Maximizing SKU Productivity with Analytics

Maximizing SKU Productivity with Analytics

In inventory management, SKU (Stock Keeping Unit) is vital in tracking and organizing products. Each unique SKU represents a specific item or variant, allowing businesses to manage their inventory efficiently. However, the true potential of SKUs can be unlocked by leveraging analytics. 

Leveraging Analytics for SKU Analysis

To optimize SKU productivity, businesses need to harness the power of analytics. By diving into SKU data, valuable insights can be extracted to drive informed decision-making.

Analyzing SKU profitability and contribution margins

Analyzing SKU profitability and contribution margins is a crucial step. Businesses can identify their most profitable products by evaluating the revenue generated by each SKU and calculating the associated costs. This analysis helps determine which SKUs drive most of the income and should be prioritized in inventory management and marketing strategies.

Identifying underperforming SKUs and potential optimization opportunities

Moreover, identifying underperforming SKUs is essential to uncover potential optimization opportunities. Businesses can pinpoint SKUs with low sales volumes or contribution margins by analyzing sales data. Understanding the reasons behind their underperformance, such as pricing issues, poor marketing efforts, or insufficient demand, enables businesses to take targeted actions to improve their performance.

Maximizing SKU Productivity with Analytics

Segmenting SKUs for Targeted Strategies

Categorizing SKUs Based on Performance and Characteristics

Segmenting SKUs based on performance and characteristics is an intelligent tactic for targeted strategies. Businesses can categorize SKUs into segments based on sales volume, profit margins, product type, or customer preferences. This segmentation allows companies to tailor marketing and inventory management strategies to each segment’s unique needs, ensuring maximum productivity and profitability.

Related Posts:  How to choose the best ERP integration for your Magento website?

Applying Different Marketing and Inventory Management Strategies for Each Segment

Once SKUs are segmented, businesses can apply different marketing and inventory management strategies for each category. High-performing SKUs may receive increased marketing efforts and promotion to further capitalize on their success. On the other hand, low-performing SKUs can benefit from tailored upgrades, pricing adjustments, or even product enhancements to stimulate demand and improve profitability. Businesses can optimize SKU productivity and achieve better results by customizing strategies for each segment.

Tailoring Promotions and Pricing Strategies to Boost Low-Performing SKUs

For underperforming SKUs, specific attention should be given to promotions and pricing strategies. Businesses can offer targeted promotions, bundle deals, or discounts to incentivize customers to purchase these products. By carefully analyzing customer behavior and market dynamics, companies can determine the most effective promotional tactics and pricing adjustments to drive demand and increase sales for low-performing SKUs.

Allocating Resources and Inventory Based on SKU Demand Patterns

Maximizing SKU Productivity with Analytics

Analytics helps businesses understand demand patterns for different SKUs, allowing for strategic resource allocation. Companies can allocate inventory and resources by analyzing historical sales data, seasonality trends, and customer preferences. This ensures that popular SKUs are well-stocked during peak demand periods, while lower-demand SKUs are managed more efficiently to prevent overstocking or stockouts.


To further enhance your SKU productivity and streamline inventory management, consider partnering with BackOrder – The only BigCommerce backorder application. Don’t hesitate to contact us to learn more about how BackOrder can revolutionize your BigCommerce store’s SKU productivity and optimize your inventory management.

Related Posts:  Inventory Management Challenges for Online Stores

Table of Contents

►►► See our products: BigCommerce Automation, BigCommerce BackOrder or Be a partner with GritGlobal

Book a Demo

Request a demo for GritGlobal’s BigCommerce solutions.

My Webpage

I understand that I can withdraw my marketing consent at any time by submitting an opt-out request via email: By submitting this form, I acknowledge that I have read and understand the GritGlobal's Privacy Policy.