Retail Terminology – V
V
Value Chain
The value chain refers to the full range of activities required to bring a product from conception through the various phases of production, delivery to consumers, and final disposal after use. It includes all steps, including research and development, material sourcing, production, marketing, distribution, and customer service.
Vending Machine Business
This type of business involves placing vending machines in strategic locations. These machines directly dispense products such as snacks, drinks, and even electronics to consumers. Vending machine businesses focus on providing convenience and often operate 24/7.
Visual Merchandising
Visual merchandising is the practice of optimizing the presentation of products in retail settings to attract and engage customers. This includes arranging store layouts, window displays, product displays, lighting, and signage to enhance shopper experiences and drive sales.
Vendor
A vendor is a person or company that supplies goods or services to another business. Vendors can be wholesalers, manufacturers, or other entities that sell products in bulk or provide critical services to retailers and e-commerce platforms.
Virtual Store
A virtual store is an online version of a physical retail space where customers can browse and purchase products. Virtual stores utilize web technology to create immersive shopping experiences without needing a brick-and-mortar presence.
Velocity
In retail, velocity measures how quickly products are sold over a specific period. High-velocity items move off the shelves rapidly, indicating strong demand, while low-velocity items may require promotional efforts to boost sales.
Variance
Variance is the discrepancy between budgeted figures and actual outcomes. Retail and e-commerce help businesses identify underperforming areas and adjust strategies, inventory, or financial planning.
Volume Discount
A volume discount is a price reduction offered to buyers purchasing large quantities of a single product. Retailers and wholesalers use volume discounts to encourage bulk orders and increase sales.
Virtual Reality
Virtual reality (VR) in e-commerce allows customers to enter a simulated environment using VR headsets, providing them with interactive and immersive shopping experiences showcasing products in ways traditional online stores cannot.
Viral Marketing
Viral marketing leverages social networks and digital channels to spread a marketing message rapidly. Successful viral campaigns can dramatically increase brand visibility and awareness without significant expenditure.
View Through Rate
VTR is a key performance indicator in digital advertising that tracks the percentage of viewers who saw an ad and subsequently completed a desired action, such as making a purchase or signing up for a newsletter.
Visitor (website visitor)
A visitor is an individual who accesses a website. Tracking visitors is crucial for e-commerce analytics, helping businesses understand traffic patterns, user behaviors, and the effectiveness of marketing efforts.
Voice Commerce (shopping through voice-activated devices)
Voice commerce allows consumers to purchase using voice commands via smart speakers and voice assistants like Amazon’s Alexa or Google Assistant. It offers convenience and streamlined shopping experiences.