Now that I officially have an eBay account (more on that HERE), I am able to utilize many of eBay’s free features including Terapeak and data within the platform itself. Before I ever signed up for an eBay account, I was using the app to gauge sell through rate for items within my reselling business on other platforms. Today, I wanted to share with you how I used this information to figure out sell-through rates and decide what items are worth sourcing for my business.
What is Sell-Through Rate?
Generally, inventory sell-through rates measure the amount of inventory sold relative to the amount purchased from the manufacturer within a certain period of time. In the reselling world, inventory sell-through rates measures the amount of sold listings relative to the total amount of active and sold listings within a certain period of time. To calculate this number, you can use the formula below:
Using Sell-Through Rate as a Reseller
When it comes to reselling, it is important to know the sell-through rates of items that you are selling. The higher the sell-through rate of an item, the greater the chances that the item will sell within a certain period of time. Although sell-through rates are not guaranteed, they are a useful tool that you can use when sourcing for inventory.
An Example of How to Figure Out an Item’s Sell-Through Rate Using Ebay
For this example, let’s say that I am looking to source a preowned Stanley 40 Oz Confetti Terrazzo Tumbler that I found at Goodwill.
First, I went to eBay and searched the exact name of the Stanley tumbler where 17 results appeared. After adding the Used filter, there was only 1 result shown.
Next, I repeated the same search but added the Sold and Completed filters where 3 results appeared.
Result: Based on this information and the formula provided at the beginning of this post, the sell-through rate of this Stanley tumbler is 75% within a 90 day period (as eBay searches reflect the last 90 days). This is an extremely high sell-through rate and thus, this item should be purchased for resale.
Since eBay has monthly listing limits (maximum 10 listings if you are brand new account), it is important to focus your attention on listing items with high sell-through rates. This will help you to build your account sooner and increase your monthly listing limits over time.
I hope that you find this post helpful! If you have any questions or just want to chat, please reach out!
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