{"id":2148,"date":"2021-12-15T06:04:26","date_gmt":"2021-12-15T11:04:26","guid":{"rendered":"https:\/\/www.shipbob.com\/au\/blog\/sku-proliferation\/"},"modified":"2025-08-01T20:47:54","modified_gmt":"2025-08-01T20:47:54","slug":"sku-proliferation","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/au\/blog\/sku-proliferation\/","title":{"rendered":"What is SKU Proliferation and How to Keep it in Check"},"content":{"rendered":"\n<div class=\"wp-block-shipbob-blocks-single-toc single-toc\" data-controller=\"blog-toc-controller\" data-action=\"scroll@window-&gt;blog-toc-controller#scrollChanged:passive\" id=\"toc-component\"><div class=\"single-toc-overview\"><p>Table of Contents<\/p><div class=\"single-toc-read-time\"><p>** Minutes<\/p><\/div><\/div>\n<p><a href=\"#h-what-is-sku-proliferation\">What is SKU proliferation?<\/a><\/p>\n\n\n\n<p><a href=\"#h-why-is-sku-proliferation-important\">Why is SKU proliferation important?<\/a><\/p>\n\n\n\n<p><a href=\"#h-what-can-retailers-do-to-keep-sku-proliferation-in-check\">What can retailers do to keep SKU proliferation in check?<\/a><\/p>\n\n\n\n<p><a href=\"#h-stop-worrying-about-sku-proliferation-and-move-to-shipbob\">Stop worrying about SKU proliferation and move to ShipBob<\/a><\/p>\n\n\n\n<p><a href=\"#h-sku-proliferation-faqs\">SKU proliferation FAQs<\/a><\/p>\n\n\n\n<p><a href=\"#\"><\/a><\/p>\n<\/div>\n\n\n\n<p>Jackie operates an online store selling hair care products, including shampoo and conditioner.<\/p>\n\n\n\n<p>After seeing more and more hair lovers dying their hair and posting on Instagram, she decided to offer a new product: DIY hair dying kits in multiple shades.<\/p>\n\n\n\n<p>The new product line ended up being a huge hit. But at the same time, Jackie\u2019s business ran into into some logistics challenges.<\/p>\n\n\n\n<p>There wasn\u2019t enough storage space to hold all of her SKUs and units needed to meet demand.<\/p>\n\n\n\n<p>This is a prime example of SKU proliferation.<\/p>\n\n\n\n<p><span>To keep up with the changing market, businesses are always introducing new items or variations of a similar product. <\/span><\/p>\n\n\n\n<p><span>But introducing new inventory involves reevaluating your current <a href=\"https:\/\/www.shipbob.com\/blog\/logistics-operations\/\">logistics operations<\/a> \u2014whether it\u2019s expanding storage space, making changes to your restocking process, or optimising the fulfilment process.&nbsp;<\/span><\/p>\n\n\n\n<p><span>In this article, we will discuss how ecommerce businesses can approach SKU proliferation, why it\u2019s important, plus strategies on how to optimise the SKU proliferation process.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-sku-proliferation\">What is SKU proliferation?<\/h2>\n\n\n\n<p><span>SKU proliferation refers to the process of adding more products to your inventory based on changes in the market, thus increasing the number of <a href=\"https:\/\/www.shipbob.com\/blog\/how-to-find-sku-number\/\">stock keeping units<\/a> (SKUs). <\/span><\/p>\n\n\n\n<p><span>For example, you may decide to introduce your best-selling item in a variety of new colours, which will result in several new <a href=\"https:\/\/www.shipbob.com\/blog\/sku-vs-upc\/\">SKUs<\/a> to keep track of.<\/span><\/p>\n\n\n\n<p><span>While SKU proliferation helps you attract more buyers and increase your sales, it can lead to some challenges if new SKUs are not strategically introduced into your <a href=\"https:\/\/www.shipbob.com\/blog\/ecommerce-supply-chain\/\">ecommerce supply chain<\/a>. <\/span><\/p>\n\n\n\n<p><span>Otherwise, you may find yourself way in over your head with too many SKUs to keep track of, reducing <a href=\"https:\/\/www.shipbob.com\/inventory-management\/inventory-visibility\/\">inventory visibility<\/a>, increasing carrying costs, and potentially impacting profitability.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-is-sku-proliferation-important\">Why is SKU proliferation important?<\/h2>\n\n\n\n<p><span>To stay agile and scale, ecommerce businesses have to keep up with their customers\u2019 desires and keep products relevant. This is the primary reason why businesses introduce new products, even if they slightly differ from their existing inventory.&nbsp;<\/span><\/p>\n\n\n\n<p>For example, a popular razor brand might decide to introduce a new product that boasts a closer shave than their existing product.<\/p>\n\n\n\n<p>This gives customers an option to buy a premium version of the original if they choose. It\u2019s not uncommon for businesses to offer a \u2018good,\u2019 \u2018better,\u2019 and \u2018best\u2019 option for their customers.<\/p>\n\n\n\n<p>Technology also plays a role as some products can be manufactured fast and enter the market quickly to keep up with the latest trends (e.g., remember fidget spinners?).