KPISales

Sell-Through Rate

Percentage of available inventory sold during a period, measuring stock management effectiveness

What is Sell-Through Rate?

Sell-through rate is the percentage of the stock a retailer received or had available that was sold in a period. It shows how quickly inventory is turning into sales.

A low rate suggests overstock or poor demand, while a very high rate may mean lost sales from running out.

How this KPI is measured

Function
Sales
Sub-function
Inventory Management
Industry
Retail
Type
Lagging
Impact
Efficiency
Unit
%
Measurement frequency
Weekly / Monthly
Formula
(Units sold / Units received or available) × 100

How to calculate it

Divide units sold by units received or available, and multiply by 100.

For example, if a retailer had 1,000 units and sold 700 in a month, the rate is 70%.

Measure by product and category, and use the same period each time. Seasonal items need specific timeframes.

Where it is used

  • Managing inventory

    Buy and reorder more accurately.

  • Timing markdowns

    Find slow items early.

  • Assessing products

    Compare performance of ranges.

How to improve it

Tips and common mistakes

  • Balance sell-through with margin. Heavy markdowns raise it but cost profit.
  • Use consistent time frames.
  • Look at sell-through by size and colour for fashion.

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