Worked examples
Strong seasonal buy
| Units sold | 400 |
| Units received | 500 |
| Sell-through rate | 80.0% |
| Units remaining | 100 |
80% sold through — a healthy buy with a manageable 100-unit tail.
Over-bought launch
| Units sold | 180 |
| Units received | 600 |
| Sell-through rate | 30.0% |
| Units remaining | 420 |
30% sell-through leaves 420 units that will likely need markdowns.
Frequently asked questions
What is a good sell-through rate?
Over a full season, 80% or better is a strong buy and anything above 90% suggests you could have bought more. For a monthly check, many retailers aim for 20–40% of on-hand stock selling each month. Below 40% for a season means over-buying; the remaining units will eat margin through markdowns and holding costs.
What period should I measure sell-through over?
Match the period to the decision. Grade a seasonal buy over the season (8–13 weeks); monitor a new product weekly for its first 4–6 weeks to decide on reorders early; review evergreen SKUs monthly. The key discipline is consistency — comparing this month’s 30-day rate against last season’s 90-day rate tells you nothing.
How is sell-through different from inventory turnover?
Sell-through grades one batch of received stock over one period, in units — did this buy work? Turnover measures the whole operation over a year, in dollars — how fast does capital cycle? A single SKU can have 90% sell-through on a small test order while the store overall turns slowly. Use sell-through for buying decisions, turnover for business health.
What should I do with a low sell-through product?
Act before the season ends, because options shrink with time. In rough order of margin preserved: push it in email and retargeting, bundle it with a bestseller, mark it down in steps (15%, then 30%), move it through an outlet or marketplace channel, and finally liquidate. The worst plan is letting it sit — holding cost turns a slow product into a loss.
Related calculators
- EOQ Calculator
- Reorder Point Calculator
- Safety Stock Calculator
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Part of the Inventory collection.