The purpose of the embedded ecommerce SEO ROI Calculator on this page is to give you a quick and easy way to forecast your SEO ROI based on investment and growth.
There are two terms you should be familiar with: ROI and ROAS. ROAS is “return on ad spend”, which is used for paid ad spend but we can also use it for SEO initiatives because you have an external spend (agency, tools, etc) as well as (most likely) internal teams working on your ecommerce SEO initiatives. Those internal teams cost money, so that expense goes into your full ROI calculations which is calculated this way:
How much did we make / how much did we spend = ROI
If you make $1,000,000 extra and spend $100k to get there (average $8,333 a month over 12 months), your immediate ROI is 10:1. Of course SEO traffic is the gift that keeps on giving, so in 5 years time (assuming that traffic sticks around and even keeps growing) your return will be 50:1. That’s pretty incredible.
Of course, SEO traffic doesn’t just “stick around”. Google is always tweaking and changing and markets are not static, so it’s reasonable to expect that if SEO is working for you then it is also working for or will be working for your competitors. So the investment doesn’t end, but it’s a good gauge for the return you could continue getting.