ECOMMERCE TOOL / 56
Measure the stock turns.
Find the slow movers.
Calculate how many times inventory was sold and replaced over a period, plus the equivalent days of inventory held.
Turnover is based on inventory value, not unit count. Compare similar periods and categories for a useful signal.
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QUICK ANSWERS
What is inventory turnover?
It compares the cost of goods sold with average inventory value to show how often stock was replaced during a period.
Is higher always better?
No. A high number with frequent stockouts can be worse than a lower number with reliable availability.