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The Inventory Velocity report is not like other inventory reports for the system: It allows you to see how rapidly after receiving items that they are selling. You are able to look at your sales in whatever date range you prefer.

What results is a Velocity rating for each of your items that is either High, Average, or Low Velocity. The default for all of your Departments for High Velocity is items that have sales within 90 days of receiving the shipment. So if you have sales for an item five days after receiving it, that item is considered a High Velocity seller.

Using the same example, an item that doesn't have any sales until after 90 days, but before you get to 180 days of going in stock is an Average Velocity item. And by the same measure, if an item has no sales until after 180 days, it is a Low Velocity item. You are able to change those velocity numbers to whatever works for your business and industry.

 

Setting Up the Report

You may want to set different defaults for your Departments for what should qualify as High / Average / and Low Velocity. You can do this by clicking on the Settings link in the upper right of the report.

Definitions for the different Velocity ratings are provided, and to set your Departmental velocities, you will just need to define the High and Low number of days. The Average will be for items that sell between those numbers of days. Think about one of your top selling departments: Within how many days from the time you receive the shipment would you expect to start seeing sales if it would be what you would consider a High Velocity item?

Maybe you are in a much faster-paced industry than our defaults would indicate, and you might want to set a High Velocity of only 7 days for a department with rapid sales. The Low Velocity for such a department might be 21 days, and setting values like that will make this report much more useful to you.

Please Note: There is an Unassigned line item in this window that allows you to set a catch-all for items that you haven't assigned to a Department.

 

Useful Statistics

Another unique offering of the Inventory Velocity report is some statistics about your inventory's velocity in several areas. Here are explanations of what each of them means:

1. Average Item Age at Time of Sale - Looking at items that sold in the time frame you specify, this stat finds how many days old the item was when it had its first sale and then averages that across all of your items.
2. Average Age of the Top 20% of Your High Velocity Items - The faster an item makes its first sale, the higher it ranks among your High Velocity items. This calculation looks at only your High Velocity sellers and calculates the top 20%, then averages the age in days of when the first sale was made.
3. Average Price of High Velocity Sellers - For your best performing inventory, this stat looks at the Price for all items that are selling at High Velocity and averages them for you.
4. Average Price of All Sellers - For all items that have sales within the day-ranges you set for your departments, this stat will look at the Price for each item and average all of them for you.
5. Average Discount on High Velocity Sellers - This stat shows both the dollar value and percentage off you offered as an average across all of your High Velocity items.
6. Average Discount on All Sellers - This stat shows both the dollar value and percentage off you offered as an average across all of your items that had sales within the time frame of your Departmental settings.