E-Commerce for Dummies

By Alan Gahtan - September 2000

Above the fold – The part of a Web page that is visible once the page has loaded (normally the top part of the page).  The term originates from the newspaper industry where it is used to refer to the4 top half of the front page.

Acquirer or acquiring bank – The financial institution where a merchant has an account to process credit card transactions.

Aggregator – An e-commerce business model whereby the aggregator’s web site brings together products, services or content which it does not actually produce or own.

ASP / Application Service Provider – A company which provides access to software applications over the Internet for a monthly subscription fee.

Asymmetrical – Refers to different bandwidth being allocated to transmissions in one direction as compared to the opposite direction.  For example, a communication circuit which is capable of transmitting 1,000,000 bits of data per second (bps) may be configured to transmit data in one direction at 900,000 bps (for example, a user’s computer which will typically be downloading rather than uploading data) and 100,000 bps in the opposite direction.

B2B / Business to Business – A business model where a business’ customers are other businesses.

B2C / Business to Consumer – A business model where a business’ customers are non-business consumers.

Backbone – A high capacity communications circuit through which a high proportion of Internet traffic flows.

Bandwidth – Used to describe a communication circuit’s information carrying capacity.  The more bandwidth, the more data that can be transferred per unit of time.

Banner Ad – An advertisement place on a web page, usually in the form of a horizonal graphic image.  When clicked, it usually is programmed to transfer the user to the advertiser’s web site.

Bricks & Mortar – Traditional businesses with a physical infrastructure.

Bluetooth – A wireless protocol designed to permit automatic networking between portable personal devices (such as laptops, cell phones, palm organizers and even watches) over short distances.

Brochureware – A web site which contains little more than the online equivalent of a printed brochure.  The term is sometimes used in a derogatory manner to refer to a web site will little content or little interactivity.

Certification Authority – An entity which vouches for the identity of the holder of a digital certificate.

CGI / Common Gateway Interface – A small program written in a script program such as Perl which acts as an interface between the web and other programs on the web server (such as databases).

Click & Mortar – Nickname for the integration of online commerce with physical assets such as warehouses and retail outlets.

Clickstreams – The paths taken by individual users as they navigate a web site or the web.

Click-wrap Agreement / Web-wrap Agreement – The online equivalent of a shrink-wrap licensing agreement.  An agreement which is formed by clicking on an “I Agree” button.

Convergence – The combination of two products such as computers and televisions.

Dedicated line – A phone line which is reserved for use solely to connect a computer with another or the Internet.

Disintermediation – A term which refers to the bypassing of the middleman which is made possible by the Internet.

Domain Expert – Someone who is knowledgeable about a particular subject area.

DSL – A communications standard that facilitates the transmission of high speed data over (and simultaneous with) regular telephone lines.

Electronic Data Interchange / EDI – Refers to the exchange of documents which contain data stored in a structured form so that the recipient system can automatically read the information which is contained in such documents.

Exchange or Marketplace – A service which electronically connects buyers and sellers in a particular industry.  These services hope to reduce administrative costs, facilitate quicker information exchange (and thereby reduce excess inventory) and introduce greater competition.  An example is Covisint, an exchange which will connect the major car makers with their suppliers.

Firewall – A combination of hardware and software which is used to protect and isolate an organization’s internal network from unauthorized external users.

First Mover Advantage – The competitive advantage that is obtained by the first entrant in a new market (for instance, Amazon.com).

Frames – A feature in HTML which permits web designers to split up the window of a browser into distinct rectangular sections.

Frequently Asked Questions / FAQs – Documents which list and contain answers to the most common questions on a particular topic.

Infrastructure – The equipment, such as routers, that powers the Internet made by vendors such as Cisco Systems and Sun Microsystems.

Internet Time – A reference to the rapid rate of innovation and change that is occurring and the corresponding need for participants to do business in an accelerated time frame.

Graphic Interchange Format / GIF – A commonly used file format for images or graphics used on web pages.

Hits – A term which indicates the number of requests that a particular web server processed.  Each element on a web page, as well as the web page itself, would count as a hit when viewed by a particular user.

