// glossary
Sell-through rate: definition, formula and a worked example
Sell-through rate is the share of your stock that sold in a period. The formula, a worked example, units versus dollars, and how Keel HQ computes it.
David LindahlFounder of Keel HQ, and runs a DTC brand on it
Published Last verified
Sell-through rate is the share of the stock you had during a period that sold in that period, counted in units.
Also called: STR, sell-through
// tl;dr
Sell-through rate is units sold divided by units sold plus units still on hand, over one period. Shopify's inventory report uses that formula, and so does Keel HQ's catalog, over the last 90 days. For a product launch, divide units sold since the drop by the quantity you launched with instead.
The formula
sell-through rate = units sold ÷ (units sold + units on hand at the end of the period)
Both counts are for one product (or variant) and one period. Units sold is the total over the period; units on hand is the count on its last day. Shopify's inventory report defines it the same way, and notes that the units-sold count leaves out returns, manual adjustments and transfer receipts.
Some guides divide by units received, or by stock on hand alone. Dividing by units received suits one purchase order. Dividing by stock on hand alone can run past 100%, so the number stops meaning "share of what you had."
A worked example
Vandelay Industries sold 270 Festivus For the Rest of Us sweatshirts in the last 90 days, and has 90 left.
| Input | Value |
|---|---|
| Units sold, last 90 days | 270 |
| Units on hand today | 90 |
| Sell-through rate | 270 ÷ (270 + 90) = 75% |
Three of every four sweatshirts Vandelay had in the window sold. At that pace, the 90 left last about 30 days (90 ÷ 3 a day), which is the number to set against the supplier's lead time.
Units or dollars
Sell-through is normally counted in units. A dollar version (sales at retail over the retail value of the stock) mixes discounting into the result: a product that sold every unit at half price looks half as good. Keel HQ counts units only.
Where it appears in Keel HQ
- Inventory catalog: a Sell-Through column on every product, and the product drawer, over a rolling 90 days: units sold ÷ (units sold + units on hand across every location).
- Drops: each launch's sell-through is units sold since the drop date ÷ the quantity it launched with, capped at 100%, against the pace you set for the drop.
- ABC grades: sell-through is one of the weighted inputs to each product's grade.
Questions
- What is a good sell-through rate?
- It depends on the product. Shopify's guide puts the general benchmark at 80% or more, and says 40% to 60% a month or a quarter is acceptable for evergreen products. A seasonal drop should clear most of its stock inside its window; a core product that restocks every month will always show a lower number.
- Why does my sell-through look low right after a restock?
- Because the units you just received count as stock on hand. Sell-through measured against what is on hand today drops the day a purchase order lands, then climbs as it sells. Compare products over the same window, and judge a launch against its own launch quantity.
- Is sell-through the same as inventory turnover?
- No. Sell-through is a share of one period's available stock, so it tops out at 100%. Turnover is cost of goods sold divided by average inventory value, a count of how many times stock is replaced in a year.
// how keel hq does this
Know what to reorder and what to stop buying.
From ABC grading to sell-through curves, product pipeline, margin modeling, and return tracking — inventory ops without the spreadsheet.
See inventory in Keel HQ
// sources
- Inventory reports, Shopify Help Center · accessed
- Sell-Through Rate (STR): How to Calculate & Improve It (2026), Shopify · accessed