Definition: Intense excitement and anticipation around a product or brand.
Example: "We're building hype for our product launch with a waitlist and teaser campaign."
Context: Can drive initial sales but needs to be backed by substance.
AKA: The thing that gets people excited but often disappoints.
Hero Product
Definition: A brand's flagship or best-selling product that drives the majority of revenue and brand awareness.
Example: "Our hero product accounts for 60% of our revenue. We need to diversify."
Context: A double-edged sword: great for focus, risky for long-term sustainability.
AKA: The product that pays all the bills (and causes all the stress).
Hot Traffic
Definition: Website visitors who are ready to buy, often because they've already interacted with your brand multiple times.
Example: "We're retargeting hot traffic with a special offer to close the sale."
Context: The most valuable type of traffic, with the highest conversion rates.
AKA: The people who actually want to give you money.
I
Influencer Marketing
Definition: A marketing strategy that involves partnering with social media influencers to promote your products.
Example: "We're spending 30% of our marketing budget on influencer marketing."
Context: A popular strategy for DTC brands looking to reach new audiences through trusted voices.
AKA: The reason your favorite Instagram account is suddenly selling everything.
Inventory Turnover Ratio
Definition: A measure of how many times a company sells and replaces its inventory over a specific period of time.
Example: "Our inventory turnover ratio is too low. We're sitting on way too much dead stock."
Context: A key indicator of operational efficiency and inventory management.
AKA: The metric that tells you if you're a brilliant merchandiser or a hoarder.
iOS 14 Update
Definition: Apple's privacy update that limited ad tracking and attribution, fundamentally changing digital advertising.
Example: "Ever since the iOS 14 update, our Facebook ads have been a disaster."
Context: A watershed moment for DTC marketing that forced brands to rethink their attribution and advertising strategies.
AKA: The reason every DTC marketer has PTSD.
ICP (Ideal Customer Profile)
Definition: A detailed description of the type of customer who gets the most value from your product.
Example: "Our ICP is a 30-year-old urban professional who values sustainability."
Context: A framework for targeting and messaging.
AKA: The imaginary perfect customer you wish everyone was.
Impression
Definition: Each time your ad or content is displayed, regardless of whether it's clicked.
Example: "Our ad got 100,000 impressions but only 1,000 clicks."
Context: A basic metric for measuring reach and awareness.
AKA: The number that makes your ad look more successful than it is.
Impulse Buy
Definition: An unplanned purchase made on a whim.
Example: "We added a 'bestsellers' section at checkout to capture impulse buys."
Context: A significant driver of ecommerce revenue.
AKA: The reason you bought that thing you didn't need at 2 AM.
Incentive
Definition: Something offered to encourage a desired action (e.g., a discount, free shipping, gift).
Example: "We're offering a 20% discount as an incentive for first-time buyers."
Context: A common tactic for driving conversions.
AKA: The bribe you offer to get people to buy.
Integration
Definition: Connecting different software systems so they can share data and work together.
Example: "We integrated our email platform with Shopify so customer data syncs automatically."
Context: Critical for operational efficiency and data accuracy.
AKA: The thing that should be easy but never is.
Inventory
Definition: The products you have in stock and available for sale.
Example: "We're carrying too much inventory. We need to run a sale to clear it out."
Context: A critical asset that ties up cash and requires careful management.
AKA: The stuff sitting in your warehouse (or your garage).
Inventory Management
Definition: The process of tracking and controlling inventory levels.
Example: "Good inventory management is critical for avoiding stockouts and excess inventory."
Context: A key operational capability for ecommerce businesses.
AKA: The boring but essential thing that determines whether you have products to sell.
Iteration
Definition: The process of making incremental improvements through repeated cycles of testing and refinement.
Example: "We're on our fifth iteration of the landing page, and it's finally converting well."
Context: A fundamental principle of product development and optimization.
AKA: The fancy word for "trying again."
J
Journey
Definition: See Customer Journey. The complete experience a customer has with your brand.
Example: "We're mapping the customer journey to identify pain points."
Context: A framework for understanding and improving the customer experience.
AKA: The path from "Who are you?" to "Take my money!"
K
Key Performance Indicator (KPI)
Definition: A measurable value that demonstrates how effectively a company is achieving its key business objectives.
Example: "Our main KPI for this quarter is to increase our customer retention rate by 10%."
Context: The metrics that matter most to your business. Should be specific, measurable, achievable, relevant, and time-bound (SMART).
AKA: The things you pretend to care about when your boss is in the room.
Keyword
Definition: A word or phrase that people search for on search engines.
Example: "We're targeting the keyword 'sustainable sneakers' with our SEO strategy."
Context: The foundation of SEO and paid search advertising.
AKA: The words you hope people are searching for.
Klaviyo
Definition: A popular email and SMS marketing platform for ecommerce brands.
Example: "We migrated to Klaviyo and our email revenue doubled."
Context: The de facto standard for DTC email marketing, known for its powerful segmentation and automation.
AKA: The platform every DTC brand uses (and complains about the price of).
L
Landing Page
Definition: A standalone web page created specifically for a marketing or advertising campaign.
