{"id":207,"date":"2021-06-08T08:54:43","date_gmt":"2021-06-08T13:54:43","guid":{"rendered":"https:\/\/www.shipbob.com\/au\/hub\/"},"modified":"2024-03-07T20:01:45","modified_gmt":"2024-03-07T20:01:45","slug":"hub","status":"publish","type":"page","link":"https:\/\/www.shipbob.com\/au\/hub\/","title":{"rendered":"Hub"},"content":{"rendered":"\n<section class=\"wp-block-shipbob-blocks-section-hero-standard-form hero-standard\"><div class=\"container row\"><div class=\"col hero-standard-content\"><h1 class=\"hero-standard-title \"><strong>Client-centric pricing<\/strong><\/h1>\n<p>ShipBob\u2019s pricing is reflective of a total fulfilment cost for standard, direct-to-consumer order fulfilment. Standard fees for ShipBob include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Receiving your inventory<\/li><li>Warehousing your products<\/li><li>Shipping each order<\/li><\/ul>\n\n\n<\/div><div class=\"col hero-standard-form offset-1  \"><div class=\"card hero-home-customer-card form-card\"><h3 class=\"form-title\"><strong>Included for all ShipBob customers:<\/strong><\/h3><h3 class=\"h4 form-subtitle\"><\/h3><p class=\"form-copy\"><\/p><div class=\"card-body form-fbd53fc0-a20b-4df6-8df7-0fa1e8d5b8d4\" data-controller=\"form-controller\" data-form-controller-form-id-value=\"fbd53fc0-a20b-4df6-8df7-0fa1e8d5b8d4\" data-form-controller-form-container-query-value=\"form-fbd53fc0-a20b-4df6-8df7-0fa1e8d5b8d4\"     ><\/div><p class=\"form-note\">We\u2019ll be in touch soon!<\/p><\/div><\/div><\/div><\/section>\n\n\n\n<p><a href=\"https:\/\/www.shipbob.com\/wp-admin\/post.php?post=13543&amp;action=edit#\" data-rich-text-format-boundary=\"true\">Managing inventory<\/a> effectively and efficiently is vital to the success ecommerce brands. Whether you store your products yourself or partner with a 3PL, understanding the data around your inventory and operations can help you <a href=\"https:\/\/www.shipbob.com\/wp-admin\/post.php?post=13543&amp;action=edit#\">reduce shipping costs<\/a>, increase efficiency, and maximise cash flow.<\/p>\n\n\n\n<h2 class=\"p1 wp-block-heading\"><span class=\"s1\">What is inventory turnover?<\/span><\/h2>\n\n\n\n<p class=\"p1\"><span class=\"s1\">Inventory turnover is measured by a ratio that shows how many times inventory is sold and then replaced in a specific time period. Inventory turnover is a critical measure of business performance, cost management, and sales, and can be benchmarked against other companies in a given industry.<\/span><\/p>\n\n\n\n<h2 class=\"p1 wp-block-heading\"><span class=\"s1\">How to calculate inventory<span class=\"Apple-converted-space\">&nbsp;<\/span><\/span><span class=\"s1\">turnover ratio<\/span><\/h2>\n\n\n\n<p class=\"p1\"><span class=\"s1\">To calculate inventory turnover on an annual basis for units sold, complete the following:<\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><span class=\"s1\">Identify total inventory value (or cost of goods sold) over the past year<\/span><\/li><li><span class=\"s1\">Combine inventory at the start and end of the year<\/span><\/li><li><span class=\"s1\">Identify total sales revenue over the past year<\/span><\/li><li><span class=\"s1\">Divide annual sales by annual inventory value<\/span><\/li><\/ol>\n\n\n\n<p class=\"p1\"><span class=\"s1\">Here\u2019s the simplest formula to calculate inventory turnover:<\/span><\/p>\n\n\n\n<h3 class=\"p1 wp-block-heading\"><span class=\"s1\"><b>Inventory turnover = sales \/ inventory value<\/b><\/span><\/h3>\n\n\n\n<p class=\"p1\"><span class=\"s1\">For example, if your store sold $200,000 in goods last year, and had $50,000 worth of inventory on hand on average throughout the year, your inventory turnover ratio would be 4.<\/span><\/p>\n\n\n\n<p class=\"p1\"><span class=\"s1\">You can also calculate your inventory turnover ratio by looking at units, rather than costs:<\/span><\/p>\n\n\n\n<h3 class=\"p1 wp-block-heading\"><span class=\"s1\"><b>Inventory turnover = number of units sold annually \/ average number of units on-hand at any given time during the year<\/b><\/span><\/h3>\n\n\n\n<p class=\"p1\"><span class=\"s1\">If you sell 1,000 units over a year while having an average of 200 units on-hand at any given time during that year, your inventory turnover rate would be 5.