E-commerce MER (Marketing Efficiency Ratio)

Ecommerce Marketing Efficiency Ratio (MER) measures the overall effectiveness of an Ecommerce company’s marketing strategy by comparing the total revenue generated to total marketing expenses. It’s an important metric for ecommerce accounting and for businesses to understand how well their marketing efforts are driving sales and profits. A higher MER indicates that marketing activities are yielding a greater return on investment, while a lower MER signals the need for better efficiency in spending.

MER is useful for evaluating the impact of all marketing initiatives, from digital ads to influencer partnerships, on the revenue generated. By tracking MER, ecommerce businesses can make adjustments to their marketing budget allocation, optimize campaigns, and focus on the channels that are delivering the best results. It’s a comprehensive measure of marketing efficiency that helps businesses ensure they’re investing in the right strategies to grow their brand.

‍