{"id":14132,"date":"2024-04-15T10:00:00","date_gmt":"2024-04-15T10:00:00","guid":{"rendered":"https:\/\/www.shipbob.com\/uk\/blog\/gmroi\/"},"modified":"2025-12-26T06:44:53","modified_gmt":"2025-12-26T06:44:53","slug":"gmroi","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/uk\/blog\/gmroi\/","title":{"rendered":"What is GMROI, and What Does it Mean for Your Retail Inventory?"},"content":{"rendered":"\n<div class=\"wp-block-shipbob-blocks-single-toc single-toc\" data-controller=\"blog-toc-controller\" data-action=\"scroll@window-&gt;blog-toc-controller#scrollChanged:passive\" id=\"toc-component\"><div class=\"single-toc-overview\"><p>Table of Contents<\/p><div class=\"single-toc-read-time\"><p>** Minutes<\/p><\/div><\/div>\n<p><a href=\"#h-what-does-gross-margin-return-on-investment-mean-nbsp\">What does gross margin return on investment mean?&nbsp;<\/a><\/p>\n\n\n\n<p><a href=\"#h-gmroi-formula-and-calculation-with-example-nbsp\">GMROI formula and calculation (with example)&nbsp;<\/a><\/p>\n\n\n\n<p><a href=\"#h-gmroi-s-importance-for-retail-inventory-management-nbsp\">GMROI\u2019s importance for retail inventory management&nbsp;<\/a><\/p>\n\n\n\n<p><a href=\"#h-practical-tips-for-improving-gmroi-nbsp\">Practical tips for improving GMROI&nbsp;<\/a><\/p>\n\n\n\n<p><a href=\"#h-shipbob-s-unique-approach-to-boosting-ecommerce-gmroi-nbsp\">ShipBob\u2019s unique approach to boosting ecommerce GMROI&nbsp;<\/a><\/p>\n\n\n\n<p><a href=\"#h-gross-margin-return-on-investment-faqs\">Gross margin return on investment FAQs<\/a><\/p>\n<\/div>\n\n\n\n<p>Every merchant dreams of being able to sell their products quickly. However, sales alone aren\u2019t enough to grow your business \u2013 let alone keep it afloat.&nbsp;&nbsp;<\/p>\n\n\n\n<p>To keep your business going, it needs to be profitable. That means you must see a sufficient return on your inventory investment. In other words, you need to make more money selling your inventory than you spent to acquire, store, and fulfil orders with it.&nbsp;&nbsp;<\/p>\n\n\n\n<p>That\u2019s why you need to closely measure metrics such as gross margin return on investment (GMROI). By calculating and tracking your GMROI, you can make more informed decisions on pricing, budgeting, and inventory spending, so that your business can not only survive, but thrive.&nbsp;&nbsp;<\/p>\n\n\n\n<p>In this post, we\u2019ll cover what GMROI is and why it\u2019s important for your retail inventory management. We also walk through an example GMROI calculation, and share some actionable tips for improving your own brand\u2019s GMROI.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-does-gross-margin-return-on-investment-mean-nbsp\">What does gross margin return on investment mean?&nbsp;<\/h2>\n\n\n\n<p>Gross margin return on investment, or GMROI, is a measure of inventory profitability in the retail industry. Specifically, GMROI measures how much profit you generate from every dollar you invest in your inventory purchases.&nbsp;<\/p>\n\n\n\n<p>This metric doesn\u2019t just account for the cost of buying inventory. It also factors in other expenses involved in holding, maintaining, and preparing inventory for sale, such as <a href=\"https:\/\/www.shipbob.com\/warehouse-operations\/inventory-storage\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory storage<\/a>, transportation, labour, and marketing.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Because GMROI takes all expenses related to inventory into account, it can provide ecommerce retailers with a realistic and holistic understanding of their business profitability.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-gmroi-formula-and-calculation-with-example-nbsp\">GMROI formula and calculation (with example)&nbsp;<\/h2>\n\n\n\n<p>The formula for calculating GRMOI is:&nbsp;<\/p>\n\n\n\n<p class=\"is-style-indent\"><strong>GMROI = Gross profit\/Average inventory cost&nbsp;<\/strong><\/p>\n\n\n\n<p>As you can see, there are two critical metrics needed to make your calculation. These two metrics can be calculated using their respective formulae.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-gross-profit-nbsp\">Gross profit&nbsp;<\/h4>\n\n\n\n<p>Gross profit (also called gross margin) is how much profit you were able to generate while accounting for variable costs such as labour and <a href=\"https:\/\/www.shipbob.com\/blog\/supply-inventory\/\" target=\"_blank\" rel=\"noreferrer noopener\">supplies<\/a>. The following formula is used for calculating gross profit:&nbsp;<\/p>\n\n\n\n<p class=\"is-style-indent\">Gross profit = Revenue \u2013 Cost of goods sold (COGS)&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-average-inventory-cost-nbsp\">Average inventory cost&nbsp;<\/h4>\n\n\n\n<p>Average <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-cost\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory cost<\/a> refers to the monetary worth of your inventory over a specific time period. This can be calculated using the following formula:&nbsp;<\/p>\n\n\n\n<p class=\"is-style-indent\">Average inventory cost = (Current inventory + Previous inventory)\/Number of periods&nbsp;<\/p>\n\n\n\n<p>If you need to calculate the average inventory cost for the entire year, you\u2019ll need to find the sum of the <a href=\"https:\/\/www.shipbob.com\/blog\/beginning-inventory\/\" target=\"_blank\" rel=\"noreferrer noopener\">beginning inventory<\/a> for each month of the year and the <a href=\"https:\/\/www.shipbob.com\/blog\/ending-inventory\/\" target=\"_blank\" rel=\"noreferrer noopener\">ending inventory<\/a> cost for the last month of the year. This will then be divided by 13.