Example: "We built a custom landing page for our Facebook ads and saw a 30% increase in conversions."
Context: A critical component of any paid advertising strategy.
AKA: The page that determines whether your ad spend was worth it.
Lifetime Value (LTV)
Definition: The total amount of revenue a customer is expected to generate for your business over the entire lifetime of their relationship with you. Also known as CLV or CLTV.
Example: "Our LTV is over $500, which means we can afford to spend more on CAC to acquire new customers."
Context: A critical metric for understanding the long-term value of your customers and making strategic decisions about marketing spend and retention efforts.
AKA: The metric that justifies all your expensive marketing experiments.
Lookalike Audience
Definition: A targeting option in paid advertising that finds new people who are similar to your existing customers.
Example: "We're running ads to a lookalike audience based on our best customers."
Context: A powerful way to scale your advertising while maintaining good performance.
AKA: The reason Facebook thinks you want to buy things you didn't know existed.
Loss Leader
Definition: A product sold at a loss to attract customers, with the expectation that they'll buy other, more profitable products.
Example: "We're using our entry-level product as a loss leader to get customers in the door."
Context: A risky but potentially effective strategy for customer acquisition.
AKA: The reason that suspiciously cheap products exist.
LTV:CAC Ratio
Definition: The ratio of customer lifetime value to customer acquisition cost. A key metric for evaluating the sustainability of your business model.
Example: "Our LTV:CAC ratio is 3:1, which is healthy for a DTC brand."
Context: A ratio of 3:1 or higher is generally considered good. Below that, you're spending too much to acquire customers.
AKA: The metric that determines whether you're building a real business or just lighting money on fire.
Launch
Definition: The introduction of a new product or brand to the market.
Example: "We're launching our new product line next month."
Context: A critical moment that requires careful planning and execution.
AKA: The moment of truth when you find out if anyone actually wants what you built.
Lead
Definition: A potential customer who has expressed interest in your brand.
Example: "We generated 500 leads from our webinar."
Context: The first step in the sales process.
AKA: Someone who might buy from you (but probably won't).
Lead Generation
Definition: The process of attracting and capturing potential customers.
Example: "We're running a lead generation campaign to build our email list."
Context: A key marketing objective, especially for high-ticket or complex products.
AKA: The art of getting people to give you their email address.
Lead Time
Definition: The amount of time between placing an order with a supplier and receiving the products.
Example: "Our lead time from our manufacturer is 90 days, so we need to plan ahead."
Context: A critical factor in inventory planning.
AKA: The reason you can't just order more when you run out.
Limited Edition
Definition: A product available only in limited quantities or for a limited time.
Example: "We're releasing a limited edition colorway to create urgency and drive sales."
Context: A tactic for creating scarcity and exclusivity.
AKA: The reason you bought something you didn't need because it was "limited."
List
Definition: A collection of email addresses or contacts.
Example: "We have a list of 50,000 subscribers."
Context: A valuable asset for email marketing.
AKA: The people you're allowed to spam (because they signed up).
Logistics
Definition: The process of planning and executing the movement and storage of goods.
Example: "Our logistics are a mess. We need to find a better 3PL."
Context: A critical operational capability for ecommerce.
AKA: The complicated stuff that happens between "order placed" and "order delivered."
Logo
Definition: A visual symbol that represents your brand.
Example: "We spent $10K on a new logo, and honestly, it looks the same as the old one."
Context: A key element of brand identity.
AKA: The thing designers charge way too much for.
Loyalty Program
Definition: A rewards program designed to encourage repeat purchases.
Example: "Our loyalty program gives customers points for every purchase that they can redeem for discounts."
Context: A common tactic for increasing customer retention and LTV.
AKA: The reason you have 47 loyalty cards in your wallet.
M
Marketing Efficiency Ratio (MER)
Definition: A measure of the overall effectiveness of your marketing efforts, calculated by dividing total revenue by total marketing spend.
Example: "Our MER is holding steady at 3.5x, which means we're getting $3.50 in revenue for every $1 we spend on marketing."
Context: A more holistic alternative to ROAS, as it takes into account all marketing spend, not just ad spend.
AKA: The new ROAS.
Meta Ads Jail
Definition: When your Facebook or Instagram ad account gets restricted or banned, often for unclear or arbitrary reasons.
Example: "We're in Meta ads jail again. They flagged our ad for 'violating community standards' even though it's the same ad we've been running for months."
Context: A common frustration for DTC advertisers dealing with Meta's increasingly strict (and inconsistent) ad policies.
AKA: The reason you have multiple ad accounts and a backup plan.
Micro-Influencer
Definition: An influencer with a smaller but highly engaged following, typically between 10K and 100K followers.
Example: "We're partnering with micro-influencers because they have better engagement rates than macro-influencers."
Context: Often more cost-effective and authentic than working with larger influencers.
AKA: The influencers you can actually afford to work with.
Minimum Order Quantity (MOQ)
Definition: The smallest quantity of a product that a supplier is willing to sell.
Example: "The MOQ for this product is 1,000 units, which is more than we want to order for our first run."
Context: A common challenge for new DTC brands trying to minimize inventory risk.
AKA: The reason you have 10,000 units of something you're not sure will sell.
