How SKU Tracking Helps Ecommerce Business

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Ecommerce Fulfillment Services In India

• https//www.quickshift.in/fulfillment-services

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How SKU Tracking Helps Ecommerce Business?
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eCommerce has changed the way businesses operate.
Theres no doubt that digitalization has
magnified the customer base and ways to attract
more clients, but it has also introduced
challenges in the system. Lack of communication,
running out of stocks, lagged inventory updates,
confusing and over-complex inventory storage,
etc., are some obvious hurdles. As a result, D2C
businesses are connecting with fulfillment
centers in India for efficient inventory and
warehouse management facilities, packaging and
shipping services, and many more. Various methods
are being adopted for proper and
smarter warehouse inventory management. And SKU
tracking is one such strategy to keep a check on
inventory and track variations in products using
codes. This article discusses the concept of
SKUs and their defining role in reshaping
businesses thriving under the shade of eCommerce.
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What Is An SKU? SKU stands for Stock Keeping
Unit. It is a unique combination of letters and
numbers assigned to every particular type of
product. Each distinctive code describes the
product details like brand name, model number,
size, and color. SKU plays a vital role in the
overall SKU management process of identifying
stock on hand from lists, invoices, or order
forms. However, an SKU is different from an item
number (or an item ID) as the former doesnt have
any standard format. Instead, they are formulated
either by manufacturers or retailers to inspect
inventory.
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Role Of SKU Tracking In eCommerce Increasing
growth in eCommerce businesses has opened up many
opportunities for fulfillment centers in India. A
streamlined fulfillment process helps establish
better inventory tracking, stock maintenance,
packaging, and shipping products directly to the
customers. Imagine the chaos improper inventory
management can create in the order fulfillment
process. Delayed deliveries, incorrect stock
updates, and whatnot. Not only will it affect
your customer base, but it will also impact your
brand image. This is why you need to have a
proper SKU tracking system provided by eCommerce
fulfillment services in India. SKU tracking is
one of the techniques adopted by warehouses,
retail shops, and fulfillment centers for
achieving effective order fulfillment. It helps
in many processes, from maintaining stocks of
goods to last-mile delivery.
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Mentioned below are some of the benefits of SKU
tracking in eCommerce 1.     Product
Identification A diversified product line makes
it difficult to check on every type of product in
transit during business operations. SKU tracking
provides an easier way to distinguish between
products based on brand, model, color, and size.
The SKUs simplify the process of product
identifying and help in improving the
performance. 2.     Updated Stocks Inventory
Management One needs to track the inventory in
hand, stock flow, and the turnover generated
throughout the time. SKU tracking aids businesses
by providing real-time inventory, which helps
maintain the large inventory orderly without
entering chaos. It keeps track of sold-out goods
and helps in finding slow-selling products or
goods that have low demand. In addition, it helps
evaluate overstocking or understocking for taking
corrective measures. Therefore, with up-to-date
inventory, you will never go out of stock and
score enhanced productivity.
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3.     Sales Forecasting High Profits No wonder
tracking the best-selling and low-selling
products can help improve revenue. SKU tracking
assists in analyzing demand trends, post which
you can predict future sales and maintain stocks
of products for timely delivery. This helps
businesses improve inventory and, in turn,
achieve higher profits by offering what customers
want. Thus, eliminating the risk of losing
customers because of the unavailability of
products. 4.     Identify Shrinkage With a
variety of products being involved, it becomes
difficult to track each product to identify if
theres any shrinkage in stocks because of damage
or theft. Proper SKU management assists in
inspecting the stock movement and brings
transparency to inventory management.
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5.     Efficient Warehouse Management Storing a
variety of products in warehouses is a complex
process. SKU helps count stocks accurately, which
enhances warehouse inventory management.
Furthermore, it ensures smart storage solutions
for your products in large warehouses and reduces
the time lag between order placement and delivery
to customers. 6.     Tracking Orders From the
stock held as inventory to the final delivery to
the customers, you can track your orders at every
stage with SKU tracking. Not just last-mile
delivery, but you can also track your first-mile
delivery in the supply chain and gain more
visibility over there. SKUs make it easy to
monitor the route of delivery for each shipment.
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Conclusion Setting up SKUs that exclude
confusing characters will allow you to handle
business operations smartly and simplify them. In
addition, having a proper SKU structure by
outsourcing SKU tracking from QuickShift
Fulfillment will help you achieve various goals,
from customer satisfaction to increased
profits. Besides the SKU tracking service,
QuickShiftalso provides other services like
warehousing facilities, packaging solutions, and
same-day or next-day delivery. Thus, QuickShift
Fulfillment furnishes top-notch solutions for
order management, inventory planning,
forecasting, and shipping.