E-commerce company management needs to use ROI strategies to ensure that every investment yields a return.

OnE-commerceIn company operations, management actions are essentially costs, and only by adopting an ROI mindset can we ensure that the input-output ratio is maximized.

This book provides an in-depth analysis of the core logic of e-commerce management ROI, combined with real-world case studies, to help companies accurately identify problems, quantify losses, and optimize management practices, thereby improving both team efficiency and profits.

Want to make your e-commerce management more efficient and profitable? Learn about ROI-driven management strategies now!

Management and business operations are essentially the same; both aim to achieve ROI.

Management is not an art, but an investment.

Every management action represents a visible cost.

If there is no return, it is a pure waste.

This is the topic I'm going to talk about today: the ROI of management.

Many people think that management is "soft" and intangible.

But in reality, just like managing and doing business, it all comes down to accounting – every management action must be calculated around ROI.

It calculates the ratio of input to output, and calculates ROI.

ROI stands for Return on Investment.

Businesses need to pursue ROI, and management needs to pursue ROI even more.

Because every action in management incurs a cost.

For example, adjusting a performance rating requires communication with the employee and monitoring its implementation.

These actions may seem simple, but they require a significant investment of time and effort.

Time and effort are essentially costs.

If this adjustment does not bring returns, then these costs will not be recovered.

Therefore, management is not about "managing a lot", but about "managing effectively".

True management masters are not those who are busy in meetings every day, but those who know how to calculate ROI.

Knowing how to invest limited energy in the most worthwhile areas.

The core logic of e-commerce management ROI

The logic behind managing ROI in e-commerce is actually quite simple.

1. The first step is to create a list of questions.
2. The second step is to estimate the losses caused by the problem.
3. The third step is to assess the cost of solving the problem.
4. The fourth step is to calculate the benefits after solving the problem.
5. The fifth step is to decide whether to take management action.

These five steps form the basic framework for managing ROI.

It sounds like a financial model, but it's actually the essence of management.

Because management is resource allocation, and the core of resource allocation is ROI.

The Importance of a Question List

Many managers like to make decisions on a whim right from the start.

If employees are found to be slacking off, performance evaluations will be increased immediately.

Upon seeing a decline in performance, they immediately convened a large meeting.

However, doing so is often inefficient.

Because a list of issues was not compiled first.

The problem list is like a "medical record" for management.

Only by clearly diagnosing the problem can we prescribe the right remedy.

For example, is it due to insufficient employee execution or unreasonable task allocation?

Is it a poor state of mind, or a lack of clear goals?

Different problems lead to different losses.

Different types of losses determine whether it is worthwhile to invest in management costs.

Quantification of loss

Many people feel that management is "abstract" and that losses are difficult to quantify.

But actually, you can calculate it by simply changing your perspective.

For example, half of the employees in a certain position are not doing their jobs well.

If solving this problem can double their output, that would be a significant benefit.

Let's assume this position generates 100 million in revenue per month.

Half of the employees are slacking off, which means a loss of at least 30.

By strengthening assessments and communication, output value can be brought back to 100 million or even higher.

The management costs incurred will then be worthwhile.

This is the quantitative logic for managing ROI.

Selection of management actions

Once we understand the problems and losses, we need to choose management actions.

There are many management actions: strengthening performance evaluation, increasing communication, adjusting division of labor, and optimizing processes.

But not all actions are worth doing.

For example, holding a large conference might take dozens of hours.

If this conference cannot bring about substantial improvements, then it is a negative ROI.

A precise performance adjustment may only take a few hours, but it can bring huge returns.

Therefore, management actions must be carefully selected.

Like investing, invest where the returns are highest.

Management under the ROI mindset哲学

ROI thinking makes management clearer.

It prevents us from falling into the trap of thinking "more control is better".

Instead, it teaches us that "good management is only good if it's worthwhile."

This is a management philosophy.

It requires us to be as shrewd and calculating as entrepreneurs.

We are required to pursue returns like investors.

We are required to act like strategists and grasp the key points.

Case Study: ROI of Performance Adjustment

Suppose a team has 10 people, and 5 of them are not in good condition.

Their output is only half of the normal level.

If performance adjustments and communication can help them return to normal levels.

That would increase the team's output by 50%.

Assume the team's monthly output is 200 million.

A 50% increase means an additional 100 million.

The cost of performance adjustments may only be a few hours of communication and supervision.

The ROI is clearly good, and very high.

This is a typical case of managing ROI.

Why not manage everything?

Many managers like to be meticulous about everything.

They believe that any problem should be addressed.

However, this kind of thinking often leads to low ROI.

Because for some problems, the cost of solving them far outweighs the benefits.

For example, an employee is a few minutes late every day.

If you spend a lot of time monitoring, the benefits may be minimal.

However, if you focus your efforts on improving the overall efficiency of the team, the benefits will be greater.

Therefore, management should focus on the big picture and delegate the small details.

We should manage the things that are worth managing.

Managing ROI and Corporate Culture

Managing ROI is not just a tool, but a culture.

It requires businesses to cultivate an atmosphere of "accountability".

Managers and employees must understand that every action incurs a cost.

We urge everyone to pursue efficiency and returns, rather than form and appearance.

This kind of culture will make the company healthier.

Because it avoids ineffective consumption and waste of resources.

My Viewpoint and Conclusion

In my opinion, managing ROI is a must-learn course for modern e-commerce companies.

It is not just a method, but a way of thinking.

It allows management to return to its essence and enables e-commerce companies to become more efficient.

It teaches us that management is not about "doing more," but about "doing worthwhile."

It makes us realize that every action should be accounted for, and every investment should be expected to yield a return.

This is a combination of rationality and wisdom, a unity of strategy and philosophy.

In this era of limited resources and fierce competition, managing ROI is the key to a company's survival.

It is a symbol of efficiency, a manifestation of value, and a direction for the future.

This is key to the efficient operation of a company and a reflection of the wisdom of its managers.

So from now on, before you take any management action, please ask yourself: What is the ROI of this action?

If the answer is yes, then do it.

If the answer is negative, then stop.

Effective management is not about being busy, but about being efficient.

Efficient management must be ROI-driven.

This is my complete understanding of managing ROI.

Are you ready to start calculating the accounts?