VALIGARA's ROI EXAMPLES or HOW DO I RETURN MY INVESTMENT in Valigara?

What is Return on Investment (ROI), and how is it calculated?

“Is Valigara good for my business?” ,”Isn’t it too expensive for me today?” ,”How do I return the money I put in Valigara subscription?”  

When allocating a budget on a business software, you’re making an investment, and you have to know it’s going to be profitable. The Return On Investment (ROI) is a performance measure used to evaluate the efficiency or the profit of an investment made. After seeing hundreds of different jewelry businesses using Valigara, we wrote down the common cases. 

ROI Net Profit / Cost of Investment

valigara roi

ROI example: Retailer, no online presence

Approach: Convert an existing sales team member to eCommerce &  utilize free time of store sales people


    1. Current B&M store turnover, monthly: $100K
    2. eCommerce sales share, after 1 year: 20%
    3. Standard revenue rate: 30%
    4. Yearly Valigara package: $7,300 (Silver package: $399/month + setup $2500)
    5. Initial social advertising budget / month: $1000
    6. Online Sales Revenue, Net Growth: $100K*12*20%*30%=$72000
    7. ROI = (100K*12*20%*30%)
                    (7300+1000*12) = 
      373%

ROI example: eCommerce: Single website / marketplace

Approach: Use Valigara automation to reduce costs of eCommerce operation (content generation, listing, channel & orders mgmt)

 

  1. Valigara saves 80% of cost of eCommerce operation
  2. eCommerce operator monthly salary: $3000
  3. Valigara package (for eCommerce sellers), monthly: $630
  4. ROI = (3000*80%) / 630 = 380%
Approach: eCommerce growth due to improved processes
  1. Current eCommerce volume, monthly: $50K
  2. eCommerce growth rate, after 1 year: 20%
  3. Standard revenue rate: 25%
  4. ROI = ($50K*20%*25%) / 630 = 397%
 

ROI example: eCommerce: Website / marketplace: inventory not online

Issue solved:

Large part of the inventory is not online

 

Approach: Use the automation to upload the inventory online, to generate more sales.

  1. 50% – 80% items are not online
    1. Sales growth: 100% – 400%
  2. Opportunity loss:
    1. low: $50K*100% = $50K
    2. high: $50K*400% = $200K
  3. Current monthly sales: $50K
  4. Standard revenue rate: 25%
  5. Average Valigara package (for eCommerce sellers) $630
  6. ROI
    1. low: $50K * 25% / 630 = 1980%
    2. high: $200K * 25% / 630 = 7900%

ROI example: eCommerce: Website / marketplace: eCommerce team’s full capacity

Issue solved:

Growth limit due to eCommerce team’s full capacity

 

Approach: Use Valigara automation to expand to additional sales channel, while using the same team

  1. Automation increases team’s capacity by 2 channels
  2. Each channel sales addition, after 1 year of operation: 30% – 200%
  3. Valigara cost (3 channels): $500
  4. Standard revenue rate: 25%
  5. Current monthly sales: $30K
  6. ROI
    1. low: $30K * (30%+30%) * 25%/ 500 = 900%
    2. high: $30K * (200%+200%) * 25% / 500 = 6000%

ROI example: eCommerce: Amazon seller

Issues solved:

 

  1. underused Attributes -> mappings -> 30-200% visibility , 25% CRO
  2. non formatted descriptions / EBC / A+ content -> CRO increase: 10% for fashion, 20% for fine and loose
  3. non-seasoned titles & faster update rate -> increase up to 25% in sales
  4. not optimized titles -> visibility : up to 50%
  5. missing/not optimized bullets -> CRO : up to 30%
  6. no promotional images -> 10% CRO increase
  7. wrong formats / variations -> 30-100% CRO increase
 

ROI calculation:

  1. Sales growth, brutto
    1. low: 0.3+0.25+0.1+0.25 +0.5 +0.3 +0.1 +0.3 = 210%
    2. high: 2+0.25+0.2+0.25 +0.5 +0.3 +0.1 +1 = 460%
  2. Current Monthly sales: $50K
  3. Revenue rate, low: 20%
  4. Valigara cost, average (for eCommerce sellers) $630
  5. ROI
    1. low: ($50K*210%*20%)/630 = 3330%
    2. high: ($50K*460%*20%)/630 = 7300%

ROI example: eCommerce: eBay seller

issues solved:

 

  1. underused Item Specifics (recommended, custom) -> mappings -> 30-200% visibility , 25% CRO
  2. non formatted descriptions -> increase CRO (conversion), 10% for fashion, 20% for fine and loose
  3. non-seasoned titles & faster update rate -> increase up to 25% sales rate
  4. not optimized titles , below 73 chars -> visibility : up to 50%
  5. no promotional images -> 10% CRO increase
  6. wrong formats -> 30-100% CRO increase

     

ROI calculation:

    1. Sales growth, brutto
      1. Low: 0.3+0.25+0.1+0.25 +0.5 +0.1 +0.3 = 180%
      2. High: 2+0.25+0.2+0.25 +0.5 +0.1 +1 = 430%
    2. Current Monthly sales: $50K
    3. Standard revenue rate: 25%
    4. Average Valigara package (for eCommerce sellers) $630
    5. ROI
      1. low: ($50K*180%*25%)/630 = 3570%
      2. high: ($50K*430%*25%)/630 = 8530%

Our customers would love to tell you how Valigara grew their business and simplified their work:

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