<\/p>\n\n\n\n<p>But like many trends, they come and go, which leaves behind a high volume of unsellable inventory.<\/p>\n\n\n\n<p><span>With all this in mind, adding new SKUs to your existing inventory requires a proper <\/span><a href=\"https:\/\/www.shipbob.com\/inventory-management\/\"><span>inventory management<\/span><\/a><span>process, including:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span>Tracking inventory in real-time&nbsp;<\/span><\/li>\n\n\n\n<li><span>Making updates across all sales channels<\/span><\/li>\n\n\n\n<li>Optimising <a href=\"https:\/\/www.shipbob.com\/warehouse-management\/warehouse-capacity\/\">warehouse capacity<\/a><\/li>\n\n\n\n<li><span>Ensuring full inventory visibility<\/span><\/li>\n\n\n\n<li>Managing old inventory and dead stock<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-does-sku-growth-affect-sku-proliferation\">How does SKU growth affect SKU proliferation?<\/h3>\n\n\n\n<p><span>SKU growth directly results in SKU proliferation. In many cases, the two terms are also used interchangeably due to this close relationship.<\/span><\/p>\n\n\n\n<p>In terms of SKU growth, any time you introduce new products, it will add a layer of complexity to the logistics side of your business.<\/p>\n\n\n\n<p><span>For instance, as the number of SKUs in your inventory increases, unsold and slow-moving items will accumulate, therefore increasing <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-carrying-costs\/\">carrying costs<\/a>. <\/span><\/p>\n\n\n\n<p><span>Introducing new SKUs will require you to make decisions on how to manage slow-moving items, so you can make room for newer inventory. <\/span><\/p>\n\n\n\n<p><span>In some cases, older inventory is still sellable even if sales slow down, which requires strategic marketing and sales tactics to speed up these sales to make room for more inventory.&nbsp;<\/span><\/p>\n\n\n\n<p>No matter how many SKUs you offer, as you grow your business, the types and quantities of SKUs will change. As you introduce new SKUs, proper <a href=\"https:\/\/www.shipbob.com\/blog\/sku-management\/\">SKU management<\/a> allows you to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Monitor inventory flow<\/li>\n\n\n\n<li>Keep costs to a minimum<\/li>\n\n\n\n<li>Ensure that your <a href=\"https:\/\/www.shipbob.com\/blog\/catalog-management\/\">product catalogue <\/a> is up-to-date<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-why-sku-proliferation-can-be-a-real-problem\">Why SKU proliferation can be a real problem<\/h3>\n\n\n\n<p><span>If left unchecked, SKU proliferation can negatively impact not only the your supply chain but revenue as well. <\/span><span>Here is an overview of how SKU proliferation can cause major disruptions if not monitored and managed well.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-inefficient-supply-chains\">Inefficient supply chains<\/h3>\n\n\n\n<p><span>If you\u2019re constantly adding new SKUs, it can cause slowdowns and inefficiencies in your overall <a href=\"https:\/\/www.shipbob.com\/blog\/retail-fulfillment\/\">retail fulfilment<\/a> process (unless you offer popular limited drops that sell out quickly and fulfilling them fast). <\/span><\/p>\n\n\n\n<p><span>Finding the space to adequately store both new and existing inventory can quickly increase <a href=\"https:\/\/www.shipbob.com\/blog\/logistics-costs\/\">logistics costs<\/a>, especially if you\u2019re not selling through all product fast.<\/span><\/p>\n\n\n\n<p><span>And not only will you run into <a href=\"https:\/\/www.shipbob.com\/blog\/warehousing\/\">warehousing<\/a> challenges, but with the more SKUs you have on hand, the harder it is to ensure picking and packing workflows are optimised for accurate, <a href=\"https:\/\/www.shipbob.com\/fast-fulfillment\/\">fast fulfilment<\/a>.&nbsp;<\/span><\/p>\n\n\n\n<p>Without access to <a href=\"https:\/\/www.shipbob.com\/inventory-management\/inventory-forecasting\/\">inventory forecasting<\/a> data, it can also be hard to decide how many units of each SKU you will need to reorder and when based on demand.<\/p>\n\n\n\n<p><span>Overall, introducing new SKUs at a rapid rate can slow down <\/span><a href=\"https:\/\/www.shipbob.com\/blog\/supply-chain-efficiency\/\"><span>supply chain efficiency<\/span><\/a><span> unless the right systems, workflows, and processes are in place. <\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-high-cost-of-storage\">High cost of storage<\/h3>\n\n\n\n<p><span>Like mentioned earlier, one of the biggest challenges in adding more SKUs is minimising logistics costs, especially storage needs. <\/span><\/p>\n\n\n\n<p><span>The more inventory you have, the higher your storage costs will be. <\/span>You may reach a point of maximising existing storage space, needing to invest in another warehouse or outsourcing fulfilment altogether.