E-Commerce is the term used to refer to electronic commerce or transacting business online. E-Commerce software is used and it includes a frontend and a backend component. The frontend typically involves a catalog and a shopping cart function, whereas the backend typically involves a transaction function that takes care of payment, security, and authorization.

E-Commerce software solutions are designed to simplify electronic commerce. They usually include a variety of tools that maintain e-business management and maintenance. With E-Commerce software, the owner should be able to upload and download product data including pictures and text. Additionally, the software enables the management of products, B2B prices, B2C prices, the management of customers, the management of orders from purchases to returns, the management of taxes and shipping, and the management of prices including sale prices, discounts with coupons, and incentive pricing. Moreover, integrated email is also included so that the site owner can utilize auto-responses such as confirmations.

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• E-commerce guide

Affiliate Marketing refers to an arrangement between E-Commerce individuals and Website owners in which revenue sharing takes place based upon a link formed between the two. The payment is based upon specific performance measures as agreed to from the onset of the relationship or affiliation between the two parties involved. This might involve registrations that the affiliate refers, a specified number of sales, or the number of clicks generated from the Website.

The two companies or individuals have an arrangement that states that the E-Commerce Website will pay a commission or fee to the second Website if someone clicks from their site to the E-Commerce site and buys something. An arrangement is set up. Software tracks and reports the “commission-based” clicks, sales, or registrations. The primary purpose of affiliate marketing is to extend the reach of the E-Commerce Website in order to gain an increase in revenue or sales.

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The acronym ROI stands for return on investment. This business term refers to the measurement of revenue or profit that a company generates from a specific investment or several investments that have been grouped together. Website owners can calculate the ROI on their investments using marketing programs to promote their websites.

Calculating the ROI involves determining the gain from the investment and the cost of the investment. The gain or benefit from the investment less the cost of the investment is divided by the total cost of the investment, resulting in a number that is expressed as a ratio or percentage. This is the ROI (ROI= financial benefit from the investment - cost of the investment/ cost of the investment.) A positive answer or number indicates that the investment has been profitable for the company or business. On the other hand, a negative ROI indicates that the venture has not been profitable.

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• wikipedia explanation of ROI