Sell-Through Rate
Definition
The percentage of inventory received that you sold during a period. It shows how fast a product or purchase order is actually moving.
Want a deeper explanation?
Formula
Sell-Through Rate % = Units Sold ÷ Units Received × 100Sell-through rate is the quickest way to judge whether a purchase order was the right size. It works especially well for new products, seasonal lines and colorways, where you need an early read before reordering.
Tracking it at a fixed point, such as 30 or 60 days after receiving, makes products easy to compare. Watch for: a low sell-through early in a product's life, which is the best moment to discount or bundle before it becomes dead stock.
Example
You received 2,000 units and sold 1,400 in 60 days, a 70% sell-through rate.