For smart wholesalers and e-commerce sellers, data is the ultimate competitive edge. Moving beyond single-order evaluation to analyze SKU performance over time transforms purchasing from guesswork into a strategic science. This guide outlines the key metrics—QC pass rates, refund frequency, and popularity—that will empower your future buying decisions.
Why Track SKU Performance Long-Term?
Evaluating products based on a single shipment is risky. True performance reveals itself across multiple orders, customer cycles, and market fluctuations. Systematic tracking helps you:
- Identify consistently reliable products
- Spot problematic suppliers or production batches
- Optimize inventory capital
- Reduce customer dissatisfaction
- Spot problematic suppliers or production batches
Key Metrics to Monitor for Each SKU
1. Quality Control (QC) Pass Rate
This is your first defense against costly defects. Track the percentage of units passing inspection per order batch.
How to Calculate & Track:
Formula:
Actionable Insight:
2. Refund & Return Frequency
Direct feedback from your market. This metric directly impacts profitability and reputation.
How to Calculate & Track:
Formula:
Actionable Insight:
3. Popularity & Sales Velocity
Measures market demand and sales pace, crucial for inventory planning.
How to Calculate & Track:
Metrics to Monitor:
Actionable Insight:
Implementing Your Tracking System
Consistency is key. Use these steps to build your framework:
- Centralize Data:
- Standardize Inspections:
- Review Regularly:
- Create a SKU Scorecard:
- Standardize Inspections:
Informing Smarter Purchasing Decisions
By tracking these interconnected metrics, your purchasing decisions become data-driven. You'll confidently increase order quantities for high-pass-rate, low-refund, fast-moving SKUs. You'll pause, negotiate, or drop
Start by analyzing just three of your key SKUs today. The insights you gain will illuminate the path to a more optimized inventory tomorrow.