Sell-Through Rate: Benchmarks and How to Improve Yours
Sell-through rate measures how fast you move inventory relative to what you hold. Amazon watches it closely because slow-moving inventory clogs fulfillment centers.
The Formula
Sell-Through Rate = Units Sold ÷ Units Received × 100
Amazon calculates this over rolling 30-day and 90-day windows. Both matter, but the 90-day figure carries more weight for IPI.
What Good Looks Like
| Rate | Assessment |
|---|---|
| > 30% | Excellent — strong velocity |
| 20-30% | Healthy |
| 10-20% | Watch closely |
| < 10% | Problem — excess inventory |
Note that benchmarks vary by category. Seasonal products will look bad off-season by design, so compare against your own history first.
Why It Matters
- IPI score — sell-through is a major input; low scores trigger storage limits
- Storage fees — slow inventory accumulates monthly charges
- Aged inventory surcharge — units stored 181+ days pay a premium
- Cash flow — every unsold unit is cash sitting in a warehouse
How to Improve It
1. Stop Over-Ordering
The most common cause of poor sell-through is buying too much in the first place. Reorder based on actual velocity, not optimistic forecasts.
2. Run Promotions on Slow SKUs
A discounted sale beats a year of storage fees. Use the Break-Even Calculator first to see how deep you can discount and still cover variable cost.
3. Create Bundles
Bundle slow movers with fast movers to move both at a healthy blended margin.
4. Remove Inventory
If a SKU is genuinely dead, removal or liquidation beats indefinite storage. Calculate which is cheaper — often liquidation at 10% of cost beats 12 more months of storage plus aged surcharges.
5. Improve Listing Conversion
Better images, better copy, better A+ content. Higher conversion on the same traffic means more units sold without more inventory.
The Connection to Reorder Points
Sell-through rate tells you how fast inventory moves; your reorder point tells you when to buy more. Get the first wrong and the second is meaningless.
Reorder Point = Daily Velocity × Lead Time + Safety Stock
Use the Sell-Through Rate Calculator and the Reorder Point Calculator together — they share velocity as an input.
Check sell-through monthly at minimum. It is the earliest warning signal in inventory management.