Shopify ROI Calculator
Calculate the return on investment and profitability of your e-commerce business
Investment Analysis
Enter your investment details to calculate ROI
Understanding ROI in E-commerce
Return on Investment (ROI) is a crucial metric that measures the profitability of your investments relative to their costs. For e-commerce businesses, understanding ROI helps make informed decisions about marketing, inventory, and business expansion.
How ROI is Calculated
- ROI = ((Net Profit - Initial Investment) / Initial Investment) × 100
- Net Profit = Total Revenue - Operating Costs
- Profit Margin = (Net Profit / Revenue) × 100
What to Include in Your Calculations
Initial Investment
- Website development costs
- Initial inventory investment
- Marketing setup costs
- Equipment and software
- Training and onboarding
Operating Costs
- Platform fees and subscriptions
- Marketing and advertising
- Inventory and shipping costs
- Staff and support costs
- Payment processing fees
Benchmarks for E-commerce ROI
- Marketing ROI: 5-10x spend is considered good
- Inventory ROI: 2-4x cost is typical
- Overall Business ROI: 15-30% is healthy
- Platform Investment ROI: Should exceed 100% annually
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