ROI (Return on Investment)
Category: Finance
Also searched as: ROI
Definition (plain English)
ROI compares the gain from an investment with the cash or cost committed to it, usually expressed as a percentage.
Why it matters commercially
ROI helps decide whether a product launch, container buy, tooling spend, ad campaign, or inventory build is worth the capital tied up.
Example
A buyer rejected a private-label launch after the tooling, first MOQ, freight, duty, and marketing spend would not pay back within the approved season.
Common mistake
Quoting ROI from gross profit only while ignoring working capital, launch costs, returns, markdowns, and the time required to recover cash.
Use this in CommerceKit
Target Buy Price Calculator
Use tool →Container Profit Calculator
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