Return on Investment (ROI)

Return on Investment (ROI)

Refers to the financial return generated from online business activities relative to the cost invested in those activities. It ievaluates the profitability and efficiency of e-commerce operations, including marketing campaigns, website development, inventory purchases, and other related expenses. Calculated as a percentage, ROI is determined by dividing the net profit generated from online sales by the total investment made to achieve those sales. This metric helps e-commerce businesses assess the effectiveness of their spending on digital marketing, website optimization, product development, and other strategic areas.

Related Terms

Merchandising

It includes the comprehensive strategies and practices retailers employ to promote and sell products to customers

Blocking

Also called facing, zoning or fronting, a retail merchandizing concept where all products of the same

Hyper Market

A large retail store that integrates both a department store and a grocery supermarket within a