Sell-in vs sell-out: what's the difference?
Short answer: Sell-in is the quantity the brand or distributor ships into stores. Sell-out is the quantity shoppers buy out of stores. Higher orders may only mean stores are stocking up at launch or for a promotion. If sell-out doesn't rise with them, stock piles up and the next round of orders drops sharply.
Why the two numbers come apart
When a product is first listed, stores have to order enough to fill the shelf and keep a reserve, so early sell-in is always high. A brand that watches only this number will think the product is selling well, then produce more or spend in the wrong place. When stock moves slowly in store, the second order is smaller, and by then the extra production is sitting in the brand's warehouse.
The reverse also happens. Low orders don't necessarily mean weak sales; delivery rounds may be late, or there may be a problem at the distribution centre, so stores run out while shoppers still want to buy. This case is more dangerous, because Subpayanunt notes that running out of stock in a large chain is penalised heavily and can lead to delisting.
Read the two numbers together
| Situation | Sell-in | Sell-out | What it means | What to do |
|---|---|---|---|---|
| Just listed | High | Still low | Stores are stocking up | Make people know it's at 7-Eleven |
| Really selling | Steadily high | High | Shoppers buy and stores reorder | Manage stock and delivery rounds |
| Stock piling up | Falling | Low | Not selling | Find the cause before cutting price |
| Out of stock | Low | Capped by available stock | Demand exists but supply can't keep up | Fix delivery rounds and capacity |
What to ask the distributor for
- Monthly shipments into stores, by SKU
- Whatever store sales data the distributor receives, with its source and frequency
- Number of stores in stock each month
- List of stores or areas that often run out
- History of returns or clearance discounts
Item 2 matters most and is usually the hardest to get. Agree on it in the contract from the start. Without sell-out data, both sides will argue forever about whether the marketing worked.
What this means for marketing plans
Tie the marketing budget to sell-out, not sell-in. The goal is for shoppers to pick the product up in store so stores reorder. Set campaign targets by orders and you get a plan that pushes more stock into stores without making anyone buy, and it ends with stock piling up.
In our work, when we only have order data, we write clearly in every report that "orders are not in-store sales" so nobody draws the wrong conclusion.
Limits
- The reports distributors receive differ by contract and category
- The table is a guide to reading the numbers, not a fixed rule; real situations may mix
- This article doesn't describe the retailer's internal data systems
FAQ
What is sell-through? It usually means the share of stock sold compared with what was shipped into stores over the same period. It links sell-in and sell-out.
Can a brand ask the retailer for sell-out data directly? It depends on the contract and channel. Mostly data comes through the distributor; ask before signing what you will receive.
First orders are high. Should we produce more right away? Wait for sell-out data or the second order first, unless there is clear evidence stock is about to run out.
Sources
- Subpayanunt, FMCG distribution strategy (Thai): https://www.subpayanunt.com/post/distribution-strategy-fmcg-thailand
- Subpayanunt, how to enter modern trade (Thai): https://www.subpayanunt.com/post/how-to-enter-modern-trade-fmcg
- iBio, sell-in vs sell-through (Thai): https://ibio.co.th/supplement-sell-in-vs-sell-through/
Related guide: Getting Into 7-Eleven Thailand: How to Find an FMCG Distributor and Negotiate a Master Distributor Deal
Next step: Not sure where your product should start? Send the Flowup team your product and where it sells today, on LINE or by email.
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