Inventory Turnover Rate Calculation

📦 Understanding Re-Order Point (ROP) and Replenishment in Warehouse Management 📦 In supply chain and warehouse management, knowing when to reorder stock is crucial for maintaining the right balance between inventory availability and cost efficiency. One of the key concepts in inventory management is the Re-Order Point (ROP). But how do you calculate it accurately? And what are the most effective replenishment strategies? 🔹 What is the Re-Order Point (ROP)? ROP is the threshold at which stock must be replenished to prevent shortages before the next delivery arrives. In other words, it is the minimum inventory level at which a new purchase order should be placed. 🔢 Basic ROP Formula: Without Safety Stock: 📌 ROP = Lead Time (Days) × Average Daily Consumption With Safety Stock: 📌 ROP = (Lead Time × Average Daily Consumption) + Safety Stock 🛠 Example Case: A warehouse has a daily material consumption of 10 units, with a procurement lead time of 7 days. 📌 ROP = 7 × 10 = 70 So, when the stock reaches 70 units, the company should immediately reorder to avoid running out of stock while waiting for the next delivery. 🔹 Effective Replenishment Strategies Determining the ROP alone is not enough. Businesses must also adopt the right replenishment strategy to ensure a steady inventory flow without excessive overstocking. Here are three common strategies: 1️⃣ Just-In-Time (JIT) This approach ensures that stock is ordered only when it is needed. It is suitable for businesses with stable demand and reliable suppliers who can deliver quickly. ✅ Pros: Reduces storage costs and minimizes inventory obsolescence. ❌ Challenges: Highly dependent on a smooth supply chain—any disruption can cause stockouts. 2️⃣ Fixed Order Quantity With this method, orders are placed in fixed quantities whenever the stock reaches the ROP. The order quantity is often based on Minimum Order Quantity (MOQ) or Economic Order Quantity (EOQ). ✅ Pros: Helps maintain consistent stock levels. ❌ Challenges: Can lead to overstocking if demand drops unexpectedly. 3️⃣ Periodic Review System Stock levels are reviewed at fixed intervals (e.g., monthly), and orders are placed accordingly. ✅ Pros: Suitable for items with fluctuating demand. ❌ Challenges: If the review period is too long, stockouts may occur before the next replenishment cycle. 🎯 Conclusion Determining the optimal Re-Order Point (ROP) is essential to ensure stock availability without excessive inventory costs. By understanding consumption patterns, lead time, and choosing the right replenishment strategy, warehouse operations can run efficiently and seamlessly, avoiding both stockouts and overstock situations. 🔥 What ROP and replenishment strategy do you use in your warehouse? Let’s discuss in the comments! #Inventory #Warehouse #Supplychain #SCM #Logistic #Rop #Replenishment

Unpopular opinion: Your "culture" budget is a waste of money if you lack this ONE thing... Purpose. You can't pizza-party your way out of a turnover crisis. Most companies are stuck performing "Retention Theater." They act like coroners performing autopsies (exit interviews) instead of doctors preventing the disease. To build a fortress around your talent, you need to climb the 4 levels of the Retention Hierarchy: LEVEL 1: REACTIVE - PEOPLE QUIT → WE ASK WHY AFTER Exit interviews where people give the "polite" answer about new opportunities. Managers shocked when their "hidden gem" gives notice. What it looks like: - Exit interviews only - Last-minute counteroffers - High regret turnover The fix: Start with stay interviews. Ask people what energizes them, what would make them leave. Do this quarterly. Act on what you learn before they’re halfway out the door. LEVEL 2: PROGRAMMATIC - ONE-SIZE-FITS-ALL PERKS Pizza Fridays. Ping pong tables. The same tired benefits whether you're 22 or 52, single or supporting a family (I have four kids...I know the needs change!). What it looks like: - Generic swag and offsites -"Engagement" via snacks - Culture defined by events It’s throwing spaghetti at the wall hoping something sticks. Spoiler: it doesn't. The fix: Tailor benefits to real needs. Survey by team AND tenure. Engineers value different perks than salespeople. Stop guessing, start asking. LEVEL 3: STRATEGIC - RETENTION DESIGNED INTO SYSTEMS Now we’re getting somewhere. Career paths are clear. Promotions happen on schedule. High-potentials know they’re valued. Every process reinforces that growth happens here. What it looks like: - Growth tracks by function - Skills-based promotions - Embedded feedback loops You’re not reacting to turnover. You’re preventing it through structure. The fix: Align L&D with skills gaps. Track mobility rates. Make internal moves easier than external ones. If someone has to leave to level up their skills, that’s a failure of the system. LEVEL 4: CULTURAL - PEOPLE STAY BECAUSE THEY BELONG The holy grail. People stay because leaving would mean losing something irreplaceable. Not perks or pay...belonging. Purpose. The feeling that their work matters to the mission. What it looks like: - Psychological safety - Purpose-driven work - Peer recognition culture Your culture is so strong that recruiters can’t poach your people with big raises. They’ve tried. The fix: Train every manager on trust-building and "human skills." Not a one-off workshop...ongoing coaching. Make belonging a metric, not a buzzword. TAKEAWAY: The companies winning the talent war understand that people don't leave companies. They leave cultures that don't value them. They leave managers who don't develop them. They leave futures they can't see. Fix those three things, and retention takes care of itself.

