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E-commerce and Supply Chain

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Dropshipping

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A retail fulfillment method where a store doesn't keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer.

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Omnichannel Retailing

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A multichannel approach to sales that seeks to provide customers with a seamless shopping experience, whether they are shopping online from a desktop or mobile device, by telephone, or in a brick-and-mortar store.

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SKU (Stock Keeping Unit)

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A unique code consisting of letters and numbers that identifies each product in a warehouse or store. It helps track inventory and sales, which is crucial for supply chain management in e-commerce.

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Fulfillment Centers

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Specialized warehouses that prepare and ship orders. E-commerce businesses use these centers to outsource warehousing and shipping.

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Just-in-Time (JIT)

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A supply chain management strategy where materials are produced or acquired only as needed for use, reducing inventory costs and increasing efficiency. Common in manufacturing and can be applied in e-commerce for on-demand production.

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Last Mile Delivery

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The final step in the delivery process where a product reaches the end consumer. It is a critical and often the most expensive and time-consuming part of the shipping process in e-commerce.

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Shopping Cart Abandonment

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Occurs when a customer adds items to their online shopping cart but exits without completing the purchase. A significant issue in e-commerce that can impact sales and supply chain planning.

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Blockchain in E-commerce

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The use of blockchain technology to enhance transparency, security, and trust in various aspects of e-commerce, including supply chain processes such as provenance tracking and payments.

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Customer Relationship Management (CRM)

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A strategy for managing a company's interactions with current and potential customers. It uses data analysis about customers' history with a company to improve business relationships, focusing on customer retention, and driving sales growth.

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Inventory Management

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The supervision of non-capitalized assets, or inventory, and stock items. A component of supply chain management, it supervises the flow of goods from manufacturers to warehouses and from these facilities to point of sale.

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Cross-docking

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A logistics practice where incoming shipments are unloaded directly into outbound vehicles, with minimal or no storage in between. This reduces inventory handling and storage costs, but requires precise coordination.

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Payment Gateway

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An e-commerce service that authorizes and processes payments for online retailers. It is a critical component that connects merchants, consumers, and financial institutions.

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Marketplace

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An online platform where vendors can sell their products or services to customers. Marketplaces like Amazon and eBay connect buyers with sellers and often handle the payment processing.

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Return Policy

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A set of rules a retailer creates to manage customer returns and exchanges. An efficient return policy is critical for customer satisfaction and can affect inventory management and supply chain.

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Multi-Channel Retailing

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A marketing strategy that offers customers multiple channels to make purchases, including websites, mobile apps, and physical stores. This affects supply chain complexity and inventory distribution.

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Electronic Data Interchange (EDI)

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The computer-to-computer exchange of business documents in a standard electronic format between business partners. It automates transactions and links systems which speeds up the flow of information in a supply chain.

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Agile Supply Chain

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Supply chains that prioritize flexibility to respond quickly to market changes and customer needs, often seen in e-commerce due to the fast-paced nature of the online market.

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Conversion Rate

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The percentage of visitors to a website that complete a desired action (such as making a purchase), a key measure of e-commerce success affecting inventory forecasting and demand planning.

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E-procurement

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The business-to-business purchase and sale of supplies and services over the Internet. It streamlines processes, reduces costs, and provides better control over spendings in the supply chain.

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Demand Forecasting

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The practice of predicting which products customers will buy, how much they will buy, and when. It is crucial for supply chain managers in e-commerce to balance inventory levels with customer demand.

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Order Fulfillment

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The process from the point of sale to delivery of a product to the customer. Effective order fulfillment is vital for customer satisfaction and reducing supply chain costs.

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Big Data Analytics

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The process of examining large and varied data sets to uncover hidden patterns, market trends, customer preferences, and other useful business information to make informed supply chain decisions.

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Sustainable E-commerce

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E-commerce operations that consider environmental impact, such as using eco-friendly packaging or carbon-neutral shipping methods, and focus on the long-term sustainability of the supply chain.

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Customer Acquisition Cost (CAC)

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The cost associated with convincing a potential customer to buy a product or service. In e-commerce, lowering CAC can improve overall supply chain cost efficiency.

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Reverse Logistics

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The process by which companies collect and handle products that are returned, with the goal of recapturing value or properly disposing of the material. An important aspect of e-commerce due to high return rates in online shopping.

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Click and Collect

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An online shopping model where customers buy or reserve products online and pick them up in a store. This option has supply chain implications for inventory placement and customer convenience.

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Social Commerce

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The use of social network(s) in the context of e-commerce transactions. Involves using social media to make online shopping more interactive and to influence supply chain decisions based on social trends.

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B2B E-commerce

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Online transactions between businesses, as opposed to between a business and a consumer. B2B e-commerce typically involves more complex and larger scale supply chain operations.

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Supply Chain Integration

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Process of aligning and coordinating the flow of goods, information, and finances among all the parties involved in a supply chain. For e-commerce, integration includes suppliers, manufacturers, and distribution centers.

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Mobile Commerce

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The buying and selling of goods and services through wireless handheld devices. As mobile commerce grows, supply chains must adapt to accommodate increased flexibility and real-time demand.

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