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What Is Inventory Turnover?

Inventory Turnover the number of times inventory is sold and replaced over a period. Higher turnover means faster-selling products and less capital tied up in stock.

How Dashboardly Tracks Inventory Turnover

Dashboardly calculates Inventory Turnover from your live TikTok Shop data — pulling actual orders, fees, refunds, and returns so the number you see matches your P&L.

  • Actual order revenue — not estimated or attributed revenue
  • Refunds and returns deducted automatically
  • All platform fees included for profit-level accuracy
  • Historical trends so you spot changes before they hit profit

Frequently asked questions

What is a good Inventory Turnover?

Good: 6-12x/year. Excellent: 12+. Slow: <4x. Fast fashion/beauty: 12-24x.

How do I calculate Inventory Turnover?

Inventory Turnover = COGS / Average Inventory Value

Why is my Inventory Turnover different from what TikTok Shop reports?

TikTok's native reports use attributed metrics with click- and view-through windows. Dashboardly calculates Inventory Turnover from actual order revenue, deducting refunds and returns for a truer number that matches your real P&L.

When should I track Inventory Turnover?

Inventory Turnover is a leading indicator — check it daily if you're running ads or running pricing experiments, weekly otherwise. Dashboardly tracks Inventory Turnover automatically so you don't have to pull exports.

Related tools & resources

For a deeper look at Inventory Turnover, see TikTok Shop Inventory Management: Prevent Stockouts & Maximize Profit.

The number of times inventory is sold and replaced over a period. Higher turnover means faster-selling products and less capital tied up in stock.
Definition

The number of times inventory is sold and replaced over a period. Higher turnover means faster-selling products and less capital tied up in stock.

Formula

Inventory Turnover = COGS / Average Inventory Value

Example Calculation

$60,000 COGS / $10,000 avg inventory = 6x turnover per year

Benchmarks for TikTok Shop Sellers

Good: 6-12x/year. Excellent: 12+. Slow: <4x. Fast fashion/beauty: 12-24x.

Why It Matters for TikTok Shop Sellers

The number of times inventory is sold and replaced over a period. Higher turnover means faster-selling products and less capital tied up in stock.

Related Terms

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