This post documents how I use sell-through rate as a decision signal when running resale businesses.
It’s not a guide, formula, or rulebook. It’s simply how I interpret the number in practice and how it influences what I keep, what I price differently, and what I stop buying altogether.
What Sell-Through Rate Is (Briefly)
Sell-through rate is a simple ratio:
how much inventory sells
compared to how much inventory is listed
I’m not interested in the academic definition or exact formulas. I care about what the number tells me when I look at a category, a batch, or a group of listings.
Used properly, sell-through rate is less about optimisation and more about truth-telling.
Why I Pay Attention to It
The biggest mistake I made early on was assuming slow sales meant something was “wrong”.
Wrong price.
Wrong photos.
Wrong listing format.
Sometimes that’s true — but often it isn’t.
Sell-through rate helps separate:
- this is slow because demand is weak
from - this is slow because something is broken
That distinction matters, because the response is different.
How I Actually Use Sell-Through Rate
I don’t use sell-through rate to chase perfection. I use it to make binary decisions.
For example:
- Do I keep buying this category?
- Do I price more aggressively?
- Do I stop listing similar items?
- Do I exit this inventory entirely?
A low sell-through rate doesn’t automatically mean “fix it”.
Sometimes it means stop feeding it.
What Sell-Through Rate Doesn’t Tell Me
Sell-through rate does not tell me:
- how much profit I’ll make
- how quickly something should sell
- whether an item is “good” or “bad”
- whether the effort involved is worth it
Those answers come from:
- time spent listing
- space taken up
- mental load
- opportunity cost
Sell-through rate is a signal, not a verdict.
Using It at the Right Level
I don’t obsess over sell-through rate on individual items.
I look at it:
- by category
- by batch
- by supplier
- over time
One slow item doesn’t mean anything.
Twenty slow items absolutely do.
That’s when it becomes actionable.
How It Influences Pricing Decisions
When sell-through is healthy:
- I’m more patient on price
- I don’t rush to discount
- I let the market do its work
When sell-through weakens:
- I stop assuming “the right buyer will come”
- I test price sensitivity
- I decide whether the inventory is still worth holding
Sell-through rate helps me decide when to push and when to exit, not how to micromanage listings.
Why This Matters More Than Tips
A lot of reselling advice focuses on:
- improving titles
- tweaking photos
- adjusting descriptions
Those things matter — but they don’t fix structural problems.
Sell-through rate exposes structure:
- category choice
- buying decisions
- inventory mix
- time allocation
It tells me whether I’m working with demand or trying to force it.
Closing
I don’t use sell-through rate to optimise.
I use it to avoid lying to myself.
It’s one of the quickest ways I’ve found to see whether inventory deserves more attention — or less.
That makes it a useful number, even if it’s an uncomfortable one.
This post documents how I use sell-through rate as a decision signal when running resale businesses. Any changes to how I interpret or apply it will be recorded separately over time.
