Ecommerce Playbook: Numbers, Struggles & Growth cover image

The Ecommerce Diagnostic Toolkit

Ecommerce Playbook: Numbers, Struggles & Growth

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The Importance of Cash Conversion Cycle in E-Commerce

Cash conversion cycle is essentially the number of days that you have to float inventory costs. E-commerce businesses, the hardest thing about them is how cash intensive they can be. The longer that deficit is, the more at risk the business comes of suffering death. And so there's all sorts of solutions for this related to inventory financing and other capital and financing vehicles. But it's an initial glance, understanding your cash conversion cycle understands the amount of inventory purchasing power somebody can have which is a huge factor in growth.

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