The Nautical Commerce Marketplace Glossary

AOV (Average Order Value) is the average amount a customer spends per transaction. Learn how to calculate and optimize it for higher revenue.

An API, also known as an application programming interface, is a technology that allows different software applications to communicate with one another.

An API integration allows different applications to communicate and share information seamlessly, enabling them to work in harmony.

Escrow is a secure payment method where a neutral third party holds funds until transaction conditions are met, ensuring trust and safety for buyers and sellers.

A B2B (business-to-business) marketplace connects buyers and sellers of products or services for wholesale transactions.

Business-to-consumer (B2C) marketplaces allow businesses to sell products and services directly to individual consumers from a convenient single location.

Catalog management is the process of organizing and managing the various products or services you offer.

Channel conflict happens when sale channels like website or physical store, compete instead of complementing each other, affecting business growth. Read more..

Channel enablement is a critical aspect of any business that relies on channel partners to distribute their products or services.

The circular economy focuses on designing products and services that can be reused, repaired, or repurposed.

Being cloud agnostic means not being tied to any one particular cloud provider or platform. Instead, you have flexibility to move between different clouds.

Cloud native architecture refers to building and running applications in the cloud, with the goal of harnessing the full potential of cloud computing.

Composable commerce provides the flexibility and control to craft a unique ecommerce experience that truly reflects your brand.

Contract lifecycle management is the process of managing all stages of a contract, from creation to expiration.

Credit terms define the payment conditions agreed upon between a buyer and seller, outlining due dates, discounts, and repayment terms for transactions.

A digital marketplace is an online platform where various digital products are bought and sold, connecting buyers with sellers seamlessly.

Digital merchandising is the process of using technologies to effectively display and promote products or services online.

Digital transformation is the process of integrating technology into an organization's operations to improve its overall performance and effectiveness.

Dropshipping is a method of retail fulfillment where you don't keep any inventory in stock. Rather, a supplier ships products directly.

Endless aisle refers to the practice of retailers offering additional inventory online that is not available in their physical stores.

Enterprise Resource Planning, also known as ERP, is a business management software that functions as a central hub for data and information within a company.

Event-driven architecture is a strategy that involves designing your digital systems to be responsive to specific events or triggers.

An exemption certificate is a document that grants an individual or organization relief from certain taxes or fees.

The Flywheel Effect refers to a self-sustaining cycle of growth that occurs when effort is consistently applied towards a particular goal.

Headless is a term used to describe ecommerce management software that functions independently from your online storefront software.

A horizontal marketplace is a platform that connects buyers and sellers across a wide range of industries and product categories.

Inventory Management involves overseeing the flow of goods from the moment they are received until they are sold or used.

MACH architecture—Microservices, API-First, Cloud-Native, Headless—enables scalable, flexible apps by replacing complex monolithic systems. Read more.

A managed marketplace is an online platform owned and operated by a single entity, overseeing transactions, logistics, and customer experience.

A marketplace business model is a type of ecommerce platform where the website operator doesn't hold the inventory or the products for sale.

Marketplace payouts involve the transfer of funds from the marketplace to sellers or relevant parties, playing a crucial role in the platform's financial transactions.

A marketplace platform powers online marketplaces, letting you focus on creating a unique buying experience instead of managing the back-end. Read more.

A master catalog is a central repository that contains the details of all the products offered by a retailer or manufacturer.

Master data management is a method of data management for consistency, quality, and interoperability for seamless operations

A "Merchant of Record" (MoR) is a term used to denote the entity that is legally responsible for processing and handling customer transactions.

Microservices is a popular approach to software architecture that breaks down an application into a collection of small, independent services.

MVP is the most basic version of your product that you can release to the market while still maintaining functionally and delivering value to customers.

Multi vendor commerce refers to the concept of multiple vendors selling their products through a single online store.

The network effect is a phenomenon that occurs when a product or service gains value as more people use it.

OEM stands for Original Equipment Manufacturer. An OEM specializes in producing parts or equipment that will be marketed under another company's brand.

What is omnichannel commerce? It involves the integration and management of multiple sales channels — both online and offline.

An online marketplace is a digital platform that connects buyers to multiple third-party sellers. They account for 35% of global ecommerce shopping orders.

An order management system (OMS) is a software application that allows you to automate and streamline your order processing.

The payment orchestration layer is a technological layer that helps manage the complex and varied processes involved in moving money from one place to another.

Learn what a peer-to-peer marketplace is, how the p2p marketplace model works, and how to build a P2P marketplace website. Plus p2p marketplace examples.

PaaS (Platform as a Service) lets developers build and deploy apps without managing infrastructure, streamlining development. Read more..

Product assortment is the range of products or services a business offers, influencing customer choice, sales strategy, and market positioning.

A product attribute is any characteristic or feature of a product that helps distinguish it from other products.

A product catalog is a detailed list of products a business offers, providing essential information to help customers make informed purchasing decisions.

Product Information Management, or a PIM, is a powerful tool that centralizes all of a company's product data into one system.

Product taxonomy is the process of organizing and classifying products in a logical and standardized manner.

Recommerce is the practice of reselling or reusing pre-owned items, promoting sustainability while creating new revenue opportunities for businesses.

Reverse logistics refers to the process of managing the movement of goods after they have been delivered to their destination.

Sales tax nexus defines your business’s connection to a state, determining if you must collect sales tax on products or services there. Read more..

A services marketplace is a digital platform that connects service providers with consumers, streamlining bookings, transactions, and service delivery.

The take rate is the percentage of each sale that a platform or marketplace collects as a commission, impacting revenue and profitability for sellers.

Third-party (3P) selling refers to a multi-vendor marketplace model where individuals or businesses can sell their products alongside those of the main retailer.

Learn what a two-sided marketplace is, how it works, and how to build one successfully. Get expert insights, real examples, and best practices.

A Vendor Management System centralizes vendor-related activities, streamlining operations, tracking performance, and improving business efficiency.

Vendor onboarding is the process of bringing in new vendors to sell their products or services on the platform.

A vertical marketplace is a platform that serves a niche audience in a particular industry or market segment.

A warehouse management system (WMS) is a software application that helps businesses manage and control their warehouse operations.

A webhook is a tool that enables real-time communication between two software applications, automating data sharing and system integrations.

Wholesale is the process by which businesses buy large quantities of goods directly from manufacturers or distributors at discounted prices