Calculate your return on investment for online stores, marketing campaigns, and product launches. Make data-driven decisions to grow your e-commerce business.
A 100% ROI means you've doubled your investment. For every dollar spent, you've gained two dollars in return. This is a strong performance that indicates your e-commerce strategy is working effectively.
ROI (Return on Investment) in e-commerce measures the profitability of your online business activities. It calculates the return you get from money invested in areas like marketing, inventory, or technology.
ROI is calculated using the formula: (Net Profit / Total Cost) × 100. Net Profit is Revenue minus Total Cost.
A good ROI varies by industry, but generally, an ROI of 5:1 (500%) is considered strong for e-commerce. However, even a 2:1 (200%) ROI can be acceptable depending on your business model and goals.
To improve ROI: optimize your marketing campaigns, increase average order value, improve conversion rates, reduce customer acquisition costs, and focus on customer retention strategies.