Sell-through rate measures the number of units sold relative to the number of units available in FBA inventory over a given period. Amazon calculates it as units shipped in the past 90 days divided by average available inventory during that period.
Sell-through rate is a key component of Amazon's IPI score calculation. A healthy sell-through rate indicates that you are ordering appropriate quantities and not overstocking, which keeps storage costs low and IPI score high.
RIDGE inventory planning recommends initial order quantities and reorder triggers designed to maintain healthy sell-through rates based on projected sales velocity and seasonal demand patterns.
A product with 600 units sold in 90 days and an average of 200 units in stock has a sell-through rate of 3.0 — considered good by Amazon's standards.
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