Yield rate is the percentage of products or inventory that is sold or converted into sales within a given period. It measures the effectiveness of a retailer in converting its inventory into revenue.
A high yield rate indicates efficient inventory management and strong sales performance, as a larger proportion of products are being sold. Conversely, a low yield rate suggests potential issues such as overstocking, poor demand forecasting, or ineffective marketing strategies. Yield rate is a key metric for retailers to assess their operational efficiency, profitability, and customer demand. By analyzing and improving the yield rate, retailers can optimize their inventory levels, pricing strategies, and marketing efforts to maximize sales and profitability.