Sell-Through Rate
The percentage of received inventory sold within a given period - a key signal of how well a product is actually moving.
In practice
It's usually calculated over a set window, like 30 or 90 days, and a low rate signals overbuying, weak demand, or a listing problem - while a rate close to 100% might mean a business is at risk of stocking out and should reorder sooner.
A retailer receives 500 units and sells 350 within 60 days - a 70% sell-through rate for that period.
Why it matters
It's one of the clearest early warning signs that a reorder is either overdue or premature, well before a full stockout or dead-stock situation becomes obvious.
Worth knowing
- Best tracked per SKU, since a healthy overall average can hide badly under- or over-performing products.
- A consistently very high rate can signal a business is underordering and leaving sales on the table.
- Useful for deciding markdown timing before slowing stock turns into dead stock.
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