# Sales Velocity

## What Is Sales Velocity?

Sales velocity is the amount of revenue any company generates within a specific time frame. It is one of the most critical KPIs in your business that helps determine sales growth and underlying loopholes in a company. It also tells you about your sales pipeline and upcoming revenue.

## Significance of Sales Velocity in E-commerce Logistics

Sales velocity is a key factor in determining how successful your business is. Many companies include sales velocity because of the following reasons:-

• Calculating sales velocity helps you increase revenue and profit
• It also gives you opportunities to improve your company
• It enables you to prospect your business and gives you insights
• It keeps track of your overall performance and presents a comparative study

## How Sales Velocity Works

To calculate your sales velocity, you need the following:-

• Average order value: The average amount of money spent on each order placed by your customers
• Total number of website visitors that came to your platform within a specific time frame
• Conversion rate: Number of audiences who came to your website and became your customer
• Length of chosen time frame: Your sales velocity could be monthly, yearly, or quarterly.

## Use Case With Sales Velocity

Suppose your B2B sales team has 50 deals in their pipeline with an average size of AU\$ 3,000 and an average win rate of 35%. According to your tracking device, your team will take roughly 28 days to convert leads to customers.

Therefore, your sales velocity would be:-

(50 X AU\$ 3,000 X 0.35) / 28 days

52,500 / 28 = AU\$ 1,875 per day.
That’s how you can determine your sales velocity and, thereby, your success rate.