This episode we share about three metrics that you should be looking at when you are trying to increase your gross sales.
Before sharing this I share what you need to be watching in your business to make sure that you are not sacrificing bottom line growth for top line sales. We especially see increased gross sales with a decrease in bottom line when people are growing very rapidly and using leverage such as an Amazon loan.
While we focus on short team lead measures like weekly spend, amount shipped, and wholesale calls made. However, we look at three lag results in our business and in those that we coach. The three metrics are gross sales, total inventory value, and the amount and/or percentage of inventory that has aged over 90 days.
Measuring your total inventory value helps you to start to see how much inventory do you need to maintain to hit a specific sales goals. It helps us to see if the gross sales stalls, is it because we simply don’t have enough inventory or if there is a problem with the total quality or buying processes.
Inventory that has been aged over 90 days tells us if there is something that is broken in the buying process. We consider stock aged over 90 days a mistake unless there is a really good reason for it. So as you grow your inventory on Amazon we want to make sure that it isn’t just sitting at the FBA warehouses, that it is moving.
If your SKU system has some indicator of source, you can look at the items aged over 90 days and look for patterns that might have contributed to the sale inventory. This can help you increase your profits and your buying process.
We also talk about some of the things for you to consider if you are looking to scale quickly with a loan.
We have more information on aged inventory in our Unstoppable Amazon Academy. Membership starts at just 49.99 a month! You can find out more at BestFromTheNest.com/academy
Just getting started on Amazon, let us help you begin your Amazon business for free. We have a free getting started guide at Bestfromthenest.com/startfee