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 Affinity

It is the level of positive association and emotional connection that consumers have with a particular

Brand positioning

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

Consumer Promotion

Also known as sales promotion, is a temporary marketing strategy aimed at boosting brand awareness and