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A Selling Wine Online Financial Model

17 February 2010

I’ve done a number of financial models looking at the ROI of a online wine store. Here’s my top level calculations for you to put in your own spreadsheet. Wine Revenue = Traffic Volume * Conversion% * Order Value. So the amount of revenue you get depends on the volume times the % who buy times the dollar value. Wine Online Cash flow = Net Revenue less Variable and Fixed Costs…

The Profit of an Online Wine Store: some Financials

15 February 2010

But here’s the problem, many websites look fantastic and fail to make a return on investment. The frustrated wine retailer then writes off the internet as useless. And yet research shows that 4-6% of a retailer’s business is now over the internet. So let’s do the financial numbers to assess ROI