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Ecwid Ecommerce Glossary

Return on Investment (ROI)

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What is ROI?

Return on Investment, or ROI, is the metric that shows the financial gain acquired from a specific marketing action, relative to its cost.

Put simply, the ROI shows what we get back from the investment — whether it was profitable or not.

How to сalculate ROI

To calculate your ROI, subtract the cost of the investment from the total gain on the investment and divide that by the cost of investment.

Use this simple formula to calculate your return on investment:
ROI = (Gains — Cost) / Cost

How to improve your online store ROI:

  • Make sure you know your audience to avoid too generic a content strategy (start with creating customer profiles)
  • Focus on getting qualified traffic — optimize your store for SEO and carefully segment your ad campaigns
  • Improve your product page conversion rate
  • Use cross-selling and upselling to increase the average checkout price.

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