Leverage Data for Smarter Purchasing Decisions
In the fast-paced world of e-commerce and retail, intuition alone isn't enough. Successful inventory management hinges on data-driven decisions. At KAKOBUY, we recommend using a centralized performance tracking spreadsheet
The Three Core Metrics to Monitor
Your tracking spreadsheet should, at minimum, include the following columns for each SKU, updated weekly or monthly:
1. Product Popularity (Sales Velocity)
- What to Track:
- Why It Matters:
- Spreadsheet Column Example:Units_Sold_MTD,
Sales_Trend_↑→↓ - Why It Matters:
2. Return & Refund Rate
- What to Track:
- Why It Matters:
- Spreadsheet Column Example:Return_Rate_%,
Top_Return_Cause - Why It Matters:
3. Shipping & Fulfillment Delays
- What to Track:
- Why It Matters:
- Spreadsheet Column Example:Avg_Lead_Time_Days,
Delay_Alert - Why It Matters:
Building Your Tracking Spreadsheet
A basic table structure can be implemented in Excel, Google Sheets, or any data tool:
| SKU | Product Name | Period | Units Sold | Return Rate | Avg. Lead Time | Performance Notes | Action Item |
|---|---|---|---|---|---|---|---|
| KB-2024-TEE | Premium Cotton Tee | May-2024 | 320 | 2.1% | 3 days | Strong sales, low returns. | Increase reorder quantity. |
| KB-2024-GADGET | Multi-Function Gadget | May-2024 | 95 | 8.5% | 12 days | High returns due to complexity; supplier delays. | Negotiate with supplier, update user manual. |
Turning Data into Smarter Purchasing Decisions
Regularly review your spreadsheet to guide your actions:
For Top-Performing SKUs
Increase purchase volumes, consider strategic price adjustments, and ensure ample stock to avoid stockouts.
For High-Return SKUs
Investigate root causes. Improve product photos/descriptions, inspect quality with suppliers, or consider discontinuing the item.
For Delay-Prone SKUs
Diversify suppliers, adjust lead times in your system, or communicate longer delivery estimates to customers.