E-Commerce & Product Sellingintermediate
Inventory Turnover
Definition
How many times your inventory is sold and replaced in a period. High turnover means products sell quickly; low turnover means capital is tied up in unsold stock.
Why it matters
Inventory turnover directly impacts cash flow. Slow-moving inventory is dead money. Tracking it by product helps identify what to discount, discontinue, or reorder.
Example
A founder calculates her bestselling candle turns over 12x per year (monthly); her seasonal gift set turns over 2x (semi-annually). She allocates more budget to the candle.
Related terms
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