Macro-Influencer
Definition: An influencer with a large following, typically over 100K followers.
Example: "We partnered with a macro-influencer for our product launch."
Context: Can provide significant reach but is expensive and often less authentic.
AKA: The influencers you can't afford to work with.
Margin
Definition: The difference between the cost of a product and its selling price.
Example: "Our margin on this product is 60%, which is healthy."
Context: A fundamental metric for profitability.
AKA: The difference between making money and losing money.
Market Research
Definition: The process of gathering information about your target market and competitors.
Example: "We did extensive market research before launching to validate demand."
Context: A critical step in product development and go-to-market strategy.
AKA: The thing you should do but often skip.
Marketplace
Definition: A platform where multiple sellers offer products (e.g., Amazon, Etsy, eBay).
Example: "We're selling on Amazon Marketplace to reach new customers."
Context: Can provide additional distribution but comes with fees and less control.
AKA: Where you go when you can't drive enough traffic to your own site.
Merchandising
Definition: The practice of presenting and promoting products to maximize sales.
Example: "Good merchandising can increase conversion rates by 20%."
Context: A key skill for ecommerce operators.
AKA: The art of making products look irresistible.
Metrics
Definition: Quantifiable measures used to track and assess performance.
Example: "We track dozens of metrics, but only a few really matter."
Context: The foundation of data-driven decision making.
AKA: The numbers you obsess over.
Minimum Viable Product (MVP)
Definition: A basic version of a product with just enough features to satisfy early customers and provide feedback.
Example: "We launched an MVP to test the market before investing in full development."
Context: A lean startup approach to product development.
AKA: The excuse for why your product is so basic.
Mobile-First
Definition: A design approach that prioritizes the mobile experience.
Example: "We redesigned our website with a mobile-first approach since 70% of our traffic is mobile."
Context: Essential for modern ecommerce given the dominance of mobile traffic.
AKA: What every website should be but many aren't.
Multi-Channel
Definition: Selling through multiple channels (e.g., your website, Amazon, retail stores).
Example: "We're pursuing a multi-channel strategy to diversify our revenue."
Context: A way to reach more customers and reduce dependence on any single channel.
AKA: What you do when one channel isn't enough.
N
Net Promoter Score (NPS)
Definition: A metric that measures customer loyalty by asking how likely they are to recommend your brand to others.
Example: "Our NPS is 65, which is considered excellent for our industry."
Context: A simple but powerful way to gauge customer satisfaction and predict future growth.
AKA: The metric that tells you if your customers actually like you or just tolerate you.
Nano-Influencer
Definition: An influencer with a small but highly engaged following, typically under 10K followers.
Example: "We're working with nano-influencers because they have the best engagement rates."
Context: Often the most cost-effective influencer tier.
AKA: The influencers who are basically just regular people with slightly more followers.
Net Revenue
Definition: Revenue after deducting returns, discounts, and allowances.
Example: "Our net revenue is 20% lower than our gross revenue due to returns and discounts."
Context: A more accurate measure of actual revenue than gross revenue.
AKA: The number that's always lower than you want it to be.
Newsletter
Definition: A regular email sent to subscribers with updates, content, or promotions.
Example: "Our weekly newsletter has a 30% open rate."
Context: A key channel for building relationships and driving repeat purchases.
AKA: The email you send that most people ignore.
Niche
Definition: A specialized segment of the market.
Example: "We're targeting a niche market of vegan athletes."
Context: A strategy for differentiation and focused marketing.
AKA: The small market you dominate instead of the big market you get crushed in.
O
Omnichannel
Definition: A retail strategy that provides a seamless customer experience across all channels (online, mobile, in-store, etc.).
Example: "We're building an omnichannel strategy so customers can buy online and pick up in-store."
Context: The future of retail, where the lines between online and offline blur.
AKA: What every brand says they're doing but few actually execute well.
Open Rate
Definition: The percentage of email recipients who open your email.
Example: "Our open rate is 25%, which is above average for our industry."
Context: A key metric for email marketing, though increasingly unreliable due to privacy changes.
AKA: The metric that makes you obsess over subject lines.
Organic Traffic
Definition: Website visitors who find you through unpaid channels like search engines or social media.
Example: "Our organic traffic has been growing steadily thanks to our SEO efforts."
Context: The holy grail of marketing: free, sustainable, and scalable.
AKA: The traffic you don't have to pay for (but takes forever to build).
Offer
Definition: The specific product, price, and terms you present to customers.
Example: "Our offer is a 3-pack for $99 with free shipping."
Context: A critical element of marketing that directly impacts conversion rates.
AKA: The deal you're trying to convince people to take.
Onboarding
Definition: The process of introducing new customers to your product or service.
Example: "We created an onboarding email series to help new customers get started."
Context: Critical for customer success and retention, especially for complex products.
AKA: The emails you send that teach people how to use what they bought.
Opt-In
Definition: When someone gives permission to receive marketing communications.
Example: "We got 1,000 email opt-ins from our popup campaign."
Context: Required by law in many jurisdictions and a best practice for email marketing.
AKA: The checkbox people click without reading.
Optimization
Definition: The process of making something as effective or efficient as possible.
