Sell-through
Encyclopedia
In publishing, sell-through refers to a percentage
of units shipped which are actually sold. In the case of books, the rest is returned to the publisher. Other items, such as software, are usually discounted.
Sell-through is always expressed as a percentage. Net sales essentially refers to the same thing, in absolute numbers.
Sell through refers to sales made directly (Direct sales). Sell in, on the other hand, refers to sales made through a channel.
industry, sell-through simply refers to consumer sales. That is, units which are sold directly to consumers, rather than to stores that rent them out. Sell-through priced videocassettes were generally under $30 in the United States, as contrasted with full-priced titles, generally priced at over $80 retail. With the coming of movies on DVD
, sell-through pricing became the norm for DVDs in the United States.
"Sell-thru" is also used as an alternative nomenclature and is generally accepted terminology even though the term "thru" is usually used more informally.
It is calculated by dividing the number of units sold by the beginning on-hand inventory (for that same time period).
Example:
During the month of May you sell 100 units. You received 300 units in receipts. You end May with 900 units of stock (EOM, End of Month stock). What was your Beginning On-Hand units and what was your Sell-through?
Beginning of Month stock (BOM) = EOM 900 units - Receipts 300 units + Sales 100 units = 700 units
Sell-through = Sales 100 units / Beginning Inventory (BOM) 700 = 14.3% Sell-through in May.
Percentage
In mathematics, a percentage is a way of expressing a number as a fraction of 100 . It is often denoted using the percent sign, “%”, or the abbreviation “pct”. For example, 45% is equal to 45/100, or 0.45.Percentages are used to express how large/small one quantity is, relative to another quantity...
of units shipped which are actually sold. In the case of books, the rest is returned to the publisher. Other items, such as software, are usually discounted.
Sell-through is always expressed as a percentage. Net sales essentially refers to the same thing, in absolute numbers.
Sell through refers to sales made directly (Direct sales). Sell in, on the other hand, refers to sales made through a channel.
Home video sell-through
In the home videoHome video
Home video is a blanket term used for pre-recorded media that is either sold or rented/hired for home cinema entertainment. The term originates from the VHS/Betamax era but has carried over into current optical disc formats like DVD and Blu-ray Disc and, to a lesser extent, into methods of digital...
industry, sell-through simply refers to consumer sales. That is, units which are sold directly to consumers, rather than to stores that rent them out. Sell-through priced videocassettes were generally under $30 in the United States, as contrasted with full-priced titles, generally priced at over $80 retail. With the coming of movies on DVD
DVD
A DVD is an optical disc storage media format, invented and developed by Philips, Sony, Toshiba, and Panasonic in 1995. DVDs offer higher storage capacity than Compact Discs while having the same dimensions....
, sell-through pricing became the norm for DVDs in the United States.
"Sell-thru" is also used as an alternative nomenclature and is generally accepted terminology even though the term "thru" is usually used more informally.
Business Definition
Sell-through is a percentage of units sold during a period (usually 1 month).It is calculated by dividing the number of units sold by the beginning on-hand inventory (for that same time period).
Example:
During the month of May you sell 100 units. You received 300 units in receipts. You end May with 900 units of stock (EOM, End of Month stock). What was your Beginning On-Hand units and what was your Sell-through?
Beginning of Month stock (BOM) = EOM 900 units - Receipts 300 units + Sales 100 units = 700 units
Sell-through = Sales 100 units / Beginning Inventory (BOM) 700 = 14.3% Sell-through in May.