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Amazon Glossary

ROI

Return on Investment

Terms, metrics, and workflows around Amazon Seller, Vendor, and Marketplace operations.

What it means

ROI (Return on Investment) measures investment profitability: ROI = (profit / investment) × 100%. An ROI of 50% means that for every euro invested, you generate 0.50 euros in profit. Sellers should calculate ROI for all investments including inventory, advertising, and tools to optimize resource allocation. Positive ROI is essential for sustainable business growth.