The inventory sell-out rate refers to the ratio of sales volume to inventory from the time a product is purchased to a certain period of time, which represents whether the product itself is popular. The calculation formula is:
Inventory sell-out rate = sales quantity/purchased inventory quantity x 100%
Since cross-border e-commerce pays more attention to the health of cash flow, the time period here can be determined according to the actual financial situation of the seller, usually 30 days, 60 days and 90 days. Here is a set of reference values.
30-day sell-out rate: 15% ~ 30%. Since it takes 1 to 2 weeks to send FBA after new products are put into storage, the early listing will be in a state of self-delivery or out of stock, and the effective sales cycle is often only 2 to 3 weeks, so a low value is acceptable, but if it is lower than 15%, it needs to be paid attention to in time;
60-day sell-out rate: 45% ~ 55%. After the new product enters FBA, the sales volume will increase rapidly. Considering the sales cycle and avoiding out-of-stock situations, it is normal to complete about half of the inventory sales within 60 days;
90-day sell-out rate: 60%~75%. Taking the clothing category as an example, after 90 days, the product is basically at the end of the life cycle of the year, and the inventory needs to be cleared as soon as possible. If the link evaluation is acceptable but the inventory quantity is still large, it is necessary to maintain a certain amount of FBA inventory while discounting and clearing the warehouse in time to prepare for the next sales cycle.
Generally speaking, after the end of the entire sales season, the inventory sell-out rate needs to reach 65%~85%. If it is lower than 65%, a large amount of inventory will be caused, and the cash flow will be too high to recover the cost. If it is higher than 85%, FBA out-of-stock and out-of-stock problems will occur, and sales will be easily lost. For situations such as out-of-stock purchases that may exist, the first order sell-out rate and the overall sell-out rate can also be calculated separately. Finally, the standards for inventory sell-out rates vary depending on the category and product, and they need to be determined based on actual conditions.