Definition

Sell-through rate is a comparison of the amount of inventory you've sold and the amount of inventory you received from a manufacturer.

Formula

Sell-through rate = (# units sold / # units received) x 100

How does this help my business? What is a healthy sell-through rate?

Measuring your sell-through rate can help you track sales, adjust your long-term goals, and keep your supply chain efficient. Though sell-through rates vary from industry to industry, an ideal benchmark is at or above 80%.

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