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Glossary

Sell-through rate

Subject areaMetrics and measurement

Also known assell-through

Sell-through rate is the share of goods sold relative to goods received in a period: units sold divided by units received, as a percentage.

It shows how quickly a product leaves the warehouse or the shelf, and it is the figure that in fast fashion and ultra fast fashion decides whether an item is remade or dropped.

A low value signals goods at risk of ending up on sale or in dead stock; a very high value can signal insufficient stock and lost sales. That is why it is read together with availability and replenishment times.

An example

A store receives a batch of jackets at the start of the month and by the end has sold three out of four: the month's sell-through is 75 per cent, and the reorder starts immediately.

cc$BY-NCEnrico Giubertoni. Licensed under CC BY-NC 4.0: you may quote, translate and adapt this entry with the author’s name and a link, stating any changes. For commercial use, write to info@enricogiubertoni.com

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