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Inventory Turnover for Small Sellers

1 min read · Profit and numbers

Turnover is how many times a year your inventory money is reused.

The idea

$1,000 that turns six times a year at 30 percent earns more than $1,000 that turns twice at 60 percent.

Measure it

Cost of goods sold in a period divided by average inventory at cost.

Raise it

Smaller, more frequent buys
Faster prep and shipping
Quicker price cuts on slow stock

Balance

Do not chase speed with no margin. Fees still apply to every sale.

General information for resellers, not financial, tax or legal advice. Marketplace fees and policies change; check the current rules before you buy.

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