The mind-blowing statement in Eternal’s Q4 FY25 earnings is — Blinkit projects a 22x Inventory Turnover Ratio — to provide some benchmarks: DMart’s inventory turnover ratio is 12.5 Reliance Retail’s inventory turnover ratio is ~9.5 Kirana store’s inventory turnover ratio is ~6 Note: Blinkit’s global QC players don’t disclose this metric because they operate on a pick & drop model e.g. DoorDash and InstaCart in USA i.e. they don’t hold inventory. Here’s a quick breakdown ⤵️ (1) What is the Inventory Turnover Ratio (ITR)?💡 - Measures how many times in a year the company is able to sell its entire inventory of goods - It can also be expressed as ‘inventory days’ i.e. no. of days taken to sell the entire inventory - e.g. for Blinkit → x22 ITR means inventory of ~₹1,000 crore working capital (per financials) is sold in ~16 days (i.e. 365/22) (2) Why does it matter? 🤔 - Higher ITR means the inventory is being sold faster - Faster sales means (a) Lower liquidation (i.e. old inventory sold for scrap), (b) Low storage costs, (c) Good inventory forecasting — all of which result in good cashflows in the long term - Therefore, Blinkit projecting a x22 ITR means their velocity is almost x2 of DMart (3) Quick Commerce ITR is 🔥 - Recently, Eternal was able to push its domestic ownership above 50%, which as per FDI e-commerce rules, allows Eternal to hold 1P inventory - The simplistic profit calculation here is: ITR x blended_%_margin - IFF Blinkit has a x2 to x3 upside on ITR, it would be able to cut its blended margin (viz other commerce alternatives) AND yet come out more profitable This is one of those few occasions as an Eternal shareholder where a statistic has truly surprised me — the ITR projection is very promising! ➡️Personally, I’m looking forward to seeing how Blinkit evolves from the current 3P franchise dark store model to a 1P full stack dark store model (i.e. Hyperpure supplied inventory, Blinkit owned dark store etc) #startups #india

Inflation isn’t just an economic challenge—it’s a test of agility for businesses. As costs rise and purchasing power shifts, companies that rely on gut instinct risk falling behind. The real winners? Those who use data-driven insights to navigate uncertainty. 1️⃣ Understanding Consumer Behavior: What’s Changing? Inflation reshapes spending habits. Some consumers trade down to budget-friendly options, while others delay non-essential purchases. Businesses must analyze: 🔹 Spending patterns: Are customers shifting to smaller pack sizes or private labels? 🔹 Channel preferences: Is there a surge in online shopping due to better deals? 🔹 Regional variations: Inflation doesn’t hit all demographics equally—hyperlocal data matters. 📊 Example: A retail chain used real-time sales data to spot a shift toward economy brands, allowing it to adjust promotions and retain price-sensitive customers. 2️⃣ Pricing Trends: Data-Backed Decision-Making Raising prices isn’t the only response to inflation. Smart pricing strategies, backed by AI and analytics, can help businesses optimize margins without losing customers. 🔹 Dynamic pricing models: Adjust prices based on demand, competitor moves, and seasonality. 🔹 Price elasticity analysis: Determine how much a price hike impacts sales before making a move. 🔹 Personalized discounts: Use customer data to offer targeted promotions that drive loyalty. 