&nbsp;<\/p>\n\n\n\n<p class=\"is-style-indent\">Average inventory cost for a year = (Sum of beginning inventory for every month + Ending inventory cost for the last month)\/13&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-example-nbsp\">Example&nbsp;<\/h3>\n\n\n\n<p>Let\u2019s walk through an example using these formulas.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Say a shoe store needs to calculate their GMROI for a given year. The brand does some digging, and finds the following information:&nbsp;&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Annual revenue &#8211; $300,000&nbsp;<\/li>\n\n\n\n<li><a href=\"https:\/\/www.shipbob.com\/blog\/cost-of-goods-sold\/\" target=\"_blank\" rel=\"noreferrer noopener\">COGS<\/a> &#8211; $45,000&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>The brand also finds the beginning inventory value for each month of the year, as well as the ending inventory for the last month of the year:&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Month<\/strong>&nbsp;<\/td><td><strong>Beginning inventory cost<\/strong>&nbsp;<\/td><\/tr><tr><td><strong>January<\/strong>&nbsp;<\/td><td>$100,000&nbsp;<\/td><\/tr><tr><td><strong>February<\/strong>&nbsp;<\/td><td>$120,000&nbsp;<\/td><\/tr><tr><td><strong>March<\/strong>&nbsp;<\/td><td>$113,000&nbsp;<\/td><\/tr><tr><td><strong>April<\/strong>&nbsp;<\/td><td>$101,000&nbsp;<\/td><\/tr><tr><td><strong>May<\/strong>&nbsp;<\/td><td>$118,000&nbsp;<\/td><\/tr><tr><td><strong>June<\/strong>&nbsp;<\/td><td>$130,000&nbsp;<\/td><\/tr><tr><td><strong>July<\/strong>&nbsp;<\/td><td>$140,000&nbsp;<\/td><\/tr><tr><td><strong>August<\/strong>&nbsp;<\/td><td>$125,000&nbsp;<\/td><\/tr><tr><td><strong>September<\/strong>&nbsp;<\/td><td>$132,000&nbsp;<\/td><\/tr><tr><td><strong>October<\/strong>&nbsp;<\/td><td>$120,000&nbsp;<\/td><\/tr><tr><td><strong>November<\/strong>&nbsp;<\/td><td>$130,000&nbsp;<\/td><\/tr><tr><td><strong>December<\/strong>&nbsp;<\/td><td>$145,000&nbsp;<\/td><\/tr><tr><td><strong>December \u2013 Ending inventory cost<\/strong>&nbsp;<\/td><td><strong>$90,000<\/strong>&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Using this information, the brand can now calculate gross profit for the year:<\/p>\n\n\n\n<p class=\"is-style-indent\">Gross profit = Revenue \u2013 Cost of goods sold (COGS)&nbsp;<\/p>\n\n\n\n<p class=\"is-style-indent\">Gross profit = $300,000 &#8211; $45,000&nbsp;<\/p>\n\n\n\n<p class=\"is-style-indent\"><strong>Gross profit = $255,000<\/strong>&nbsp;<\/p>\n\n\n\n<p>And average inventory cost for the year:&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"is-style-indent\">Average inventory cost = (Sum of beginning inventory for every month + Ending inventory cost for the last month)\/13&nbsp;<\/p>\n\n\n\n<p class=\"is-style-indent\">Average inventory cost = ($1,47,4000 + $90,000)\/13&nbsp;<\/p>\n\n\n\n<p class=\"is-style-indent\"><strong>Average inventory cost = $106,461.50<\/strong>&nbsp;<\/p>\n\n\n\n<p>Now that the brand has these two figures, it can plug them into the GMROI formula to calculate their GMROI for the year:&nbsp;<\/p>\n\n\n\n<p class=\"is-style-indent\">GMROI = Gross profit\/Average inventory cost&nbsp;<\/p>\n\n\n\n<p class=\"is-style-indent\">GMROI = $255,000\/$106,461.50&nbsp;<\/p>\n\n\n\n<p class=\"is-style-indent\"><strong>GMROI = $2.40<\/strong>&nbsp;<\/p>\n\n\n\n<p>In other words, for every dollar the brand invests in its inventory, the shoe store makes a profit of $2.40.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-interpreting-your-gmroi-numbers-nbsp\">Interpreting your GMROI numbers&nbsp;<\/h3>\n\n\n\n<p>So what does that result mean? Is $2.40 a good result, or a bad one?&nbsp;<\/p>\n\n\n\n<p>Generally speaking, if your GMROI is more than one, it indicates that your business is profitable. However, it\u2019s also important to consider any industry-specific GMROI benchmarks to make sure that your business is keeping up with the competition.&nbsp;<\/p>\n\n\n\n<p>According to <a href=\"https:\/\/retailowner.com\/Benchmarks\/nas\/content\/live\/shipbob2022arel-Accessories-Stores\/Shoe-Stores#*\" target=\"_blank\" rel=\"noreferrer noopener\">GMROI trends<\/a>, in 2021, shoe stores were making $2.16 for every dollar spent. So with a GMROI of $2.40 in 2021, the shoe store is in a good position for profitability when compared to its competition.&nbsp;<\/p>\n\n\n\n<p>On the other hand, if the store were in another line of business, like pet supplies, the same GMROI of $2.40 puts it far behind the competition, as the <a href=\"https:\/\/businessstrata-g.com\/Key-Financial-Benchmarks\/RETAIL-Businesses\/Specialty-Retailers\/Pet-Pet-Supplies-Retailers\" target=\"_blank\" rel=\"noreferrer noopener\">GMROI benchmark<\/a> in this industry for 2021 is $3.90.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-gmroi-s-importance-for-retail-inventory-management-nbsp\">GMROI\u2019s importance for retail inventory management&nbsp;<\/h2>\n\n\n\n<p>Your brand\u2019s GMROI is one of the most important <a href=\"https:\/\/www.shipbob.com\/blog\/supply-chain-metrics\/\">supply chain KPIs<\/a> to track, as it provides you with valuable insight into your profitability. You can then use this insight to accomplish several crucial inventory functions.\u00a0\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-balance-inventory-levels-and-profitability-nbsp\">Balance inventory levels and profitability&nbsp;<\/h3>\n\n\n\n<p>Your GMROI gives you an accurate understanding of your inventory purchases in relation to your business profitability.&nbsp;&nbsp;<\/p>\n\n\n\n<p>For example, a low GMROI may be an indication that you are spending too much on inventory by constantly <a href=\"https:\/\/www.shipbob.com\/blog\/overstocking\/\" target=\"_blank\" rel=\"noreferrer noopener\">overstocking<\/a> (which increases <a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/holding-costs\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory holding<\/a> and inventory procurement costs). Alternatively, it may indicate that you\u2019re not stocking up fast enough, and are losing sales to <a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/stockout-costs\/\">stockouts<\/a> (since you can&#8217;t sell inventory you don\u2019t have).