Sell-Through Rate
Sell-through rate is the share of received inventory sold in a period, grading how well buying matched demand.
What sell-through rate is
Sell-through rate is the share of received inventory sold in a period: units sold divided by units received, times 100. Stock 200, sell 120, and sell-through is 60%.
Why sell-through rate matters
It grades buying decisions: high sell-through says demand met supply, low says capital is sitting on shelves aging toward markdown. Watched by product and category, it shows which bets worked while there’s still time to act.
How stores act on sell-through
- Reorder fast on high sell-through before stockouts
- Promote or mark down laggards early, when discounts are shallow
- Feed the pattern back into next season’s buy
- Read it with margin: fast and unprofitable isn’t success
Frequently asked questions
What’s a good sell-through rate?
It depends on category and cycle: fashion pushes high sell-through within a season, evergreen staples run steadier. The useful comparison is against your own history and the buy’s plan.
Sell-through vs inventory turnover: what’s the difference?
Sell-through grades a specific batch against what was received; turnover measures how many times average inventory sells through over a year. Batch report card versus flow speed.