Sell-through rate
Quick answer
The share of received stock sold in a period: units sold / units received × 100.
Key takeaways
- Below 40% - overstock risk, plan promotions or stop replenishing
- 40-80% - healthy, watch the trend
- Above 90% at full price - unmet demand, increase replenishment
What sell-through rate is
Sell-through rate measures how fast stock converts into sales: units sold in a period / units received (or available) × 100. An 80% monthly sell-through means 80% of available goods sold.
Why it matters to the board
Sell-through separates products that 'work' from those tying up shelf capital. Low sell-through signals dead stock and future markdowns; too-high sell-through at full price signals missed stockouts - sales lost for lack of stock.
How it's used
- Below 40% - overstock risk, plan promotions or stop replenishing
- 40-80% - healthy, watch the trend
- Above 90% at full price - unmet demand, increase replenishment
How CRMconnect helps
CRMconnect computes sell-through live per SKU × location and ties it to replenishment: it increases orders on fast movers and cuts slow ones, maximizing full-price sell-through.
Real-world example
A multi-location retailer tracked sell-through monthly in Excel. With live SKU × store visibility, it moved slow stock before markdowns and grew full-price sell-through by 20%.
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Frequently asked
Sell-through vs inventory turns?+
Sell-through relates to goods received in a period; inventory turns measure how many times average stock cycles in a year. Both describe speed, from different angles.
What sell-through is 'good'?+
It depends on industry and season. Rule of thumb: high enough to avoid dead stock, but not so high you miss sales from stockouts.
Where CRMconnect fits
Related terms
Inventory turnover
How many times stock is fully sold and replenished in a period - a measure of capital efficiency.
LogisticsDead stock
Goods unsold for a long period that lock capital and space, with little prospect of selling at normal price.
OperationsOverstock
Stock above the level demand requires, locking capital, taking space and risking becoming dead stock.
FinanceGMROI (Gross Margin Return on Inventory)
The metric showing how many euros of gross margin you generate for each euro invested in inventory.