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HOME 2018-12-04T06:27:01+00:00

For many B2B businesses, calculating ROI prior to choosing a new B2B wholesale platform is important for the overall business success! Read and discover the ecommerce ROI calculation formula!

According to us, ROI is one of the most important factors that should be considered before any purchasing decision. Can you agree with us? For many B2B businesses and entrepreneurs, calculating ROI or Return on Investment prior to choosing a new B2B wholesale platform is crucial for the overall business profit. Wondering what happens when the ROI is impossible to completely quantify? Well, this is a challenge many B2B businesses experience when it comes to choosing a new ecommerce solution for the B2B store. Yes, you could always use a formula to determine the ROI of the ecommerce platform, however, the chances are it won’t give you an accurate representation of your ROI.

The standard ecommerce calculation formula used to determine ROI looks something like this: (new site revenue – old site revenue) x 100 / investment = ROI percentage.

Although this formula is excellent for getting an idea of the revenue changes related to your new investment, they are not capable of encompassing the context that surrounds the revenue.

For a better and more accurate perspective on the future ROI of the new B2B wholesale platform, you will need to consider a few things:

Market Share

Online B2B entrepreneurs that own their market are not likely to experience revenue increase once they will decide to use a new ecommerce solution. If one store is a market leader, the business owner will need to look beyond revenue numbers to calculate what the ROI would be with implementing a new B2B ecommerce platform. In this case, analyzing the potential impact of the new ecommerce solution for a longer time like customer lifetime value will help you calculate what your return on investment will look like.

Process Efficiency:

An ecommerce solution that provides its users with extensive automation has a huge potential to deliver returns in efficiency. You can consider your current inventory management, order processing, shipping, and customer communication processes. If these operations are not extended the way you want, you are probably wasting money and time on the current ecommerce platform. It means it is time for a change.

Customer Lifetime Value:

If your current ecommerce website fails to retain the interest of the visitors and your buyers, those people may start spending less time looking at competitors’ websites. The customers are more likely to return and buy your products when they have an account on the website, find it easy to search through your online store, and purchase what they need. Optimizing customer return rates with an online store built to engage them means growing customer lifetime value which is a very important source of revenue.

Website performance:

Low website traffic, high bounce rates, slow loading speeds can be indicative of a B2B wholesale platform failing to do its work. The visitors could be leaving your website because they simply can’t find the products they are looking for. They might be clicking away because some page elements fail to load or are broken. You can use Google Analytics to check out your page performance and get into your customers’ experience. You can use the information to discover the weakness you would like the new platform to address.

Website performance:

Low website traffic, high bounce rates, slow loading speeds can be indicative of a B2B wholesale platform failing to do its work. The visitors could be leaving your website because they simply can’t find the products they are looking for. They might be clicking away because some page elements fail to load or are broken. You can use Google Analytics to check out your page performance and get into your customers’ experience. You can use the information to discover the weakness you would like the new platform to address.