GMROI
Business & Finance abbreviation · E-commerce & Retail
| Stands for | Gross margin return on inventory investment |
|---|---|
| Categories | Business & Finance |
GMROI stands for Gross margin return on inventory investment, an e-commerce & retail abbreviation.
Retail profitability ratio equal to gross margin dollars divided by average inventory at cost, showing how many dollars of gross profit each dollar tied up in inventory produces.
Example: Seasonal decor has a high margin but a poor GMROI because it sits for months.
Usage notes
A GMROI above 1 means the product earns more gross margin than its inventory cost; merchants use it to decide which categories deserve more space and budget. Pronounced "jim-roy."
Related abbreviations
More e-commerce & retail abbreviations
- FBA – Fulfillment by Amazon
- FBM – Fulfilled by merchant
- FMCG – Fast-moving consumer goods
- FNSKU – Fulfillment network stock keeping unit
- FOC – Free of charge
- G&S – Goods and services
- GMV – Gross merchandise value
- GWP – Gift with purchase
- HTF – Hard to find
- ISO – In search of
- LFL – Like-for-like sales
- LP – Loss prevention