What is ROI? Return on investment and how to work it out for your ads and store
The ArabyBot teamOfficial Meta partner · written from our own platform dataOn this page 4
The short answer
ROI stands for return on investment, and it is worked out as (net profit ÷ cost) × 100. If you spent 2,000 on a campaign and it earned 3,000 after the cost of goods, shipping and returns, the net profit is 1,000 and the return is 50% (an illustrative example).
Also asked as: «roi يعني ايه» · «roi بالعربي» · «roi معنى اختصار»
Why does Return on investment matter to a seller?
Because it is the only question that matters in the end: did the money you spent come back with a profit? A campaign that brings lots of sales can still have a negative return if discounts and returns eat the margin.
Return on investment in ArabyBot
It differs from return on ad spend (ROAS) in that ROAS divides sales by spend, while ROI counts profit after every cost. Work out your break-even point with the break-even calculator, and the ads manager shows the cost per delivered order for each ad.
Frequently asked questions
What is a good ROI?
Any positive return after all costs means the campaign made money; compare your campaigns with each other rather than with a general number, because margins differ from product to product.
Do I calculate it from sales or delivered orders?
From delivered ones: an order refused at the door cost you shipping and brought in no money.
Related terms
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