Estimate how much revenue your ecommerce app can generate

Our Ecommerce App Revenue Calculator is a simple tool  to estimate the potential revenue your ecommerce app can generate.

By inputting specific metrics such as website visits, average order value, and current conversion rates, you can see how an app could impact your sales just a few months after launching it.

• Monthly website visits: This metric represents the total number of visits your website receives each month. You can find this data in your website analytics tool, such as Google Analytics. Look for the “Users” or “Sessions” metric in the overview section of your analytics dashboard.
• Average order value (AOV): The average order value is the average amount of money spent by customers per transaction. To calculate AOV, divide your total revenue by the number of orders in a given period. For example, if your total revenue for the month is $75,000 and you had 1,000 orders, your AOV would be $75.
• Current website conversion rate: The conversion rate is the percentage of website visitors who complete a desired action, such as making a purchase. To calculate your website’s conversion rate, divide the number of conversions (e.g., sales) by the total number of visits, then multiply by 100. For instance, if you had 600 conversions from 30,000 visits, your conversion rate would be (600/30,000) * 100 = 2%.

The conversion rate for the app is estimated based on sector benchmarks and our experience with similar ecommerce businesses.

Typically, apps see higher conversion rates compared to websites due to a more focused and engaging user experience.

In an app, customers are not distracted by multiple tabs or other browsing options. They have made the conscious decision to download your app and have opened it, indicating a higher level of interest and intent. On top of that, push notifications, like cart abandonment reminders, significantly boost conversions and generate additional sales you wouldn’t otherwise get without a mobile app.

This focused environment significantly increases the likelihood of conversion compared to a website visitor who may have landed on your site from social media or a search engine.

App users are often already logged in, with their personal details stored securely in their accounts. This convenience eliminates friction in the buying process, making it easier and faster for customers to complete their purchases.

Another key advantage of an app is the ability to send push notifications. Push notifications are a powerful tool for re-engaging customers, reminding them of ongoing promotions, announcing new products, or simply bringing them back to the app. These timely reminders keep your brand top-of-mind and encourage repeat visits.

Push notifications for cart abandonment are extremely effective. They nudge customers who have added items to their cart but haven't completed the checkout process. These reminders can significantly reduce cart abandonment rates and recover potentially lost sales.

The focused user experience, ease of purchase, and the strategic use of push notifications make ecommerce apps a highly effective platform for increasing conversion rates and boosting sales.

Your brand’s app will typically be used by your most loyal customers. By downloading your app, customers show a commitment to your brand, indicating a higher level of loyalty and engagement.

This loyal customer base is more likely to engage with your content, respond to promotions, and make repeat purchases, as well as spend more in the app, compared to your average website visitor.

With an app, you give these loyal customers a more convenient shopping experience, which will lead to higher average order values. With a constant presence on their phones, customers find it easier to discover and buy products that match their preferences, resulting in increased sales.

On top of that, you get an incredibly powerful channel to reach these hyper engaged customers with push notifications, essentially for free (you don’t pay for push on top of what you pay for the app). Sending reminders, promotions and offers through push notifications leads to immediate surges in sales and revenue for every send. Again an entirely additional revenue generated by the app, which is evidenced in a higher average order value.

An ecommerce app can improve your sales by:

• Improving user experience with a mobile-optimized experience
• Providing a convenient shortcut on people’s phones, through your app’s app icon
• Enabling push notifications to re-engage customers
• Offering an overall faster checkout process
• Keeping users logged in, repeat purchases are more convenient
• Encouraging loyalty through app-exclusive offers
• Using cart abandonment push notification reminders to bring people back when they leave items in their cart

While our calculator provides an accurate projection based on historical data and industry trends, actual revenue can vary due to several factors including your specific category, promotional strategies, and customer engagement levels.

Our estimate serve as a reliable guide to understanding the potential impact of an ecommerce app.

You’ll see better results if you’re in a niche that fits best with mobile shopping habits, and if there’s natural potential for repeat purchases in your category.

You’ll also see better results as you promote your app to your existing and new customers. This can be done very effectively just by displaying banners, download buttons and QR codes on your site whenever relevant e.g. while customers are already on their phones, browsing your site. MobiLoud’s team can help with setting these up for your site and app.

The data used for our calculations is sourced from an analysis of our ecommerce customers at MobiLoud. We have taken a representative sample to ensure the projections reflect real-world results and provide valuable insights for your business.

An ecommerce app can improve customer loyalty and retention through a dedicated, more convenient experience from your most loyal customers, exclusive in-app promotions, exclusive product drops, and push notifications that keep customers engaged.

Our data shows that apps significantly improve customer retention rates. App users come back more often, spend more time, purchase more and more frequently than the average website visitor.

While the mobile app revenue calculator provides a static revenue projections, it incorporates insights into potential long-term growth by assuming a future state in which the app has been already launched and promoted to your existing customers.

It will not be a realistic estimate for your first month with an app, but a pretty close estimation for your app revenue 6 months in the future.

You can use the ecommerce app revenue calculator to make a decision about building an app by comparing the potential lift in revenue with the cost of the initiative.

The calculator provides a clear indication of how much additional revenue your app could generate based on your current business metrics.

The calculator helps you understand the financial benefits of having an app. You can then compare these potential revenue gains against the costs of app development.

For example, developing an app with MobiLoud involves minimal ongoing costs and no separate maintenance, as the app updates automatically with your website. This contrasts sharply with custom-built apps, which require significant initial investment and ongoing maintenance expenses. For more on the cost, see the following question in this FAQ.

This tool essentially helps you balance the cost against the benefits, making it easier to decide whether an app is a worthwhile investment for your ecommerce strategy.

Developing an app with an agency can cost around $250,000 for the initial build, with ongoing expenses of at least $150,000 a year. Building a custom app in-house is even more expensive, often costing $500,000+ a year, assuming a small team dedicated to the app (developers, designers, UX, product managers).

Using an ecommerce-specific mobile app builder (Tapcart, Plobal, Shopney) can cost between $400 to over $15,000 a month, when revenue-based fees are factored in.

It’s quite different with MobiLoud. For our typical ecommerce customers, building mobile apps will cost between $299 a month to $3,500 a month (for our corporate customers). Our typical ecom customer spends $549/month for their mobile app, with no additional revenue-based fees. Exact pricing depends on the number of active users on the app.

If you’re a DTC brand over a million dollars a year, the ROI from a MobiLoud app is a no-brainer.

Your loyal customers already love your brand, and giving them a direct shortcut to your app on their home screen makes it even easier for them to engage.

Push notifications bring them back for new offers, launches, promotions, driving repeat purchases, increased engagement, and bigger lifetime value.

Your app puts your brand front and center, keeping customers coming back more often.

The improved experience, combined with better conversion rates, quickly turns into higher revenue.

And because MobiLoud is so cost-effective, most brands see the app pay for itself in the first month. If you’ve got a strong following, a mobile app can be the ultimate loyalty booster, bringing customers back again and again.

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