{"id":4573,"date":"2022-12-27T11:00:00","date_gmt":"2022-12-27T11:00:00","guid":{"rendered":"https:\/\/www.shipbob.com\/au\/?post_type=blog&#038;p=4573"},"modified":"2025-09-26T16:37:21","modified_gmt":"2025-09-26T16:37:21","slug":"retail-inventory-method","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/au\/blog\/retail-inventory-method\/","title":{"rendered":"What Is the Retail Inventory Method? Definition, Use Cases, &amp; How to Calculate"},"content":{"rendered":"\n<div class=\"wp-block-shipbob-blocks-single-toc single-toc\" data-controller=\"blog-toc-controller\" data-action=\"scroll@window-&gt;blog-toc-controller#scrollChanged:passive\" id=\"toc-component\"><div class=\"single-toc-overview\"><p>Table of Contents<\/p><div class=\"single-toc-read-time\"><p>** Minutes<\/p><\/div><\/div>\n<p><a href=\"#h-what-is-the-retail-inventory-method\">What is the retail inventory method?<\/a><\/p>\n\n\n\n<p><a href=\"#h-how-to-calculate-the-retail-inventory-method\">How to calculate the retail inventory method<\/a><\/p>\n\n\n\n<p><a href=\"#h-retail-inventory-method-drawbacks\">Retail inventory method drawbacks<\/a><\/p>\n\n\n\n<p><a href=\"#h-shipbob-takes-the-guesswork-out-of-inventory-management\">ShipBob takes the guesswork out of inventory management<\/a><\/p>\n\n\n\n<p><a href=\"#h-retail-inventory-method-faqs\">Retail inventory method FAQs<\/a><\/p>\n<\/div>\n\n\n\n<p>Business is booming. As a retailer, you\u2019re hurtling towards growth \u2014 you have hundreds of customers, and thousands of units of inventory in <a href=\"https:\/\/www.shipbob.com\/warehouse-operations\/inventory-storage\/\">storage<\/a>.\u00a0<\/p>\n\n\n\n<p>But a speed bump is coming: <a href=\"https:\/\/www.shipbob.com\/blog\/physical-inventory\/\">physical inventory<\/a> counts.&nbsp;<\/p>\n\n\n\n<p>No matter how big your business is or how fast you\u2019re scaling, all retailers need to monitor their inventory counts and ensure that those records are accurate. <\/p>\n\n\n\n<p>However, for retailers moving tens of thousands of inventory units through their <a href=\"https:\/\/www.shipbob.com\/blog\/ecommerce-supply-chain\/\">supply chain<\/a>, physically counting each unit could take ages.<\/p>\n\n\n\n<p>To avoid stalling operations, many retailers rely on the retail inventory method to account for their <a href=\"https:\/\/www.shipbob.com\/ecommerce-inventory\/guide\/\">inventory<\/a>. While not identical to a physical count, the retail inventory method can help retailers get an idea of how much inventory they have without getting bogged down counting every unit.<\/p>\n\n\n\n<p>In this article, we\u2019ll discuss what the retail inventory method is, how to use it, and how to calculate it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-the-retail-inventory-method\">What is the retail inventory method?<\/h2>\n\n\n\n<p>The retail inventory method is an <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-accounting\/\">inventory accounting<\/a> method that lets business owners estimate the value of their inventory for a given time period. <\/p>\n\n\n\n<p>Often calculated at the end of an accounting period, this method gives a retailer an approximate idea of how much their <a href=\"https:\/\/www.shipbob.com\/blog\/ending-inventory\/\">ending inventory<\/a> is worth.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-is-the-retail-inventory-method-useful-for-retailers\">How is the retail inventory method useful for retailers?<\/h3>\n\n\n\n<p>Retailers can use the retail inventory method to get a quick estimate of their inventory value without having to do a time-consuming physical inventory count every time period.&nbsp;<\/p>\n\n\n\n<p>Although it can\u2019t replace manual inventory count, using the retail inventory method can give you a general idea of how much inventory you have. That way, you can make an informed decision about how to budget and purchase additional inventory, while saving time and labour.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-when-should-you-use-this-method\">When should you use this method?<\/h3>\n\n\n\n<p>Whether or not to use the retail inventory method largely depends on the type of business you run.&nbsp;<\/p>\n\n\n\n<p>The retail inventory method is best suited for multi-store retailers (as performing manual inventory counts <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-allocation\/\">across multiple locations<\/a> can be difficult) and retailers with similar or consistent markups across products (as inconsistent markups can throw off calculations).