📈 Example: An e-commerce platform analyzed customer behavior and found that small, frequent discounts led to better retention than infrequent deep discounts. 3️⃣ Demand Forecasting & Inventory Optimization Stocking the right products at the right time is critical in an inflationary market. Predictive analytics can help businesses: 🔹 Anticipate demand surges—especially in essential goods. 🔹 Optimize supply chains to reduce excess inventory and prevent stockouts. 🔹 Reduce waste in perishable categories like F&B, where price-sensitive demand fluctuates. 📦 Example: A leading FMCG brand leveraged AI-driven demand forecasting to prevent overstocking of premium products while ensuring budget-friendly variants were always available. 💡 The Takeaway Inflation isn’t just about rising costs—it’s about shifting consumer priorities. Companies that embrace data-driven decision-making can optimize pricing, fine-tune inventory, and strengthen customer loyalty. 𝑯𝒐𝒘 𝒊𝒔 𝒚𝒐𝒖𝒓 𝒃𝒖𝒔𝒊𝒏𝒆𝒔𝒔 𝒂𝒅𝒂𝒑𝒕𝒊𝒏𝒈 𝒕𝒐 𝒊𝒏𝒇𝒍𝒂𝒕𝒊𝒐𝒏𝒂𝒓𝒚 𝒑𝒓𝒆𝒔𝒔𝒖𝒓𝒆𝒔? 𝑨𝒓𝒆 𝒚𝒐𝒖 𝒖𝒔𝒊𝒏𝒈 𝒅𝒂𝒕𝒂 𝒕𝒐 𝒓𝒆𝒇𝒊𝒏𝒆 𝒚𝒐𝒖𝒓 𝒔𝒕𝒓𝒂𝒕𝒆𝒈𝒚? 𝑳𝒆𝒕’𝒔 𝒅𝒊𝒔𝒄𝒖𝒔𝒔 𝒊𝒏 𝒕𝒉𝒆 𝒄𝒐𝒎𝒎𝒆𝒏𝒕𝒔! #datadrivendecisionmaking #dataanalytics #inflation #inventoryoptimization #demandforecasting #pricingtrends

After 4 years working on construction sites, I left. Because of everything the hours didn't measure. Site work follows you. You never know when a decision will land on your desk as an emergency, or when you'll need to manage conflict with personalities that respect volume more than reason. In construction, strength and loudness count as leadership. If you don't match that energy, you risk being dismissed. If you do, you're exhausting yourself just to be heard. Vacation? Technically possible, practically complicated, and you learn to stop asking. When experienced site professionals move to office roles, we call it career progression, but often, it's just escaping to a place where your value doesn't depend on your ability to handle the noise. In construction, 94% experience stress, 83% anxiety, 60% depression. While the global burnout rate is 25%, in construction this rate is 40–60%. Role stress predicts who leaves. Skilled trades: 73,1% annual turnover; supervisors: 52,4%. Replacement cost €25.000-€35.000, with 12–16 weeks to reach full productivity. Invisible costs are steeper. When experienced workers burn out, organisations lose decades of institutional knowledge. Female workers leave at double the rate of men. They report 73% anxiety or depression compared to 60%. And it's preventable. Let’s talk about it. Source: TheResource - Construction Turnover Rate 2025 https://lnkd.in/eUM6sAdW -- Flora Baranyi | Construction Humanist Rethinking construction culture from the inside. #ConstructionHumanist #FloraOnProcess

Inventory is the killer of fashion brands☠️. It's impossible to forecast accurately. You either under stock or over stock certain SKUs. So how do you navigate inventory management as a fast growing consumer brand?🤯 At The Pant Project here's how we think about inventory management. 1. Core Never Out of Stock SKUs (NOOS): There are some collections and colors and sizes that are meant to be never out of stock. These are your top 25 sellers - like black, navy and grey formals, or your classic colours in power stretch or jeans in core sizes like waist 30 - 40. The idea is to never let these run out of stock. If you achieve 95% success here, your job is half done already in inventory management. This, while it may sound basic, is harder than it seems to execute in reality.