SLA Meaning

The acronym SLA stands for Service Level Agreement which lists the agreed-upon expectations between the buyer and service provider. These agreed-upon expectations can be specific features of your product, the level of service the customer will receive after purchasing that product, and even the metrics by which the service is measured. Penalties for not complying with the SLA should also be established before the customer makes a purchase.

As an example, let’s say you are selling electronic equipment on your e-commerce website. You can offer customers free technical support if they opt to purchase a higher-end package. The customer and you both agree on this service level and the price before the customer makes a purchase.