Amazon logistics can make or break your business.
If you’re not tracking your ITR, you’re leaving money on the table.
Here’s why ITR matters:
• Low ITR = excess inventory = higher storage fees.
• High ITR = frequent stockouts = lost sales.
Find your sweet spot. A healthy ITR for most products is 6-8 turns per year.
If you’re below that, here’s what to do:
1. Reduce MOQs. Negotiate smaller order quantities with suppliers.
2. Use inventory management software. Tools like SoStocked or InventoryLab help forecast demand.
3. Leverage Amazon’s AWD. Use their auto replenishment system to avoid overloading your storage limits.
Dialing in your logistics will save you thousands in fees and maximize cash flow.
P.S. Sadly getting 6-8 turns per year AND staying in stock is almost impossible unless you source locally.