&nbsp;<\/p>\n\n\n\n<p>Even if your business does not fit in either category, you may still find the retail inventory method helpful. If you need to get a quick estimate of your inventory or understand the cost of products stocked in your <a href=\"https:\/\/www.shipbob.com\/blog\/warehousing\/\">warehouses<\/a>, the retail inventory method may help.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-calculate-the-retail-inventory-method\">How to calculate the retail inventory method<\/h2>\n\n\n\n<p>The retail inventory method can be tricky to master, as the method\u2019s formula used to calculate ending inventory value has many components. Below, we\u2019ll walk you through each piece of information, and apply it to an example.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-information-needed-for-the-retail-inventory-method\">Information needed for the retail inventory method<\/h3>\n\n\n\n<p>You\u2019ll need to gather a few pieces of information and perform a few preliminary calculations to find your ending inventory balance using the retail method.&nbsp;<\/p>\n\n\n\n<p>Here\u2019s what you need to find:&nbsp;<\/p>\n\n\n\n<p><strong>1. Cost of Goods Available for Sale:<\/strong> How much it cost you to obtain all the inventory units that are ready to be sold. <\/p>\n\n\n\n<p class=\"is-style-indent\">Formula: Cost of <a href=\"https:\/\/www.shipbob.com\/blog\/beginning-inventory\/\">Beginning Inventory<\/a> + Cost of Inventory purchases for the period<\/p>\n\n\n\n<p><strong>2. Cost-to-Retail Ratio:<\/strong> A ratio expressed as a percentage.<\/p>\n\n\n\n<p class=\"is-style-indent\">Formula: (Cost of 1 unit \/ Retail Price of 1 unit) x 100<\/p>\n\n\n\n<p><strong>3. Retail Sales (for the period):<\/strong> The amount of retail dollars earned from sales in a given period.&nbsp;<\/p>\n\n\n\n<p>In the retail inventory method, the formula for Ending Inventory uses each of these. The Ending Inventory formula is:<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong>Ending Inventory Value = Cost of Goods Available for Sale \u2014 (Retail Sales x Cost-to-Retail Ratio)<\/strong><\/p>\n\n\n\n<p class=\"is-style-indent\"><em>NOTE: In this instance, \u201cending inventory value\u201d refers to the <\/em><em>wholesale<\/em><em> value of the goods, NOT the retail value of those goods.&nbsp;<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-retail-inventory-method-calculation-example\">Retail inventory method calculation example<\/h3>\n\n\n\n<p>A wholesaler has $20,000 worth of inventory at the beginning of a period \u2014 meaning that beginning inventory for that period cost them $20,000.&nbsp;<\/p>\n\n\n\n<p>The wholesaler then spends another $40,000 purchasing additional inventory throughout the period.&nbsp;<\/p>\n\n\n\n<p>Each inventory unit costs $50 to purchase from the <a href=\"https:\/\/www.shipbob.com\/blog\/supplier-manufacturer\/\">manufacturer<\/a>, and retails for $100. The <a href=\"https:\/\/www.shipbob.com\/blog\/wholesale-inventory-management\/\">wholesaler<\/a> ends up selling $50,000 retail dollars of goods by the end of the accounting period.<\/p>\n\n\n\n<p>Using this information, we can calculate the following:&nbsp;<\/p>\n\n\n\n<p class=\"is-style-indent\">Cost of Goods Available for Sale = Cost of Beginning Inventory + Cost of Purchases for the period<\/p>\n\n\n\n<p class=\"is-style-indent\">Cost of Goods Available for Sale = $20,000 + $40,000&nbsp;<\/p>\n\n\n\n<p class=\"is-style-indent\"><strong>Cost of Goods Available for Sale = $60,000<\/strong><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p class=\"is-style-indent\">Cost-to-Retail Ratio = (Cost per unit \/ Retail Value per unit) x 100<\/p>\n\n\n\n<p class=\"is-style-indent\">Cost-to-Retail Ratio = ($50\/ $100) x 100<\/p>\n\n\n\n<p class=\"is-style-indent\">Cost-to-Retail Ratio= .50 x 100<\/p>\n\n\n\n<p class=\"is-style-indent\"><strong>Cost-to-Retail Ratio = 50%<\/strong><\/p>\n\n\n\n<p>Using all of these calculations, the Here, the value of ending inventory would be as follows:<\/p>\n\n\n\n<p class=\"is-style-indent\">Ending Inventory = Cost of Goods Available for Sale \u2014 (Sales x Cost-to-Retail Ratio)<\/p>\n\n\n\n<p class=\"is-style-indent\">Ending Inventory = $60,000 \u2014 ($50,000 x 50%)<\/p>\n\n\n\n<p class=\"is-style-indent\">Ending Inventory = $60,000 \u2014 ($25,000)<\/p>\n\n\n\n<p class=\"is-style-indent\"><strong>Ending Inventory = $35,000<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-related-and-helpful-calculations-amp-formulas\">Related and helpful calculations &amp; formulas<\/h3>\n\n\n\n<p>If the retail inventory method isn\u2019t best for your retail business, there are several alternative methods to calculate the value of your inventory. Here are some of the most notable.