What is the ship-to-book ratio in fashion?
Ship-to-book ratio compares the quantity or value a brand actually ships with what was originally booked in wholesale orders for a season.
In short
The ship-to-book ratio is shipped quantity or value divided by booked quantity or value for a season, account or style. It shows how much of the order book turns into actual deliveries and revenue. The difference is caused by brand cuts, retailer cancellations and delivery problems.
How does it work in practice?
At the end of each delivery window, the brand compares invoiced shipments with the original order book. Analysts then break down the gap by reason so that sales, planning and supply chain teams know where to act.
- Style drops and minimum-related cuts
- Production shortfalls and quality rejections
- Retailer cancellations after the cancel date
- Credit holds and blocked accounts
- Refused or returned late deliveries
Many brands also use historical ratios to forecast revenue: a booked order book is multiplied by the expected ship-to-book ratio per channel to estimate what will actually be invoiced.
Why does it matter for fashion businesses?
The order book is a promise, not revenue. A brand that books strongly but ships poorly loses margin, retailer trust and future orders. Tracking the ratio by key account shows which partners cancel heavily, and tracking it by supplier exposes production reliability issues that affect the whole wholesale business.
How is AI changing it?
Machine learning models can predict ship-to-book at order level using signals such as account history, payment behaviour, style risk and factory performance. This makes revenue forecasts more accurate and lets teams intervene early, for example by securing materials for styles with high booked volumes or contacting accounts likely to cancel.
Common pitfalls
Reviewing the ratio every season, with clear reason codes, turns it from a finance statistic into a practical tool for sales and supply chain.
- Mixing units and value, which hides discount effects
- Ignoring reason codes, so the ratio cannot be explained
- Comparing seasons with different booking cut-off dates
- Overlooking replenishment orders that never appear in the original book
Frequently asked questions
How do you calculate ship-to-book ratio?
Divide the shipped quantity or value by the booked quantity or value for the same scope and period, then express it as a percentage. Brands usually calculate it per season, channel, account and style.
Why is the ship-to-book ratio below 100 per cent?
Most gaps come from cuts by the brand, cancellations by retailers, production shortfalls and blocked accounts. A ratio above 100 per cent can occur when re-orders or upsells are added to the original book.
