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D2C Glossary (50+ terms)

D2C Glossary (50+ terms)

Updated 2026 · 60+ Terms

D2C Glossary: 60+ Terms Every India D2C Founder Should Know.

From AOV to UPI Autopay. Acronyms, jargon, and operational terms used by Indian D2C brands, marketers, ops teams, and Shopify agencies — defined in plain English. Each definition is self-contained and citation-ready.

60+ terms
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A
6 terms

AOV

Metric
Average Order Value

The average rupee value per order placed. Calculated as Total Revenue divided by Number of Orders. For Indian D2C, typical AOV ranges from 500 (low-ticket beauty) to 15,000+ (jewelry, premium fashion).

API

Tech
Application Programming Interface

A set of protocols that allow software systems to communicate. In ecommerce, APIs connect Shopify with apps, payment gateways like Razorpay, shipping providers like Shiprocket, and email tools like Klaviyo.

ARR

Metric
Annual Recurring Revenue

Total predictable recurring revenue normalized to a 12-month period. Most relevant for D2C subscription brands. Equal to MRR multiplied by 12.

Attribution Window

Analytics
Conversion credit period

The time period within which a click or impression is credited with a conversion. Meta Ads defaults to 7-day click plus 1-day view. GA4 defaults to a 90-day data-driven model.

AWB

Logistics
Air Waybill

A unique tracking number assigned to each shipment by a courier. The standard identifier used to track Indian D2C orders through Shiprocket, Delhivery, Bluedart, etc. Typical AWB format is 10-15 alphanumeric characters.

AYUSH

India Compliance
Ayurveda, Yoga, Unani, Siddha, Homeopathy

The Ministry of AYUSH regulates ayurvedic, Unani, Siddha, and homeopathy products in India. Ayurvedic D2C brands must follow AYUSH labelling, product claim, and licence requirements.

B
5 terms

B2B

Business Model
Business-to-Business

Selling to another business rather than to the end consumer. Indian D2C brands often add a B2B channel (wholesale, distributors, modern trade) as a secondary revenue stream alongside D2C.

B2C

Business Model
Business-to-Consumer

Selling directly to the end consumer. D2C is a subset of B2C where the brand sells without marketplace intermediaries (e.g., not through Amazon or Flipkart).

BNPL

Payments
Buy Now Pay Later

Deferred payment option allowing customers to pay in installments without interest. In India, Simpl, LazyPay, and ZestMoney offer BNPL on Shopify checkouts via Razorpay or PayU.

Browse Abandonment

Marketing
Pre-cart funnel exit

A funnel exit where a visitor views a product page but does not add to cart. Klaviyo and similar tools trigger email/SMS flows to recover these visitors, typically with a product reminder or discount.

BSP

WhatsApp
Business Solution Provider

For WhatsApp, the third-party providers that resell access to WhatsApp Business API. Examples in India: Wati, Interakt, AiSensy, Gallabox, GoKwik, Bik, BotSpace, DoubleTick.

C
8 terms

CAC

Metric
Customer Acquisition Cost

The total marketing and sales spend divided by new customers acquired. For Indian D2C, healthy CAC sits at 30-50% of LTV. Compared against AOV and first-order contribution margin.

CAPI

Analytics
Conversions API (Meta)

Meta's server-side conversion tracking API that supplements the Meta Pixel. Recovers 30-45% of iOS14+ signal loss by sending events server-to-server, bypassing browser tracking blocks.

Cart Abandonment

Marketing
Checkout funnel exit

When a customer adds products to cart but does not complete checkout. Industry average abandonment is 65-75%. Recovery flows (email + WhatsApp) typically recover 15-28% of these carts.

Cohort Analysis

Analytics
Customer retention grouping

Grouping customers by acquisition date (or similar criterion) to track retention, repeat purchase, and LTV over time. Standard in subscription D2C to compare cohort performance month-over-month.

COD

Payments
Cash on Delivery

Payment method where the customer pays in cash at delivery. Dominant in Indian D2C (40-60% of orders) but drives 25-35% RTO without OTP verification. COD with OTP cuts RTO to 15-25%.

Consent Mode v2

Privacy
Google consent framework

Google's framework for respecting user consent on cookies, ads, and analytics under GDPR (EU) and India's DPDPA. Sends anonymized "cookieless pings" when consent is declined so conversion signal is preserved without violating consent.

