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A Guide to Inventory Turnover Rate Calculation for Ecommerce Growth
Your inventory turnover rate is one of the most powerful vital signs for your ecommerce business. It answers a simple but critical question: How fast are you turning stock into cash? This isn't just a number for your accountant; it's a direct measure of your operational efficiency and a key indicator of product-market fit. A low turnover rate doesn't just hurt—it quietly drains profit by inflating holding costs and tying up capital that could be used for growth.