How SKU Tracking Helps Ecommerce Business?

Posted by Quick Shift on March 14th, 2022

eCommerce has changed the way businesses operate. There’s 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.

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 doesn’t have any standard format. Instead, they are formulated either by manufacturers or retailers to inspect inventory.

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.

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.

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 there’s any shrinkage in stocks because of damage or theft. Proper SKU management assists in inspecting the stock movement and brings transparency to inventory management.

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.


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.

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Quick Shift
Joined: January 7th, 2019
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