🎯 2. Shorter Lead Times on Production: Flexible capacities and ability to restock items in 2 weeks, 30 days, 45 days etc. vs. traditional 90-120 day replenishment cycles helps you be more nimble in adjusting to demand. The cost of shorter runs is well worth it, the alternative would be lost sales. Speed requires adept planning in yarn inventory, fabric on the floor and garment capacity booking all aligned with shifting demand. ⛓️ 3. Close Eye on Ageing of Stock: Alarms should go off as stock hits 90 days of ageing, and liquidation should be done well before 180 days. The last thing you want is dead stock that you need to liquidate at a massive discount. Being early on the ball here is a huge benefit, you know the sales pattern 30-60 days post launch of a new product, so you need to adjust pricing, promotion or positioning of a product if it's not flying off your racks.🧨 4. Inventory Forecasting Technology: There are a host of tools (AI based, or otherwise) that sync with your demand engines and crunch data to suggest the optimal purchase quantity of each SKU. You still need to adjust these for forward looking events like your marketing plans and promotions calendar. You also need to sync them with your supply engines.📊 Quite transparently, we are yet to find a solution we are happy with in this domain. We're still largely using excel sheets and common sense to figure out how much of what to buy, and there's a huge opportunity for improvement using technology on this front.👩💻 The end goal is to reduce the number of days of inventory you are carrying (improve inventory turns) so that you block less $$$ in working capital and improve your ROCE.🤑

The Great Resignation is ending and that's good news for the prospects of a soft landing. Lots to run through from the July 2023 #JOLTS report! After two-plus years spent quitting and finding new and better opportunities at elevated rates, US workers are now voluntarily leaving their jobs at the same rate they were prior to the pandemic. This reduction in job-hopping signals that wage growth will continue to cool as employers face less pressure to attract new hires and retain current employees. This trend, plus the decline in job openings and dormant layoffs, is likely to please Fed policymakers. Quitting is coming down because job seekers are finding fewer opportunities—job openings have declined by 1.5 million over the past three months. There were still 23% more job openings at the end of July than there were on the last business day of January 2020, down from the peak of 67% at the end of March 2022. And while job openings continue to outnumber unemployed workers, the ratio of job openings to unemployed workers declined to 1.5 in July, the lowest ratio since September 2021. The labor market is still tight, but continues to loosen. The pullback in quitting is broad-based, with many sectors currently boasting quits rates equal to or below their immediate pre-pandemic levels. Most notably, quitting in two sectors that led the way during the Great Resignation has returned to early 2020 rates. Quitting in the Retail sector in July was equal to the sector’s February 2020 rate, and Leisure and Hospitality’s rate is slightly below that baseline. If quitting has moderated in these industries that experienced so much churn in recent years, then the Great Resignation is definitely behind us. The