Sell‑through rate measures the percentage of inventory sold within a specific period. It’s a key merchandising and inventory health metric.
Why Sell‑through Rate Matters
- Shows how quickly products are selling
- Helps identify winners and slow‑movers
- Supports forecasting and replenishment
- Reduces overstock and markdown risk
- Indicates product‑market fit
How Sell‑through Rate Is Calculated
Sell‑through rate = (Units Sold/Units Received)×100
Common Use Cases
- Range planning
- Inventory optimisation
- Markdown strategy
- Category performance analysis
- Supplier negotiations
Related Terms
What this metric really tells us
Sell‑through is one of the purest expressions of product‑market fit. It reveals, in real time, whether what you’ve put into the world is resonating with the people you serve. But it’s also a systems metric — shaped by forecasting, availability, pricing, storytelling, and timing. When teams treat sell‑through as a feedback loop rather than a judgement, it becomes a powerful source of insight: what customers are gravitating toward, where friction exists, and how the business can evolve with more agility. It’s data as empathy, guiding better decisions across merchandising, supply chain, and marketing.