<\/p>\n\n\n\n<p>Accommodating new inventory while also holding onto older items that have the potential to sell but at a slower rate can be a tricky balance.<\/p>\n\n\n\n<p>Of course, renting additional ecommerce warehouse space can get costly, not to mention you will need to hire more labour to manage it all.<\/p>\n\n\n\n<p>That\u2019s why many brands outsource <a href=\"https:\/\/www.shipbob.com\/warehousing-and-distribution-services\/\">warehousing and distribution<\/a> needs to a <a href=\"https:\/\/www.shipbob.com\/3pl\/\">3PL<\/a> like ShipBob that has a global network of warehouses around the world, so they don\u2019t have to worry about running out of space.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-inventory-obsoletion\">Inventory obsoletion<\/h3>\n\n\n\n<p>The biggest challenge in holding on to inventory is that it may go obsolete quickly (via expirations, outdated packaging, and more). Though <a href=\"https:\/\/www.shipbob.com\/blog\/obsolete-inventory\/\">inventory obsoletion<\/a> can occur for several reasons, having more SKUs increases the likelihood of older items selling at a slower rate.<\/p>\n\n\n\n<p>Some products are also trendy or seasonal, which requires you to sell a high volume of inventory at once since it\u2019s time-sensitive (e.g., swimwear or winter sports gear).<\/p>\n\n\n\n<p>Even if you made decisions based on historical sales data, there is always a chance you\u2019ll end up with a <a href=\"https:\/\/www.shipbob.com\/blog\/surplus-inventory\/\">surplus of inventory<\/a>.<\/p>\n\n\n\n<p>Let\u2019s say you sell coffee and offer a holiday blend (whether it\u2019s pumpkin spice or gingerbread). As a seasonal product, the holiday blend will see a quick spike sales but will eventually die down after the holidays when people don\u2019t associate those flavours as much with or in the new year.<\/p>\n\n\n\n<p>In these cases, a significant amount of inventory might need to be ordered and stored at once to ensure fast fulfilment based on high demand, but the you\u2019re at a higher risk of accumulating leftover, unsellable inventory.<\/p>\n\n\n\n<p>You can always run a flash sale or donate unsold inventory, but your bottom line takes a hit.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-inefficient-capital-allocation\">Inefficient capital allocation<\/h3>\n\n\n\n<p><span>With SKU proliferation, some of your capital is tied up in slow-moving items (AKA you had to pay for inventory upfront, but then you\u2019re not selling it to make the money back).<\/span><\/p>\n\n\n\n<p><span> As you introduce better SKUs, it\u2019s possible the older items are are less likely to sell at the same rate (e.g., electronics), even if they still are considered in demand and valuable.&nbsp;<\/span><\/p>\n\n\n\n<p><span>When you have too much capital tied up in inventory, it might make it harder to fund other areas of your business \u2013 whether it\u2019s new equipment, better technology, marketing, or additional hires.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-is-an-ideal-sku-count-for-your-ecommerce-store\">What is an ideal SKU count for your ecommerce store?<\/h3>\n\n\n\n<p>Ideal SKU count depends on a variety of factors, but we can learn a thing or two from successful brands to help us make better decisions on how we manage SKUs.<\/p>\n\n\n\n<p><span>The argument for a larger SKU count is to get repeat purchases by offering those customers who already bought from you a greater variety (by selling complementary products, up-sells, or even different flavours, variations, etc.).&nbsp;<\/span><\/p>\n\n\n\n<p><span>But Ryan Treft, the founder and partner of Coalatree and Peejamas, believes in keeping his SKU count simple, which helps improve forecasting initiatives.&nbsp;<\/span><\/p>\n\n\n\n<p><span>Coalatree was insolvent when Ryan picked it up several years ago. This was because they pumped out too many SKUs too fast that didn\u2019t make sense for their relative size.<\/span><\/p>\n\n\n\n<p>This goes to show that selling more products does not always translate to more sales.<\/p>\n\n\n\n<p><span>The difference between 20 and 40 SKUs can be hard enough, so having 40 to 400 SKUs can get overwhelming quickly. <\/span><\/p>\n\n\n\n<p><span>It\u2019s easy to overestimate the use of new colours and slight differences. And it can also negatively impact customer buying behaviour.<\/span><\/p>\n\n\n\n<p><span>Why? The paradox of choice. If you see 900 cereal brands in the grocery store aisle, you\u2019re more likely to leave with zero. <\/span><span>A lot of the time for ecommerce, having more than three options is too much to think about. <\/span><\/p>\n\n\n\n<p><span>So Ryan\u2019s recommends keeping it simple. For every product, consider featuring only three options, knowing that a lot of the time consumers will choose the middle option.