\u00a0\u00a0<\/p>\n\n\n\n<p>As such, understanding your GMROI helps you understand how to balance your <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-levels\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory levels<\/a> and boost profitability accordingly. Constant monitoring your GMROI allows you to reorder inventory strategically and maintain optimal inventory levels to maximise your ROI.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-improve-inventory-efficiency-nbsp\">Improve inventory efficiency&nbsp;<\/h3>\n\n\n\n<p>Retail owners can also use GMROI at a SKU level to assess the efficiency of each product. By calculating the gross profit and average inventory cost of each SKU, you can achieve SKU-specific <a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/inventory-analytics\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory analytics<\/a> that help you identify which products are performing well and which ones are slow to sell.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-make-more-strategic-inventory-decisions-nbsp\">Make more strategic inventory decisions&nbsp;<\/h3>\n\n\n\n<p>With the inventory insights that GMROI can provide, you can make more informed decisions to optimise your <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-strategy\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory strategy<\/a> for greater profits.&nbsp;&nbsp;<\/p>\n\n\n\n<p>This may involve ramping up production on high-selling SKUs or adjusting your pricing strategies to slash prices on items that are slow to sell, so that you can keep <a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/holding-costs\/\" target=\"_blank\" rel=\"noreferrer noopener\">holding costs<\/a> and inventory turnover in check.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Similarly, your GMROI can help you determine when it\u2019s time to perform <a href=\"https:\/\/www.shipbob.com\/blog\/sku-rationalization\/\" target=\"_blank\" rel=\"noreferrer noopener\">SKU rationalization<\/a> to determine whether certain SKUs should be discontinued altogether. This may involve discontinuing&nbsp;high-profit products that don\u2019t sell quickly.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cShipBob finally gave us the visibility and analytics we were looking for. Through the dashboard, we get real-time insight into how much inventory to allocate to a specific warehouse, our current on-hand inventory levels, and how long each SKU is going to last by location. ShipBob provides a lot of distribution metrics, and everything presented is useful.\u201d<\/em><\/p>\n\n\n\n<p>Mithu Kina, Founder and CEO of <a href=\"https:\/\/www.shipbob.com\/blog\/baby-doppler\/\" target=\"_blank\" rel=\"noreferrer noopener\">Baby Doppler<\/a>&nbsp;<\/p>\n<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-practical-tips-for-improving-gmroi-nbsp\">Practical tips for improving GMROI&nbsp;<\/h2>\n\n\n\n<p>Simply put, improving your GMROI requires spending less and (ideally) earning more on inventory, so that your profit margin is higher. Here are some actionable tips that ecommerce brands and retail businesses can use to minimise inventory costs and maximise their GMROI.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-optimize-your-pricing-strategies-nbsp\">Optimise your pricing strategies&nbsp;<\/h3>\n\n\n\n<p>When you\u2019re looking to bring in more profit from the sale of your inventory, your first instinct may be to raise your prices. However, higher prices can sometimes discourage customers from purchasing, which could result in <a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/dead-stock\/\">deadstock<\/a> that\u2019s taking up valuable space. In that case, you are not only paying to store those slow-selling items, but you\u2019re also hurting your GMROI in the long run.\u00a0<\/p>\n\n\n\n<p>That said, it\u2019s important to strategically review your overall pricing structure, and tailor it carefully. This could sometimes mean discounting prices or running a sale on certain items to sell off excess stock (rather than letting it sit in your warehouse). While you will not see as much revenue from those sales, you may save money in the long run by avoiding continuously high holding costs.&nbsp;<\/p>\n\n\n\n<p>Alternatively, consider marginally increasing the prices of products that are selling really well or products with a higher perceived value. Even if some customers are discouraged, you may find that customer loyalty overrides a slight increase in price \u2013 especially if your post-purchase experience is very good.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-pinpoint-areas-for-cost-reduction-nbsp\">Pinpoint areas for cost reduction&nbsp;<\/h3>\n\n\n\n<p>No matter what, to get a better GMROI, you\u2019ll need to reduce your overall spending on inventory. But this doesn&#8217;t just mean spending less on inventory acquisition; rather, it includes cutting costs within:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Procurement (such as <a href=\"https:\/\/www.shipbob.com\/blog\/raw-materials-inventory\/\" target=\"_blank\" rel=\"noreferrer noopener\">raw material<\/a> and <a href=\"https:\/\/www.shipbob.com\/blog\/supplier-manufacturer\/\" target=\"_blank\" rel=\"noreferrer noopener\">supplier<\/a> costs)&nbsp;<\/li>\n\n\n\n<li>Transportation (such as freight, <a href=\"https:\/\/www.shipbob.com\/middle-mile-logistics\/\">middle mile<\/a>, and last-mile shipping costs)&nbsp;<\/li>\n\n\n\n<li><a href=\"https:\/\/www.shipbob.com\/inventory-management\/\">Inventory management<\/a> (such as software subscription costs)\u00a0\u00a0\u00a0<\/li>\n\n\n\n<li>Inventory storage (such as real estate or rent, insurance, utilities, and other warehousing costs)&nbsp;&nbsp;<\/li>\n\n\n\n<li>Order fulfilment (such as the costs of packaging materials, picking equipment, and manual labour)&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Consider auditing your supply chain for both cost and efficiency to determine which functions or activities are your biggest cost centres. Optimising these areas will not only achieve cost-savings, but may also help your operations run better overall.