Example: "We're constantly optimizing our ads to improve performance."
Context: A continuous process that's central to modern marketing.
AKA: The never-ending quest to make things better.
Order Confirmation
Definition: An email sent to customers immediately after they place an order.
Example: "Our order confirmation email has a 90% open rate."
Context: A critical transactional email that can also be used for marketing.
AKA: The email that proves you actually bought that thing.
Organic
Definition: Traffic or growth that comes naturally without paid advertising.
Example: "Our organic traffic has been growing 10% month-over-month."
Context: The holy grail of marketing: free, sustainable, and scalable.
AKA: The growth you don't have to pay for (but takes forever to build).
P
Payback Period
Definition: See CAC Payback Period. The time it takes to recoup your customer acquisition cost.
Example: "Our payback period is three months, which means we can scale aggressively."
Context: A critical metric for understanding cash flow and growth potential.
AKA: The metric that determines how fast you can grow without running out of money.
Personalization
Definition: Tailoring marketing messages and experiences to individual customers based on their behavior and preferences.
Example: "We use personalization to show different products to different customer segments."
Context: A powerful way to increase engagement and conversion rates.
AKA: The reason the internet knows what you want before you do.
Pixel
Definition: A piece of code placed on your website that tracks visitor behavior and enables retargeting.
Example: "Make sure the Facebook pixel is installed correctly so we can track conversions."
Context: The foundation of modern digital advertising, though increasingly limited by privacy regulations.
AKA: The reason ads follow you around the internet.
Post-iOS PTSD
Definition: The lingering trauma experienced by DTC marketers after the iOS 14 update destroyed their attribution and ad performance.
Example: "I still have post-iOS PTSD. Every time I look at my Facebook ads dashboard, I get anxiety."
Context: A cultural term within the DTC community referring to the lasting impact of Apple's privacy changes.
AKA: The shared trauma that bonds all DTC marketers.
Post-Purchase Flow
Definition: The series of emails, SMS messages, and other communications that a customer receives after making a purchase.
Example: "Our post-purchase flow is designed to increase customer loyalty and drive repeat purchases."
Context: A critical part of the customer journey that is often neglected. A good post-purchase flow can turn a one-time buyer into a lifelong fan.
AKA: The difference between a customer and a community member.
Price Anchoring
Definition: A pricing strategy where you show a higher "original" price next to your sale price to make the discount seem more appealing.
Example: "We use price anchoring on our product pages to increase perceived value."
Context: A common psychological tactic in ecommerce.
AKA: The reason everything is always "on sale."
Product-Market Fit
Definition: The degree to which a product satisfies strong market demand.
Example: "We finally achieved product-market fit. Customers are buying without us having to convince them."
Context: The holy grail of startups. Everything is easier once you have it.
AKA: The thing everyone claims to have but few actually do.
Packaging
Definition: The materials used to wrap and protect products for shipping and presentation.
Example: "We invested in premium packaging to create a better unboxing experience."
Context: An often-overlooked opportunity for brand differentiation.
AKA: The box your product comes in (that you immediately throw away).
Partnership
Definition: A collaborative relationship with another brand or business.
Example: "We formed a partnership with a complementary brand for a co-marketing campaign."
Context: A strategy for reaching new audiences and sharing resources.
AKA: When two brands team up to sell you more stuff.
Payment Gateway
Definition: A service that processes credit card payments for ecommerce transactions.
Example: "We use Stripe as our payment gateway."
Context: Essential infrastructure for any ecommerce business.
AKA: The thing that takes your money and gives you money (minus fees).
Performance Marketing
Definition: Marketing focused on measurable actions and results (clicks, conversions, sales).
Example: "We're shifting our budget to performance marketing to drive immediate ROI."
Context: The dominant approach for DTC marketing.
AKA: Marketing where you actually have to prove it works.
Platform
Definition: A software system that provides the foundation for building and running your business (e.g., Shopify, WordPress).
Example: "We built our store on the Shopify platform."
Context: A critical technology decision that impacts capabilities and costs.
AKA: The software that runs your business.
Podcast
Definition: A digital audio program that people can subscribe to and listen to on demand.
Example: "We're sponsoring podcasts to reach our target audience."
Context: An increasingly popular marketing channel for DTC brands.
AKA: The thing everyone listens to while commuting or working out.
Point of Sale (POS)
Definition: The place where a transaction occurs, either online or in a physical store.
Example: "We use Shopify POS for our retail locations."
Context: Critical infrastructure for retail operations.
AKA: The fancy term for "where you pay."
Pop-Up
Definition: A window that appears on top of a webpage, often used to capture email addresses or promote offers.
Example: "We added a popup offering 10% off and grew our email list by 30%."
Context: Effective but often annoying. Use sparingly.
AKA: The thing everyone hates but everyone uses.
Positioning
Definition: How you want your brand to be perceived in the market relative to competitors.
Example: "Our positioning is 'premium quality at an accessible price.'"
Context: A fundamental strategic decision that guides all marketing.
AKA: How you want people to think of you (vs. how they actually think of you).
Pre-Order
Definition: Allowing customers to order a product before it's available for shipping.
