Ecommerce Glossary

Essential ecommerce terms to grow your online store.

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Inventory turnover rate

Inventory turnover rate, also known as stock turn or stock turns, is a key metric used to measure how quickly businesses move their inventory from the warehouse to customers. Put simply, it defines the number of times per year a company sells and replaces its entire inventory. A higher inventory turnover rate means more sales and increased cash flow; both vital components for any successful business.