A sell-through rate (STR) is a metric used by retailers and online sellers that compares the amount of inventory received from the manufacturer to the number of units actually sold to their customers.
For example, if your store orders 50 chairs and sells 20 of them, your sell-through rate is 20/50 x 100= 40%. Not surprisingly, a higher sell-through rate in which you sell more of your inventory is ideal.
What’s considered a good sell-through rate on eBay depends greatly on the type of products sold and the seller’s expectations. However, it’s generally considered that 80% is excellent, while anything below 40% is a cause for concern. Keep in mind that these totals will vary depending on what you’re selling. A seller shouldn’t expect Christmas products to have a high STR in August.
If you’re not happy with your sell-through rating on the online marketplaces you sell on, you may need to assess your pricing strategies, the viability of your products, and whether you are competing in a saturated market.
Algopix is an online market research platform that you can use to help you make better business decisions and increase your sell-through rate.
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