The Nautical Commerce Marketplace Glossary

AOV is the average amount of money a customer spends per transaction.

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 where a neutral third party holds funds until the conditions of a transaction are met.

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

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

Channel conflict refers to a situation in which different sales channels, such as a company's website versus its brick-and-mortar stores, compete with each other rather than complementing one another.

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 refer to the payment conditions that are agreed upon between a buyer and seller.

A digital marketplace is a platform where various digital products are bought and sold.

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.

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 stands for Microservices, API-First, Cloud-Native, and Headless. It allows developers to build scalable and flexible applications by breaking down complex monolithic systems.

A managed marketplace refers to an online marketplace that's owned and operated by a single entity.

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 is the technology behind a marketplace. By employing a marketplace platform, you can focus less on the back-end, and more on creating a unique buying experience.

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.

A peer to peer marketplace (P2P) is an online platform where transactions take place between individuals directly.

Platform as a Service, PaaS, is a cloud computing model that allows developers to build and deploy applications without worrying about managing the underlying infrastructure.

Product assortment refers to the range of products or services you offer to your customers.

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

A product catalog is a comprehensive list of products that a business has available for purchase.

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 items that have already been used.

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

Sales tax nexus refers to the connection between your business and a state, establishing whether you are required to collect sales tax on your products or services in that state.

A services marketplace is a digital platform that connects service providers with consumers.

The take rate is the percentage of sales that a platform or marketplace takes as a commission.

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.

A Vendor Management system keeps track of vendor-related activities in one place.

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 allows two different software applications to communicate with each other.

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