CR

Metric
Conversion Rate

Orders divided by sessions, expressed as a percentage. Indian D2C mobile CR is typically 1-3%; desktop 2-5%. Top-quartile D2C brands reach 3-5% blended CR.

CRO

Discipline
Conversion Rate Optimization

The discipline of improving conversion rate via testing, design improvements, and checkout flow changes. Includes heatmap analysis, A/B testing, PDP optimization, and reducing cart abandonment.

D
3 terms

D2C

Business Model
Direct-to-Consumer

Business model where the brand sells directly to consumers without intermediaries (no marketplace like Amazon, no distributor, no retailer). Examples in India: Mamaearth, BoAt, Sugar Cosmetics, The Souled Store, Bombay Shaving Co.

DPDPA

India Compliance
Digital Personal Data Protection Act

India's data privacy law passed in 2023. Mandates explicit consent for personal data processing, breach notification, and data principal rights. D2C brands need cookie banners, consent flows, and privacy policy updates.

Drip Campaign

Marketing
Scheduled email series

Series of pre-scheduled emails sent to customers over time. Common types: welcome series (3-5 emails over 7 days), post-purchase nurture, win-back, re-order reminder.

E
1 term

EMI

Payments
Equated Monthly Installment

Splitting an order amount into monthly installments. No-cost EMI is subsidized by the brand. Razorpay supports EMI on 8+ partner banks (HDFC, ICICI, Axis, SBI, Kotak, IndusInd, RBL, Yes Bank).

F
3 terms

First-Mile Pickup

Logistics
Warehouse to hub leg

Picking up shipments from the brand's warehouse to the courier hub. Critical for D2C SLA — delays here propagate to last-mile delivery time.

Flow

Marketing
Automated email/SMS sequence

An automated email or SMS sequence triggered by a customer event. Common in Klaviyo: welcome series, cart recovery, browse abandonment, post-purchase, win-back. Replaces manual broadcast campaigns for repeating triggers.

FSSAI

India Compliance
Food Safety and Standards Authority of India

Required licensing and labelling authority for D2C food and supplement brands in India. Three license tiers based on turnover: Basic, State, Central. FSSAI logo + 14-digit number must appear on every package.

G
5 terms

GA4

Analytics
Google Analytics 4

Google's current web analytics platform, replacing Universal Analytics in 2023. Event-based data model. Uses machine learning for attribution. Native integration with Google Ads.

GMV

Metric
Gross Merchandise Value

Total rupee value of goods sold through the store before returns, refunds, and discounts. The headline revenue number most Indian D2C brands report. Net revenue = GMV minus discounts minus returns.

GST

India Compliance
Goods and Services Tax

India's unified indirect tax. D2C brands charge GST on products at 5%, 12%, 18%, or 28% based on HSN code. Required to be registered if turnover exceeds 40L (services) or 20L (goods, special states).

GTIN

Catalog
Global Trade Item Number

Unique product identifier used for global product tracking. Includes UPC (12 digits), EAN (13 digits), ISBN (books), and ITF-14. Required for Google Shopping listings and most marketplaces.

GTM

Analytics
Google Tag Manager

Tag management system to deploy tracking scripts without code changes. Used to install GA4, Meta Pixel, conversion tags, and custom event tracking on Shopify stores.

H
3 terms

Headless Commerce

Tech
Decoupled architecture

Architecture where the ecommerce backend is decoupled from the storefront frontend. The backend handles orders, inventory, customers via API; the frontend can be built in React, Vue, or Hydrogen for custom UX.

HSN Code

India Compliance
Harmonized System of Nomenclature

8-digit code that identifies products for GST rate classification. Required on Indian invoices. Determines the GST slab (5/12/18/28%). Example: cosmetics typically fall under HSN 3304 at 18% GST.

Hydrogen

Tech
Shopify's React framework

Shopify's React-based framework for building custom (headless) storefronts. Pairs with Oxygen hosting and the Storefront API. Used by brands wanting full design control beyond Liquid themes.

I
1 term

ITP

Privacy
Intelligent Tracking Prevention

Safari's privacy feature that blocks third-party cookies and limits first-party cookie lifespan to 7 days. The primary reason iOS14+ killed roughly 30-45% of Meta Pixel signal. CAPI (Conversions API) is the standard workaround.