&nbsp;&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cOur 3PLs before ShipBob were a total black box when it came to pricing \u2014 we\u2019d just get one invoice with no line items, which made it impossible to work out what was what. <\/em><\/p>\n\n\n\n<p><em>With ShipBob, it\u2019s very transparent billing and pricing, and now we know exactly what we\u2019re being charged. We often look at the analytics and finance tabs in the ShipBob dashboard to get a gauge on where spend is going each month and where we can optimise.\u201d<\/em><\/p>\n\n\n\n<p>Jonathan Byrt, Director &amp; Co-founder at <a href=\"https:\/\/www.shipbob.com\/blog\/memobottle\/\" target=\"_blank\" rel=\"noreferrer noopener\">memobottle<\/a>&nbsp;<\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-offload-deadstock-nbsp-nbsp\">Offload deadstock&nbsp;&nbsp;<\/h3>\n\n\n\n<p>Deadstock collects dust on your shelves and eats away at your profit margins, so it\u2019s important to offload it as quickly as possible.&nbsp;&nbsp;<\/p>\n\n\n\n<p>But rather than simply throwing it away, there are ways to put deadstock to good use \u2013 or at least recoup some of your investment.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Some of the most popular strategies include:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Holding clearance or flash sales with majorly discounted prices on deadstock items&nbsp;&nbsp;<\/li>\n\n\n\n<li>Including deadstock items as a free gift in orders&nbsp;<\/li>\n\n\n\n<li>Bundling deadstock items with fast-moving SKUs&nbsp;&nbsp;<\/li>\n\n\n\n<li>Passing or selling deadstock items to a partner business&nbsp;<\/li>\n\n\n\n<li>Donating items to charity (and claiming an <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-write-off\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory write-off<\/a> for tax purposes)&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-improve-demand-forecasting-nbsp\">Improve demand forecasting&nbsp;<\/h3>\n\n\n\n<p>You can avoid deadstock in the first place by improving your demand forecasting. Accurate demand forecasting helps you order just the right amount of inventory to meet demand, so your brand keeps the optimal levels of inventory, and doesn\u2019t overspend on (or inflate storage costs for) inventory it doesn\u2019t need.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p>Dive deep into your sales and inventory analytics, and make sure to account for seasonal buying patterns and market trends. Based on this, you can get an accurate idea of your true demand, and plan your <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-replenishment\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory replenishment<\/a> strategy accordingly.&nbsp;<\/p>\n\n\n\n<p>An inventory management solutions will record and present this data for you. Some even allow you to set up reorder point notifications, so that you can always know when a <a href=\"https:\/\/www.shipbob.com\/blog\/how-to-find-sku-number\/\">SKU<\/a> is running low and can replenish it at the just right time.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-partner-with-a-professional-to-optimize-inventory-operations-nbsp\">Partner with a professional to optimise inventory operations&nbsp;<\/h3>\n\n\n\n<p>Whether you\u2019re an established brand with warehouses full of inventory or a growing brand operating out of a basement, finding ways to reduce inventory costs can be challenging. That\u2019s why many brands find it easier \u2013 and more cost-effective \u2013 to pass along functions like inventory storage and order fulfilment to the experts.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Professional logistics partners like ShipBob already have infrastructure, technology, and best practices to achieve inventory cost savings at scale. Brands can leverage these resources to lower inventory costs, but also boost order accuracy and fulfilment efficiency while saving valuable time and effort.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-gmroi-case-study-semaine-health-saves-2-order-with-99-95-order-accuracy-nbsp\">GMROI case study: Semaine Health saves $2\/order with 99.95% order accuracy&nbsp;<\/h3>\n\n\n\n<p>Brands like <a href=\"https:\/\/www.shipbob.com\/blog\/semaine-health\/\" target=\"_blank\" rel=\"noreferrer noopener\">Semaine Health<\/a> have been able to achieve lower margins and improve their bottom line by leveraging ShipBob\u2019s inventory management and fulfilment solutions.&nbsp;&nbsp;<\/p>\n\n\n\n<p>With their previous 3PL, Semaine Health was experiencing a lot of issues that were racking up costs. Not only was the provider consistently making expensive picking and packing errors, but shipping from just one fulfilment centre resulted in high shipping costs and long transit times.&nbsp;<\/p>\n\n\n\n<p>When the brand <a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/outsourced-fulfillment\/\" target=\"_blank\" rel=\"noreferrer noopener\">outsourced fulfilment<\/a> to ShipBob, they were able to strategically allocate inventory across four fulfilment centres in the U.S. through the Inventory Placement Program. This enabled them to cut their average shipping time by a third,&nbsp; from 5.2 days to just 3.6 days.