Short answer
Sell-in is what a brand sells to a retailer: the wholesale orders. Sell-out is what the retailer then sells to shoppers. Sell-in tells you how much of your stock is in the shops. Sell-out tells you whether shoppers want it, and so whether the retailer will order again next season.
Sell-in and sell-out side by side
| Sell-in | Sell-out | |
|---|---|---|
| What it measures | What the retailer buys from you | What shoppers buy from the retailer |
| Price | Wholesale price | Retail price, including markdowns |
| Where the data comes from | Your own orders and invoices | The retailer's sales reports |
| When you see it | When the order arrives | Weekly or monthly, after the sales |
| What it tells you | How well you sold to the buyer | How well the product sells to shoppers |
Why does sell-out matter more?
Good sell-in with poor sell-out is a problem postponed. The stock sits in the shop, the retailer marks it down, and the next order shrinks.
Sell-out is also the voice of the end consumer. The point of wholesale is to reach shoppers you cannot reach yourself. Sell-out data is often the only way to hear what they think.
From the field
Two bold collections taught us this. The first sold out fast at a handful of trusted retailers, so we added it to the next summer season in new colours.
The second was oversold by our sales team. Sell-in looked great, but sell-out was poor: the price was too ambitious, and the product strayed too far from our core.
From a European fashion brand
Which three numbers should you check first?
- Sell-out percentage, also called sell-through: the share of stock received that has sold.
- Units sold. Never read the percentage without the units. 80% of 10 units is not 80% of 1,000.
- Price point. High sell-out at a heavy discount is not a real win.
Who should own sell-out in a brand?
Planning, as they own the range and the price points. Sales should use it every week to trade the business in season. Finance uses it as an output.
Where Gatsbee fits
Gatsbee collects sell-out reports from each retailer, matches every line to your products and gives your team one report: sell-through, stock cover and reorders by retailer, store and style. How Gatsbee consolidates sell-out reports.
Questions
How do I calculate sell-through?
Divide the units sold by the units received over the same period, then multiply by 100. For example, 60 units sold out of 100 received is 60% sell-through.
Is sell-out the same as sell-through?
Not quite. Sell-out is the sales themselves, in units or value. Sell-through is a percentage: the share of stock that has sold.
Can sell-in be high while sell-out is low?
Yes, and it is a warning sign. It usually means the retailer bought too much, or the product or price does not suit its shoppers. Expect markdowns and a smaller next order.
Alexis
Co-founder, Gatsbee
15 years in wholesale. Former CEO of a European lingerie brand selling to retailers across the UK, France and Germany.
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