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-fifo-nbsp\">FIFO&nbsp;<\/h4>\n\n\n\n<p>The <a href=\"https:\/\/www.shipbob.com\/blog\/fifo\/\">FIFO<\/a> (or \u201cFirst In, First Out\u201d) method involves calculating inventory value based on the COGS (or \u201cCost of Goods Sold\u201d) of your oldest inventory. FIFO assumes that the goods acquired first are also the first to be sold, and doesn\u2019t factor recent changes in costs into valuation.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-lifo\">LIFO<\/h4>\n\n\n\n<p>The <a href=\"https:\/\/www.shipbob.com\/blog\/lifo\/\">LIFO<\/a> (or \u201cLast In, First Out\u201d) method involves calculating inventory value based on the COGS of your most recent inventory purchases. LIFO assumes that the goods acquired most recently are also the first to be sold, and is therefore highly influenced by selling price fluctuations.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-weighted-average-cost\">Weighted Average Cost<\/h4>\n\n\n\n<p>The <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-weighted-average\/\">weighted average cost<\/a> method calculates inventory value based on the averaged cost of purchased goods in your available inventory. It\u2019s calculated by dividing the cost of goods available for sale by the total number of units in your inventory.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-retail-inventory-method-drawbacks\">Retail inventory method drawbacks<\/h2>\n\n\n\n<p>Although the retail inventory method may simplify inventory accounting, it comes with a few drawbacks that affect the valuation or count\u2019s accuracy. Here are some of the biggest issues to keep in mind.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-estimates\">Estimates<\/h3>\n\n\n\n<p>The retail inventory method only provides you with an estimated inventory count. As such, it may not be as <a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/inventory-accuracy\/\">accurate<\/a> as a physical inventory count.&nbsp;<\/p>\n\n\n\n<p>Therefore, retailers should not use the retail inventory method as a replacement for manual inventory counts, and only use it when a rough estimate is needed quickly.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;We are very impressed by ShipBob\u2019s transparency, simplicity, and intuitive dashboard. So many 3PLs have either bad or no front-facing software, making it impossible to keep track of what\u2019s leaving or entering the warehouse. <\/p>\n\n\n\n<p>On the supply chain side, I just throw in what we placed at the factory into a WRO in the ShipBob dashboard, and I can see how many units we have on-hand, what\u2019s incoming, what\u2019s at docks, and so on. I can see all of those numbers in a few seconds, and it makes life so much easier.\u201d<\/p>\n\n\n\n<p><em>Harley Abrams, Operations Manager of <a href=\"https:\/\/www.shipbob.com\/blog\/superspeed%20golf\/\">SuperSpeed Golf, LLC<\/a>&nbsp;<\/em><\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-inconsistent-markups-and-markdowns\">Inconsistent markups and markdowns<\/h3>\n\n\n\n<p>The retail inventory method can only work if you have consistent markups across all the products you sell. Otherwise, the calculation cannot be accurate, since the cost-to-retail ratio isn\u2019t consistent.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-fluctuating-markups-nbsp\">Fluctuating markups&nbsp;<\/h3>\n\n\n\n<p>In the retail inventory method, Cost-to-Retail Ratio is calculated on a historical basis. This means that it doesn\u2019t consider any changes in markup in the current period. So if there\u2019s any markup fluctuation during the current period, the calculation will be inaccurate.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-acquisitions\">Acquisitions<\/h3>\n\n\n\n<p>The retail inventory method is also at risk of being inaccurate when an acquisition has been made. Specifically, it tends to be inaccurate if the markup percentage used by the acquired party is significantly different from the rate that the acquirer used.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-shipbob-takes-the-guesswork-out-of-inventory-management\">ShipBob takes the guesswork out of inventory management<\/h2>\n\n\n\n<p>Inventory should never be managed through guesswork \u2014 and when you partner with ShipBob, it never is.