Velocity Analysis

Velocity Analysis

A method of analyzing sales data to identify products with high sales velocity. Velocity analysis helps retailers and manufacturers prioritize inventory replenishment, allocate shelf space, and develop pricing and promotion strategies based on demand patterns.

Related Terms

Baseline Sales

Amount of organic sales for a product in a marketplace without any marketing effort.

Gross Margin

The difference between the revenue generated from sales and the cost of goods sold, expressed as

Market Share

Represents the portion of an industry’s total sales that is accounted for by a specific company