<\/span><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><i><span>\u201cDon\u2019t go crazy with your SKU count. Focus on keeping a catalogue  small while still being able to increase lifetime value and new sales. <\/span><\/i><\/p>\n\n\n\n<p><i><span>For a lot of brands, 3 SKUs make up 50% of sales. <\/span><\/i><\/p>\n\n\n\n<p><i><span>You probably don\u2019t need hundreds of products that aren\u2019t driving revenue.\u201d<\/span><\/i><\/p>\n\n\n\n<p><span>Ryan Treft, Founder &amp; Partner of Coalatree and Peejamas<\/span><\/p>\n<\/blockquote>\n\n\n\n<p><span>Ryan also advises to go on pace with cash flow, margin, lead time, and <a href=\"https:\/\/www.shipbob.com\/blog\/minimum-order-quantity\/\">MOQ<\/a>, and to be sensible to what a customer really needs. Too much choice is overwhelming. Sometimes it\u2019s better to pair it down to a simple message.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-can-retailers-do-to-keep-sku-proliferation-in-check\">What can retailers do to keep SKU proliferation in check?<\/h2>\n\n\n\n<p><span>SKU proliferation doesn\u2019t necessarily have to be a bad thing, especially for rapidly growing <a href=\"https:\/\/www.shipbob.com\/blog\/ecommerce-dtc-brand-growth-seasonal-sales-order-volume\/\">direct-to-consumer brands<\/a> that want to scale their operations. <\/span><\/p>\n\n\n\n<p><span>With accurate <\/span><a href=\"https:\/\/www.shipbob.com\/blog\/inventory-planning\/\"><span>inventory planning<\/span><\/a><span> and proper <\/span><a href=\"https:\/\/www.shipbob.com\/blog\/supply-chain-management\/\"><span>supply chain management<\/span><\/a><span>, you can effectively manage a high order volume without throwing your entire supply chain for a loop.<\/span><\/p>\n\n\n\n<p><span>Here are some best practices to keep SKU proliferation in check while scaling your business.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-identify-and-liquidate-dead-stock\">Identify and liquidate dead stock<\/h3>\n\n\n\n<p><span>As you introduce new variations of a SKU, you will need a game plan on how you will deal with older inventory, which is likely to accumulate and become <\/span><a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/dead-stock\/\"><span>dead stock<\/span><\/a>.<\/p>\n\n\n\n<p><span>Because of this, it\u2019s important to quickly identify and <a href=\"https:\/\/www.shipbob.com\/blog\/liquidating-inventory\/\">liquidate<\/a> dead stock to free up storage space and whatever capital you can salvage.<\/span><\/p>\n\n\n\n<p>You could <a href=\"https:\/\/www.shipbob.com\/blog\/product-bundling\/\">bundle<\/a> a slow-moving item with a new or popular item, promote a <a href=\"https:\/\/www.shipbob.com\/blog\/how-to-run-an-e-commerce-flash-sale\/\">flash sale<\/a>, or <a href=\"https:\/\/www.shipbob.com\/blog\/givenkind-interview\/\">donate inventory<\/a>, so you can offset costs and make room in your warehouse.<\/p>\n\n\n\n<p>In most cases, you may also be able to <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-write-off\/\">write off unsold inventory<\/a> at the end of year or accounting period.<\/p>\n\n\n\n<p><span>The right <a href=\"https:\/\/www.shipbob.com\/inventory-management\/software\/\">inventory management software<\/a> can also help you track SKU velocity, so you can quickly identify slow-moving SKUs that are at risk of becoming dead stock. <\/span><\/p>\n\n\n\n<p><span>This will allow you to proactively manage dead stock, so you don\u2019t end up overpaying in storage.&nbsp;<\/span><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><i><span>\u201cWe roll out new products and designs on our website 1-3 times a month and send new inventory to ShipBob each week. <\/span><\/i><\/p>\n\n\n\n<p><i><span>It\u2019s really easy to create new SKUs and restock existing ones using ShipBob\u2019s technology, which is especially important with high inventory turnover.\u201d<\/span><\/i><\/p>\n\n\n\n<p><span>Carl Protsch, Co-Founder of&nbsp;<\/span><a href=\"https:\/\/www.shipbob.com\/blog\/fleo-shorts\/\"><span>FLEO Shorts<\/span><\/a><\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-forecast-demand-to-keep-healthy-inventory-levels\">Forecast demand to keep healthy inventory levels<\/h3>\n\n\n\n<p><span>Accurate <a href=\"https:\/\/www.shipbob.com\/blog\/demand-forecasting\/\">demand forecasting<\/a> is key to preventing unchecked SKU proliferation and reducing the risk of dead stock from accumulating.<\/span><\/p>\n\n\n\n<p><span>Forecasting demand<\/span><span> uses historical sales data and evaluates it with other factors, such as planned promotions, to estimate how much product you will sell during a certain timeframe. <\/span><\/p>\n\n\n\n<p><span>Coupled with real-time inventory tracking, you can use demand forecasting to maintain optimal <\/span><a href=\"https:\/\/www.shipbob.com\/blog\/inventory-levels\/\"><span>inventory levels<\/span><\/a><span>.