Example: "We're taking pre-orders for our new product to gauge demand."
Context: A way to validate demand and generate cash flow before production.
AKA: When you pay now for something you'll get later (maybe).
Press Release
Definition: An official statement sent to media outlets to announce news.
Example: "We sent out a press release about our Series A funding."
Context: A traditional PR tactic that's less effective than it used to be.
AKA: The thing you send that no one reads.
Pricing Strategy
Definition: Your approach to setting prices for your products.
Example: "Our pricing strategy is to position ourselves as a premium brand."
Context: A critical decision that impacts positioning, profitability, and demand.
AKA: The art and science of figuring out what people will pay.
Privacy Policy
Definition: A legal document that explains how you collect, use, and protect customer data.
Example: "We updated our privacy policy to comply with GDPR."
Context: Required by law in most jurisdictions.
AKA: The thing no one reads but everyone should.
Product Description
Definition: The text that describes a product on your website.
Example: "We rewrote our product descriptions to be more persuasive and saw a 15% increase in conversions."
Context: A critical element of product pages that directly impacts conversion rates.
AKA: The words that convince people to buy (or not).
Product Launch
Definition: The introduction of a new product to the market.
Example: "Our product launch exceeded expectations. We sold out in 48 hours."
Context: A high-stakes moment that requires careful planning.
AKA: The moment when you find out if anyone wants what you made.
Product Photography
Definition: Professional images of your products used on your website and in marketing.
Example: "We invested in professional product photography and saw a significant increase in conversions."
Context: Critical for ecommerce where customers can't see or touch products in person.
AKA: The pretty pictures that make products look better than they are.
Profit
Definition: Revenue minus all costs and expenses.
Example: "We're finally profitable after three years of losses."
Context: The ultimate goal of any business (unless you're venture-backed).
AKA: The thing you're supposed to make but often don't.
Profitability
Definition: The ability of a business to generate profit.
Example: "We're focused on profitability this year, not just growth."
Context: A key measure of business health and sustainability.
AKA: The thing investors suddenly care about when the market crashes.
Promotion
Definition: A marketing campaign or offer designed to drive sales.
Example: "We're running a promotion for Memorial Day weekend."
Context: A common tactic for driving short-term revenue.
AKA: The sale you run because you need to hit your numbers.
Psychographics
Definition: Characteristics of consumers based on attitudes, values, interests, and lifestyles.
Example: "Our target psychographics are environmentally conscious consumers who value quality."
Context: A deeper way to understand your audience beyond demographics.
AKA: The fancy way to say "what your customers care about."
Q
Quality Assurance (QA)
Definition: The process of ensuring products meet quality standards.
Example: "We have a rigorous QA process to catch defects before products ship."
Context: Critical for maintaining product quality and customer satisfaction.
AKA: The thing that prevents you from shipping garbage.
R
Referral Program
Definition: A marketing program that incentivizes existing customers to refer new customers.
Example: "Our referral program gives customers $20 off for every friend they refer."
Context: A cost-effective way to acquire new customers through word-of-mouth.
AKA: The reason your friend won't stop sending you discount codes.
Repeat Purchase Rate (RPR)
Definition: The percentage of customers who make more than one purchase.
Example: "Our RPR is 40%, which means we're doing a good job of turning first-time buyers into repeat customers."
Context: A key indicator of customer satisfaction and long-term business health.
AKA: The metric that separates one-hit wonders from sustainable brands.
Retargeting
Definition: Showing ads to people who have previously visited your website or interacted with your brand.
Example: "We're retargeting website visitors who didn't convert with a special discount offer."
Context: One of the most effective forms of digital advertising, with much higher conversion rates than cold traffic.
AKA: The reason that product you looked at once is now haunting you everywhere.
Return on Ad Spend (ROAS)
Definition: A marketing metric that measures the amount of revenue generated for every dollar spent on advertising.
Example: "Our ROAS on Facebook has been declining, so we're shifting more of our budget to TikTok."
Context: A key metric for evaluating the performance of advertising campaigns. Often used to make decisions about ad spend allocation.
AKA: The metric that ad agencies use to justify their fees.
Return Rate
Definition: The percentage of products that customers return.
Example: "Our return rate is 15%, which is higher than we'd like. We need to improve our product descriptions."
Context: A key indicator of product quality and customer satisfaction. High return rates can kill profitability.
AKA: The hidden cost of ecommerce that no one talks about.
Runway
Definition: The amount of time a company can operate before running out of cash.
Example: "We have 18 months of runway, which gives us time to reach profitability."
Context: A critical metric for venture-backed companies that aren't yet profitable.
AKA: The countdown clock hanging over every startup founder's head.
Reach
Definition: The total number of unique people who see your content or ads.
Example: "Our campaign reached 1 million people."
Context: A basic metric for measuring awareness and exposure.
AKA: How many people saw your stuff (whether they cared or not).
Reactivation
Definition: Marketing efforts aimed at re-engaging lapsed or inactive customers.
Example: "We're running a reactivation campaign targeting customers who haven't purchased in 6 months."
Context: Often more cost-effective than acquiring new customers.
AKA: The "We miss you!" emails you send to people who ghosted you.
