How do you work out the sell-through rate?

How do you work out the sell-through rate?

Sell through rate is calculated by dividing the number of units sold by the number of units received, then multiplying the sum by 100.

What is a bad sell-through rate?

Depending upon the time period, a low sell‐through percentage—say, less than 30%—might indicate that your price is too high, or you overbought and need to take an action to move the merchandise before it becomes even staler.

What is sale through wholesale?

Wholesaling is the act of selling your products in bulk to another retailer, usually at a discount, who then sells the product to their customers at a higher price. It’s important to note that creating a wholesale channel for your business still allows you to sell your product to the end consumer.

What is considered a good sell-through?

What Is a Good Sell Through Rate? It varies by industry and organization, but the general rule is that a sell through rate above 80% is ideal.

What is a sell-through model?

An indirect-sales model under which a vendor sells products to a reseller, which, in turn, sells the products to end users.

Why is sell-through rate important?

Sell-through rate is an important retail sales metric that allows you to monitor the efficiency of your supply-chain. You want to aim to have a high sell-through rate. Any product you have on the shelf is costing you money, and could be used for more popular products.

What companies sell through retailers?

Retail companies specialize in the sale of goods or services to consumers. Products sold by retailers include apparel, jewelry, house wares, small appliances, electronics, groceries, pharmaceutical products, as well as a broad range of services such as tool and equipment rentals.

What is the difference between retail and wholesale?

In a wholesale model, you don’t sell products directly to consumers. Instead, you obtain products from a distributor and sell products to a third-party business, usually in bulk. In a retailing model, you obtain products from a distributor and sell products directly to consumers.