reduction in quitting and job openings is happening at the same time as layoffs remain low. The layoff rate remains unchanged over the past year and at a level that would have been an all-time low prior to the pandemic. All three of these trends are necessary ingredients for a soft landing in the US labor market, but that soft landing is still not guaranteed. The US labor market remains on solid footing, but demand for labor needs to continue declining as supply rises to meet it, all as inflation continues to cool.

Annual employee turnover rates are trending steeply downwards from ~20% in 2023 to ~15% in 2025 (annualized) “𝗠𝗮𝗻𝗮𝗴𝗶𝗻𝗴 𝗰𝗼𝗺𝗽𝗲𝗻𝘀𝗮𝘁𝗶𝗼𝗻 𝗶𝗻 𝗮 𝗿𝗲𝗰𝗲𝘀𝘀𝗶𝗼𝗻.” This was the theme of a talk given two weeks ago by David Knopping, Founder of Alpine Rewards and former President of Radford. According to David, four key forces tend to play out across the labor market during contractionary times: 1: Bonus payouts come down 2: More conservatism in merit cycle budgets 3: Equity philosophies change and innovate at a faster pace 𝟰: 𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗲 𝗮𝘁𝘁𝗿𝗶𝘁𝗶𝗼𝗻–𝗲𝘀𝗽𝗲𝗰𝗶𝗮𝗹𝗹𝘆 𝘃𝗼𝗹𝘂𝗻𝘁𝗮𝗿𝘆–𝘁𝗲𝗻𝗱𝘀 𝘁𝗼 𝗰𝗼𝗺𝗲 𝗱𝗼𝘄𝗻 Today, let’s look at the fourth mentioned force–employee attrition. ________________ 𝗠𝗲𝘁𝗵𝗼𝗱𝗼𝗹𝗼𝗴𝘆: Pave’s data science team performed an employee turnover analysis across 2,708 customers who have been in Pave’s dataset since the beginning of 2023. Note that the employee turnover benchmarks include both voluntary and involuntary attrition. Also note that the 2025 stats are annualized after one quarter’s worth of data. ______________ 𝗥𝗲𝘀𝘂𝗹𝘁𝘀: 📉100-1,001 Employees: 22.4% in '23 to 20.1% in '25  📉1001-3000 Employees: 20.3% in '23 to 15.3% in '25  📉3001+ Employees: 20.8% in '23 to 14.7% in '25 ______________ 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀: 1️⃣ 𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗲 𝗮𝘁𝘁𝗿𝗶𝘁𝗶𝗼𝗻 𝗶𝘀 𝗱𝗼𝘄𝗻 𝗮𝗰𝗿𝗼𝘀𝘀 𝘁𝗵𝗲 𝗯𝗼𝗮𝗿𝗱. We unfortunately don’t have a reliable way to break down voluntary vs. involuntary attrition at scale. But across the board, employee turnover rates are lower than they’ve been in years. Here are two hypotheses across involuntary and voluntary. [A] Involuntary attrition: many companies went through a wave of “post ZIRP right-sizing layoffs”, but that wave has mostly cooled off. [B] Voluntary attrition: employees are coming to terms with that fact that it is NOT a hot job market, at least in tech. Companies are generally prioritizing efficiency more so than in the past (e.g. ARR/FTE, Burn Multiple, Free Cash Flow, SBC as a % of Revenue, etc). 2️⃣ 𝗧𝗵𝗲 𝗿𝗲𝗹𝗮𝘁𝗶𝘃𝗲 𝗱𝗿𝗼𝗽 𝗶𝗻 𝗲𝗺𝗽𝗹𝗼𝘆𝗲𝗲 𝗮𝘁𝘁𝗿𝗶𝘁𝗶𝗼𝗻 𝗶𝘀 𝗺𝗼𝘀𝘁 𝗽𝗿𝗼𝗻𝗼𝘂𝗻𝗰𝗲𝗱 𝗮𝘁 𝗹𝗮𝗿𝗴𝗲𝗿 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀. Smaller companies are a touch down (22.4% in 2023 vs. 20.1% in 2025_annualized). Meanwhile, the drop for companies with 3,000+ employees is much larger (20.8% in 2023 vs 14.7% in 2025_annualized). Perhaps employees at larger, often public, companies are content with “the devil you know vs the devil you don’t know”? ______________ 𝗣𝗿𝗮𝗰𝘁𝗶𝗰𝗮𝗹 𝗦𝘂𝗴𝗴𝗲𝘀𝘁𝗶𝗼𝗻 𝗳𝗼𝗿 𝗖𝗼𝗺𝗽𝗲𝗻𝘀𝗮𝘁𝗶𝗼𝗻 & 𝗛𝗥 𝗟𝗲𝗮𝗱𝗲𝗿𝘀: What is your company’s 2024 employee turnover rate? What was your company’s Q1 2025 employee turnover rate? And how do these two numbers compare to the relevant benchmarks in this study? Use this to gain an understanding of how your company compares to the market and what (if any) changes you should make to your company's total rewards program design.

