How Shopify merchants use Sell-through Rate
Product-specific velocity metric used for collection hits vs. markdown needs.
Formula
Sell-through % = ( (Units Sold / Units Available) ) × 100
Units available include starting inventory plus receipts.
What matters in practice
- 100% isn't always good; it indicates missed sales.
- Typically measured monthly or by season.
- Net sales (returns subtracted) should be used.
Why it matters
Common merchant pain points
- • Relying on store-wide metrics while missing low-velocity variants.
- • Measuring over too short a period which can be skewed.
Native Shopify limitations
- • Shopify provides it in some plans but disconnected from replenishment.
- • Multi-location sync is necessary for accurate 'available units'.
Benchmarks and reference points
75–80% monthly is 'excellent' for ecommerce.
Below 40% is a warning of overstock.
How to apply this in practice
Step 1
Count Starting Stock
Identify total units on hand on the first day of the month.
Step 2
Sum Units Sold
Export Shopify sales for that month.
Step 3
Calculate Velocity
Divide sales by starting stock to see what percentage of the 'pile' you cleared.
Examples
Flash Sale Audit
A merchant aims for a 90% sell-through in 48 hours for a clearance event.
Product Launch
If a new product only has a 10% sell-through in its first month, the brand cuts its marketing spend and plans a markdown.
Frequently asked questions
Related resources
Related guides
- Dead Stock Reduction for Shopify Brands: Turn Shelf Sitters into Cash
Understand what dead stock really costs your Shopify brand - in carrying costs, cash lockup, and margin erosion - and how to prevent it using better forecasting, OTB, and reporting. Includes identification methods, liquidation strategies, and a prevention checklist.
- Stockout Prevention on Shopify: Practical Playbook for Growing Brands
Learn how Shopify merchants can prevent stockouts using demand signals, safety stock, and automated reorder points. Includes formulas, real examples, and a step-by-step checklist – plus where native Shopify tools run out of road.
Related calculators
Related glossary terms
- Reorder Point (ROP)
Reorder point is the inventory level at which a new purchase order should be placed so that replenishment arrives before existing stock is depleted.
- Safety Stock
Safety stock is the extra inventory held above expected demand to reduce the risk of stockouts caused by variability in demand or lead times.
- Inventory Turnover
Inventory turnover measures how many times a company sells and replaces its inventory over a given period, typically a year.