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E-commerce vocabulary · Inventory and Stock

Inventory turnover

Meaning in e-commerce, with examples

nounAdvanced term

In e-commerce, inventory turnover means: A measure of how many times a business sells and replaces its stock in a period, usually cost of goods sold divided by average inventory value.

In Turkish: stok devir hızı, stok devir oranı

How it is used

Used by finance, buying and management teams. High inventory turnover means products sell quickly; low turnover can mean overstock or slow sellers. Also called stock turn or inventory turns.

Example sentences

  1. Our inventory turnover is six, which means we sell through our stock about every two months.

  2. Inventory turnover in home decor is much lower than in cosmetics.

Common collocations

  • inventory turnover ratio
  • high inventory turnover
  • improve inventory turnover
  • stock turn
  • inventoryAll the products a business has available to sell, and the records that show how many of each item are in stock and where.
  • dead stockProducts that have not sold for a long time and are unlikely to sell at their normal price, taking up warehouse space and money.
  • safety stockExtra units kept on top of expected demand to avoid running out if sales are higher than forecast or a delivery from a supplier is late.
  • markdownA permanent or long-term cut in a product's selling price, usually to clear slow-selling or end-of-season stock.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Inventory and Stock

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