Inventory Velocity & Cashflow Simulator
Model inventory velocity, cash tied up, and monthly profit over time. See your bottleneck.
How to Use This Simulator
- 1.Enter your starting capital and sourcing pace
- 2.Set your average sale price and profit margin
- 3.Adjust sell-through speed and days to sell
- 4.Review cashflow, bottlenecks, and projections
Understanding Inventory Velocity
The Cash Conversion Cycle: Every dollar you spend on inventory is locked until the item sells and the platform pays out. Slow cash recovery makes growth feel harder even when individual flips look profitable.
Time Is Your Scarcest Resource: Profit per item can hide weak hourly earnings. Listing, photographing, shipping, and messaging buyers all reduce your real hourly rate.
The Bottleneck Question: Your business is usually limited by cash, available time, or sell-through speed. Knowing which constraint is tightest tells you whether to source more, list faster, discount stale inventory, or pause buying.
Common Questions
What is sell-through rate in reselling?
Sell-through rate measures what percentage of your inventory sells within a given period, usually monthly. A 30% monthly sell-through means 30 out of 100 items sell each month. Higher sell-through means faster cash recovery, but it can also mean lower margins or more time spent sourcing.
Why does cash tied up in inventory matter?
Money sitting in unsold inventory cannot be used to buy new items, pay bills, or earn interest. If you have $2,000 in inventory with a 45-day average sell time, your cash conversion cycle is limiting how fast the business can scale.
What is a good sell-through rate for resellers?
It varies by category. Clothing often lands around 20-40% monthly sell-through, electronics around 30-50%, and collectibles around 10-25%. Aim for a balance of healthy margins and realistic 30-60 day average time to sell.
How do I improve my cashflow as a reseller?
Reduce days-to-sell with stronger photos, better descriptions, smarter pricing, faster-moving categories, strategic reinvestment, and systematic markdowns for stale inventory.
Should I reinvest all my reselling profits?
Not always. Reinvesting 100% accelerates growth but leaves no buffer for slow months, returns, or personal cash needs. Many sellers reinvest part of profit and keep part as a cushion.
What are the hidden costs of reselling?
Beyond item cost and fees, watch packaging, shipping supplies, storage space, photography time, subscriptions, shipping trips, customer service, and self-employment taxes.
Methodology & Limits
How it works
This simulator models a reselling scenario from your inputs, then surfaces the result as decision-oriented numbers.
Assumptions
Uses current platform fees assumptions where relevant.
Use it as a screen
Treat the output as a planning estimate. Share the current scenario URL when you want to revisit or compare assumptions. Validate the numbers with real payouts, costs, deadlines, and local rules before committing money.
Next action
Keep Going
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