Glossary: terms in one sentence

Every term has a one-sentence definition, an example and the matching calculator or guide.

30 terms

AEO

AEO (answer engine optimization) is optimising content so search systems and AI assistants use it as a direct answer.

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Affiliate marketing

Affiliate marketing is commission-based sales in which partners recommend products and are paid for resulting purchases.

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Average order value (AOV)

AOV (average order value) is the average value of an order.

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Break-even ROAS

Break-even ROAS is the ROAS from which your advertising no longer loses money.

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CAC

CAC (customer acquisition cost) is all the cost you spend to win a new customer.

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Consent Mode

Consent Mode adapts the behaviour of Google tags to users’ consent choices.

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Contribution margin

Contribution margin is the amount per sale that remains after all variable costs and is meant to cover fixed costs.

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Conversion rate

The conversion rate is the share of visitors who take a desired action, for example buy.

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Core Web Vitals

Core Web Vitals are Google’s measurements for a page’s loading speed, responsiveness and layout stability.

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CPA

CPA (cost per acquisition) is the ad cost for one order or one new customer.

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CPS (cost per sale)

CPS is a compensation model in which the partner receives a commission per sale.

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GEO

GEO (generative engine optimization) is optimising to be named in answers of generative AI such as ChatGPT or Perplexity.

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Google Business Profile

The Google Business Profile is the free listing of your business in Google Search and Maps.

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Gross and net

Net is the price without VAT, gross is the price with VAT.

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Hosting

Hosting is the space on the internet where your website lives and is served from.

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llms.txt

The llms.txt is a text file in the root of a website that summarises the key pages and facts for AI systems.

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Local SEO

Local SEO makes sure you are found in searches with a place attached, for example “café in Victoria Gozo”.

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LTV

LTV (lifetime value) is the profit a customer brings over the entire customer relationship.

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Margin

Margin is the share of the net selling price that remains as profit.

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Markup

Markup is the percentage you add to the purchase price to arrive at the selling price.

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One-Stop Shop (OSS)

The One-Stop Shop (OSS) is an EU scheme that lets VAT on distance sales to consumers be paid through one central return.

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Product data feed

A product data feed is a file with a store’s product data that platforms read automatically.

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ROAS

ROAS (Return on Ad Spend) is the revenue you earn per euro of advertising.

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ROI

ROI (Return on Investment) is profit relative to the money invested.

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SaaS

SaaS (software as a service) means you rent software and use it in the browser instead of running it yourself.

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Schema markup

Schema markup is structured data (usually JSON-LD) in the source that explains a page’s content to search engines in machine-readable form.

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SEO

SEO (search engine optimization) is the work of being found better in search engines like Google.

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Shopify Payments

Shopify Payments is Shopify’s payment service on which no additional Shopify transaction fee applies.

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Tracking

Tracking is measuring where visitors and purchases come from, for example through links, cookies or server-side signals.

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Transaction fee

The transaction fee is the share per sale that a payment provider or store platform keeps.

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