Return on investment (ROI): Definition, Formula & Why It Matters

Also called: ROI, Return on cost

ROI measures your net profit as a percentage of the cash you put into an item, including purchase price, repairs, and shipping. It is a favorite metric among resellers because it shows how efficiently your capital worked, regardless of the sale price.

Return on investment (ROI) formula

ROI = net profit ÷ total invested × 100

Example

A resale that nets $230 on $292 invested has an ROI of about 79%.

Why it matters for Reverb sellers

Two sales can share the same margin but very different ROI depending on how cheaply you bought. ROI tells you where to put your next dollar of buying budget for the best return.

How Verbstack helps

Verbstack tracks ROI per order so you can see which gear and categories return the most on your cash.

Try it yourself with the Reverb ROI Calculator.

Track this on every order, automatically.

✓ Real fees, margins, and profit on every Reverb sale
✓ COGS and inventory tracked for you, no spreadsheet
✓ Full history and a live monthly P&L

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