<\/span><\/p>\n\n\n\n<h2 class=\"p1 wp-block-heading\"><span class=\"s1\">How analyse inventory turnover ratio<\/span><\/h2>\n\n\n\n<p class=\"p1\"><span class=\"s1\">Fully understanding inventory turnover can provide invaluable insight into how your ecommerce business manages costs and how sales initiatives are performing. Once you know how to calculate inventory turnover ratio, the next step is understanding what a high inventory rate versus a low inventory rate means, and what the ideal inventory ratio is so you can create an action plan on how to improve.<\/span><\/p>\n\n\n\n<p><img loading=\"lazy\" decoding=\"async\" is=\"responsive-img\" class=\"aligncenter wp-image-91 size-full\" src=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2019\/11\/blog-post-hero.jpg\" alt=\"\" width=\"1170\" height=\"560\" srcset=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2019\/11\/blog-post-hero.jpg 1170w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2019\/11\/blog-post-hero-250x120.jpg 250w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2019\/11\/blog-post-hero-768x368.jpg 768w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2019\/11\/blog-post-hero-700x335.jpg 700w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2019\/11\/blog-post-hero-120x57.jpg 120w\" sizes=\"auto, (max-width: 1170px) 100vw, 1170px\"  \/><\/p>\n\n\n\n<h3 class=\"p1 wp-block-heading\"><span class=\"s1\">What is an ideal inventory turnover rate?<\/span><\/h3>\n\n\n\n<p class=\"p1\"><span class=\"s1\">For most retailers, an inventory turnover ratio of 2 to 4 is ideal; however, this can vary between industries, so make sure to research your specific industry. A ratio between 2 and 4 means that your restocking matches your sale cycle; you receive the new inventory before you need it and are able to move it relatively quickly.<\/span><\/p>\n\n\n\n<h3 class=\"p1 wp-block-heading\"><span class=\"s1\">What is an ideal inventory turnover rate?<\/span><\/h3>\n\n\n\n<p class=\"p1\"><span class=\"s1\">A rate of 1 or less means you have way too much inventory. For example, if you sell 20 units over a year, and always have 20 units on-hand (a rate of 1), you invested too much in inventory since it is way more than what\u2019s needed to meet demand.<\/span><\/p>\n\n\n\n<h3 class=\"p1 wp-block-heading\"><span class=\"s1\">High inventory turnover<\/span><\/h3>\n\n\n\n<p class=\"p1\"><span class=\"s1\">High inventory turnover can indicate that you are selling your product in a timely manner, which typically means that sales are good. Ecommerce retailers should strive for a high inventory turnover rate, which means they sell the inventory they have on hand quickly and repurchase fresh inventory often. This also helps save on <\/span><a href=\"#\"><span class=\"s2\">inventory carrying costs<\/span><span class=\"s1\">.<\/span><\/a><\/p>\n\n\n\n<p class=\"p1\"><span class=\"s1\">While a high turnover rate is generally considered an indication of success, too high of an inventory turnover rate can actually be problematic. An influx of sales can cause you to constantly have to replenish inventory, and if you can\u2019t keep up with demand, you may experience <\/span><a href=\"#\"><span class=\"s2\">stockouts<\/span><\/a><span class=\"s1\">.<\/span><\/p>\n\n\n\n<p class=\"p1\"><span class=\"s1\">This is especially true if it takes weeks to replenish the stock for a specific <\/span><a href=\"#\"><span class=\"s2\">SKU<\/span><\/a><span class=\"s1\">; that can mean weeks of lost sales on what is clearly a popular item.<\/span><\/p>\n\n\n\n<h2 class=\"p1 wp-block-heading\"><span class=\"s1\">How to maximise your inventory turnover rate<\/span><\/h2>\n\n\n\n<p class=\"p1\"><span class=\"s1\">Whether your inventory turnover is too high or too low, learn the measures you can take to try and combat or regulate the issue.<\/span><\/p>\n\n\n\n<h3 class=\"p1 wp-block-heading\"><span class=\"s1\">To solve for (very) high inventory turnover<\/span><\/h3>\n\n\n\n<p class=\"p1\"><span class=\"s1\">High inventory turnover is easier to solve for than low inventory turnover; you either need to order more inventory or make fewer sales. Typically, this boils down to needing more stock on average to meet your customer demand. Proper <\/span><a href=\"#\"><span class=\"s2\">demand forecasting<\/span><\/a><span class=\"s1\"> can help.