In the competitive world of e-commerce and inventory management, individual order data only tells part of the story. True strategic insight comes from aggregating performance metrics across multiple orders and time periods. ACBUY's methodology empowers you to track SKU-specific performance systematically, transforming raw data into actionable purchasing intelligence.
Key Performance Indicators (KPIs) to Monitor
To effectively evaluate a product's long-term viability, focus on these three critical dimensions tracked over numerous orders:
1. Quality Control (QC) Pass Rate
This metric tracks the percentage of units that pass your quality inspections upon receipt. A declining QC pass rate signals potential issues with manufacturing consistency or supplier reliability.
- Calculation:
- Action Insight:
2. Refund & Return Frequency
Monitor the rate at which customers return a specific SKU or request refunds. This is a direct indicator of customer satisfaction, product accuracy, and whether the product meets market expectations.
- Calculation:
- Action Insight:
3. Market Popularity & Sales Velocity
Track sales trends, bestseller rankings, and inventory turnover rate. Popularity must be balanced against the quality metrics above.
- Measurement:
- Action Insight:
Building Your Tracking System
Implementing a cross-order tracking system requires structure and consistent data entry.
Step 1: Centralize Your Data
Create a master database or spreadsheet where every order line
SKU
Order Date
Quantity
QC Passed
Refunds Issued
Units Sold
XB123-BLUE
2023-10-05
100
94
5
89
Step 2: Aggregate & Analyze Periodically
Use Pivot Tables or database queries to roll up data by SKU across defined periods (e.g., quarterly). Calculate the core KPIs for each SKU to see their performance trajectory.
Step 3: Inform Purchasing Decisions
Create a decision matrix based on your findings:
| SKU Profile | Purchasing Action |
|---|---|
| High Popularity, High QC, Low Refunds: | Increase Order Quantity. Consider making this a staple product. |
| High Popularity, Low QC, High Refunds: | Pause Orders & Address Quality. Engage supplier immediately before re-ordering. |
| Low Popularity, High QC, Low Refunds: | Maintain or Reduce Stock. Reliable but niche; avoid overstocking. |
| Low Popularity, Low QC, High Refunds: | Discontinue & Liquidate. This SKU damages profitability and reputation. |
Turning Insight into Action
By tracking SKU performance across QC pass rates, refund frequency, and popularitydata-driven procurement strategy
Use tools like spreadsheets, inventory management software, or custom dashboards to automate this tracking. The goal is to make informed, confident decisions for every future purchase order.