What is a good Sell-Through Rate for Amazon FBA?

For most FBA categories, target above 70% monthly sell-through on active SKUs. Amazon's IPI dashboard uses a different formula and looks for a 90-day sell-through ratio above 2.0 to give you a healthy IPI score contribution.

How does Amazon calculate Sell-Through Rate for IPI?

Amazon uses Units Sold and Shipped over the trailing 90 days divided by Average Units Available over the same period. This is a ratio, not a percentage — a value of 2.0 means you turned your average inventory twice in 90 days.

How do I improve a low Sell-Through Rate?

Run targeted Sponsored Products to lift demand, reduce price by 5-15% on slow movers, create a Lightning Deal or Coupon, remove or liquidate dead stock, and tighten replenishment quantities so you stop sending in more than you can sell.

What happens if my Sell-Through Rate stays low?

Low sell-through inflates Amazon's long-term storage fees (6+ months in FBA), drags down your IPI score, and can trigger storage volume restrictions. Excess inventory is one of the most common causes of negative FBA profit margins.

Is Sell-Through Rate the same as Inventory Turnover?

They are related but different. Inventory Turnover is typically calculated annually (Cost of Goods Sold / Average Inventory Value). Sell-Through Rate is usually monthly or trailing-90, calculated on units rather than dollars.

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Operations

Inventory Management

Sell-Through Rate

Essential Amazon seller metric for operations

What is Sell-Through Rate?

Sell-Through Rate measures how quickly inventory converts into sales. The standard formula is Units Sold divided by Units Available, multiplied by 100. Amazon's IPI version uses Units Sold and Shipped in the past 90 days divided by Average Units Available. A higher sell-through rate means leaner inventory and stronger cash flow.

Data Source

Inventory Reports (calculated)

Update Frequency

Monthly

Measurement Units

Percent

Available at: ASIN, SKU

Formula

Sell-Through Rate = (Units Sold / Units Available) × 100 · IPI variant uses 90-day trailing

Worked Example

You started the month with 500 units of an SKU and added no replenishments. You sold 350 units over the month. Sell-Through Rate = 350 / 500 × 100 = 70%. Amazon's IPI version is a ratio rather than a percentage: 350 / ((500 + 150) / 2) = 350 / 325 = 1.08, which is on the low end of IPI's recommended range.

Sell-through targets

Tier	Range / Signal
Good	Standard sell-through above 70% per month · IPI sell-through above 2.0
Average	Standard 40-70% per month · IPI sell-through 1.0-2.0
Watch out	Standard under 25% · IPI under 1.0 (excess inventory risk, storage fee penalties)

Frequently Asked Questions