### Definition

**Sales velocity** is a term describing the rate at which dollars or units pass through in a given time (basically, sales divided by distribution) and measures how well a brand sells when it is available.

Two major sales velocity measures are **sales per point of distribution **(**SPPD**) and **sales per million** (**sales per $MM**).[1]

### Construction

**Sales per point of distribution ($)** = Sales ($) ÷ % ACV distribution

**Sales per million ($)** = Sales ($) ÷ [% ACV distribution x (Market ACV ÷ 1,000,000)]

### References

- ^ CPG Data Tip Sheet.
*Velocity: How Well Your Product REALLY Sells.*