E-commerce Glossary

Stock Turnover

Number of times inventory is sold and replaced over a given period. A logistics efficiency indicator.

Stock turnover measures how quickly you move through your inventory. A high ratio means you sell quickly; a low ratio indicates overstock or unsold goods.

Calculation: Turnover = Cost of Goods Sold / Average Inventory.

A turnover of 6 means you renew your stock 6 times per year (roughly every 2 months). The target varies by industry: fashion aims for 4-6, food 12+, electronics 6-8.

Slow-moving stock ties up cash and risks obsolescence. Fullmetrix analyzes stock velocity by product to identify items to restock and those to clear out.

Related terms

AOV (Average Order Value)Average amount spent per order in your store.See definition ARPU (Average Revenue Per User)Average revenue generated per user over a given period.See definition Blended CACAverage acquisition cost including all marketing channels.See definition Blended ROASOverall return on all advertising spend combined.See definition CAC (Customer Acquisition Cost)Total cost to acquire a new customer.See definition Churn RatePercentage of customers lost over a given period.See definition
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