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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