Inventory turnover rate, a critical financial metric, measures how often a company's inventory is sold and replaced over a specific period. This metric is particularly significant in the operations of reseller platforms (代购平台) and e-commerce platforms, as it directly impacts profitability, cash flow, and operational efficiency.

1. Understanding Inventory Turnover Rate

Inventory turnover rate is calculated by dividing the cost of goods sold (COGS) by the average inventory during the same period. A high turnover rate indicates efficient inventory management, while a low rate may suggest overstocking, slow sales, or obsolescence.

2. Importance in Reseller Platforms

For reseller platforms, where inventory is often sourced from overseas suppliers or limited-edition products, maintaining an optimal turnover rate is crucial. A high turnover ensures that capital is not tied up in unsold goods, allowing for faster cash flow cycles and reduced storage costs. Additionally, it helps resellers meet consumer demand promptly, enhancing customer satisfaction and loyalty.

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