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

Brand positioning

Refers to the unique offering or key differentiations of the brand’s products for its customers.

Base Price

Also referred to as non-promoted price, it is the average price of an item across all

Category management

Involves grouping products into suitable categories and managing category performance. This involves inputs from both brand