Ever wonder why some eCommerce businesses scale like crazy while others flop? It’s all about understanding which metrics to focus on: ROI or ROA. Knowing the difference between Return on Investment (ROI) and Return on Assets (ROA) can change your game plan. It's not just about investing money; it's about how effectively you use your assets to grow your business.
Running an eCommerce business? You know it's not just about making sales; it's about making smart use of your resources. That's where Return on Capital Employed (ROCE) comes in. A good ROCE for your eCommerce business is typically over 15%. It shows you're using your capital well to generate profits.
If you're looking to scale your eCommerce store, you've got to master the Cash Conversion Cycle (CCC). This might sound like another finance buzzword, but it's actually a game-changer. The CCC directly impacts how quickly you turn investments into profits, which can make or break your growth.
Choosing the right costing method can make or break your scaling efforts in eCommerce. Value-based pricing is often the most effective strategy for scaling your eCommerce store. It allows you to set prices based on customer perception and worth, not just costs or competition.