Finance
Working capital
Working capital is the net short-term capital tied up in operations; inventory is often the largest controllable component for e-commerce brands.
Also known as
Net working capital
Direct answer
What is Working capital?
Working capital is the net short-term capital tied up in operations; inventory is often the largest controllable component for e-commerce brands. Too much inventory removes cash from growth, marketing, and product development. Too little inventory puts revenue at risk. Inventory planning manages that tradeoff.
Practical example
Reducing slow variants lowers inventory value by 180,000 euros without reducing availability of A items.
What teams should remember
Working capital is the net short-term capital tied up in operations; inventory is often the largest controllable component for e-commerce brands.
Too much inventory removes cash from growth, marketing, and product development. Too little inventory puts revenue at risk. Inventory planning manages that tradeoff.