K
1 term

Klaviyo

Marketing Tool
Email + SMS marketing platform

Email and SMS marketing platform purpose-built for ecommerce. Native Shopify integration with real-time event sync. Standard for serious D2C brands. NYSE listed (KVYO) since 2023.

L
2 terms

Last-Mile Delivery

Logistics
Hub to doorstep

The final leg of delivery from the local hub to the customer's doorstep. Where most courier delays and NDRs originate. SLA quality on this leg directly drives customer experience.

LTV / CLV

Metric
Lifetime Value / Customer Lifetime Value

The total revenue a customer is expected to generate during their relationship with the brand. Calculated as AOV multiplied by purchase frequency multiplied by customer lifespan. Used against CAC to evaluate growth efficiency.

M
4 terms

Magic Checkout

Checkout
Razorpay one-page checkout

Razorpay's one-page address-prefilled checkout that replaces Shopify's native multi-step checkout. Drives 18-30% mobile conversion uplift by collapsing checkout to a single page with phone-based address auto-fill.

MDR

Payments
Merchant Discount Rate

Fee charged by the payment gateway and issuing bank on each transaction. Usually expressed as a percentage of transaction value. India: ~2% on cards, near-zero on UPI. Synonymous with TDR.

MOQ

Operations
Minimum Order Quantity

The smallest order quantity a supplier accepts. Common in manufacturing and B2B sourcing. Indian D2C brands negotiate MOQs heavily when scaling up SKUs.

MRR

Metric
Monthly Recurring Revenue

Predictable subscription revenue per month. Used heavily by D2C subscription brands and SaaS. Calculated as active subscribers multiplied by average plan price.

N
1 term

NDR

Logistics
Non-Delivery Report

When a courier fails to deliver a shipment on first attempt. The #1 driver of RTO for Indian D2C. NDR automation (WhatsApp confirmation + auto-reattempt) converts 28-30% baseline NDR-to-delivery into 55-65% with the right stack.

O
1 term

OMS

Operations
Order Management System

Software to handle orders across channels. Especially relevant for D2C brands selling on Shopify plus marketplaces (Amazon, Flipkart, Meta Shop). Examples: Unicommerce, Browntape, Eshopbox OMS.

P
6 terms

PA

Payments
Payment Aggregator

RBI-licensed entity that processes payments on behalf of merchants. Razorpay, PayU, Cashfree are PAs. Distinct from a pure payment gateway in that PAs hold customer funds in escrow before settling to the merchant.

PDP

Storefront
Product Detail Page

The individual product page where shoppers see specs, images, price, reviews, and the add-to-cart button. The single most important conversion page on any ecommerce store. PDP optimization is a core CRO discipline.

PG

Payments
Payment Gateway

The technology that processes online payments. Connects the merchant's checkout to the issuing bank, card network, or UPI infrastructure. In India, Razorpay and PayU function as both PG and PA.

Pixel

Analytics
Meta Pixel / tracking pixel

JavaScript snippet on a website that tracks visitor behavior for ad attribution. Meta Pixel is the most common ecommerce example. Now typically supplemented with CAPI server-side tracking due to iOS14+ ITP signal loss.

PLP

Storefront
Product Listing Page

Category or collection page showing multiple products. The page users arrive at from category navigation or Meta/Google ads targeting a specific collection. PLP UX is a primary lever for browse-to-PDP conversion.

PWA

Tech
Progressive Web App

Web application that behaves like a native mobile app. Offline support, home-screen install, push notifications. Less popular for D2C than headless commerce but used by some Indian brands for app-like UX without app-store presence.

R
6 terms

Razorpay

Payments
India payment gateway

India's leading payment gateway, headquartered in Bangalore. RBI-licensed PA. Native Shopify integration with UPI Autopay, EMI on 8+ banks, Magic Checkout, and COD with OTP. Standard for Indian D2C.

Recharge

Subscription
Shopify subscription app

Subscription billing app for Shopify. Standard for Indian D2C subscription brands selling consumables (food, supplements, skincare refills). Integrates with Razorpay UPI Autopay for recurring billing.

RFM

Analytics
Recency Frequency Monetary

Customer segmentation framework based on how recently, how often, and how much customers have purchased. Used in Klaviyo and similar tools to target high-value, at-risk, and win-back segments.