<\/span><\/p>\n\n\n\n<p class=\"p1\"><span class=\"s1\">For products with a high inventory turnover ratio, make sure to keep a back stock. Using <\/span><a href=\"#\"><span class=\"s2\">inventory management software<\/span><\/a><span class=\"s1\"> can help you analyse your inventory.<\/span><\/p>\n\n\n\n<h3 class=\"p1 wp-block-heading\"><span class=\"s1\">To solve for low inventory turnover<\/span><\/h3>\n\n\n\n<p class=\"p1\"><span class=\"s1\">If your inventory turnover ratio is too low, you need to decrease the average amount of inventory on hand. There are several strategies you can use, but the bottom line is that you need to order less and\/or sell more. Here are some great ways to make your inventory turnover more efficient:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><p class=\"p1\"><a href=\"#\"><span class=\"s1\">Offer promotions to deplete inventory by increasing sales<\/span><\/a><span class=\"s2\">. Beyond clearing inventory, discounts can be an effective way to drive customer loyalty, boost word-of-mouth marketing, and help your business grow.<\/span><\/p><\/li><li><p class=\"p1\"><span class=\"s1\">Buy less stock, more often. By purchasing inventory to meet a month\u2019s demand, rather than the whole year\u2019s, you take on less risk and invest less capital in products that may not necessarily sell. This can be especially prudent when stocking a new product for which you don\u2019t have prior sales data.<\/span><\/p><\/li><li><p class=\"p1\"><span class=\"s1\">Negotiate discounts with your manufacturer or supplier. If you\u2019ve built a strong rapport with your supplier, you may be able to negotiate a lower price for recurring orders.<\/span><\/p><\/li><li><p class=\"p1\"><a href=\"#\"><span class=\"s1\">Encourage pre-orders<\/span><\/a><span class=\"s2\">. Pre-orders can be a beneficial tool for businesses looking to gauge demand, generate excitement, and raise funds<\/span><\/p><\/li><\/ul>\n\n\n\n<p class=\"p1\"><span class=\"s1\">\nKeep in mind that inventory turnover ratio is just one metric, and is focused at the SKU level. It\u2019s important to consider additional numbers, such as manufacturing and <\/span><a href=\"#\"><span class=\"s2\">logistics costs<\/span><\/a><span class=\"s1\"> and lead times, to get a full picture of your business\u2019s efficiency.<\/span><\/p>\n\n\n\n<h2 class=\"p1 wp-block-heading\"><span class=\"s1\">Conclusion<\/span><\/h2>\n\n\n\n<p class=\"p1\"><span class=\"s1\">Inventory management is a vital part of e-commerce operations. You need to track your e-commerce store\u2019s orders closely to ensure that you can manage your inventory in a cost-efficient way that maximises your business\u2019s cash flow while meeting customer demands. Calculating inventory turnover ratio is a great way to determine if you need to increase or decrease your inventory supply. Like any metric, it\u2019s not a one-time measurement, but rather a continuous evaluation. Your inventory turnover ratio can fluctuate over time, and you\u2019ll want to make sure you respond accordingly.<\/span><\/p>\n\n\n\n<p>. . .<\/p>\n\n\n\n<h2 class=\"p1 wp-block-heading\"><span class=\"s1\">Partner with a 3PL<\/span><\/h2>\n\n\n\n<p class=\"p1\"><span class=\"s1\">If you are looking for a 3PL that will help you manage your inventory in real time, check out <\/span><a href=\"#\"><span class=\"s2\">ShipBob<\/span><\/a><span class=\"s1\">. With ShipBob\u2019s technology combined with nationwide fulfilment, you can gain a holistic view of your operations with just a few clicks. ShipBob\u2019s built-in <\/span><a href=\"#\"><span class=\"s2\">inventory reports<\/span><\/a><span class=\"s1\"> let you view a trend analysis of your products and give you more control over the key metrics that drive business growth.<\/span><\/p>\n\n\n\n<p class=\"p1\"><span class=\"s1\">ShipBob also allows you to set automatic <\/span><a href=\"#\"><span class=\"s2\">reorder point<\/span><\/a><span class=\"s1\"> notifications to remind you when it\u2019s time to replenish each item at each <\/span><a href=\"#\"><span class=\"s2\">ecommerce fulfilment<\/span><\/a><span class=\"s1\"> centre. Choosing the right reorder notification point will ensure that there is time to send and restock more inventory before orders are put on hold for lack of inventory.