Sell-through rate is units sold divided by units available at the start of the period, as a percentage. It judges a buying decision rather than a sales rate: a low figure means you bought more than the period could absorb, which is a purchasing question rather than a marketing one.
Work out your sell-through rate
Nothing is sent anywhere. The calculation happens in this page.
Sell-through rate = (units sold ÷ units available at period start) × 100
Reading the result
Sell-through is most useful on a new line, where it answers a question you cannot otherwise answer for months: did we buy the right quantity? A first month well under half suggests the buy was too large for the demand.
It is also the number to use when deciding whether to reorder a seasonal line. High sell-through early in a season is a reorder signal. The same figure at the end of a season means very little, because there is no season left to sell into.
Always state the period. Sell-through with no period attached is not a number, and comparing a monthly figure against a quarterly one is the most common way this metric gets misused.
When the number looks wrong
The definition of the denominator is where this goes wrong.
- A figure above 100 per cent. You sold more than was available at the start, which means stock arrived mid-period. Either include it in the denominator or shorten the period.
- A disappointing figure on a slow, steady line. Sell-through is not designed for evergreen products with continuous replenishment. It answers a question about a buy, so it suits seasonal and one-off purchases.
- A figure that contradicts a product feeling successful. Check whether the denominator includes stock you received late in the period and never had a chance to sell.
Where the inputs come from
- Units sold: in the period, excluding returns if you want the honest figure.
- Units available at period start: opening stock plus anything received at the beginning. Stock arriving late in the period will depress the result unfairly unless you shorten the window.
The derivation and a worked example are on the sell-through rate definition.
Common questions
What is a good sell-through rate?
It depends on the period and the product. For a seasonal buy, a high figure early in the season is a reorder signal; the same number at the end tells you little, because there is no season left.
Why is my sell-through over 100 per cent?
Stock arrived during the period, so you sold more than was available at the start. Include mid-period receipts in the denominator or use a shorter window.
Is sell-through the same as inventory turnover?
No. Sell-through judges one buying decision over one period. Turnover measures how many times your whole inventory cycled. They answer different questions and are not interchangeable.
Should returns be deducted?
Yes, if you want the honest figure. Units that came back did not sell, and counting them flatters a line that may actually have a fit or quality problem.