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E-commerce in Fashion
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Fast Fashion
Fast fashion refers to a business model that involves the rapid design, production, and marketing of clothing items after fashion trends. E-commerce has enabled fashion brands to react quickly to trends and get new products to market promptly, meeting consumer demand for the latest styles.
Dropshipping
Dropshipping is an order fulfillment method where a store doesn't keep the products it sells in stock. Instead, when the store sells a product, it purchases the item from a third party and has it shipped directly to the customer. In the fashion industry, this allows retailers to offer a wide range of products without the need for inventory investment.
Omnichannel Retailing
Omnichannel retailing is a multichannel approach to sales that aims to provide customers with a seamless shopping experience, whether they shop online from a mobile device, a laptop, or in a brick-and-mortar store. In the fashion industry, it's used to integrate various shopping channels for a consistent and unified customer experience.
Conversion Rate
The conversion rate is the percentage of visitors to a website that complete a desired action (a conversion) out of the total number of visitors. In fashion e-commerce, this could mean the percentage of people who buy a product after visiting a web page.
Augmented Reality (AR) Shopping
Augmented reality shopping uses technology to superimpose digital images onto the real world, allowing customers to visualize how clothes and accessories might look on them or in their space. It's applied in the fashion e-commerce space to enhance user engagement and improve the shopping experience.
Virtual Fitting Room
A virtual fitting room is an online tool that allows customers to try on clothes virtually using digital models or even their own body dimensions. It helps online fashion retailers reduce return rates by providing a better fit understanding for online shoppers.
SKU (Stock Keeping Unit)
SKU refers to a unique identifier for each distinct product and service that can be purchased. In fashion e-commerce, SKUs are critical for tracking inventory levels, sales, and facilitating the ordering and fulfillment processes of clothing items.
Size Analysis
Size analysis involves reviewing sales data to determine which sizes are selling the best and which are underperforming. Fashion retailers use this information to optimize their inventory by stock levels and reduce markdowns by ordering more of the popular sizes.
Fashion Lifecycle Management
Fashion lifecycle management is the process of managing the entire lifecycle of a fashion product from conception, through design and manufacture, to service and disposal. E-commerce platforms facilitate this by providing tools for trend analysis, design collaboration, and supply chain management.
Seasonal Inventory
Seasonal inventory refers to products that are typically sold during specific seasons or holidays. In fashion e-commerce, managing seasonal inventory is crucial to align with consumer demand patterns and to avoid overstocking or markdowns post-season.
Sustainable Fashion
Sustainable fashion refers to clothing that is designed, manufactured, distributed, and used in ways that are environmentally friendly. E-commerce in fashion supports sustainability by offering eco-friendly lines, transparent supply chain information, and promoting recycling or upcycling programs.
Flash Sales
Flash sales are limited-time offers that provide great discounts on items, creating a sense of urgency among consumers to make a quick purchase. In the fashion e-commerce space, these sales can rapidly move inventory and attract new and returning customers.
Fashion Analytics
Fashion analytics involves the use of data analysis and statistical tools to understand fashion trends, customer behavior, and operational efficiency in e-commerce. This data-driven approach helps retailers make informed decisions on inventory, marketing, and design.
B2C (Business-to-Consumer)
B2C refers to the transaction of goods and services where the final customer is the consumer. Fashion e-commerce is primarily a B2C market, where retailers sell clothing items directly to consumers via online platforms.
Shopping Cart Abandonment
Shopping cart abandonment is when shoppers add items to their online shopping cart but exit without completing the purchase. It's a challenge for fashion e-commerce, where retailers analyze reasons for abandonment and try to improve checkout flows to minimize lost sales.
B2B (Business-to-Business)
B2B refers to commercial transactions between businesses, such as a fashion wholesaler selling to retail businesses. In the context of e-commerce, B2B platforms enable fashion retailers to purchase stock from suppliers and manufacturers online.
User Experience (UX)
User Experience in e-commerce encompasses all aspects of the end-user's interaction with the company, its services, and its products. In fashion e-commerce, a positive UX is essential for encouraging customer engagement and repeat business, which includes an intuitive website design, easy navigation, and personalized recommendations.
Influencer Marketing
Influencer marketing is a strategy that involves collaborating with influential people to promote products or services. In the fashion e-commerce industry, influencers can impact trends and buying habits by showcasing items to their followers, often resulting in increased traffic and sales for fashion brands.
Return Rate
The return rate in e-commerce refers to the percentage of sold items that customers return. It’s particularly relevant in fashion, as fit and personal preference lead to a higher likelihood of returns. Retailers work to minimize this rate by improving size guides, product images, and descriptions.
Search Engine Optimization (SEO)
SEO is the practice of increasing the quantity and quality of traffic to your website through organic search engine results. For fashion e-commerce, effective SEO strategies help potential customers find the online store and products through relevant keywords and content.
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