How to use this calculator?
Why use the OneSmile B2B eCommerce ROI calculator?
Since no businesses are alike, no two businesses can expect the same return on investment (ROI) of their B2B eCommerce solution. Calculating ROI on any digital investment is tricky, but our ROI eCommerce calculator makes it easier to get insights into the time and money saved through increased sales and productivity.
This calculator is useful for:
- CEOs and Company Owners
- eCommerce Directors or Managers
- CMOs, Marketing and Sales Managers
- IT Directors and CTOs
- Operations Directors
Want some level of understanding of when your eCommerce platform will begin to pay off? Just plug in your numbers. This planning tool will take the financial data you input and automatically add in the OneSmile Commerce average costs to estimate ROI. You’ll also get an estimate of the break-even point and time to ROI.
Entering and obtaining data
Input company-specific data in the white fields. As you enter your data, the calculator will automatically pre-populate data in the grey fields. Some of the values are estimates based on average stats from OneSmile Commerce. Feel free to replace them with other vendors' numbers.
Results you get with this B2B eCommerce ROI tool
The results are actionable benchmarks based on the data you enter.
- Months to ROI
- ROI 6 months post break even
- Investment per period
- Added revenue per period
- ROI and Break Even Point chart comparing total costs to total gains over time.
How are calculations made?
ROI compares the economic benefits gained from an investment to the investment cost. An ROI analysis determines whether the investment in B2B eCommerce technology generates profits over and above the cost. In simple terms, it's whether the project pays off.
- Overall sales revenue
- Number of annual customer acquisitions and orders
- Projected annual sales growth ratio.
The OneSmile B2B eCommerce ROI calculator uses the formula:
Your eCommerce investment is more than the software licensing cost. This calculation captures upfront license and implementation costs and ongoing maintenance and support costs. You get a comprehensive assessment of the total costs.
What is a good ROI for eCommerce?
Every company is different and achieving positive ROI takes time. Most digital transformation initiatives involve a high initial spend, then decreasing costs. For example, your ROI can be negative the first six months while you launch but then quickly reverse to a positive trajectory.
FAQ and Glossary of terms
What is ROI in eCommerce?
Return on Investment (ROI) is the performance metric that evaluates the benefit received from an investment. In eCommerce, it’s the gain you achieve from digital transformation, with ROI expressed as a percentage. Positive ROI means the investment paid off and generates profit.
How to calculate ROI for eCommerce?
To determine the ROI of your B2B eCommerce efforts, you need to measure three key things:
- The Total Cost of Ownership of the software (license cost, implementation costs and how much you spend to maintain eCommerce operations)
- Customer acquisition costs
- The sales revenue generated from your eCommerce site
Once you have these numbers, you can use the following formula to calculate B2B eCommerce ROI:
ROI = (Profit from the investment – Investment cost)/Investment cost
Average Order Value (AOV) is the average total amount of every order placed during a defined time period.
Break Even Point (BEP)
Break Even Point (BEP) occurs when the total cost of ownership equals total revenue. At this point there is no loss or gain. Gains beyond BEP represent positive ROI.
The upfront fee for software acquisition. This fee (usually annual) provides rights to use software within vendor-established terms. Calculate license cost by multiplying the estimated number of users by a per-user fee. Depending on the vendor, there may be additional costs assessed on a SKU, transaction, or active client basis.
Software customization and implementation incurs costs related to modifying and customizing the design, front- and back-end. Usually calculated as the cost of development services per period required to launch a project.
Maintenance costs relate to software updates, upgrades, customizations, infrastructure hosting, and support. This is usually excluded from the license fee.
The Total Cost of Ownership (TCO) includes the purchase price plus the costs of operation. Calculated as: license cost + implementation cost + maintenance cost.
Gross Merchandising Volume (GMV) is the total value of goods sold in a time period. It is calculated before deducting fees and expenses and excludes discounts or returns.