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Analytics & Metrics

Cash Conversion Cycle (CCC)

The number of days between paying your supplier for inventory and receiving payment from Amazon. A critical metric for managing cash flow in Amazon businesses.

What Is the Cash Conversion Cycle?

The Cash Conversion Cycle (CCC) measures how long your cash is tied up in inventory before it returns as revenue. For Amazon sellers: CCC = Days Inventory Outstanding + Days Sales Outstanding - Days Payable Outstanding.

Why It Matters

A long CCC means your cash is locked in inventory for extended periods. Combined with Amazon's 14-day settlement periods, this can create serious cash flow constraints during growth.

How SellerLegend Helps

SellerLegend's cash flow management tools track your inventory investment alongside settlements and disbursements, giving you visibility into your true cash conversion timeline.

Related Terms

Profit Margin

The percentage of revenue that remains as profit after deducting all costs (COGS, Amazon fees, PPC, shipping, operating expenses). Net profit margin = (Net Profit ÷ Revenue) × 100.

Sell-Through Rate

The number of units sold and shipped over the past 90 days divided by the average number of units in FBA inventory during that period. Higher is better.

Settlement Period

The 14-day cycle during which Amazon accumulates your sales revenue, deducts fees, and disburses the remaining balance to your bank account.

Track This in SellerLegend

Analytics Dashboard

Monitor Amazon sales, revenue, and profit margins with order data syncing every 30 minutes. Build custom dashboards with drag-and-drop widgets to track your most critical Amazon seller KPIs and metrics in one centralized view.

Cash Flow Management

Track your Amazon business cash flow with manual transaction entries, running balance calculations, and Amazon payout linking. Maintain a complete cash flow ledger that combines Amazon settlements with external business expenses for full financial visibility.

Want to track this metric continuously?

SellerLegend gives you a frequently-updated dashboard with all the Amazon metrics that matter.

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