1. What is Sell Through Rate (STR)?

The Sell Through Rate (STR) is a key performance indicator in retail that measures what percentage of inventory is sold during a specific period compared to what was received. It helps assess product performance and inventory management effectiveness.

2. How Does the Calculator Work?

The calculator uses the STR formula:

Where:

• \( Sold \) — Number of units sold
• \( Received \) — Number of units received

Explanation: The formula calculates the percentage of inventory that was sold relative to what was available for sale.

3. Importance of STR Calculation

Details: STR is crucial for inventory planning, identifying fast- and slow-moving products, and making decisions about promotions, markdowns, and future orders.

4. Using the Calculator

Tips: Enter the number of units sold and received during the same time period. Both values must be positive numbers, and received must be greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: What is a good STR percentage?
A: A good STR varies by industry and product, but generally 80%+ is excellent, 60-80% is good, and below 40% may indicate problems.

Q2: How often should STR be calculated?
A: Typically calculated weekly, monthly, or seasonally depending on the product lifecycle and business needs.

Q3: What if my STR is over 100%?
A: STR over 100% means you sold more than you received, which could indicate backorders, inventory errors, or exceptional demand.

Q4: Can STR be used for services?
A: While primarily for physical goods, the concept can be adapted for service capacity utilization.

Q5: How does STR differ from sell-in rate?
A: Sell-in measures how much product is sold to retailers, while STR measures how much is sold through to end customers.