How to raise online sell through rate on overstocked lines
The short answer
Divide units sold online by units sold plus units still on hand for the online channel, and you have online sell through rate. Flag lines with high stock and a low rate, then find customers who bought similar products at full price. Showing those lines to them first can lift sell through without a markdown.
Sell-through rate formula for online stock
Why it matters
Overstocked online lines tie up warehouse space and end in markdowns if nothing changes. Reaching the customers most likely to buy at full price moves stock while it can still earn its planned margin, and frees space for new arrivals.
The question to ask
Copy this into Lexi as written.
How to work it out
1. Calculate by line. For each product online, divide units sold in the period by units sold plus units on hand.
2. Flag the overstock. List lines with high units on hand and a sell through rate well below their category's.
3. Find full-price buyers. For each flagged line, find customers who recently bought the same category and price point at full price.
What the answer looks like
Illustrative output on sample data
Illustrative example: how Lexi answers this for an apparel retailer six weeks into the season. It calculates online sell-through for each line from units sold and units on hand.
- Linen blazer: 220 sold, 980 on hand, 18%
- Cotton chinos: 640 sold, 360 on hand, 64%
- Silk shirt: 150 sold, 450 on hand, 25%
What the data shows
The blazer and silk shirt hold 1,430 units between them and are well behind the chinos.
What it means
1,900 customers bought tailored jackets online at full price in the past year, and 640 of them viewed the blazer without buying.
What to do
Send those 640 a styled email ahead of any markdown.
Want me to build the full-price jacket buyer segment for Klaviyo or Meta?
Frequently asked questions
How is online sell through rate different from overall sell through rate?
Online sell through uses only the units sold online and the stock allocated to the online channel. Overall sell through combines stores and online. A line can sell well in stores and sit online, or the reverse, so measuring by channel shows where stock is in the wrong place.
Why hold the markdown until after a targeted push?
A markdown cuts margin on every remaining unit, including those that could have sold at full price to the right customer. A targeted push to buyers of similar products costs little and can move part of the stock first. The markdown then only needs to clear what is left.
How do I increase sell through rate online?
Get the line in front of the right customers, improve how it is presented and check that the sizes in stock match demand, leaving price as the last lever. Targeted emails to past buyers of similar items, better imagery and styled pairings can all lift sell through ahead of a markdown.