Home Page – The introductory or menu page of a web site which provides the entry point for visitors to the site.

HTML / Hypertext Markup Language – A page format language which contains tags that provide instructions to browsers on the size, shape, colouring and placement of text and graphics on a web page.

Hyperlink – A word or graphic within a web document, which is usually highlighted or underlined, and which takes a user to another page or to a different location on the same page, when it is clicked.

Impressions – The number of times a banner advertisement is viewed.

Issuer – A financial institution that issues credit cards to end users.

Internet Protocol (IP) address – A unique numeric identify which is used to represent each device attached to a network.

Interoperability – The ability of various hardware and software to work together.

Intranet – A private Internet operating on an organization’s internal network.

Java – A programming language created by Sun Microsystems which can be used to run programs (for instance, to implement special effects) on web pages without regard to the equipment being used to access the Internet.

JPEG / Joint Photographic Experts Group – A file format frequently used for images displayed on the web.

Killer Application – A new application, such as a software program, which creates a mass market for a new technology.  Lotus 123 has been described as a killer application for early IBM PC computers.  The world wide web has been described as a killer application for the Internet.

Meta Tags – A special set of HTML tags which are not displayed but which contain information which is read and used by search engines to index web pages and to offer a short description of such pages.

Metcalfe’s Law – The value of a digital network increases with the square of its number of nodes.  Therefore, a network with 100 nodes is 100 times as valuable as a network with 10 nodes.

Mirror Site – A web site that contains an identical copy of the contents stored on another web site.  Mirror sites are used to reduce the load on popular web sites or to provide quicker responses to queries from users located across slow speed links to popular web sites.

Netiquette – Rules or standards regarding the use of a particular Internet service such as e-mail or usenet.

Network Effect – The effect that is observed with certain types of businesses, such as auction sites (eBay) or web marketplaces, where the more people that use the service, the more useful it becomes.  See also Metcalfe’s Law.

Non-Repudiation – A process used to make sure customers cannot deny having made a particular transaction.

Open Source – Software that is distributed in source code format and which can be modified and enhanced by users or groups of users.  An example is LINUX.

PDF / Portable Document Format – a format used by Adobe’s Acrobat program, which can be used to create documents that will retain their original format and appearance when printed using different computers, operating systems and printers.

Pixel – The smallest unit of measurement in a computer graphic image.  Also refers to the individual dot which makes up such an image.

PKI / Public Key Infrastructure – A foundation to support the authentication of message senders and recipients, confidentiality of messages and confirmation of their receipt.

P2P / Path to Profitability – The strategy by which an Internet company will generate profits.

Portal – A super web site which provides access to a variety of services or resources.

Scalability – The ability to expand a particular business to handle additional customers without adding excessive costs or delays.

Space – Market or industry.

Sticky – A web site which holds onto visitors for a substantial amount of time.

Traffic – The amount of visitors a web site receives and which may be expressed as the number of visitors, impressions, hits or page views.

URL / Uniform Resource Locator – A web site’s address, which consists of the access method (such as http), the domain name and the subdirectory/file name which is used to access a particular resource.

Viral Marketing – A strategy of using a company’s customers to help attract new customers.

Vortal / Vertical Portal – A portal which is focused around a particular industry.

VPN / Virtual Private Network – A secure communications channel which is created on top of an insecure communications medium, such as the Internet, using encryption and authentication technology.

WAP / Wireless Application Protocol – A communications protocol for accessing the web using wireless devices such as cell phones.

XML / Extensible Markup Language – A successor to HTML, the language in which web pages are written, which facilitates the exchange of formatted information between different systems.


Related Sources: Canadian Legal Resources | Cyberlaw Encyclopedia | Entrepreneur Resources | Canadian Technology | Precedents | Alan Gahtan

© 2005 Alan M. Gahtan. All Rights Reserved | Use is subject to these Legal Terms
Disclaimer: Not all materials may be applicable in your jurisdiction. Not intended to be a substitute for professional advice. No implied endorsement of, or affiliation with, any linked sites. Path to individual pages may change - please link to home page only.   Linking Info