Your Comprehensive Guide for Print on Demand Inventory and Cash Flow

Inventory can be a difficult aspect for eCommerce companies, and you want to make the right choice when choosing your inventory to avoid costly mistakes. This guide hopes to give print on demand amazon sellers some tips on making more profit in their business and improving cash flow management while maintaining adequate inventory turnover rates and a profitable long-term business that can stand the test of time. Let’s join!

Understand the main terms of inventory management and cash flow

There is nothing more important than understanding the keywords than dipping into a new subject. In this case, it is important to know cash flow and inventory management before diving into further reading or information gathering. Here are some key conditions to help you get started with inventory management:

Cost of goods sold – COGS is the total price the amazon print on demand has paid to make its inventory. In other words, these are the ones that hit the shelves or are sent out before you pay for your product. If you want to take a closer look at COGS, check out this blog post here!

Inventory Turnover Rate – Your Inventory Turnover Rate (ITR) shows how many times a year your cash flow from sales exceeds the amount of cash spent on COGS. This will allow you to bring in new print on demand products and replenish old ones when finished. The higher your ITR number, the better you are!

Source: Your Comprehensive Guide for Print on Demand Inventory and Cash Flow