Referral
Definition: When an existing customer recommends your brand to someone else.
Example: "Referrals account for 20% of our new customers."
Context: One of the most valuable sources of new customers.
AKA: When your customers do your marketing for you.
Remarketing
Definition: See Retargeting. Showing ads to people who have previously interacted with your brand.
Example: "We're running a remarketing campaign to re-engage cart abandoners."
Context: One of the most effective forms of digital advertising.
AKA: The ads that follow you around the internet.
Responsive Design
Definition: A web design approach that ensures websites work well on all devices and screen sizes.
Example: "Our website uses responsive design so it looks great on mobile and desktop."
Context: Essential for modern web design given the variety of devices.
AKA: Why your website doesn't look terrible on your phone.
Retention
Definition: Keeping existing customers engaged and purchasing.
Example: "We're focusing on retention this year because it's cheaper than acquisition."
Context: A critical driver of long-term profitability.
AKA: The art of keeping customers from leaving.
Returns
Definition: Products that customers send back for a refund or exchange.
Example: "Our return rate is 10%, which is eating into our margins."
Context: A costly reality of ecommerce that impacts profitability.
AKA: The products that come back (along with your profit).
Revenue
Definition: The total amount of money generated from sales.
Example: "We did $1M in revenue last month."
Context: A top-line metric that doesn't account for costs or profitability.
AKA: The big number you brag about (before mentioning profit).
Review
Definition: Customer feedback about a product or brand, often posted publicly.
Example: "We have over 1,000 five-star reviews on our website."
Context: A powerful form of social proof that influences purchasing decisions.
AKA: What you hope customers write (but often don't).
ROI (Return on Investment)
Definition: A measure of the profitability of an investment, calculated as (gain - cost) / cost.
Example: "Our email marketing has a 40x ROI."
Context: A fundamental metric for evaluating the effectiveness of marketing and business investments.
AKA: The metric that determines whether something was worth it.
S
SaaS (Software as a Service)
Definition: Software delivered over the internet on a subscription basis.
Example: "We use dozens of SaaS tools to run our business."
Context: The dominant model for business software.
AKA: The reason you have 47 monthly subscriptions.
Sales
Definition: The total number or value of products sold.
Example: "Our sales were up 30% last month."
Context: A fundamental business metric.
AKA: The thing you're trying to increase.
Sales Funnel
Definition: See Conversion Funnel. The journey from awareness to purchase.
Example: "We're optimizing our sales funnel to increase conversions."
Context: A framework for understanding and improving the path to purchase.
AKA: The thing marketers draw on whiteboards.
Sampling
Definition: Giving away free product samples to potential customers.
Example: "We're doing a sampling campaign to build awareness and drive trial."
Context: An effective but expensive way to acquire customers.
AKA: The free stuff you get that makes you feel obligated to buy.
Scale Brain
Definition: A mindset characterized by an obsessive focus on scaling a business at all costs, often leading to a disregard for profitability and other important metrics.
Example: "He's got a bad case of scale brain. He's so focused on top-line growth that he's running the company into the ground."
Context: A common affliction for venture-backed DTC founders who are under pressure to show rapid growth.
AKA: The reason why so many DTC brands have a great-looking growth chart and a terrible-looking P&L.
Scarcity
Definition: A marketing tactic that creates urgency by limiting availability.
Example: "We use scarcity tactics like 'Only 3 left in stock!' to drive conversions."
Context: A powerful psychological trigger.
AKA: The reason you bought something because it was "almost sold out."
Seasonality
Definition: Predictable fluctuations in demand based on the time of year.
Example: "Our business has strong seasonality, with 50% of sales in Q4."
Context: Important for inventory planning and cash flow management.
AKA: Why your sales are great in December and terrible in February.
Segmentation
Definition: Dividing your customer base into distinct groups based on shared characteristics or behaviors.
Example: "We segment our email list by purchase history and engagement level."
Context: A fundamental marketing practice that enables more targeted and effective communication.
AKA: The reason you get different emails than your friend even though you're both subscribed.
Sell-Through Rate
Definition: The percentage of inventory sold during a specific period.
Example: "Our sell-through rate is 80%, which is healthy."
Context: A key metric for inventory management and merchandising.
AKA: The metric that tells you if people actually want what you're selling.
Sentiment
Definition: The overall attitude or feeling expressed about your brand.
Example: "Brand sentiment is positive based on our social media monitoring."
Context: A qualitative measure of brand health.
AKA: Whether people like you or hate you.
Shipping Policy
Definition: The terms and conditions related to how you ship orders.
Example: "Our shipping policy clearly states that orders are processed within 2 business days."
Context: Important for setting customer expectations.
AKA: The fine print about when your stuff will actually arrive.
Shopify
Definition: The dominant ecommerce platform for DTC brands.
Example: "We built our store on Shopify because it's easy to use and has all the integrations we need."
Context: The infrastructure that powers much of the DTC revolution.
AKA: The platform that made it possible for anyone to start an ecommerce business.
SKU (Stock Keeping Unit)
Definition: A unique identifier for each distinct product and variant you sell.
Example: "We have 200 SKUs across our product line."
Context: A fundamental concept in inventory management and operations.