&nbsp;<\/p>\n\n\n\n<p>With ShipBob, you get access to robust <a href=\"https:\/\/www.shipbob.com\/inventory-management\/\">inventory management<\/a> software that comes with powerful analytics, metrics, and reporting tools. The proprietary software keeps track of your inventory levels and sales in <a href=\"https:\/\/www.shipbob.com\/blog\/perpetual-inventory-system\/\">real-time<\/a> across all your sales channels, ensuring that your <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-records\/\">inventory records<\/a> are always up-to-date and accurate.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cWe have a Shopify store but do not use Shopify to track inventory. In terms of tracking inventory, we use ShipBob for everything \u2014 to be able to track each bottle of perfume, what we have left, and what we\u2019ve shipped, while getting a lot more information on each order. <\/p>\n\n\n\n<p>The analytics are super helpful. We download Excel files from the ShipBob dashboard all the time and use them to analyse everything from cancellations, to examining order weights, to checking on whether ShipBob is shipping orders on time. Even the way their warehouse receiving orders (WROs) work for sending inventory is very straightforward.\u201d<\/p>\n\n\n\n<p><em>Ines Guien, Vice President of Operations at <a href=\"https:\/\/www.shipbob.com\/blog\/dossier\/\">Dossier<\/a><\/em><\/p>\n<\/blockquote>\n\n\n\n<p>ShipBob\u2019s inventory platform also automatically tracks your inventory as it moves through your supply chain, so you know exactly when to <a href=\"https:\/\/www.shipbob.com\/blog\/restocking-inventory\/\">restock<\/a>. It also helps you <a href=\"https:\/\/www.shipbob.com\/inventory-management\/inventory-forecasting\/\">forecast inventory<\/a> and demand more accurately, so you can make the most informed decisions and <a href=\"https:\/\/www.shipbob.com\/inventory-management\/inventory-optimization\/\">optimise<\/a> inventory purchasing and budgeting.<\/p>\n\n\n\n<p>If you want to learn more about ShipBob\u2019s inventory management and fulfilment capabilities for your B2B channels, click the button below to get a quote.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.shipbob.com\/b2b-quote\/\">Request B2B Fulfilment Pricing<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-retail-inventory-method-faqs\">Retail inventory method FAQs<\/h2>\n\n\n\n<p>Below are answers to the most common questions about the retail inventory method.<\/p>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">Is the retail inventory method considered acceptable under the tenets of the US GAAP?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n<p>The retail inventory method is considered acceptable under the tenets of the US GAAP. However, there is no specific guidance on its application.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">What are the different inventory methods?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n<p>Some of the most commonly used <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-valuation-methods\/\">inventory valuation<\/a> and counting methods are First In, First Out (FIFO); Last In, First Out (LIFO); and Weighted Average Cost.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">Who uses the retail inventory method?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n<p>The retail inventory method is best for business with many retail stores and retailers with consistent markups.<\/p>\n<\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Here&#8217;s how to use the retail inventory method to estimate your inventory value without performing physical inventory counts. <\/p>\n","protected":false},"author":194,"featured_media":22551,"parent":0,"template":"","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"blogcategories":[8],"class_list":["post-4573","blog","type-blog","status-publish","has-post-thumbnail","hentry","blogcategories-inventory"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Retail Inventory Method: Guide &amp; How To Calculate (2022)<\/title>\n<meta name=\"description\" content=\"Here&#039;s how to use the retail inventory method to estimate your inventory value without performing physical inventory counts.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shipbob.com\/au\/blog\/retail-inventory-method\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Is the Retail Inventory Method? Definition, Use Cases, &amp; How to Calculate\" \/>\n<meta property=\"og:description\" content=\"Here&#039;s how to use the retail inventory method to estimate your inventory value without performing physical inventory counts.