What does SKU Performance refer to?
SKU Performance refers to the analysis and evaluation of individual product sales, identified by their Stock Keeping Unit (SKU) numbers, over a specific period of time. It involves tracking how well particular items perform in terms of sales, revenue generated, rate of return, and inventory turnover.
How is SKU Performance measured and evaluated?
SKU Performance is measured and evaluated by analyzing various metrics related to individual product sales. This includes tracking the quantity of units sold, the total revenue generated by those sales, the rate of return on investment, and the speed at which inventory is turned over. Businesses can use software and data analysis tools to collect and organize this information, enabling them to gain insights into the performance of specific SKUs.
Why is SKU Performance analysis important for businesses?
SKU Performance analysis is important for businesses as it provides valuable insights into the performance of individual products. By understanding the sales, revenue, return rate, and inventory turnover of each SKU, businesses can make informed decisions about their product range, ordering quantities, pricing, and overall inventory management. This analysis helps identify top-performing products, low performers, and areas for improvement. By optimizing SKU performance, businesses can enhance profitability, reduce excess inventory, identify trends, and respond effectively to shifts in customer demand.