What is Sell Through Rate?

Sell through rate represents the number of items sold out of the number of items received and is measured for a given period (e.g one month or entire season).

What is The Sell Through Formula?

Sell Through Rate = Number of pieces sold ÷ Number of pieces received x 100

Example

You bought 50 pieces and until today sold 25 pieces

Sell Through = No. of pieces sold ÷ No. of Pieces received x 100

Sell Through = 25 ÷ 50 x 100 = 50%

 

How is This Metric Used in Retail?

The sell through report can be useful in many ways. This includes evaluating collection performance, taking action with regards to markdown, assessing suppliers performance and improving your buying skills.