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.
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
Order Frequency
Average number of orders placed by a buyer within a specific period
Cross-Sell Rate
Percentage of transactions that include additional products or services
Supply-Demand Ratio
Ratio of available listings to active buyers
Listing Quality Score
A metric evaluating the quality of product listings based on predefined criteria
User Net Adds
Net increase in the number of users over a specific period