How is a product's sales performance commonly evaluated?

A product's sales performance is commonly evaluated through the sell-through rate, which measures the amount of inventory sold during a specific time period compared to the amount of inventory received. This metric provides valuable insight into how well a product is performing in the market. A high sell-through rate indicates that the product is popular and successfully meeting customer demand, while a low sell-through rate may signal issues such as overstock, pricing problems, or lack of customer interest.

Analyzing the sell-through rate is crucial for inventory management, helping businesses make informed decisions about restocking, promotions, and product discontinuation. By focusing on this metric, retailers can better align their inventory with market trends and customer preferences, ultimately improving sales performance and profitability.