E-commerce ROI Calculator
Calculate your e-commerce return on investment and analyze your business performance.
Revenue Metrics
Total sales revenue for the period
Average value per order
Total number of orders received
Cost Metrics
Total costs including marketing, operations, etc.
Total marketing and advertising costs
Select your currency
ROI Analysis
ROI:
0%
Net Profit:
$0.00
Marketing ROI:
0%
Business Insights
ROI Benchmarks
Average e-commerce ROI ranges from 15% to 30%
Best Practices
Focus on customer retention and lifetime value
Watch Out For
High marketing costs can significantly impact ROI
Calculate ROI, Then Multiply It
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How do you calculate ROI in eCommerce?
Ecommerce ROI is calculated using: ROI = (Revenue - Investment) ÷ Investment × 100. For example, if you spent $1,000 on marketing and generated $4,000 in revenue, ROI = ($4,000 - $1,000) ÷ $1,000 × 100 = 300%. Include all costs: advertising, platform fees, shipping, and operational expenses for accurate calculations.
What is a good ROI for e-commerce?
Good ecommerce ROI varies by industry and business model. Generally, 300-500% ROI (3:1 to 5:1 return) is considered healthy for most ecommerce businesses. Fashion and electronics often see 200-400%, while luxury goods may achieve 500-800%. Consider profit margins, customer acquisition costs, and lifetime value when evaluating ROI performance.
What does 70% ROI mean?
70% ROI means you earn $1.70 for every $1 invested, representing a 70% return on investment. While positive, 70% is below average for most ecommerce businesses. This suggests opportunities for optimization in pricing, marketing efficiency, or cost reduction. Compare against industry benchmarks and investigate areas for improvement.
How do you calculate 7% ROI?
7% ROI indicates you earn $1.07 for every $1 invested. Calculate as: ROI = (Gain - Cost) ÷ Cost × 100. If you invested $10,000 and gained $10,700, ROI = ($10,700 - $10,000) ÷ $10,000 × 100 = 7%. This is very low for ecommerce and requires immediate optimization of marketing spend and conversion rates.
What factors affect ecommerce ROI?
Ecommerce ROI is influenced by customer acquisition cost, conversion rates, average order value, customer lifetime value, profit margins, marketing channel effectiveness, seasonal trends, competition, and operational efficiency. Optimizing product pricing, reducing cart abandonment, and improving customer retention significantly impact overall ROI performance.
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