<\/span><\/p>\n\n\n\n<section class=\"wp-block-shipbob-blocks-section-container section section-container  max-width-blog\" itemscope=\"\" itemtype=\"https:\/\/schema.org\/FAQPage\"><div class=\"container section-info section-info-align-none \"><h6 class=\"section-title\"><\/h6><h2 class=\"section-content h2\">FAQ<\/h2><p class=\"section-copy u-hidden\"><\/p><\/div><div class=\"container flex-container row justify-none align-none flex-wrap\">\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col col-8\" itemscope=\"\" itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" data-controller=\"faq-controller\"  data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 itemprop=\"name\" class=\"single-faq-title\">How to get away with murder?<\/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\" itemscope=\"\" itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" data-faq-controller-target=\"answer\"><div itemprop=\"text\">\n<p class=\"p1\"><span class=\"s1\">If you are looking for a 3PL that will help you manage your inventory in real time, check out <\/span><a href=\"https:\/\/www.shipbob.com\/\"><span class=\"s2\">ShipBob<\/span><\/a><span class=\"s1\">. With ShipBob\u2019s technology combined with nationwide fulfilment, you can gain a holistic view of your operations with just a few clicks. ShipBob\u2019s built-in <\/span><a href=\"#\"><span class=\"s2\">inventory reports<\/span><\/a><span class=\"s1\"> let you view a trend analysis of your products and give you more control over the key metrics that drive business growth.<\/span><\/p>\n\n\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col col-8\" itemscope=\"\" itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" data-controller=\"faq-controller\"  data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 itemprop=\"name\" class=\"single-faq-title\">Aenean porttitor tincidunt turpis<\/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\" itemscope=\"\" itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" data-faq-controller-target=\"answer\"><div itemprop=\"text\">\n<p>Aenean porttitor tincidunt turpis, eget facilisis diam finibus ac. In mi ipsum, bibendum quis dolor eu, dignissim commodo dolor. Ut consectetur malesuada auctor.<\/p>\n\n\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col col-8\" itemscope=\"\" itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" data-controller=\"faq-controller\"  data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 itemprop=\"name\" class=\"single-faq-title\">Integer felis quam, pellentesque<\/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\" itemscope=\"\" itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" data-faq-controller-target=\"answer\"><div itemprop=\"text\">\n<p>Integer felis quam, pellentesque vel dapibus a, luctus sit amet nisi. Vestibulum scelerisque risus non dolor vestibulum viverra. Nullam et tempor sapien.<\/p>\n\n\n<\/div><\/div><\/div>\n\n\n<\/div><div class=\"container section-cta u-hidden\"><a class=\"btn btn-primary\" href=\"\"><\/a><\/div><\/section>\n\n\n","protected":false},"excerpt":{"rendered":"<p>Managing inventory effectively and efficiently is vital to the success ecommerce brands. Whether you store your products yourself or partner with a 3PL, understanding the data around your inventory and operations can help you reduce shipping costs, increase efficiency, and maximise cash flow. What is inventory turnover? Inventory turnover is measured by a ratio that [&hellip;]<\/p>\n","protected":false},"author":163,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"hub.php","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"class_list":["post-207","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Hub - ShipBob Australia<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Hub\" \/>\n<meta property=\"og:description\" content=\"Managing inventory effectively and efficiently is vital to the success ecommerce brands. Whether you store your products yourself or partner with a 3PL, understanding the data around your inventory and operations can help you reduce shipping costs, increase efficiency, and maximise cash flow. What is inventory turnover? 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Whether you store your products yourself or partner with a 3PL, understanding the data around your inventory and operations can help you reduce shipping costs, increase efficiency, and maximise cash flow. What is inventory turnover? 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