The E-Commerce Growth Formula
(V x CR x LTV)-VC=$ profit
If you're in the e-commerce business, you know that making a profit can be a challenge. There are so many moving parts to consider, and it's hard to keep track of them all. But what if you discover and start applying that formula for success? A simple equation that will take into account all the important factors and spit out a number telling you how much profit you can expect to make? The Formula: V x CR x LTV-VC=$profit
This is the number of people who visit your website or online store on a monthly basis.
This is the percentage of visitors who take the desired action on your site, such as making a purchase.
This is the total amount of money that a customer spends with your business over the course of their relationship with you.
This is the total amount of money that you spend on shipping, marketing, and other variable costs associated with fulfilling orders and running your business.
So there you have it—the perfect formula for e-commerce success! By increasing traffic and conversion rates while simultaneously decreasing variable costs, you can boost your profits significantly. So what are you waiting for? Get out there and start putting this equation to work for your business!