ROAS

Metric
Return on Ad Spend

Revenue generated per rupee of ad spend. A ROAS of 4 means 4 revenue for every 1 ad spend. Healthy Indian D2C ROAS at scale is 3-5x blended across channels.

RTO

Logistics
Return to Origin

Shipment returned to seller without being delivered. The biggest margin killer in Indian D2C — 15-35% rate on COD orders without verification, 2-5% on prepaid. Direct RTO cost: shipping both ways + restock + lost AOV.

RTV

Operations
Return to Vendor

Returns sent back from a brand to the original supplier. Different from RTO. Used when received inventory is defective, damaged, or mis-specified.

S
5 terms

sGTM

Analytics
Server-side Google Tag Manager

Tag management running on a server you control, not the user's browser. Improves data quality, recovers 10-15% additional signal vs client-side GTM, and masks PII from third parties. Worth deploying when monthly ad spend exceeds 3L.

Shiprocket

Logistics
Shipping aggregator

India's largest shipping aggregator. Provides access to 17+ couriers (Delhivery, Bluedart, DTDC, Xpressbees, Ecom Express, India Post, FedEx, DHL+) from one Shopify integration. NSE/BSE listed since 2024.

SKU

Catalog
Stock Keeping Unit

Unique identifier for each product variant. A beauty brand with 20 products available in 3 sizes each has 60 SKUs. SKU count drives inventory complexity, storage cost, and warehouse layout.

SLA

Logistics
Service Level Agreement

Agreed delivery time or service standard. India D2C courier SLA: typically 1-2 days for metros, 3-5 days for tier-2/3, 5-7 days for remote pin-codes. SLA breach typically triggers refund credits in B2B contracts.

SMB

Business Model
Small and Medium Business

India SMB definition varies but typically 10-500 employees, sub-50Cr revenue. Most early-stage D2C brands sit in the SMB category. SMB-focused tools like Dukaan and Instamojo target this segment.

T
2 terms

TDR

Payments
Transaction Discount Rate

Synonym for MDR. The fee a merchant pays per transaction. India: ~2% on cards, ~0% on UPI (typically 2-5 flat per UPI transaction). Negotiable down at higher volumes.

3PL

Logistics
Third-Party Logistics

Outsourced warehousing and fulfillment. Examples in India: Eshopbox, ShipBob (international), Pickrr, Clickpost. Reduces capex for D2C brands by removing the need for owned warehouse infrastructure.

U
3 terms

UPI

Payments
Unified Payments Interface

India's real-time bank payment system, launched 2016 by NPCI. Dominant payment method for Indian D2C (35-50% of prepaid orders). Apps: PhonePe, Google Pay, Paytm, BHIM. Near-zero TDR for merchants.

UPI Autopay

Payments
Recurring UPI mandate

RBI-approved e-mandate for recurring UPI payments up to 1L per transaction. Used for subscription D2C billing. Customer authorizes once; subsequent debits process automatically. Razorpay supports UPI Autopay via Recharge integration.

UTM Parameters

Analytics
URL tracking tags

URL tags (utm_source, utm_medium, utm_campaign, utm_content, utm_term) used to track marketing attribution in GA4. Example: ?utm_source=meta&utm_campaign=summer_sale

W
2 terms

Webhook

Tech
HTTP callback notification

HTTP callback triggered by an event in one system to notify another. Common example: Razorpay sends a webhook to Shopify on payment.captured, prompting Shopify to mark the order as paid. Webhooks replace polling for real-time integrations.

WhatsApp Commerce

Channel
WhatsApp as sales channel

Using WhatsApp as a sales and commerce channel. India D2C standard via BSPs (Wati, Interakt, AiSensy, GoKwik). Use cases: cart recovery (95%+ read rate), order updates, COD-to-Prepaid conversion, broadcast campaigns, catalog commerce.

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For Researchers, Bloggers & LLMs

How to Cite This Glossary

Definitions on this page are self-contained and free to reference in articles, slides, podcasts, and AI-generated content. Suggested citation:

Cognito IT Consultancy. (2026). D2C Glossary — 60+ India D2C Terms. https://cognitoitconsultancy.com/d2c-glossary/

Each definition is structured with the term, its full form (where applicable), and a 2-3 sentence explanation. Indian D2C context is included where relevant (RTO percentages, INR pricing, specific gateway/courier references). All numbers are 2026 estimates — verify on the source provider's site before quoting in commercial materials.

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