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex\">\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" height=\"370\" width=\"700\" data-id=\"14483\" src=\"https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/06\/f8f04e788210489bc1f64d055e39be9f-700x370.png?w=1280px\" alt=\"\" class=\"wp-image-14483\" data-responsive-img srcset=\"https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/06\/f8f04e788210489bc1f64d055e39be9f-700x370.png?w=700px 650w, https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/06\/f8f04e788210489bc1f64d055e39be9f-700x370.png?w=860px 768w, https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/06\/f8f04e788210489bc1f64d055e39be9f-700x370.png?w=1180px 1080w, https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/06\/f8f04e788210489bc1f64d055e39be9f-700x370.png?w=1400px 1280w, https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/06\/f8f04e788210489bc1f64d055e39be9f-700x370.png?w=1600px 1440w\" fetchpriority=\"low\" \/><figcaption class=\"wp-element-caption\">Shipping Zones from 1 Fulfilment Centre<\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" height=\"370\" width=\"700\" data-id=\"14484\" src=\"https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/06\/a4b2ee825ffcea1f31c9ab93befa856b-700x370.png?w=1280px\" alt=\"\" class=\"wp-image-14484\" data-responsive-img srcset=\"https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/06\/a4b2ee825ffcea1f31c9ab93befa856b-700x370.png?w=700px 650w, https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/06\/a4b2ee825ffcea1f31c9ab93befa856b-700x370.png?w=860px 768w, https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/06\/a4b2ee825ffcea1f31c9ab93befa856b-700x370.png?w=1180px 1080w, https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/06\/a4b2ee825ffcea1f31c9ab93befa856b-700x370.png?w=1400px 1280w, https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/06\/a4b2ee825ffcea1f31c9ab93befa856b-700x370.png?w=1600px 1440w\" fetchpriority=\"low\" \/><figcaption class=\"wp-element-caption\">Shipping Zones from 3 Fulfilment Centers<\/figcaption><\/figure>\n<\/figure>\n\n\n\n<p class=\"has-text-align-center\">Green = Zones 1-3, Yellow = Zones 4-6, Orange = 7-8<\/p>\n\n\n\n<p>Moreover, they saw a significant reduction in fulfilment costs, saving $2.16 per order compared to their previous 3PL. There was also a 10x reduction in error rate, with an order accuracy rate of 99.95%. This meant that they were no longer wasting money on shipping out the wrong orders and having to pay for return shipments. With all these factors combined, they were able to spend less and boost their profit margins.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cWe quadrupled our order volume this year, and because our fulfilment and shipping costs have gotten so much cheaper, we\u2019ve been able to support that scale.\u201d<\/em><\/p>\n\n\n\n<p>Matt Crane, Co-Founder and Chief Science Officer at <a href=\"https:\/\/www.shipbob.com\/blog\/semaine-health\/\" target=\"_blank\" rel=\"noreferrer noopener\">Semaine Health<\/a>&nbsp;<\/p>\n<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-shipbob-s-unique-approach-to-boosting-ecommerce-gmroi-nbsp\">ShipBob\u2019s unique approach to boosting ecommerce GMROI&nbsp;<\/h2>\n\n\n\n<p>It\u2019s incredibly important for ecommerce brands to have the data visibility to measure GMROI, and to constantly be optimising their inventory management for profitability. ShipBob offers powerful fulfilment solutions and industry-leading inventory management software to help you do both. &nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-real-time-inventory-management-nbsp\">Real-time inventory management&nbsp;<\/h3>\n\n\n\n<p>ShipBob\u2019s dashboard&nbsp;delivers <a href=\"https:\/\/www.shipbob.com\/inventory-management\/real-time\/\" target=\"_blank\" rel=\"noreferrer noopener\">real-time inventory<\/a> visibility so you can monitor inventory levels and track location-specific inventory data at all times. This means that you know exactly how much inventory you\u2019re receiving, how much you have available for sale, how many units are getting ready for shipping, and more.&nbsp;<\/p>\n\n\n\n<p>With this level of visibility, you can make informed decisions more quickly and restock accordingly. You have the insights you need to avoid accidentally running out of stock or stocking up on too much inventory that can eat away at your bottom line.&nbsp;<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" src=\"https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/08\/inventory-summary-and-turnover-from-ShipBobs-analytics-tool.png?w=1280px\" alt=\"\" class=\"wp-image-15071\" data-responsive-img srcset=\"https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/08\/inventory-summary-and-turnover-from-ShipBobs-analytics-tool.png?w=700px 650w, https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/08\/inventory-summary-and-turnover-from-ShipBobs-analytics-tool.png?w=860px 768w, https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/08\/inventory-summary-and-turnover-from-ShipBobs-analytics-tool.png?w=1180px 1080w, https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/08\/inventory-summary-and-turnover-from-ShipBobs-analytics-tool.png?w=1400px 1280w, https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/08\/inventory-summary-and-turnover-from-ShipBobs-analytics-tool.png?w=1600px 1440w\" fetchpriority=\"low\" \/><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\" id=\"h-distributed-inventory-nbsp\">Distributed inventory&nbsp;<\/h3>\n\n\n\n<p>With dozens of fulfilment centres across the US and around the world, ShipBob enables