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.shipbob.com\/au\/blog\/retail-inventory-method\/\" \/>\n<meta property=\"og:site_name\" content=\"ShipBob Australia\" \/>\n<meta property=\"article:modified_time\" content=\"2025-09-26T16:37:21+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2025\/09\/4ca341603ef343e38e528e9f4726b403.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/blog\\\/retail-inventory-method\\\/\",\"url\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/blog\\\/retail-inventory-method\\\/\",\"name\":\"Retail Inventory Method: Guide & How To Calculate (2022)\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/blog\\\/retail-inventory-method\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/blog\\\/retail-inventory-method\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/wp-content\\\/uploads\\\/sites\\\/33\\\/2025\\\/09\\\/4ca341603ef343e38e528e9f4726b403.jpg\",\"datePublished\":\"2022-12-27T11:00:00+00:00\",\"dateModified\":\"2025-09-26T16:37:21+00:00\",\"description\":\"Here's how to use the retail inventory method to estimate your inventory value without performing physical inventory counts.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/blog\\\/retail-inventory-method\\\/#breadcrumb\"},\"inLanguage\":\"en-AU\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.shipbob.com\\\/au\\\/blog\\\/retail-inventory-method\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-AU\",\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/blog\\\/retail-inventory-method\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/wp-content\\\/uploads\\\/sites\\\/33\\\/2025\\\/09\\\/4ca341603ef343e38e528e9f4726b403.jpg\",\"contentUrl\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/wp-content\\\/uploads\\\/sites\\\/33\\\/2025\\\/09\\\/4ca341603ef343e38e528e9f4726b403.jpg\",\"width\":6000,\"height\":4000},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/blog\\\/retail-inventory-method\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Blog\",\"item\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"What Is the Retail Inventory Method? Definition, Use Cases, &amp; How to Calculate\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/#website\",\"url\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/\",\"name\":\"ShipBob Australia\",\"description\":\"Just another ShipBob Network site\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-AU\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Retail Inventory Method: Guide & How To Calculate (2022)","description":"Here's how to use the retail inventory method to estimate your inventory value without performing physical inventory counts.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.shipbob.com\/au\/blog\/retail-inventory-method\/","og_locale":"en_US","og_type":"article","og_title":"What Is the Retail Inventory Method? Definition, Use Cases, &amp; How to Calculate","og_description":"Here's how to use the retail inventory method to estimate your inventory value without performing physical inventory counts.","og_url":"https:\/\/www.shipbob.com\/au\/blog\/retail-inventory-method\/","og_site_name":"ShipBob Australia","article_modified_time":"2025-09-26T16:37:21+00:00","twitter_card":"summary_large_image","twitter_image":"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2025\/09\/4ca341603ef343e38e528e9f4726b403.jpg","twitter_misc":{"Est. reading time":"8 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.shipbob.com\/au\/blog\/retail-inventory-method\/","url":"https:\/\/www.shipbob.com\/au\/blog\/retail-inventory-method\/","name":"Retail Inventory Method: Guide & How To Calculate (2022)","isPartOf":{"@id":"https:\/\/www.shipbob.com\/au\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.shipbob.com\/au\/blog\/retail-inventory-method\/#primaryimage"},"image":{"@id":"https:\/\/www.shipbob.com\/au\/blog\/retail-inventory-method\/#primaryimage"},"thumbnailUrl":"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2025\/09\/4ca341603ef343e38e528e9f4726b403.jpg","datePublished":"2022-12-27T11:00:00+00:00","dateModified":"2025-09-26T16:37:21+00:00","description":"Here's how to use the retail inventory method to estimate your inventory value without performing physical inventory