Sell Through Rate

Measures the percentage of inventory sold in a given period.

Formula

STR = (Number of Units Sold / Number of Units Received) * 100

Know your metric

Importance of

Sell Through Rate

  1. Inventory Management

Indicates how effectively inventory is being turned over.


  1. Product Demand Insight

Provides insights into product demand and consumer preferences.


  1. Pricing Strategy Tool

Can inform adjustments in pricing based on sell-through rates.

Drawbacks of

Sell Through Rate

  1. Limited by Inventory Size

High rates may be due to low initial stock.


  1. Not Reflective of Sales Trends

Doesn't account for broader sales trends or market conditions.


  1. Can Encourage Overproduction

High rates might lead to overestimating future demand.

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