Brian explained how his company’s tools help eBay sellers drive more sales through online promotions, including MyStoreRewards, MyStoreMaps, and a new tool, CashBack Maps.

via Ina’s Podcasts.

Measuring ROI is a very tricky subject when you don’t have a base line between what your baseline sales are versus what are you ROI based on a new tool is. The issue with MyStoreRewards is that they count repeat business as ROI as part of using their tool. But to have an accurate picture of ROI, you would also need to see how much repeat business you receive already as a percentage of transactions or dollar value and compare it against what MyStoreRewards. If you see a lift in repeat transactions after using MyStoreRewards, then you will know if the discount percent you are offering is working.

Another way to measure ROI is to see how many sales you were getting before using MyStoreRewards and how much you are getting now.

After we signed up for MyStoreRewards and offering 1% cashback to a buyer’s Paypal, we have seen a 10% increase in sales but with a discounting of sales. Whether that actually is profitable remains to be seen since a low profit margin makes on page promotions a much trickier proposition.