What's a good sell-through rate?

It depends on your price, margin and channel. What matters most is being above your own break-even sell-through.

Is sell-through the same as inventory turn?

No. Sell-through is a share of what you bought. Inventory turn is how many times you sell through your average stock in a period.

How does OptiSKU use it?

It uses your expected sell-through to size the order, work out cash and show how much stock is likely to be left.

Guide · reviewed October 2026

What is sell-through?

Revenue is the headline. Sell-through is the story.

Sell-through is the share of the stock you bought that actually sold. Buy 100, sell 70: 70% sell-through. Every unsold unit is cost with no sale to pay for it.

The formula

sell-through = units sold ÷ units received break-even sell-through = landed cost ÷ net money per sale

Worked example

A $40 tee with a $24.90 landed cost:

Average price after a 15% discount	$34.00
Less 3.5% payment fees	$32.81 net per sale
Break-even sell-through	76%

Sell less than about 76% of this order and it loses money before rent, marketing or salaries.

Worth knowing

Measure it over a set period, like the first 8 or 12 weeks of a season.
Look at it by size and color, not just by style. That's where the leftovers hide.

Common mistakes

Judging a season by revenue alone.
Discounting late instead of planning markdowns before you need them.

Questions

What's a good sell-through rate?: It depends on your price, margin and channel. What matters most is being above your own break-even sell-through.
Is sell-through the same as inventory turn?: No. Sell-through is a share of what you bought. Inventory turn is how many times you sell through your average stock in a period.
How does OptiSKU use it?: It uses your expected sell-through to size the order, work out cash and show how much stock is likely to be left.

Sources

Ronnie Fieg on Kith's 15-Year Evolution (September 2026) · Complex
Kith's founder on buying to an 85–90% sell-through target and reported margins on brands it buys wholesale.
Mathematics for Retail Buying (Fairchild Books) · Bette K. Tepper and Newton E. Godnick
The standard textbook for retail math: markup, margin, IMU, markdowns and open-to-buy.
The State of Fashion 2026 · McKinsey & Company and The Business of Fashion
The industry's annual outlook, built from executive surveys and market data. Expects low single-digit growth in 2026.

Checked October 2026. Rates and rules change; confirm duty and tariffs with a licensed customs broker. All sources

Run it with your numbers

OptiSKU works this out for your own products, free in your browser. No sign-up to try.

Open it with this example