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DSO (Days Sales Outstanding)

DSO measures the time between selling a product and receiving the cash. In e-commerce, this is typically the marketplace payout delay rather than customer credit.

Why It Matters

  • Even if sales are strong, delayed payouts can create liquidity pressure.
  • Marketplace reserves, periodic payouts, and withholding policies increase DSO.
  • Sellers often underestimate how much DSO affects working capital needs.

Connection to Capital

Higher DSO means cash returns later, lengthening the financial cycle and increasing reliance on external capital.

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