ROI (Return on Investment) is a key metric that helps you understand how much profit you’re making compared to how much you spent on an item.
In simple terms, ROI tells you:
👉 “Was this item worth the money I invested?”
📊 How ROI Works
ROI measures the return you get from your investment using this formula:
ROI=ProfitCost×100ROI = \frac{Profit}{Cost} \times 100ROI=CostProfit×100
Profit = Selling Price – Total Costs
Cost = Your buy cost (and sometimes additional expenses)
💡 Simple Example
Item | Amount |
Buy Cost | $10 |
Selling Price | $25 |
Fees & Expenses | $5 |
Profit | $10 |
👉 ROI = ($10 ÷ $10) × 100 = 100% ROI
This means you doubled your money on that item.
📈 Why ROI is Important
ROI helps you:
Compare different products quickly
Decide what items are worth sourcing
Avoid low-profit or risky items
Scale your business more efficiently
👉 The higher the ROI, the better your return on each dollar spent.
⚖️ ROI vs Profit (Important!)
Profit = How much money you made
ROI = How efficient your investment was
Example:
Item A: $5 profit on $5 cost → 100% ROI
Item B: $20 profit on $50 cost → 40% ROI
👉 Even though Item B has higher profit, Item A is more efficient.
⚠️ Things to Keep in Mind
Always include fees and expenses when calculating profit
High ROI doesn’t always mean high total profit
Balance ROI with sales volume and demand
💼 How It Helps in AccelerList
In AccelerList, ROI is automatically calculated when you:
Enter your buy cost
Track your expenses
👉 This helps you instantly see which items are worth buying and selling.
✅ Summary
ROI (Return on Investment) shows how much profit you make compared to what you spent. It’s one of the most important metrics for resellers to make smart sourcing and pricing decisions.