The sell-through rate (STR) on Shopify is calculated by dividing the number of units sold by the number of units received in a specific period. This metric helps businesses understand how efficiently they are selling their inventory.
Here's the formula:
Sell-Through Rate = (Units Sold / Units Received) x 100
Example:
- If you received 100 units of a product and sold 75 units in a month, your sell-through rate would be:
- (75 / 100) x 100 = 75%
Practical Insights:
- A higher sell-through rate indicates strong demand and efficient inventory management.
- A low sell-through rate might suggest overstocking, slow-moving inventory, or pricing issues.
- Analyzing your STR over time can help you identify trends and make informed decisions about your inventory.
To calculate your sell-through rate on Shopify, you can:
- Access your Shopify admin panel.
- Go to "Products" and select the product you want to analyze.
- Navigate to the "Inventory" tab.
- Record the number of units sold and received for the desired period.
- Use the formula above to calculate your STR.
You can also use Shopify apps like:
- Sell-Through Rate: This app automatically calculates and tracks your sell-through rate for all your products.
- Inventory Management: These apps provide detailed insights into your inventory levels and sales data, making it easier to calculate your STR.
By monitoring and analyzing your sell-through rate, you can optimize your inventory levels, reduce waste, and improve your overall profitability.
