Measure your inventory performance and sales efficiency
Total units sold during the period
Total inventory available at start
Current Sell Through Rate
Understanding Sell Through Rate (STR)
The Sell Through Rate is a critical retail metric that compares the amount of inventory you received from a manufacturer or wholesaler against what was actually sold to customers within a specific period (usually a month).
Why It Matters
A high sell-through rate suggests you are moving inventory efficiently without overstocking. Conversely, a low rate may indicate that you have overbought, priced items too high, or that demand for the product is slowing down.
The Formula
Sell Through Rate = (Units Sold / Beginning Inventory) × 100
Real-World Example
Inventory Received: 1,000 units of a new sneaker.
Units Sold (Month 1): 450 units.
Calculation: (450 / 1,000) × 100 = 45% STR.
In this example, the retailer sold nearly half of their stock in the first month. In the fashion industry, a monthly STR of 40-80% is generally considered excellent, while anything below 20% might trigger a clearance or discount strategy.
How to Improve Your Rate
If your calculation shows a low percentage, consider these strategies:
Run targeted promotions or discounts.
Improve product photography and descriptions.
Bundle slow-moving items with high-demand products.
Adjust future procurement orders to match actual demand.
function calculateSTR() {
var sold = parseFloat(document.getElementById('unitsSold').value);
var received = parseFloat(document.getElementById('stockReceived').value);
var resultBox = document.getElementById('strResultBox');
var strDisplay = document.getElementById('strValue');
var statsDisplay = document.getElementById('inventoryStats');
if (isNaN(sold) || isNaN(received) || received received) {
alert("Units sold cannot exceed total units received.");
return;
}
var str = (sold / received) * 100;
var remaining = received – sold;
resultBox.style.display = 'block';
// Set color based on performance
var color = '#d93025'; // Red for low
if (str >= 40) color = '#1e8e3e'; // Green for high
else if (str >= 20) color = '#f9ab00'; // Yellow for medium
strDisplay.style.color = color;
strDisplay.innerHTML = str.toFixed(2) + '%';
statsDisplay.innerHTML = 'Units Sold: ' + sold + ' | Units Remaining: ' + remaining + " +
'Inventory Utilization: ' + (str >= 50 ? 'High' : 'Low to Moderate');
resultBox.style.backgroundColor = color + '10'; // Light tint of the status color
resultBox.style.border = '1px solid ' + color;
}