Sell-Through Rate and IPI: How to Improve It

Amazon calculates sell-through rate as units sold in the last 90 days divided by average inventory on hand over that same period. A higher sell-through rate means you are selling inventory faster relative to what you are holding — the ideal scenario from Amazon's perspective is that inventory moves quickly and does not sit in warehouses. Target rates: Amazon's dashboard typically marks sell-through rates above 0.8 as "good" and below 0.5 as areas needing improvement. Practical targets for sellers: aim for a sell-through rate above 1.0 for your highest-velocity products (meaning you are selling more than you have on hand on average, keeping inventory lean), and focus attention on any product with a rate below 0.4 (selling less than 40% of your average on-hand inventory in 90 days). Methods to improve sell-through rate: advertise slow movers with targeted Sponsored Products campaigns, run coupons to drive conversion and sales velocity, reduce reorder quantities so your average on-hand inventory decreases relative to sales, and retire products that consistently have low velocity regardless of interventions. The 90-day rolling calculation means improvements you make today start benefiting your score within the current quarter.