Sell-through rate

Sell-through rate measures the proportion of available or received stock sold during a defined period. Businesses use different denominators, so reports should state the calculation clearly before comparing products or suppliers.

One common method divides units sold by units received in the period; another compares sales with opening stock plus receipts. The chosen period matters because seasonal stock may be expected to sell within a short window. Consistent treatment of transfers and returns is necessary before comparing figures across stores or suppliers.

For example, selling 70 of 100 units received gives 70% sell-through under that method. The remaining 30 units may need promotion or a smaller reorder. Inventory turnover instead measures movement relative to average inventory, so it answers a different question and should not be treated as the same percentage.