brands to allocate and <a href=\"https:\/\/www.shipbob.com\/blog\/3-benefits-using-more-than-one-warehouse-ecommerce-fulfillment\/\" target=\"_blank\" rel=\"noreferrer noopener\">distribute their inventory<\/a> across multiple locations. This means you get to use fulfilment centres that are closer to your customers, meaning orders can get shipped out from the nearest fulfilment centre. That way, you spend less on shipping, which significantly brings down your inventory costs and improves your GMROI. &nbsp;<\/p>\n\n\n\n<p>Merchants can leverage ShipBob\u2019s Ideal Inventory Distribution tool to calculate the most optimal stock allocation based on historical order data. From there, ShipBob can even handle physical distribution for you through the Inventory Placement Program, saving you time, effort, and money. &nbsp;<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" src=\"https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/08\/image-1-2.png?w=1280px\" alt=\"\" class=\"wp-image-15072\" data-responsive-img srcset=\"https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/08\/image-1-2.png?w=700px 650w, https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/08\/image-1-2.png?w=860px 768w, https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/08\/image-1-2.png?w=1180px 1080w, https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/08\/image-1-2.png?w=1400px 1280w, https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/08\/image-1-2.png?w=1600px 1440w\" fetchpriority=\"low\" \/><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\" id=\"h-analytics-and-reporting-nbsp\">Analytics and reporting&nbsp;<\/h3>\n\n\n\n<p>ShipBob\u2019s cloud-based platform automatically tracks key inventory analytics for you, and presents them in a single, intuitive dashboard. Through the dashboard, you can monitor <a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory KPIs<\/a> that directly impact your GMROI, like:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Average storage cost per unit&nbsp;<\/li>\n\n\n\n<li>Average fulfilment cost&nbsp;<\/li>\n\n\n\n<li>Average shipping cost&nbsp;<\/li>\n\n\n\n<li>Average days in transit&nbsp;<\/li>\n\n\n\n<li>Inventory on-hand&nbsp;<\/li>\n\n\n\n<li>Individual SKU performance&nbsp;<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" src=\"https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/08\/image-1-1.png?w=1280px\" alt=\"\" class=\"wp-image-15306\" data-responsive-img srcset=\"https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/08\/image-1-1.png?w=700px 650w, https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/08\/image-1-1.png?w=860px 768w, https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/08\/image-1-1.png?w=1180px 1080w, https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/08\/image-1-1.png?w=1400px 1280w, https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2024\/08\/image-1-1.png?w=1600px 1440w\" fetchpriority=\"low\" \/><\/figure>\n<\/div>\n\n\n<p>Using these up-to-date metrics, you can glean crucial insights into which SKUs are your best and worst performers, which areas of your inventory operations are ripe for cost-cutting, and more. &nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-demand-forecasting-nbsp\">Demand forecasting&nbsp;<\/h3>\n\n\n\n<p>Brands can leverage Shipbob\u2019s comprehensive analytics to generate more accurate <a href=\"https:\/\/www.shipbob.com\/blog\/demand-forecasting\/\" target=\"_blank\" rel=\"noreferrer noopener\">demand forecasts<\/a>. By predicting your inventory needs based on historical sales data, inventory performance, seasonal demand changes, and market trends that ShipBob\u2019s data tracks and reveals, you can avoid overstocking on slow-selling items while procuring more high-performing SKUs.&nbsp;<\/p>\n\n\n\n<p>Additionally, you can use these predictions to strategically price your products. For example, if you predict high demand for certain items, you could look for ways to increase prices and raise your profits, which will improve your GMROI.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-order-management-nbsp\">Order management&nbsp;<\/h3>\n\n\n\n<p>ShipBob\u2019s proprietary software provides you with robust <a href=\"https:\/\/www.shipbob.com\/blog\/order-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">order management<\/a> capabilities to streamline your operations and reduce your overall inventory costs. With automatic order processing, you can effectively handle high order volumes with minimal mistakes. Reducing your error rates means that you\u2019re spending less on <a href=\"https:\/\/www.shipbob.com\/blog\/misshipment\/\" target=\"_blank\" rel=\"noreferrer noopener\">misshipments<\/a> and returns, which eventually contribute to a positive GMROI.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-returns-management-nbsp\">Returns management&nbsp;<\/h3>\n\n\n\n<p>With higher fulfilment accuracy rates, ShipBob helps you to effectively reduce your <a href=\"https:\/\/www.shipbob.com\/blog\/ecommerce-returns\/\" target=\"_blank\" rel=\"noreferrer noopener\">ecommerce returns<\/a> \u2014 and with quick shipping, we\u2019ll help you make the returns you do process painless. &nbsp;<\/p>\n\n\n\n<p>ShipBob will handle your returns for you, and you can easily sort returned items based on whether to restock or discard them instead of getting rid of every single return. This helps you to get more use out of the inventory that you\u2019d initially purchased, improving your GMROI. &nbsp;<\/p>\n\n\n\n<p>Additionally, ShipBob\u2019s software integrates with leading returns management platforms so you can streamline the process and get more out of your inventory spending.