AKA: The reason your inventory spreadsheet is so complicated.
SMS Marketing
Definition: Marketing via text message.
Example: "We added SMS marketing to our strategy and it's now driving 15% of our revenue."
Context: An increasingly popular channel for DTC brands, with high open rates and engagement.
AKA: The reason your phone won't stop buzzing with discount codes.
Social Proof
Definition: The psychological phenomenon where people look to others' actions to determine their own.
Example: "We added customer reviews to our product pages and saw a 25% increase in conversions. Social proof works."
Context: A powerful marketing principle used to build trust and credibility.
AKA: The reason every website has "10,000 happy customers!" plastered everywhere.
Stockout
Definition: When you run out of inventory and can't fulfill customer orders.
Example: "We had a stockout on our best-selling product and lost thousands in revenue."
Context: A costly problem that damages customer satisfaction and revenue.
AKA: The nightmare scenario for every ecommerce operator.
Social Commerce
Definition: Selling products directly through social media platforms.
Example: "We're testing social commerce on Instagram and TikTok."
Context: An emerging trend as social platforms add ecommerce features.
AKA: When you can buy things without leaving Instagram.
Social Media Marketing
Definition: Using social media platforms to promote your brand and products.
Example: "We're investing heavily in social media marketing."
Context: A key component of modern marketing.
AKA: The reason brands are always posting on Instagram.
Sourcing
Definition: The process of finding and selecting suppliers for your products.
Example: "We're sourcing our products from ethical manufacturers."
Context: A critical operational capability that impacts quality, cost, and ethics.
AKA: The art of finding people to make your stuff.
Spam
Definition: Unwanted or unsolicited email.
Example: "Our emails are ending up in spam folders. We need to improve our deliverability."
Context: The enemy of email marketing.
AKA: Where your emails go to die.
Split Testing
Definition: See A/B Testing. Testing two versions to see which performs better.
Example: "We're split testing two different ad creatives."
Context: A fundamental practice for optimization.
AKA: The scientific way to figure out what works.
Stock
Definition: See Inventory. Products available for sale.
Example: "We're out of stock on our best-selling item."
Context: A critical asset that needs to be managed carefully.
AKA: The stuff you have (or don't have) to sell.
Subscriber
Definition: Someone who has opted in to receive your emails or other communications.
Example: "We have 50,000 email subscribers."
Context: A valuable asset for marketing.
AKA: The people you're allowed to email.
Subscription Model
Definition: A business model where customers pay a recurring fee to receive products or services on a regular basis.
Example: "We're launching a subscription model to increase customer LTV and create predictable revenue."
Context: A popular model for DTC brands looking to build recurring revenue and customer loyalty.
AKA: The reason you're paying for 12 subscriptions you forgot about.
Supply Chain
Definition: The network of suppliers, manufacturers, warehouses, and logistics providers that get products from raw materials to customers.
Example: "Our supply chain was disrupted by COVID, causing major delays."
Context: A complex system that's critical for operations.
AKA: The reason everything is always delayed.
Sustainability
Definition: Business practices that minimize environmental impact and can be maintained long-term.
Example: "Sustainability is a core value for our brand."
Context: Increasingly important to consumers, especially younger generations.
AKA: The thing every brand claims to care about.
T
Target Audience
Definition: The specific group of people you're trying to reach with your marketing.
Example: "Our target audience is millennial women aged 25-40."
Context: A fundamental concept in marketing strategy.
AKA: The people you're trying to sell to.
Targeting
Definition: Selecting specific audiences for your advertising based on demographics, interests, or behaviors.
Example: "We're targeting women aged 25-40 who are interested in fitness."
Context: A key capability of digital advertising platforms.
AKA: How ads find you.
Testimonial
Definition: A statement from a satisfied customer endorsing your product or brand.
Example: "We feature customer testimonials on our homepage to build trust."
Context: A powerful form of social proof.
AKA: What you hope customers say about you.
Testing
Definition: Experimenting with different approaches to find what works best.
Example: "We're constantly testing new ad creatives and landing pages."
Context: A fundamental practice for optimization.
AKA: The reason everything keeps changing.
Third-Party
Definition: An external company or service provider (e.g., 3PL, payment processor, analytics tool).
Example: "We rely on third-party tools for most of our operations."
Context: Most businesses depend on numerous third-party services.
AKA: The other companies you pay to help run your business.
Third-Party Logistics (3PL)
Definition: A company that provides outsourced logistics services, including warehousing, fulfillment, and shipping.
Example: "We're outsourcing our fulfillment to a 3PL so we can focus on what we do best: building a great brand."
Context: A popular option for DTC brands that don't have the resources or expertise to handle their own logistics.
AKA: The company you blame when your customers complain about slow shipping.
TikTok
Definition: A short-form video social media platform popular with younger audiences.
Example: "TikTok is our fastest-growing traffic source."
Context: An increasingly important platform for DTC marketing.
AKA: Where Gen Z lives.
TikTok Shop
Definition: TikTok's native ecommerce feature that allows brands to sell directly within the app.
Example: "We're testing TikTok Shop as a new sales channel."
