☛Understanding SKU: Importance, Optimization, and Maintenance Strategies

1️⃣ What is a SKU?

The full name of SKU is Stock Keeping Unit (the smallest stock keeping unit), which is the basic unit of inventory in and out measurement. SKU is used to price and manage inventory. For example, a product has many colors and many configurations. The combination of each color and configuration will form a new product, and many SKU will be generated at this time.

For e-commerce, SKU has additional notes:

① SKU refers to a product, and each model has a SKU, which is convenient for e-commerce brands to identify products.

②A product with multiple colors means multiple SKU. For example, a piece of clothing has red, white, and blue colors, and the SKU codes are different. If they are all the same, there will be confusion and wrong shipments.

2️⃣ The more SKU, the better?

The seller operates the store, is the more SKU the better? Actually not. Today, when refinement has been regarded as the source of profit, we need to be especially vigilant. The SKU that are easy to sell are always easy to sell, and the SKU that are not easy to sell are still not easy to sell even through promotions such as low prices, bundling, and buy-free.

The process of correctly formulating SKU plans for operating cross-border e-commerce is: sellers need to analyze and judge the business circle environment first, judge future sales expectations based on the market positioning of their own retail formats and customer needs, and then according to the operating process , plan the future development status of e-commerce, and then set the base number of SKU for each category. If you rashly launch products online, it is easy to cause losses due to products that are not suitable for online sales.

3️⃣ Maintain SKU balance

A truly powerful product plan is to use limited SKU to achieve as many sales as possible. And the lack of confidence is often the result of spreading the products all over the place, not knowing which one is best to sell, and fearing that it will be missed.

SKU operation tips:

①Focus on the smallest sku, choose a main SKU, and penetrate the market according to the points that customers care about.

②When the baby has multiple sku pictures, the prices should be sorted from low to high, and the highest price and the lowest price of the set range price must be consistent.

③When setting the price range, the price fluctuation must not be too large, and the price setting should be done according to the consumer group of the store to prevent the price range from being too large to affect the label of the store.

The above is my own arrangement, learning is the greatest competitiveness, study hard !!