counts.","breadcrumb":{"@id":"https:\/\/www.shipbob.com\/au\/blog\/retail-inventory-method\/#breadcrumb"},"inLanguage":"en-AU","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.shipbob.com\/au\/blog\/retail-inventory-method\/"]}]},{"@type":"ImageObject","inLanguage":"en-AU","@id":"https:\/\/www.shipbob.com\/au\/blog\/retail-inventory-method\/#primaryimage","url":"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2025\/09\/4ca341603ef343e38e528e9f4726b403.jpg","contentUrl":"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2025\/09\/4ca341603ef343e38e528e9f4726b403.jpg","width":6000,"height":4000},{"@type":"BreadcrumbList","@id":"https:\/\/www.shipbob.com\/au\/blog\/retail-inventory-method\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.shipbob.com\/au\/"},{"@type":"ListItem","position":2,"name":"Blog","item":"https:\/\/www.shipbob.com\/au\/blog\/"},{"@type":"ListItem","position":3,"name":"What Is the Retail Inventory Method? Definition, Use Cases, &amp; How to Calculate"}]},{"@type":"WebSite","@id":"https:\/\/www.shipbob.com\/au\/#website","url":"https:\/\/www.shipbob.com\/au\/","name":"ShipBob Australia","description":"Just another ShipBob Network site","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.shipbob.com\/au\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-AU"}]}},"parsely":{"version":"1.1.0","canonical_url":"https:\/\/shipbob.com\/au\/blog\/retail-inventory-method\/","smart_links":{"inbound":0,"outbound":0},"traffic_boost_suggestions_count":0,"meta":{"@context":"https:\/\/schema.org","@type":"WebPage","headline":"What Is the Retail Inventory Method? Definition, Use Cases, &amp; How to Calculate","url":"http:\/\/www.shipbob.com\/au\/blog\/retail-inventory-method\/","mainEntityOfPage":{"@type":"WebPage","@id":"http:\/\/www.shipbob.com\/au\/blog\/retail-inventory-method\/"},"thumbnailUrl":"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2025\/09\/4ca341603ef343e38e528e9f4726b403.jpg?w=160","image":{"@type":"ImageObject","url":"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2025\/09\/4ca341603ef343e38e528e9f4726b403.jpg"},"articleSection":"Uncategorized","author":[{"@type":"Person","name":"Rachel Hand"}],"creator":["Rachel Hand"],"publisher":{"@type":"Organization","name":"ShipBob Australia","logo":""},"keywords":[],"dateCreated":"2022-12-27T11:00:00Z","datePublished":"2022-12-27T11:00:00Z","dateModified":"2025-09-26T16:37:21Z"},"rendered":"<script type=\"application\/ld+json\" class=\"wp-parsely-metadata\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"WebPage\",\"headline\":\"What Is the Retail Inventory Method? Definition, Use Cases, &amp; How to Calculate\",\"url\":\"http:\\\/\\\/www.shipbob.com\\\/au\\\/blog\\\/retail-inventory-method\\\/\",\"mainEntityOfPage\":{\"@type\":\"WebPage\",\"@id\":\"http:\\\/\\\/www.shipbob.com\\\/au\\\/blog\\\/retail-inventory-method\\\/\"},\"thumbnailUrl\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/wp-content\\\/uploads\\\/sites\\\/33\\\/2025\\\/09\\\/4ca341603ef343e38e528e9f4726b403.jpg?w=160\",\"image\":{\"@type\":\"ImageObject\",\"url\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/wp-content\\\/uploads\\\/sites\\\/33\\\/2025\\\/09\\\/4ca341603ef343e38e528e9f4726b403.jpg\"},\"articleSection\":\"Uncategorized\",\"author\":[{\"@type\":\"Person\",\"name\":\"Rachel Hand\"}],\"creator\":[\"Rachel Hand\"],\"publisher\":{\"@type\":\"Organization\",\"name\":\"ShipBob Australia\",\"logo\":\"\"},\"keywords\":[],\"dateCreated\":\"2022-12-27T11:00:00Z\",\"datePublished\":\"2022-12-27T11:00:00Z\",\"dateModified\":\"2025-09-26T16:37:21Z\"}<\/script>","tracker_url":"https:\/\/cdn.parsely.com\/keys\/shipbob.com\/p.js"},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.shipbob.com\/au\/wp-json\/wp\/v2\/blog\/4573","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.shipbob.com\/au\/wp-json\/wp\/v2\/blog"}],"about":[{"href":"https:\/\/www.shipbob.com\/au\/wp-json\/wp\/v2\/types\/blog"}],"author":[{"embeddable":true,"href":"https:\/\/www.shipbob.com\/au\/wp-json\/wp\/v2\/users\/194"}],"version-history":[{"count":2,"href":"https:\/\/www.shipbob.com\/au\/wp-json\/wp\/v2\/blog\/4573\/revisions"}],"predecessor-version":[{"id":23547,"href":"https:\/\/www.shipbob.com\/au\/wp-json\/wp\/v2\/blog\/4573\/revisions\/23547"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.shipbob.com\/au\/wp-json\/wp\/v2\/media\/22551"}],"wp:attachment":[{"href":"https:\/\/www.shipbob.com\/au\/wp-json\/wp\/v2\/media?parent=4573"}],"wp:term":[{"taxonomy":"blogcategories","embeddable":true,"href":"https:\/\/www.shipbob.com\/au\/wp-json\/wp\/v2\/blogcategories?post=4573"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}