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Inventory Dashboard: Inventory Health & Metrics Overview
Inventory Dashboard: Inventory Health & Metrics Overview

Understanding the Inventory Dashboard and its key metrics

Updated over a week ago

The Inventory Optimization Dashboard is your homepage highlighting the current status of your active inventory as well as highlighting the cards that dive into the Inventory Potential components: Excess/unsold inventory and Out of stock. Understand relationships between individual SKU's sell through rates and inventory sales ratios to adjust your advertising strategy.

Inventory Metrics Deep Dive - Watch Video

The Inventory Health section represents all currently active, in-stock inventory held at the merchant. You’ll notice a banner about Unit COGS missing if any products do not have that value entered (learn more about COGS). This value drives the value figures in this section.

Aging breakdown comes directly from the merchant, reflecting at a high level products that potentially have, or will have long term storage fees. NOTE: Not all merchant/country combinations support aging details, and as this information is not provided intraday from the merchant; in some situations the totals may not match the roll up value due to to missing or outdated details.

The Sell Through Rate and Inventory Sales Ratio calculations reflect the last 90 days of data compared to the previous 90 days. Data may be up to a day delayed depending on timing - review the data updated timestamp to understand latest processing timing. Note that in some cases depending on timing of data and intraday processing, this data may be up to a day delayed; and processed as of today, may still mean data is as of yesterday's date.

Select the "See All" from under the aging breakdown to view all products and their individual metrics:

Sell Through Rate:

This ratio reflects the performance of your active products by dividing how many have been sold by how many units you had available to sell in the past 90 days. Generally, the industry standard is an 80% rate; with typical rates falling between 40-80%. Low sell-through rates are a potential reflection of storing more inventory than you need. This value alone should not trigger an alarm, but used as a benchmark when reviewing overall performance and profitability. Review each SKU’s individual rate and think about associated advertising strategies or if you should change the amount of inventory held at the merchant.

Calculation: Number of units sold in 90 days / Average number of sellable units in 90 days

We will look at the daily inventory available every day through 90 days, divided by 90 for an average inventory amount per SKU.

Note that Amazon does calculate a value using snapshot data of sellable units at 4 periods (today, 30, 60, 90 days ago); our calculation uses daily inventory sellable units over each individual day in the 90 day period.

Inventory Sales Ratio:

This ratio reflects the available inventory at the merchant compared to what you’ve sold in the last 90 days. Directionally, lower ratios reflect products that convert more quickly into sales - which points to a more efficient allocation of capital to inventory. Higher ratios generally suggest excess stock and/or decreasing demand.

General industry standards for a growing ecommerce business is a ratio between 0.17 and 0.25; but wholly dependent on your specific industry, growth rate and other key business factors. This value alone should not trigger an alarm, but used as a benchmark to investigate. The dashboard has a roll up value for all SKUs, and in the breakdown pages you can see a ratio per individual SKU. Review each product and think about associated advertising strategies or if you should change the amount of inventory held at the merchant.

Calculation: Inventory Sales Ratio = Average Inventory Value in 90 days / Total sales 90 days

To calculate the Average Inventory Value = Average inventory over 90 days * COGS current value

We will look at the daily inventory value over 90 days, divided by 90 for an average inventory amount per SKU. SKUs with missing COGS values will skew results (learn more about COGS).

How to use these in combination with advertising strategy:

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