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-upgrade-your-inventory-management-system\">Upgrade your inventory management system<\/h3>\n\n\n\n<p><span>If your current inventory management system doesn\u2019t let you track inventory levels and movement in real time, it\u2019s time for an upgrade. <\/span><\/p>\n\n\n\n<p><span>Before you add new SKUs, consider investing in <\/span><span>inventory management software<\/span><span> that offers <\/span><span>real-time tracking,<\/span><span> so you can closely monitor the movement of inventory throughout your supply chain. <\/span><\/p>\n\n\n\n<p><span>This will give you an idea of when and how much to reorder, preventing both <a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/stockout-costs\/\">stockouts<\/a> and over-ordering. It will also help you understand which items are selling slowly, so you can make quick decisions on what to do next.&nbsp;<\/span><\/p>\n\n\n\n<p>For instance, ShipBob\u2019s dashboard makes it easy to quickly view SKU performance\u00a0at a glance.<\/p>\n\n\n\n<p>From the ShipBob dashboard, you get an on-demand view of all inventory at the SKU level and their performance, including unit sold per day.<\/p>\n\n\n\n<p>You\u2019re given visibility into what is available and where, as well as the real-time impact of potential changes in demand.<\/p>\n\n\n\n<p>You can also input changes in order volume or scenarios to calculate changes in inventory turnover.<\/p>\n\n\n\n<p><img loading=\"lazy\" decoding=\"async\" is=\"responsive-img\" class=\"wp-image-4751 size-full aligncenter\" src=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2021\/11\/Screen-Shot-2021-11-17-at-2.29.18-PM.png\" alt=\"\" width=\"1255\" height=\"576\"><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-perform-sku-rationalization\">Perform SKU rationalization<\/h3>\n\n\n\n<p><span>Known as SKU rationalization, another critical step is to perform an <\/span><a href=\"https:\/\/www.shipbob.com\/blog\/inventory-audit\/\"><span>inventory audit<\/span><\/a><span> and determine which SKUs should be discontinued or kept on the shelf depending on profitability.<\/span><\/p>\n\n\n\n<p>Profitability is best achieved with SKUs that have a decent margin and high <a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/inventory-turnover-ratio\/\"><span>inventory turnover rate<\/span><\/a><span> (coupled with low storage and <a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/fulfillment-costs\/\">fulfilment costs<\/a>).&nbsp;<\/span><\/p>\n\n\n\n<p><span>ShipBob\u2019s <\/span><a href=\"https:\/\/www.shipbob.com\/blog\/new-free-analytics-reporting-tool\/\"><span>analytics and reporting tool<\/span><\/a><span> makes SKU rationalization easy by allowing you to track SKU velocity and how factors like promotions can impact stock levels.&nbsp;<\/span><\/p>\n\n\n\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-16111 size-full\" src=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2021\/11\/art21.png\" alt=\"\" width=\"1591\" height=\"713\"><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><i><span>\u201cShipBob is very forward-thinking and leaps and bounds ahead of reporting in other systems. <\/span><\/i><\/p>\n\n\n\n<p><i><span>For inventory planning, I love the SKU velocity report, daily average products sold, and knowing how much inventory we have left and how long it will last.\u201d<\/span><\/i><\/p>\n\n\n\n<p><span>Wes Brown, Head of Operations at&nbsp;<\/span><a href=\"https:\/\/www.shipbob.com\/blog\/black-claw\/\"><span>Black Claw LLC<\/span><\/a><\/p>\n<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-stop-worrying-about-sku-proliferation-and-move-to-shipbob\">Stop worrying about SKU proliferation and move to ShipBob<\/h2>\n\n\n\n<p><span>The best and easiest way to keep SKU proliferation in check is by partnering with ShipBob. <\/span><\/p>\n\n\n\n<p><span>ShipBob is a best-in-class 3PL that takes care of all the warehousing and fulfilment needs required to run a successful ecommerce business.&nbsp;<\/span><\/p>\n\n\n\n<p><span>With ShipBob\u2019s ever-growing <a href=\"https:\/\/www.shipbob.com\/global-fulfillment\/\">global fulfilment<\/a> network, your inventory is strategically stored across multiple fulfilment centres. That means you won\u2019t ever have to worry about getting more warehouse space to fit your growing <a href=\"https:\/\/www.shipbob.com\/blog\/product-catalog\/\">product catalogue <\/a>.