Create Date: October 1, 2024
Last Modified Date: December 2, 2024
Sell-through rate is an impactful metric to have calculated. Luckily, it is rather simple to calculate, requiring only two variables:
Your result will be a single percentage. This number represents the sell-through rate of the product or products that you are calculating for. This percent is how many you have been able to sell out of how many you received. Again, this number can be based on a single product or more than one, it depends on your needs. Also, a good sell-through rate will different depending on your industry, product, demographic, geographic location, and other factors.
Calculating sell-through rate is very easy with this tool. To get the sell-through rate, you must do the following:
Let's say we run an FBA company and want to make sure we are able to move product efficiently and can maintain our inventory load to avoid drying up cash flow or having our storage warehouse at risk of filling up, or identifying other possible trends. We can use this tool to help us with that. We are going to base our calculating on our last three months numbers. In this time we have sold 12,750 units while bringing in 22,000 units in this same time.
To use this tool for this we will enter 12,750 into the units sold field and then 22,000 into the number of units received field. We can then hit calculate to get our sell-through rate of 57.95%.
A 70% sell-through rate is considered very good for most businesses. It is low enough so you are not running the risk of selling out each month, while being high enough to generate solid income each month to continue growing the business.
Sell-through rate can not technically be more than 100%. If you get people on a waitlist or selling them a product that is out of stock you technically will have a sell-through rate over 100%.
