Comprehensive Guide
Learn more in our Business & Tax Guide.
How it works
Sell-through rate is the percentage of received inventory that actually sells within a defined period, calculated by dividing units sold by units received. Take delivery of 1,000 units and sell 820 inside the window and the sell-through is 82% — 180 units and their tied-up cash remain. The metric is the buying decision graded after the fact. High sell-through says the assortment matched demand and the buy was sized right; chronically low sell-through says the opposite, and markdowns are already scheduled somewhere in your future. The number is meaningless without its ruler: always state the window — thirty, sixty or ninety days, or a season — and compare only like windows. Mid-season benchmarks vary by category, but broadly, selling through around 80% by end of window suggests under-buying (shelves emptied early, sales missed), while below roughly 40% flags over-buying and an imminent clearance calendar. Because leftovers carry cost, the calculator values them at unit cost — the concrete dollars a weak buy parked on shelves. One boundary rule keeps the metric honest: measure one delivery at a time, and don't count carry-over sales from earlier purchase orders toward a newer receipt, or the percentage stops describing anything real.Formula
Sell-through rate = units sold / units received x 100 | leftover value = unsold units x unit cost
Tips
- Pick one measurement window — 30, 60 or 90 days — and never compare across windows.
- Around 80% sell-through by window-end usually means you could have bought deeper.
- Below roughly 40%, plan the markdown now; waiting ages the stock further.
- Compare categories separately — basics and fashion sell through at different speeds.
- Count carry-over sales against their original delivery, not the newest PO.
Frequently asked questions
What is sell-through rate?
The share of inventory received that actually sold within a set period. Sell 820 of the 1,000 units you received within ninety days and the sell-through rate is 82%. It grades how well a buying decision matched real demand.
How do you calculate sell-through rate?
Divide units sold by units received for the same delivery and window, then multiply by 100. Keep both numbers from the same purchase order and the same timeframe — mixing deliveries turns the figure into noise.
What is a good sell-through rate?
Depends on category and window, but as working rules: about 80% by window-end suggests demand outran the buy, 40%-80% is generally healthy, and below 40% signals over-buying headed for markdowns. Track your own trend before borrowing anyone else's benchmark.
When should I mark down slow-selling stock?
Earlier than feels comfortable. If sell-through lags your plan mid-window, a modest markdown while demand remains recovers far more than a deep clearance after the season dies. Price the storage and aging cost of waiting into the decision.
Can sell-through rate be over 100%?
Only if carry-over sales from earlier deliveries are counted against a newer receipt, or replenishment arrived mid-window. Within a single delivery window it cannot exceed 100% — a reading above that means the inputs are mixed and need cleaning.