&nbsp;<\/span><\/p>\n\n\n\n<p><span>ShipBob also provides industry-leading technology with access to advanced <\/span><a href=\"https:\/\/www.shipbob.com\/blog\/supply-chain-analytics\/\"><span>supply chain analytics<\/span><\/a><span> and<\/span><span>&nbsp;<\/span><a href=\"https:\/\/www.shipbob.com\/inventory-management\/inventory-tracking\/\"><span>inventory tracking<\/span><\/a><span> features, so you can get real-time updates on how your inventory is performing, and how much inventory you have left at each fulfilment centre.<\/span><\/p>\n\n\n\n<p><span>Having this level of visibility and insights can make inventory planning more efficient and more precise. <\/span><\/p>\n\n\n\n<p><span>Moving forward, you can avoid over-ordering or reordering slow-moving SKUs to keep SKU proliferation in check. <\/span><\/p>\n\n\n\n<p><span>And you can keep up with demand by ensuring that you always have your fastest-selling items in stock.<\/span><\/p>\n\n\n\n<p>You don\u2019t have to tackle the logistics side of ecommerce alone.<\/p>\n\n\n\n<p>Get in touch with ShipBob today to learn how we can help support your online brand.<\/p>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.shipbob.com\/quote\/\"><strong>Request Fulfilment Pricing<\/strong><\/a><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-sku-proliferation-faqs\">SKU proliferation FAQs<\/h2>\n\n\n\n<p><span>Here are answers to the most common asked questions about SKU proliferation.<\/span><\/p>\n\n\n\n<section class=\"wp-block-shipbob-blocks-section-container section section-container  max-width-blog\"><div class=\"container section-info section-info-align-none u-hidden\"><h6 class=\"section-title \"><\/h6><h2 class=\"section-content h2\"><\/h2><p class=\"section-copy u-hidden\"><\/p><\/div><div class=\"container flex-container direction-col justify-none align-none flex-wrap\">\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col  col-8\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">How do you handle SKU proliferation?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\"  \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n<p>Handling SKU proliferation requires a proper SKU management process, including full visibility over inventory to track performance, such as inventory turnover. Having full visibility over inventory levels in real time can help forecast demand so you can stock inventory at the SKU level accordingly, while also optimising storage costs.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col  col-8\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">What causes SKU proliferation?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" is=\"responsive-img\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\"  \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n<p>There are several causes of SKU proliferation. The two most common reasons are wanting to increase sales and acting on rapid market changes. The pressure of keeping up with competitors, product trends, and meeting the needs of customers also play a crucial role.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col  col-8\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">Is SKU proliferation a bad thing?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" is=\"responsive-img\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\"  \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n<p>Not necessarily, as when done right, it can expand your audience, introduce new profitable products, and keep customers happy with more choices. But introducing new SKUs requires proper inventory management, including software and processes. Once a new SKU is introduced, you will need to make adjustments in your supply chain, from adding new product listings across all online channels, sending it to your distribution centre(s), and ensuring there\u2019s space to store it while keeping costs at a minimum.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col  col-8\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">How does SKU proliferation affect supply chain efficiency?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" is=\"responsive-img\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\"  \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n<p>SKU proliferation affects the amount of storage space required, as well as fulfilment efficiency. Introducing new SKUs may require rearranging storage or investing in an additional warehouse. You will also need to make sure your <a href=\"https:\/\/www.shipbob.com\/warehouse-management\/warehouse-management-system-wms\/\">warehouse management system<\/a> is up to date to ensure fast and accurate fulfilment.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col  col-8\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">What kind of software helps with SKU proliferation?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" is=\"responsive-img\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\"  \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n<p>To keep SKU proliferation in check, investing in an inventory management system allows for real-time inventory tracking, so you can quickly detect slow-moving SKUs and make room for newer SKUs.