Question 1

What is sell-through rate and how is it calculated?

Accepted Answer

Sell-through rate is the percentage of inventory sold during a period. Formula: Sell-Through Rate = (Units Sold ÷ Units Received) × 100. If you received 500 units and sold 320 in 30 days, your sell-through rate is 64%. It measures how quickly products move and whether you ordered the right quantity. Higher is better — 80%+ is strong, under 40% is a problem.

Question 2

What is a good sell-through rate?

Accepted Answer

A good sell-through rate depends on the time period. For a 30-day period: 80%+ is excellent (reorder soon), 60-80% is good (on track), 40-60% is moderate (may need promotion), under 40% is poor (markdown or reduce future orders). For weekly tracking: 15-20% weekly sell-through is healthy. Seasonal products should hit 90%+ by end of season to avoid markdowns.

Question 3

How is sell-through rate different from inventory turnover?

Accepted Answer

Sell-through rate measures a specific batch of inventory — what % of received units sold during a period. Inventory turnover measures how many times total inventory cycles through in a year. Sell-through is better for evaluating specific products, collections, or purchase orders. Turnover is better for evaluating overall inventory efficiency. A product can have a great sell-through (sold out fast) but hurt turnover if you reorder too slowly.

Question 4

When should I markdown slow-selling inventory?

Accepted Answer

Markdown when sell-through drops below 40% at the halfway point of the selling season. For a 90-day season, if you've sold less than 40% by day 45, markdown immediately. Early, smaller markdowns (20-30%) outperform late, deep markdowns (50-70%). The key insight: the holding cost of unsold inventory compounds — better to sell at 25% off now than 50% off later. Never wait until inventory becomes dead stock.

Question 5

How do I improve sell-through rate?

Accepted Answer

Six strategies: 1) Buy less — over-ordering is the #1 cause of low sell-through. Start conservative and reorder. 2) Improve product photography and descriptions. 3) Use urgency triggers (low stock badges, countdown timers). 4) Bundle slow-moving items with best-sellers. 5) Move underperforming products to higher-visibility positions on site. 6) Test pricing — sometimes a $5 price reduction doubles velocity and improves total profit.

Target	Units Needed	Still to Sell	Days Needed	Remaining	Status
60%	300	0	—	200 units	DONE
70%	350	30	3 days	150 units	PENDING
80%	400	80	8 days	100 units	PENDING
90%	450	130	12 days	50 units	PENDING
95%	475	155	15 days	25 units	PENDING

Sell-Through Rate Calculator

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