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.

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Everyday Low Price (EDLP)

A retail pricing strategy offering customers consistently low prices on products without requiring coupons, waiting for

Kitting

A logistical technique involving the assembly and packaging of various related items together as a single

Excess Inventory

Also referred to as surplus inventory, denotes the surplus stock held by a company beyond what