What is Sell-Through Rate, and how do you calculate it?
In short – Percentage of inventory sold over a specific period. A key marketplace metrics you should track.
Sell-Through Rate Formula
Sell-Through Rate = (Units Sold ÷ Units Available) × 100%
Sell-Through Rate measures how efficiently the marketplace is moving products. It is important for inventory management and forecasting.
A high sell-through rate suggests strong demand and effective pricing. Monitoring this helps in optimizing stock levels and supply chain management. This metric helps businesses understand key operational efficiencies, areas for improvement, and strategic opportunities to drive growth and user engagement.
How can you find your Sell-Through Rate?
You should generally be able to calculate your Sell-Through Rate with tools you already posess. If that's not the case, signing up for an analytics tool may make sense.
Among others, twosided is one of the tools you could consider. Out-of-the-box, you'll get over two dozens marketplace KPIs and detailed tracking for your supply, demand and other factors that determine marketplace health.
Explore other metrics
Net Promoter Score (NPS)
A measure of customer loyalty and satisfaction based on user feedback.
Average Order Value (AOV)
The average value of orders placed on the platform.
Supplier Lifetime Value (SLV)
The projected revenue generated by a supplier over their tenure on the platform.
Repeat Purchase Ratio
The proportion of customers who make repeat purchases over a given period.
Customer Lifetime Value (CLV)
The projected revenue a customer will generate during their relationship with the business.