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

Category Buyer

The person is responsible for assisting the procurement manager and category team in implementing procurement and

Brand Loyalty

Refers to a consumer’s consistent preference for purchasing the same brand over competing ones, driven by

High-Low Pricing

A strategy where a company sets an initial high price for a product and later reduces