Sell-Out Rates refers to the sell-out percentage of all products.

Sell-Out Rates refers to the sell-out percentage of all products. The Omnilytics dashboard considers products being sold out when the product page on retailer’s website shows the product as out of stock, or when the retailer takes down the product page, showing that page is not available. 

Sell out rates can be contributed by sell out at full price, and sell out at discounted price. To ensure product and consumer demand, focus on the sell out rates at full price items. In order to understand products that cleared off with markdown price, look into the sell out at discounted. You may also just look at overall sell out rates, which are products that went out of stock at both price statuses, full price and discounted when looking at the brand performance.

This feature is being used for many reasons, such as to determine design opportunities, reviewing a competitor’s brand performance or validating category opportunities. Products with a high sell-out rate, especially sell out rate at full price indicate a greater demand for a specific design or trend, therefore validating its opportunity in the market. On the other hand, retailers with a higher sell out rate also indicate that the retailer is performing well in the market as compared to other competitors. Hence, it is important to identify whether the sellout rates are contributed by sell out rates at full price or discounted to ensure the performance is driven by full priced items, instead of driven by markdowns or promotions. Last but not least, you may also use the sell out rate by taking the retailer’s sell out rate as a benchmark sell out rate, and compare with the sell out rates of the different categories in their assortment. A higher sell out rate indicates a strong performance of the category and further validates the category opportunities to produce or stock the right products with the retailer, hence optimising sales growth with minimise risks.

Common question related to “Sell-out rates %”:

Is the sell out rates the same as sell through?

No, both are different. In Omnilytics, we validate our analyses by looking into the sell out rates. “Sell-out rate” measures the amount of SKU products that are sold within a given period, while “Sell-through rate” measures the amount of inventory that is sold within a given period, relative to the amount of inventory received within the same period. The difference between the two is because we do not measure the quantity of the product as the information is protected under the Data Protection Act PDPA. What we measure is therefore, sell out rates based on SKU products.

Below are some use case articles exemplifying the use of sell out rates in the analyses:

How do I identify category opportunities in a marketplace?

How do I identify category opportunities?

How do I compare sustainable products performance?

How do I identify trending details/design opportunities?

How do I identify and validate uptrends?

How do I analyse what is driving my competitor’s full-price trade performance?