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ecommerce revenue formula
by
smacnew
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Revenue Formula for Ecommerce Site
Percent
Impact
Variable
Unit
Amount
Increase
of Increase
Methods and Costs to Impact
Unique visitors
000's
1,000
10.00%
$100,000
Advertising ($10 CPM and 1% CTR yields $1 cost per visitor)
Purchase rate
%
1.00%
10.00%
$100,000
UI enhancements, merchandising, targeted advertising
Items purchased
1
2
10.00%
$100,000
Discount bundles (free shipping over $50, etc.)
Purchase price
$
50
10.00%
$100,000
Product/brand mix, premium service
Total revenue
$
$1,000,000
Revenue per Unique Visitor
$
$1.00
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