&nbsp;<\/p>\n\n\n\n<p>To learn more about how ShipBob can help you boost your GMROI, click the button below to connect with a fulfilment expert. &nbsp;<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.shipbob.com\/quote\/\">Request a Quote<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-gross-margin-return-on-investment-faqs\">Gross margin return on investment FAQs<\/h2>\n\n\n\n<p>Below are answers to the most commonly asked questions about GMROI.<\/p>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">What is considered a good GMROI for ecommerce?&nbsp;<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p>Ecommerce businesses should always have a GMROI of more than $1, which means that you\u2019re making a profit off your inventory. However, the ideal GMROI also depends on industry-specific benchmarks as some industries may see higher GMROI than others or vice versa.&nbsp;<\/p>\n\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">Can ShipBob help improve my GMROI?&nbsp;<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p>Yes. ShipBob can help you improve your GMROI by helping you optimise for inventory cost, and providing you real-time inventory data and analytics that enable you to make more strategic procurement, allocation, and pricing decisions.&nbsp;<\/p>\n\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">How often should I analyse GMROI?&nbsp;<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p>Although GMROI can be tracked annually, analising it on a monthly basis may be required for certain products, such as those with a shorter shelf life.&nbsp;<\/p>\n\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">How do seasonal variations affect GMROI calculations?&nbsp;<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p>Seasonal variations may result in changes in demand. Sudden surges or droughts in demand can affect total sales and inventory turnover, and subsequently impact your GMROI calculations.&nbsp;<\/p>\n\n<\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Check out our guide to calculating gross margin return on investment (GMROI), plus get tips for boosting your brand&#8217;s GMROI.<\/p>\n","protected":false},"author":194,"featured_media":27322,"parent":0,"template":"","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"blogcategories":[6,8,15],"class_list":["post-14132","blog","type-blog","status-publish","has-post-thumbnail","hentry","blogcategories-ecommerce-tips","blogcategories-inventory","blogcategories-warehouse-management"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Retail Guide to Gross Margin Return on Investment (GMROI)<\/title>\n<meta name=\"description\" content=\"Check out our guide to calculating gross margin return on investment (GMROI), plus get tips for boosting your brand&#039;s GMROI.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shipbob.com\/uk\/blog\/gmroi\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is GMROI, and What Does it Mean for Your Retail Inventory?\" \/>\n<meta property=\"og:description\" content=\"Check out our guide to calculating gross margin return on investment (GMROI), plus get tips for boosting your brand&#039;s GMROI.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.shipbob.com\/uk\/blog\/gmroi\/\" \/>\n<meta property=\"og:site_name\" content=\"ShipBob UK\" \/>\n<meta property=\"article:modified_time\" content=\"2025-12-26T06:44:53+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2025\/12\/a88e99112e97ad2de5fcf21e9760803e.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"667\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"15 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/blog\\\/gmroi\\\/\",\"url\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/blog\\\/gmroi\\\/\",\"name\":\"Retail Guide to Gross Margin Return on Investment (GMROI)\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/blog\\\/gmroi\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/blog\\\/gmroi\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/wp-content\\\/uploads\\\/sites\\\/32\\\/2025\\\/12\\\/a88e99112e97ad2de5fcf21e9760803e.jpg\",\"datePublished\":\"2024-04-15T10:00:00+00:00\",\"dateModified\":\"2025-12-26T06:44:53+00:00\",\"description\":\"Check out our guide to calculating gross margin return on investment (GMROI), plus get tips for boosting your brand's GMROI.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/blog\\\/gmroi\\\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/blog\\\/gmroi\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/blog\\\/gmroi\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/wp-content\\\/uploads\\\/sites\\\/32\\\/2025\\\/12\\\/a88e99112e97ad2de5fcf21e9760803e.jpg\",\"contentUrl\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/wp-content\\\/uploads\\\/sites\\\/32\\\/2025\\\/12\\\/a88e99112e97ad2de5fcf21e9760803e.jpg\",\"width\":1000,\"height\":667,\"caption\":\"Accountant working on desk office with using a calculator finance accounting concept_id750574825\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/blog\\\/gmroi\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Blog\",\"item\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"What is GMROI, and What Does it Mean for Your Retail Inventory?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/#website\",\"url\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/\",\"name\":\"ShipBob UK\",\"description\":\"Just another ShipBob Network site\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Retail Guide to Gross Margin Return on Investment (GMROI)","description":"Check out our guide to calculating gross margin return on investment (GMROI), plus get tips for boosting your brand's GMROI.