Sigh. Sell-through rate.
I have avoided this for a long time; probably too long. Between the math and checking everything I buy, it is an overwhelming concept for me. However, now that I’m experiencing the “summer slowdown” firsthand, I’m thinking maybe I should have paid closer attention to my inventory, so I think it’s time to face the beast known as the sell‑through rate (STR).
Boiled down, the STR is how fast an item is predicted to sell. There’s a formula for it, which is:
Number of Items Sold ÷ Total Number of Listings X 100
For example, if I want to calculate the STR for a pre-owned Madame Alexander Poor Cinderella doll, I can see that there are 315 active listings. 17 have sold. Using the formula above:
17 ÷ 301 = .056 X 100 = 5% STR
The STR will vary in different categories, but for the most part, you probably want around a 50% STR. Which means my little Cinderella doll is probably going to be with me for quite some time. A higher STR means higher demand for the item; a lower STR means lower demand.
How Do You Come Up With These Numbers?
To find these numbers, go to eBay and look up the item you want to check. Try to be as specific as possible since eBay is so massive. If you just enter “Madame Alexander doll,” it takes the number up to over 14,000 which doesn’t really show you a clear picture. Enter your item as specifically as possible, and it will show how many there are at the top (“383 results for Madame Alexander Poor Cinderella doll”). If this is a pre-owned item, scroll down the left side of the screen and under “Condition,” choose “Used” (that lowered my number to 301). Make note of that number, then keep scrolling down the left side and under “Show Only,” choose “Sold” (that number was 17). 301 and 17 are the numbers you need to plug into your formula.
An Easier Way To Do It
I wanted to show you that so you’d know where the numbers came from, but a much easier way to do it, especially if you’re at the thrift store, is just to ask eBay. Go to eBay’s Seller Hub at https://export.ebay.com/en/services-tools/seller-hub/. If it prompts you, sign in with your password. Go to:
Research
Product Research
Enter your item into the box. I entered my doll information and got this:
In an instant, this shows you the average price, the STR, the amount of sellers, and even the average shipping cost. Much easier than doing the math!
What Do I Do With This Information?
Since my little store is currently slow and struggling, I think I’ll revisit all of my inventory and check each item’s STR. If it has a low STR, I’ll probably drop the price a little or maybe offer free shipping. I’ll give that a shot and report back to let you know if it made a difference.
Good luck and sell, sell, sell!