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