A retail sell-through review should decide what to reorder, what to change and what to stop—not simply whether the first order “sold well.” Buyers should review performance by SKU, store or display, inventory, margin, packaging condition and customer feedback before repeating an assortment.
Sell-Through Review Checklist
| Review area | What to measure | Decision supported |
|---|---|---|
| Sales velocity | Units sold by SKU, store, display and review period. | Reorder quantity and timing. |
| Inventory | Opening stock, receipts, transfers, returns and closing stock. | Weeks of supply and reorder trigger. |
| Margin | Actual margin after product, packaging, freight and channel costs. | Keep, reprice or replace SKU. |
| Packaging | Damage, shelf presentation, barcode/label accuracy and customer handling. | Packaging or label changes. |
| Display fit | Footprint, units per display, refill frequency and visibility. | Display and layout changes. |
| Customer feedback | Returns, complaints, repeated questions and positive feedback. | Product, color or function changes. |
| Quality | Defects, damaged units and recurring issues by SKU or batch. | QC review or supplier corrective action. |
Calculate the Review Measures Consistently
Choose a fixed review period and use the same definition each time. A common unit sell-through calculation is:
Sell-through rate = units sold during the period ÷ units available for sale during the period × 100.
Define “available for sale” before comparing stores or periods. Depending on the retailer’s reporting system, this may mean opening inventory plus receipts, adjusted for transfers and returns. Do not compare a rate calculated on opening stock alone with one calculated on opening stock plus receipts.
Also review absolute units sold, closing inventory and gross margin. A high percentage on a very small quantity does not automatically justify a large reorder, and a good sell-through rate can still hide weak profitability after freight, discounting or damage.
Reorder Decisions by SKU
- Increase: sales velocity, margin and operational fit are all acceptable, and stock cover supports a larger order.
- Maintain: performance is stable and the current assortment remains commercially sensible.
- Modify: demand exists, but packaging, labels, color mix, product configuration or display needs improvement.
- Reduce or stop: weak demand, poor margin, repeated defects or poor channel fit outweigh the product’s appeal.
Record the reason for each decision. “Reorder because it sold” is not enough; note which SKU performed, how much stock remains, what changed and which assumptions support the next quantity.
Simple Reorder Review Record
| SKU | Units sold | Closing stock | Margin / issue | Decision |
|---|---|---|---|---|
| [Model A] | [Period total] | [On hand] | [Actual margin or open issue] | [Increase / maintain / modify / stop] |
| [Model B] | [Period total] | [On hand] | [Actual margin or open issue] | [Increase / maintain / modify / stop] |
What to Send With the Reorder Review
- Best- and worst-performing SKUs, with the reporting period.
- Current inventory, open purchase orders and expected receipts by SKU.
- Updated quantity target and any store or channel split.
- Packaging, barcode or display corrections.
- Product and display photos where presentation affects performance.
- Quality issues, returns and customer feedback that should affect the next order.
- Target arrival date and retailer receiving requirements.
Connect Sell-Through to Forecasting
The sell-through review supplies demand evidence. A replenishment forecast then considers current inventory, open orders, replenishment lead time and the buyer’s chosen safety-stock policy. A simple planning relationship is: expected demand during replenishment lead time plus the buyer’s safety stock. The Reorder Forecasting Guide develops that decision; do not treat one historical sales period as a guaranteed future demand rate.
FAQ
Is there one “good” sell-through rate for custom toys?
No. Compare performance with the retailer’s channel, price point, season, display location, review period and comparable products.
Should buyers reorder the same assortment automatically?
No. Reorder quantities should reflect actual SKU performance, current stock and updated commercial conditions.
Can packaging changes improve a weak SKU?
Sometimes. First distinguish a packaging or display problem from weak product demand, then test the proposed change rather than assuming it will solve the issue.