PRICING AND INVENTORY
How Sell-Through Rate Affects Thrift Business Profit
Sell-through rate is the share of the stock you put out that actually sells in a period. It is one of the most powerful numbers in resale, because your costs stay the same whether items sell or not.
This guide shows how to measure it and why small changes have a large effect.
MEASURING IT
The calculation.
Choose a period, such as 30 days, and apply it consistently.
Sell-through rate = items sold in the period ÷ items available in the period × 100.
- Measure by category, channel and price band, not just overall.
- Use the same period every time so results are comparable.
ILLUSTRATIVE EXAMPLE
Why it matters so much.
Fictional figures: 400 sellable items, total costs of 6,000 and an average price of 25, in units of your own currency, with no fees.
The costs do not change; only the number sold does.
Example only.
| Sell-through | Net result |
|---|---|
| 50% (200 sold) | −1,000 |
| 60% (240 sold) | 0 |
| 75% (300 sold) | 1,500 |
| 90% (360 sold) | 3,000 |
IMPROVING IT
Practical levers.
Buy closer to demand
Use past sales to shape the next order; see planning inventory.
Price realistically
Price against what buyers pay; see pricing second-hand clothes.
Improve presentation
Plan markdowns
Reduce slow items on a schedule instead of leaving them indefinitely.
Use a second channel
Bundles or in-person sales can clear what does not sell online.
SEE THE EFFECT
Test it on your numbers.
Run your order at several sell-through rates.
The profit calculator recalculates break-even and target prices as you change sell-through, so you can see how sensitive an order is before buying.
NEXT STEP
Planning an order around demand?
Tell us the categories that sell best for you, and we will discuss what is currently available.
General guidance for planning purposes. Examples are illustrative; outcomes depend on your own market, stock, prices and costs.