How this calculator works
Sell-through compares the units sold with the units received over the same period. It answers a simple retail question: of everything that arrived, how much left the shelf? A high rate means the assortment is moving and may need replenishing sooner; a low rate means stock is sitting, which ties up cash and risks markdowns. The ratio is usually reported for a season, a collection or a product line, and the period must match the sales and receiving figures. It differs from inventory turnover, which compares sales with the average inventory held rather than with the units received.
Formula
Sell-through rate = units sold / units received. Units sold = units received x rate. Units to receive = units sold / rate.
Worked example
Selling 350 units out of 500 received gives a sell-through rate of 350 / 500 = 70%. At 70%, receiving 800 units should sell 560. If you expect to sell 350 units at an 80% rate, you need 350 / 0.8 = 437.5, so order 438 units.
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Frequently asked questions
Is sell-through the same as inventory turnover?
No. Sell-through measures how much of the received stock sold, while inventory turnover compares the cost of goods sold with the average inventory value. A store can have fast turnover but poor sell-through on one slow collection.
Should returns be subtracted from units sold?
Yes, for a clean measure. Units sold should be net of returns, because a returned item did not ultimately sell. Some retailers report gross sell-through during the season and net later; state which one you are using.
Can the rate be above 100%?
It can when sales include stock received in an earlier period. That is a sign the period boundaries do not match. For a closed period with no opening stock, the rate cannot exceed 100%.