1. What is Sell Through?

Sell Through is a retail metric that measures what percentage of inventory is sold during a specific period. It helps businesses understand how quickly products are moving off the shelves.

2. How Does the Calculator Work?

The calculator uses the Sell Through formula:

Where:

• Units Sold — Number of items sold during the period
• Beginning Inventory — Inventory at start of period
• Received Inventory — New inventory received during period
• Ending Inventory — Inventory remaining at end of period

Explanation: The denominator represents the total inventory available for sale during the period.

3. Importance of Sell Through Calculation

Details: Sell Through helps retailers manage inventory, identify fast/slow moving products, optimize purchasing decisions, and improve cash flow.

4. Using the Calculator

Tips: Enter all values as whole numbers. Ensure beginning inventory + received inventory is greater than ending inventory for meaningful results.

5. Frequently Asked Questions (FAQ)

Q1: What is a good sell through rate?
A: Generally, 40-80% is good for most retail. Under 40% may indicate overstocking, while over 80% may mean you're understocked.

Q2: How often should I calculate sell through?
A: Typically calculated weekly, monthly, or seasonally depending on your business needs.

Q3: What if my denominator is zero or negative?
A: This indicates incorrect inventory data - either ending inventory exceeds what was available, or there was no inventory to sell.

Q4: Can sell through exceed 100%?
A: Normally no, unless there's data error. 100% means you sold all available inventory.

Q5: How does this differ from inventory turnover?
A: Sell Through measures percentage sold in a period, while turnover measures how many times inventory is replaced in that period.