Context: An emerging opportunity for DTC brands to reach younger consumers where they already spend time.
AKA: The next big thing (or the next big waste of time, depending on who you ask).
Top of Funnel (TOFU)
Definition: The awareness stage of the marketing funnel, where potential customers first learn about your brand.
Example: "We're running top-of-funnel campaigns to build brand awareness."
Context: The beginning of the customer journey, focused on reach and awareness rather than immediate conversions.
AKA: Where you spend money to introduce yourself to people who don't care yet.
Traffic
Definition: Visitors to your website.
Example: "We're getting 100,000 visitors per month."
Context: A fundamental metric for online businesses.
AKA: The people who visit your website (whether they buy or not).
Transaction
Definition: A completed purchase.
Example: "We processed 1,000 transactions last month."
Context: The moment when a visitor becomes a customer.
AKA: When money changes hands.
Trust Badges
Definition: Visual indicators on your website that build credibility (e.g., security seals, payment logos, certifications).
Example: "We added trust badges to our checkout page and reduced cart abandonment."
Context: A simple tactic for building trust and reducing purchase anxiety.
AKA: The little logos that make your site look legit.
U
UGC (User-Generated Content)
Definition: Any form of content, such as images, videos, text, and reviews, that is created by customers rather than brands.
Example: "We're running a campaign to encourage our customers to post UGC on Instagram."
Context: A powerful form of social proof that can be used to build trust and drive sales.
AKA: The holy grail of DTC marketing.
UGC Ads
Definition: Paid advertisements that feature user-generated content, typically in a native, authentic style.
Example: "Our UGC ads are outperforming our polished brand ads by 3x."
Context: A dominant ad format in DTC marketing, known for high performance and authenticity.
AKA: The ads that don't look like ads (but definitely are).
UGC Farms
Definition: Services or agencies that mass-produce UGC-style content for brands, often using freelance creators.
Example: "We're using a UGC farm to create 50 pieces of content per month."
Context: A controversial but increasingly common practice as brands struggle to keep up with content demand.
AKA: The industrialization of authenticity.
Unit Economics
Definition: The revenues and costs associated with a single unit of your product or a single customer.
Example: "Our unit economics are strong. We make $50 in profit on every order."
Context: A fundamental concept for understanding business viability and scalability.
AKA: The math that determines whether your business actually works.
Unique Selling Proposition (USP)
Definition: What makes your product or brand uniquely valuable compared to competitors.
Example: "Our USP is that we're the only brand offering 100% organic, fair-trade coffee delivered fresh within 48 hours of roasting."
Context: A fundamental concept in positioning and messaging.
AKA: The thing that makes you special (or so you claim).
Unsubscribe
Definition: When someone opts out of receiving your marketing emails.
Example: "Our unsubscribe rate is 0.5%, which is pretty good."
Context: A natural part of email marketing that you want to minimize.
AKA: When people break up with your emails.
Upsell
Definition: Encouraging a customer to purchase a more expensive version of a product or add additional items to their order.
Example: "We added an upsell at checkout and increased our AOV by 20%."
Context: A common tactic for increasing revenue per customer.
AKA: "Would you like fries with that?"
User Experience (UX)
Definition: The overall experience a person has when interacting with your website or product.
Example: "We redesigned our website to improve the user experience."
Context: Critical for conversion rates and customer satisfaction.
AKA: Whether your website is easy to use or makes people want to throw their computer.
User Interface (UI)
Definition: The visual elements and controls that users interact with on your website or app.
Example: "We updated our UI to be more modern and intuitive."
Context: A key component of user experience.
AKA: What your website looks like.
V
Vanity Metrics
Definition: Metrics that look good on the surface but don't actually contribute to the bottom line.
Example: "Our Instagram post got 10,000 likes, but it's just a vanity metric. It didn't drive any sales."
Context: A common trap for inexperienced marketers who are more focused on looking good than on driving results.
AKA: The reason your marketing team is so excited about that viral TikTok video that didn't sell a single product.
Viral Coefficient
Definition: A measure of how many new users each existing user brings to your product through referrals.
Example: "Our viral coefficient is 1.2, which means we're growing organically through word-of-mouth."
Context: A key metric for products with strong network effects or referral programs.
AKA: The dream of every growth hacker.
W
Warm Traffic
Definition: Website visitors who have some familiarity with your brand, often through previous interactions.
Example: "We're focusing our ad spend on warm traffic because they convert at a much higher rate."
Context: The sweet spot between cold and hot traffic, with good conversion rates and reasonable acquisition costs.
AKA: The people who might actually remember who you are.
Waitlist
Definition: A list of people who have expressed interest in purchasing a product that's not yet available.
Example: "We have 5,000 people on our waitlist for the new product."
Context: A way to build hype and gauge demand before launch.
AKA: The list you join when you can't buy something yet.
Z
Zero-Party Data
Definition: Data that customers intentionally and proactively share with you, such as preferences, interests, and purchase intentions.
Example: "We use quizzes to collect zero-party data that helps us personalize the shopping experience."
Context: The most valuable type of data in a privacy-first world, as customers willingly provide it.
AKA: The data you get when you actually ask customers what they want instead of creepily tracking them.
FAQs
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