Oriol Gifra

One of the most common questions regarding new e-Commerce projects is how to calculate revenue estimates.

For me one easy way is to take 3 factors to calculate it (I’m not describing here ROI, I’m here talking about revenue estimates calculation):

Audience = Absolute Unique Visitors (daily, monthly…).
Conversion Rate (%) = Buyers/Absolute Unique Visitors.
Average Purchase Value = From site purchase past date try to stablish an average (daily, monthly…) purchase value.   

I personally prefer to use Absolute Unique Visitors as a audience metric because I think the purchase capability belongs to each single people, not visitors or page views.

From here you can download an Excel spreadsheet (download in ZIP format) to calculate it. Just change the different figures to adapt it for different forecast patterns.

At the end there is no secret. To reach a revenue goal you can work on volumen or quality, that is increasing audience or conversion.