1. What is Sell Through?

Sell Through is a retail metric that measures what percentage of inventory is sold within a specific time period. It helps businesses understand product performance and inventory management effectiveness.

2. How Does the Calculator Work?

The calculator uses the Sell Through formula:

Where:

• \( Sales \) — Number of units sold during the period
• \( Beginning Inventory \) — Number of units available at start of period

Explanation: The ratio shows what proportion of inventory was sold. A higher percentage indicates better sales performance.

3. Importance of Sell Through Calculation

Details: Sell Through helps retailers make decisions about pricing, promotions, reordering, and inventory allocation. It's particularly important for seasonal items and fashion retail.

4. Using the Calculator

Tips: Enter sales in units (not dollars) and beginning inventory in units. Both values must be positive numbers, with inventory greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: What is a good sell through rate?
A: Generally, 80%+ is excellent, 60-80% is good, and below 40% may indicate problems. However, ideal rates vary by industry and product type.

Q2: How often should I calculate sell through?
A: Typically calculated weekly, monthly, or seasonally depending on your business cycle and product turnover rate.

Q3: Should ending inventory be used instead?
A: No, the standard formula uses beginning inventory. Some variations may use average inventory, but beginning inventory is most common.

Q4: Can sell through be over 100%?
A: Yes, if you sell more than your beginning inventory (through restocks during the period or selling display models).

Q5: How does sell through differ from sell out?
A: Sell through measures inventory sold by retailer, while sell out measures products sold by retailer to end consumers.