FLUF / THE SELLER REFERENCE
Sell-through rate: meaning, formula and worked example
The percentage of a defined stock pool sold during a stated period.
How to calculate sell-through rate
For a fixed stock cohort, divide units sold by the units available in that cohort and multiply by 100. Start with 80 items, sell 20 and have 60 left: 20 ÷ 80 × 100 = 25%. Label the period, such as thirty days. With no available units, the rate is undefined rather than zero.
Why reports can disagree
Shopify’s inventory report uses units sold divided by units sold plus ending inventory. Other reports may use opening stock or receipts. These can agree in a simple fixed-stock example and diverge when you replenish, return, lose or adjust stock. Compare definitions before deciding one report is wrong.
What happens when you add more stock?
Suppose you start with 80 items, receive 20 more and sell 30. With no other movements, 70 remain. Using the 100-unit available pool gives 30% sell-through. Dividing by opening stock alone gives 37.5%. Both calculations use the same sales, but they answer different questions. Document your chosen approach and keep it consistent.
What is a good sell-through rate?
There is no useful universal target. A thirty-day rate for seasonal stock is different from a full-season rate or a rate for rare collectibles. Compare similar categories and time windows. Also examine margin: a deep clearance discount can improve sell-through while reducing the money earned on each sale.
How sellers can use it
Separate stock that has had enough time to sell from yesterday’s arrivals. Check whether slow items are actually visible and correctly described, then review price, condition, photographs and channel fit. If you sell the same item on several marketplaces, count the physical unit once, not once per listing. Compare with inventory turnover to understand value tied up in stock.
Put it into practice
Use the related reporting guide or calculator. For selling across marketplaces, see FLUF Connect crosslisting and current plans and pricing.
Related terms
Reference
Primary reference: Shopify. The examples on this page are illustrative, not customer results or universal benchmarks.
