Загрузил Alexey Badianov

Ecommerce insights

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Ecommerce metrics, tactics and strategies
Here in Veeqo we try hard to look at things systematically and only produce functionality in a methodical way. The
way which leads our customers to their success. We don’t keep the data just in case - every pieces of information
is building up into useful metric in order to implement clever tactics. This is how the strategy appears.
Inventory strategy
Costs associated
with purchases
Costs associated
with sales
Delivery times
Metric
Metric
Sold to purchased
products mapping
Metric
Products sold
Optimization tactic
Product
purchased
Optimization tactic
Metric
Key inventory management metrics
Metric
Formula
Meaning
Gross Margin Return on investment
(GMROI)
= Gross margin / Average inventory
cost
Measures inventory profitability
Inventory Turnover Ratio
= Cost of Goods Sold (COGS) ÷
Average Inventory
Shows how many times inventory
was repeatedly sold and replaced
over a period of time
Average Days To Sell Inventory
=(Average Inventory ÷ Cost of
Goods Sold) x 365
Same aspect expressed in days
Inventory-to-sales ratio
= Average Inventory Value / Net
Sales
Indicates how much money you are
investing in inventory to generate
your sales over a period of time
Sell-Through Rate
= Units Sold / Beginning Inventory x
100
Illustrates how quickly you are
selling your products
Tactics around <Gross Margin Return on investment>
Optimise margin against sales volumes. Low sales numbers should not be accompanied with low margin
Gross Margin Return on investment (GMROI) = Gross margin / Average inventory cost
Tactics around <Inventory Turnover Ratio>
Products with simple supply logistics should turn fast. Complex international products may take time in turning
Inventory Turnover Ratio = Cost of Goods Sold (COGS) ÷ Average Inventory
Tactics around <Average Days To Sell Inventory>
Low margin products should move fast. High margin may take time to sell.
Average Days To Sell Inventory = (Average Inventory ÷ Cost of Goods Sold) x 365
Tactics around <Inventory-to-sales ratio>
Maximise return on investments
Inventory-to-sales ratio = Average Inventory Value / Net Sales
Tactics around <Sell-Through Rate>
Guarantee stock availability
Sell-Through Rate = Units Sold / Beginning Inventory x 100
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