What is Sell Through Rate

(Great question, we’re glad you asked!) Sell through rate is the number of times your inventory turns over in a rolling 90 day average. Amazon uses sell through rate as one of the key factors to determine the amount of space you can use in their warehouses. You should work to get your target a rate above 2. The average of all your products determines your inventory limits. It is very important for you to monitor this in your overall inventory. It is especially important to check this and adjust as needed in the 3rd quarter since these numbers are used by Amazon to set your limits for the important 4th quarter. A great way to get this number to increase is to move slow selling items either by reducing the price to get them to sell or recalling you inventory to sell on a different market. Take action on any item that that has been in the Amazon warehouse over 90 days. Keeping a handle on this your sell through rate can make a huge difference in your inventory storage allotment.