<\/p>\n<\/div><\/div><\/div>\n<\/div><div class=\"cta-container u-hidden\"><a class=\"btn btn-primary \" href=\"\"><\/a><\/div><\/section>\n","protected":false},"excerpt":{"rendered":"<p>Learn about SKU proliferation, what it entails, why it&#8217;s important to understand, and how to better manage SKUs for improved profitability. <\/p>\n","protected":false},"author":110,"featured_media":2149,"parent":0,"template":"","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"blogcategories":[8,14,15],"class_list":["post-2148","blog","type-blog","status-publish","has-post-thumbnail","hentry","blogcategories-inventory","blogcategories-supply-chain","blogcategories-warehouse-management"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>SKU Proliferation: Why It\u2019s More Important Than You Think<\/title>\n<meta name=\"description\" content=\"Learn about SKU proliferation, what it entails, why it&#039;s important to understand, and how to better manage SKUs for improved profitability.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shipbob.com\/au\/blog\/sku-proliferation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is SKU Proliferation and How to Keep it in Check\" \/>\n<meta property=\"og:description\" content=\"Learn about SKU proliferation, what it entails, why it&#039;s important to understand, and how to better manage SKUs for improved profitability.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.shipbob.com\/au\/blog\/sku-proliferation\/\" \/>\n<meta property=\"og:site_name\" content=\"ShipBob Australia\" \/>\n<meta property=\"article:modified_time\" content=\"2025-08-01T20:47:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2022\/07\/SKU-Proliferation.jpg?w=1280\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"1280\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"14 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/blog\\\/sku-proliferation\\\/\",\"url\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/blog\\\/sku-proliferation\\\/\",\"name\":\"SKU Proliferation: Why It\u2019s More Important Than You Think\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/blog\\\/sku-proliferation\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/blog\\\/sku-proliferation\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/wp-content\\\/uploads\\\/sites\\\/33\\\/2022\\\/07\\\/SKU-Proliferation.jpg\",\"datePublished\":\"2021-12-15T11:04:26+00:00\",\"dateModified\":\"2025-08-01T20:47:54+00:00\",\"description\":\"Learn about SKU proliferation, what it entails, why it's important to understand, and how to better manage SKUs for improved profitability.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/blog\\\/sku-proliferation\\\/#breadcrumb\"},\"inLanguage\":\"en-AU\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.shipbob.com\\\/au\\\/blog\\\/sku-proliferation\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-AU\",\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/blog\\\/sku-proliferation\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/wp-content\\\/uploads\\\/sites\\\/33\\\/2022\\\/07\\\/SKU-Proliferation.jpg\",\"contentUrl\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/wp-content\\\/uploads\\\/sites\\\/33\\\/2022\\\/07\\\/SKU-Proliferation.jpg\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/blog\\\/sku-proliferation\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Blog\",\"item\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"What is SKU Proliferation and How to Keep it in Check\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/#website\",\"url\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/\",\"name\":\"ShipBob Australia\",\"description\":\"Just another ShipBob Network site\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-AU\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"SKU Proliferation: Why It\u2019s More Important Than You Think","description":"Learn about SKU proliferation, what it entails, why it's important to understand, and how to better manage SKUs for improved profitability.