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.shipbob.com\/uk\/blog\/gmroi\/","og_locale":"en_GB","og_type":"article","og_title":"What is GMROI, and What Does it Mean for Your Retail Inventory?","og_description":"Check out our guide to calculating gross margin return on investment (GMROI), plus get tips for boosting your brand's GMROI.","og_url":"https:\/\/www.shipbob.com\/uk\/blog\/gmroi\/","og_site_name":"ShipBob UK","article_modified_time":"2025-12-26T06:44:53+00:00","og_image":[{"width":1000,"height":667,"url":"https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2025\/12\/a88e99112e97ad2de5fcf21e9760803e.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"15 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.shipbob.com\/uk\/blog\/gmroi\/","url":"https:\/\/www.shipbob.com\/uk\/blog\/gmroi\/","name":"Retail Guide to Gross Margin Return on Investment (GMROI)","isPartOf":{"@id":"https:\/\/www.shipbob.com\/uk\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.shipbob.com\/uk\/blog\/gmroi\/#primaryimage"},"image":{"@id":"https:\/\/www.shipbob.com\/uk\/blog\/gmroi\/#primaryimage"},"thumbnailUrl":"https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2025\/12\/a88e99112e97ad2de5fcf21e9760803e.jpg","datePublished":"2024-04-15T10:00:00+00:00","dateModified":"2025-12-26T06:44:53+00:00","description":"Check out our guide to calculating gross margin return on investment (GMROI), plus get tips for boosting your brand's GMROI.","breadcrumb":{"@id":"https:\/\/www.shipbob.com\/uk\/blog\/gmroi\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.shipbob.com\/uk\/blog\/gmroi\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/www.shipbob.com\/uk\/blog\/gmroi\/#primaryimage","url":"https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2025\/12\/a88e99112e97ad2de5fcf21e9760803e.jpg","contentUrl":"https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2025\/12\/a88e99112e97ad2de5fcf21e9760803e.jpg","width":1000,"height":667,"caption":"Accountant working on desk office with using a calculator finance accounting concept_id750574825"},{"@type":"BreadcrumbList","@id":"https:\/\/www.shipbob.com\/uk\/blog\/gmroi\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.shipbob.com\/uk\/"},{"@type":"ListItem","position":2,"name":"Blog","item":"https:\/\/www.shipbob.com\/uk\/blog\/"},{"@type":"ListItem","position":3,"name":"What is GMROI, and What Does it Mean for Your Retail Inventory?"}]},{"@type":"WebSite","@id":"https:\/\/www.shipbob.com\/uk\/#website","url":"https:\/\/www.shipbob.com\/uk\/","name":"ShipBob UK","description":"Just another ShipBob Network site","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.shipbob.com\/uk\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"}]}},"parsely":{"version":"1.1.0","canonical_url":"https:\/\/shipbob.com\/uk\/blog\/gmroi\/","smart_links":{"inbound":0,"outbound":0},"traffic_boost_suggestions_count":0,"meta":{"@context":"https:\/\/schema.org","@type":"WebPage","headline":"What is GMROI, and What Does it Mean for Your Retail Inventory?","url":"http:\/\/www.shipbob.com\/uk\/blog\/gmroi\/","mainEntityOfPage":{"@type":"WebPage","@id":"http:\/\/www.shipbob.com\/uk\/blog\/gmroi\/"},"thumbnailUrl":"https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2025\/12\/a88e99112e97ad2de5fcf21e9760803e.jpg?w=160","image":{"@type":"ImageObject","url":"https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2025\/12\/a88e99112e97ad2de5fcf21e9760803e.jpg"},"articleSection":"Uncategorized","author":[{"@type":"Person","name":"Rachel Hand"}],"creator":["Rachel Hand"],"publisher":{"@type":"Organization","name":"ShipBob UK","logo":""},"keywords":[],"dateCreated":"2024-04-15T10:00:00Z","datePublished":"2024-04-15T10:00:00Z","dateModified":"2025-12-26T06:44:53Z"},"rendered":"<script type=\"application\/ld+json\" class=\"wp-parsely-metadata\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"WebPage\",\"headline\":\"What is GMROI, and What Does it Mean for Your Retail Inventory?\",\"url\":\"http:\\\/\\\/www.shipbob.com\\\/uk\\\/blog\\\/gmroi\\\/\",\"mainEntityOfPage\":{\"@type\":\"WebPage\",\"@id\":\"http:\\\/\\\/www.shipbob.com\\\/uk\\\/blog\\\/gmroi\\\/\"},\"thumbnailUrl\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/wp-content\\\/uploads\\\/sites\\\/32\\\/2025\\\/12\\\/a88e99112e97ad2de5fcf21e9760803e.jpg?w=160\",\"image\":{\"@type\":\"ImageObject\",\"url\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/wp-content\\\/uploads\\\/sites\\\/32\\\/2025\\\/12\\\/a88e99112e97ad2de5fcf21e9760803e.jpg\"},\"articleSection\":\"Uncategorized\",\"author\":[{\"@type\":\"Person\",\"name\":\"Rachel Hand\"}],\"creator\":[\"Rachel Hand\"],\"publisher\":{\"@type\":\"Organization\",\"name\":\"ShipBob UK\",\"logo\":\"\"},\"keywords\":[],\"dateCreated\":\"2024-04-15T10:00:00Z\",\"datePublished\":\"2024-04-15T10:00:00Z\",\"dateModified\":\"2025-12-26T06:44:53Z\"}<\/script>","tracker_url":"https:\/\/cdn.parsely.com\/keys\/shipbob.com\/p.js"},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.shipbob.com\/uk\/wp-json\/wp\/v2\/blog\/14132","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.shipbob.com\/uk\/wp-json\/wp\/v2\/blog"}],"about":[{"href":"https:\/\/www.shipbob.com\/uk\/wp-json\/wp\/v2\/types\/blog"}],"author":[{"embeddable":true,"href":"https:\/\/www.shipbob.com\/uk\/wp-json\/wp\/v2\/users\/194"}],"version-history":[{"count":4,"href":"https:\/\/www.shipbob.com\/uk\/wp-json\/wp\/v2\/blog\/14132\/revisions"}],"predecessor-version":[{"id":27323,"href":"https:\/\/www.shipbob.com\/uk\/wp-json\/wp\/v2\/blog\/14132\/revisions\/27323"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.shipbob.com\/uk\/wp-json\/wp\/v2\/media\/27322"}],"wp:attachment":[{"href":"https:\/\/www.shipbob.com\/uk\/wp-json\/wp\/v2\/media?parent=14132"}],"wp:term":[{"taxonomy":"blogcategories","embeddable":true,"href":"https:\/\/www.shipbob.com\/uk\/wp-json\/wp\/v2\/blogcategories?post=14132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}