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Sell-Through Rate Calculator
What is sell-through rate?
Sell-through rate is the percentage of inventory sold within a specific period relative to the amount of inventory that you received. This metric helps you to measure how quickly your products are sold and can help you make decisions regarding inventory management.
Relevant channels: Retail stores, e-commerce platforms, inventory management systems.
How to use this sell-through rate calculator
To calculate your sell-through rate, enter the total number of units sold and the number of units that were available to you for sale during a specific period. The tool will instantly calculate your sell-through rate, helping you understand how efficiently your inventory is getting sold.
Sell-through rate formula
Sell-Through Rate (%)=(Number of Units Sold/Total Units Available for Sale)×100
Understanding the sell-through rate result
The ideal sell-through rate ranges between 40-80% depending on your industry, location and product category. Generally,
- A high sell-through rate suggests strong demand and efficient inventory management. This means that you will have a lower holding cost.
- A low sell-through rate indicates that you may be overstocking considering the demand. Alternatively, it may also indicate that you have priced your products too high.
When to calculate sell-through rate
Calculate the sell-through rate in the following scenarios:
- Regularly, to assess inventory performance and turnover
- To evaluate the success of marketing campaigns or promotional efforts
- When planning inventory purchases or restocking
- To compare performance across different product lines or categories
- While analyzing trends in customer demand
How to calculate Sell-through rate with example
If your store received 500 units of a product and sold 300 units during the month, you can calculate your sell through rate as follows:
Sell-Through Rate (%)=(Number of Units Sold/Total Units Available for Sale)×100
Sell-Through Rate = (300/500)×100 = 60%
In this example, your sell-through rate is 60%, indicating that 60% of the received inventory was sold within the period.
How to improve your sell-through rate
- Analyze customer demand trends to adjust inventory levels
- Implement targeted marketing campaigns to boost sales
- Optimize pricing strategies to enhance product appeal
- Use promotions or discounts to clear out slow-moving inventory
- Improve inventory turnover with just-in-time restocking
- Regularly review product performance to make informed inventory decisions
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