Inventory turnover shows how many times a year stock sells through and is replaced. High turnover means producing more profit from the same capital. Low turnover means cash locked on the shelf.
On Amazon FBA, low turnover also triggers long-term storage fees, eating profit from a second direction. To raise turnover, dead stock has to be cleared regularly and focus kept on the best sellers. Category averages differ sharply: 10–20 is typical in fast-moving goods, 3–5 in furniture.
Inventory turnover = Annual cost of goods sold ÷ Average inventory value
3,000,000 TL in COGS against an average 500,000 TL of stock → turnover of 6. The stock turns six times a year.
On Amazon FBA, low turnover also triggers long-term storage fees, eating profit from a second direction. To raise turnover, dead stock has to be cleared regularly and focus kept on the best sellers. Category averages differ sharply: 10–20 is typical in fast-moving goods, 3–5 in furniture.
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