Increasing Inventory Turnover In E-commerce
Inventory turnover ratio services measures how often a company`s inventory is sold and replaced within a specific period of time. It is calculated by dividing the cost of goods sold by the average inventory. The higher the ratio, the more efficient the company is at selling and replacing its inventory. This can be due to a number of factors such as strong demand for the company`s products or efficient management of inventory levels.
Our Inventory Turnover Ratio Services
A high turnover ratio means that a company is selling its inventory quickly and efficiently, while a low turnover ratio indicates that the company is not selling its inventory as quickly as it could be. The inventory turnover ratio is a important metric for businesses, especially for businesses that carry a lot of inventory, because it can help them to gauge whether or not they are selling their products in a timely manner. We can offer you 4 such services:
Stock Turnover Ratio Analysis
This service will help you to understand what your inventory turnover ratio is and how it can be improved.
Inventory Turnover Ratio Forecasting
This service will help you to forecast your future inventory turnover ratios so that you can plan accordingly.
Inventory Management Services
We can help you to improve your inventory management so that you can reduce your inventory turnover ratio.
Customized Inventory Turnover Ratio Solutions
We can offer you customized solutions to help you improve your inventory turnover ratio.If you are interested in any of these services, then please do not hesitate to contact us.
Our Inventory Turnover Ratio Process
1. Determine the cost of goods sold (COGS) for the period
It means that we calculate the value of inventory that we have sold during a certain period of time.
2. Determine the average inventory for the period
To do this, we take the inventory at the beginning of the period and add it to the inventory at the end of the period. We then divide this number by 2 to get the average inventory for the period.
3. Calculate the inventory turnover ratio
Once we have determined the cost of goods sold and the average inventory, we can calculate the inventory turnover ratio. We do this by dividing the cost of goods sold by the average inventory.
4. Determine whether the inventory turnover ratio is good or bad
This will help us to understand how well our inventory is moving. A high turnover ratio is good because it means that our inventory is selling quickly. A low turnover ratio is bad because it means that our inventory is not selling as quickly as we would like.
Technologies We Use
You need to have a fast and effective inventory turnover ratio in order to succeed in ecommerce. There are various ways to increase your inventory turnover, but at Dinarys, we use some of the latest and most innovative technologies to help our clients achieve their desired results. Some of the technologies we use for inventory turnover include:
- Kotlin (Android)
- Swift (iOS)
- MS SQL
- Google Cloud Platform
- Microsoft Azure
- Digital Ocean
- Any private cloud
MICROSERVICES AND CONTAINERS
- Docker Swarm
- Docker Compose
- Circle CI
- Travis CI
- Bitbucket Pipelines
ORCHESTRATION AND AUTOMATION
- Apache Kafka
- Apache Kassandra
- Elk Stack
Benefits of Inventory Turnover Ratio Services
The inventory turnover ratio is a key performance indicator that measures the number of times a company's inventory is sold or used in a given period. It is a important metric for ecommerce businesses, as it directly impacts the bottom line. There are numerous benefits of having a high inventory turnover ratio, including:
Improved cash flow
When inventory turns over more quickly, businesses have less money tied up in inventory. This improves cash flow and allows businesses to reinvest that money back into the business.
Reduced storage costs
The less inventory a business has on hand, the less they have to pay for storage. This can lead to significant savings, especially for businesses with large warehouses.
Less risk of obsolescence
The faster inventory turns over, the less likely it is that products will become obsolete before they are sold. This reduces the risk of having to write off inventory as losses.
Why choose us?
There are many reasons to choose Dinarys for your inventory turnover ratio needs. We are a highly experienced and qualified team of professionals who can provide you with the best possible results. We have a proven track record of helping our clients increase their inventory turnover ratios, and we are confident that we can do the same for you. Among other reasons why we are the best at what we do:
Projects launched for US and European customers
Years of experience
Years of growing DevOps Expertise
Certified Adobe Solution Partner
Certified Google Cloud Partner
A unique approach to implementation rooted in design-thinking tactics and Agile methodology
To build a new online store using Magento 2 and integrate it with the client’s existing system.
We developed a new website for our client Kontakt Home that operates more efficiently, maintains higher security standards, and provides broader capabilities for all types of users. We chose Magento 2 because it provides flexible software with outstanding functionality and excellent performance.
Kontakt Home now has a convenient, high-performance online semi-marketplace with a custom design and complex integration. Our services helped the client significantly improve its e-commerce business and online security.
Feedback from Our Clients
“An e-commerce store opening is always a major step of any business in the direction of further extension and growth. That’s why we were cautious when choosing specialists to handle the creation of our e-commerce store. To put it plain and simple, it was a total pleasure to work with the company we eventually went with. No deadlines were broken, no excessive situations took place. On the contrary, the whole project was a breeze, and now we have a great, smoothly running online shop.”
“Working with this team on our loyalty mobile app was a really surprising experience for me. Just after 3 months since the app launching, Aroma Kava becomes the most popular iTunes app in Ukraine in the category Food and Drink with over 52.000 active app users. The app transacted orders on the total amount of 3 million hryvnias. The loyalty app helped us to acquire more customers, retain them and increase the average check on 20%.”
Founder at Antik Wein
“Our company specializes in wine trading, and we needed to redesign our website, so it could completely correspond with our message and transfer the values of our business. The guys from Dinarys not only helped to put our plan into action but also gave us several effective recommendations on the website’s functionality and our further development in general. Now we are fully satisfied with the improvements we notice every day. Appreciate our collaboration, Dinarys!”
Inventory turnover ratio is a ratio that calculates how many times a company's inventory is sold and replaced over a period of time. It is used to measure a company's efficiency in using its inventory and how quickly it sells its products.
A high inventory turnover ratio indicates that a company is selling its products quickly and efficiently. This can lead to a number of benefits, such as improved cash flow, higher profits, and reduced inventory costs.
A low inventory turnover ratio indicates that a company is not selling its products quickly enough and may be struggling to manage its inventory. This can lead to a number of consequences, such as reduced cash flow, lower profits, and higher inventory costs.
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