For any e-commerce business, your net sales margin is the single most honest number you can look at. It tells you, in simple terms, how much actual profit you pocket from every dollar of sales after every single cost—from the product itself to marketing, salaries, and pesky platform fees—has been paid.

The inventory turnover formula is a key metric that reveals how many times a business sells and replaces its stock within a specific period. It’s calculated by dividing the Cost of Goods Sold (COGS) by the Average Inventory, giving you a clean snapshot of your operational efficiency.