- One of the key metrics that businesses and analysts use to track performance is revenue.
- Revenue is income from normal business activities over a period of time.
- As more and more small businesses make a substantial portion of their sales online, the difference between digital and retail revenue can reveal information about consumer habits and sales strategies.
- The difference between retail and digital revenue is important to the businesses that earn money from both sources.
- Retail revenue indicates the need to produce and ship a physical product, whereas digital revenue comes from content that is easy and inexpensive to reproduce.
- While retail revenue is subject to the risks associated with damaged products and theft, digital revenue faces losses from illegal duplication unless businesses can control copyright management of digital products.
- Growing digital revenue may reduce retail revenue, which indicates a shift in marketing and sales strategies.