𝗣𝗲𝗼𝗽𝗹𝗲 𝗗𝗼𝗻’𝘁 𝗤𝘂𝗶𝘁 𝗕𝗼𝘀𝘀𝗲𝘀 — 𝗧𝗵𝗲𝘆 𝗤𝘂𝗶𝘁 𝘁𝗵𝗲 𝗚𝗮𝗽 𝗕𝗲𝘁𝘄𝗲𝗲𝗻 𝗪𝗵𝗲𝗿𝗲 𝗧𝗵𝗲𝘆 𝗔𝗿𝗲 𝗮𝗻𝗱 𝗪𝗵𝗲𝗿𝗲 𝗧𝗵𝗲𝘆 𝗪𝗮𝗻𝘁 𝘁𝗼 𝗕𝗲. For years, we’ve accepted the idea that “𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗲𝘀 𝗱𝗼𝗻’𝘁 𝗾𝘂𝗶𝘁 𝗼𝗿𝗴𝗮𝗻𝗶𝘀𝗮𝘁𝗶𝗼𝗻𝘀 — 𝘁𝗵𝗲𝘆 𝗾𝘂𝗶𝘁 𝗺𝗮𝗻𝗮𝗴𝗲𝗿𝘀.” It’s a comforting line. It feels obvious. But new research shows it’s only half the story — and sometimes a dangerously incomplete one. A study using an 𝗮𝗽𝗽𝗿𝗼𝗮𝗰𝗵–𝗮𝘃𝗼𝗶𝗱𝗮𝗻𝗰𝗲 lens reveals something far more nuanced: 👉 Some employees leave to escape something (bad managers, burnout, toxicity). 👉 Others leave to pursue something (growth, meaning, flexibility, better alignment). 👉 And most? They leave because of both forces at the same time. This means turnover isn’t a single-story problem. It’s a 𝗱𝘂𝗮𝗹-𝗺𝗼𝘁𝗶𝘃𝗮𝘁𝗶𝗼𝗻 𝗱𝗲𝗰𝗶𝘀𝗶𝗼𝗻. 𝗔𝘃𝗼𝗶𝗱𝗮𝗻𝗰𝗲 𝗿𝗲𝗮𝘀𝗼𝗻𝘀 (𝗺𝗼𝘃𝗶𝗻𝗴 𝗔𝗪𝗔𝗬 𝗳𝗿𝗼𝗺 𝘀𝗼𝗺𝗲𝘁𝗵𝗶𝗻𝗴): • Poor manager behaviour • Lack of recognition • Toxic or political culture • Stress, overload, unclear roles • No psychological safety Yes — these matter. A lot. But they don’t explain the full picture. 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵 𝗿𝗲𝗮𝘀𝗼𝗻𝘀 (𝗺𝗼𝘃𝗶𝗻𝗴 𝗧𝗢𝗪𝗔𝗥𝗗 𝘀𝗼𝗺𝗲𝘁𝗵𝗶𝗻𝗴): • Career growth • Skill development • Better pay or opportunities • More meaningful work • Flexibility and autonomy • Stronger culture fit elsewhere These are rarely about “bad bosses.” They’re about better futures. 𝗧𝗵𝗲 𝗿𝗲𝗮𝗹 𝗶𝗻𝘀𝗶𝗴𝗵𝘁: People don’t quit only because of pain. They quit because of comparison — the difference between what they have and what they believe they could have. Turnover is the result of: 𝗔𝘃𝗼𝗶𝗱𝗮𝗻𝗰𝗲: “𝗜 𝗰𝗮𝗻’𝘁 𝗸𝗲𝗲𝗽 𝗱𝗼𝗶𝗻𝗴 𝘁𝗵𝗶𝘀.” + 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵: “𝗜 𝗱𝗲𝘀𝗲𝗿𝘃𝗲 𝘀𝗼𝗺𝗲𝘁𝗵𝗶𝗻𝗴 𝗯𝗲𝘁𝘁𝗲𝗿.” When companies overly focus on fixing the managers, they miss the bigger levers — job design, growth pathways, culture alignment, workload balance, and real opportunities for mobility. Retention isn’t a manager-only issue. It’s a system issue. 𝗙𝗼𝗿 𝗲𝗺𝗽𝗹𝗼𝘆𝗲𝗿𝘀: The most revealing question is NOT - “Why are people leaving?” It is, “What are they escaping — and what are they moving toward?” That’s where the real answers hide. And where the real retention strategies begin.

Balancing inventory levels to meet demand without overinvesting is probably one of the toughest challenges I've faced running my business. We all know that you need enough topline revenue generated to cover your fixed costs each month. On the other hand, we also know that we need positive cash flow to be able to keep paying our bills as they fall due. So, what can we do to plan inventory more effectively? 1. Before investing in new products, look at how similar styles previously sold. 2. Don't just view the sell-through rate; look at what the true rate of sale was if all sizes/colors/variants remained in stock so that you don't underindex. 3. Look at revenue today versus the data period you are pulling the rate of sale for. If business is up 15%, you can add an additional margin; however, if business is down 10%, you need to lower your forecast. 4. Negotiate with suppliers not just on the cost price per unit but also on the factory turnaround should you need to quickly replenish the line with a second factory run. 5. Understand how profitable this product is based on the business's current blended ad spend per order, average shipping cost, and your regular discount flows (think sign up and cart abandonment emails). 6. Make sure that if you need to discount the product by 20% and then an extra 20% to clear it, you are going to at the very least break even. Are there any steps you take that I missed to avoid over/underindexing on product?