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.shipbob.com\/au\/blog\/sku-proliferation\/","og_locale":"en_US","og_type":"article","og_title":"What is SKU Proliferation and How to Keep it in Check","og_description":"Learn about SKU proliferation, what it entails, why it's important to understand, and how to better manage SKUs for improved profitability.","og_url":"https:\/\/www.shipbob.com\/au\/blog\/sku-proliferation\/","og_site_name":"ShipBob Australia","article_modified_time":"2025-08-01T20:47:54+00:00","og_image":[{"url":"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2022\/07\/SKU-Proliferation.jpg?w=1280","width":1280,"height":1280,"type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"14 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.shipbob.com\/au\/blog\/sku-proliferation\/","url":"https:\/\/www.shipbob.com\/au\/blog\/sku-proliferation\/","name":"SKU Proliferation: Why It\u2019s More Important Than You Think","isPartOf":{"@id":"https:\/\/www.shipbob.com\/au\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.shipbob.com\/au\/blog\/sku-proliferation\/#primaryimage"},"image":{"@id":"https:\/\/www.shipbob.com\/au\/blog\/sku-proliferation\/#primaryimage"},"thumbnailUrl":"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2022\/07\/SKU-Proliferation.jpg","datePublished":"2021-12-15T11:04:26+00:00","dateModified":"2025-08-01T20:47:54+00:00","description":"Learn about SKU proliferation, what it entails, why it's important to understand, and how to better manage SKUs for improved profitability.","breadcrumb":{"@id":"https:\/\/www.shipbob.com\/au\/blog\/sku-proliferation\/#breadcrumb"},"inLanguage":"en-AU","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.shipbob.com\/au\/blog\/sku-proliferation\/"]}]},{"@type":"ImageObject","inLanguage":"en-AU","@id":"https:\/\/www.shipbob.com\/au\/blog\/sku-proliferation\/#primaryimage","url":"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2022\/07\/SKU-Proliferation.jpg","contentUrl":"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2022\/07\/SKU-Proliferation.jpg"},{"@type":"BreadcrumbList","@id":"https:\/\/www.shipbob.com\/au\/blog\/sku-proliferation\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.shipbob.com\/au\/"},{"@type":"ListItem","position":2,"name":"Blog","item":"https:\/\/www.shipbob.com\/au\/blog\/"},{"@type":"ListItem","position":3,"name":"What is SKU Proliferation and How to Keep it in Check"}]},{"@type":"WebSite","@id":"https:\/\/www.shipbob.com\/au\/#website","url":"https:\/\/www.shipbob.com\/au\/","name":"ShipBob Australia","description":"Just another ShipBob Network site","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.shipbob.com\/au\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-AU"}]}},"parsely":{"version":"1.1.0","canonical_url":"https:\/\/shipbob.com\/au\/blog\/sku-proliferation\/","smart_links":{"inbound":0,"outbound":0},"traffic_boost_suggestions_count":0,"meta":{"@context":"https:\/\/schema.org","@type":"WebPage","headline":"What is SKU Proliferation and How to Keep it in Check","url":"http:\/\/www.shipbob.com\/au\/blog\/sku-proliferation\/","mainEntityOfPage":{"@type":"WebPage","@id":"http:\/\/www.shipbob.com\/au\/blog\/sku-proliferation\/"},"thumbnailUrl":"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2022\/07\/SKU-Proliferation.jpg?w=160","image":{"@type":"ImageObject","url":"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2022\/07\/SKU-Proliferation.jpg"},"articleSection":"Uncategorized","author":[{"@type":"Person","name":"Kristina Lopienski"}],"creator":["Kristina Lopienski"],"publisher":{"@type":"Organization","name":"ShipBob Australia","logo":""},"keywords":[],"dateCreated":"2021-12-15T11:04:26Z","datePublished":"2021-12-15T11:04:26Z","dateModified":"2025-08-01T20:47:54Z"},"rendered":"<script type=\"application\/ld+json\" class=\"wp-parsely-metadata\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"WebPage\",\"headline\":\"What is SKU Proliferation and How to Keep it in Check\",\"url\":\"http:\\\/\\\/www.shipbob.com\\\/au\\\/blog\\\/sku-proliferation\\\/\",\"mainEntityOfPage\":{\"@type\":\"WebPage\",\"@id\":\"http:\\\/\\\/www.shipbob.com\\\/au\\\/blog\\\/sku-proliferation\\\/\"},\"thumbnailUrl\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/wp-content\\\/uploads\\\/sites\\\/33\\\/2022\\\/07\\\/SKU-Proliferation.jpg?w=160\",\"image\":{\"@type\":\"ImageObject\",\"url\":\"https:\\\/\\\/www.shipbob.com\\\/au\\\/wp-content\\\/uploads\\\/sites\\\/33\\\/2022\\\/07\\\/SKU-Proliferation.jpg\"},\"articleSection\":\"Uncategorized\",\"author\":[{\"@type\":\"Person\",\"name\":\"Kristina Lopienski\"}],\"creator\":[\"Kristina Lopienski\"],\"publisher\":{\"@type\":\"Organization\",\"name\":\"ShipBob Australia\",\"logo\":\"\"},\"keywords\":[],\"dateCreated\":\"2021-12-15T11:04:26Z\",\"datePublished\":\"2021-12-15T11:04:26Z\",\"dateModified\":\"2025-08-01T20:47:54Z\"}<\/script>","tracker_url":"https:\/\/cdn.parsely.com\/keys\/shipbob.com\/p.js"},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.shipbob.com\/au\/wp-json\/wp\/v2\/blog\/2148","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.shipbob.com\/au\/wp-json\/wp\/v2\/blog"}],"about":[{"href":"https:\/\/www.shipbob.com\/au\/wp-json\/wp\/v2\/types\/blog"}],"author":[{"embeddable":true,"href":"https:\/\/www.shipbob.com\/au\/wp-json\/wp\/v2\/users\/110"}],"version-history":[{"count":2,"href":"https:\/\/www.shipbob.com\/au\/wp-json\/wp\/v2\/blog\/2148\/revisions"}],"predecessor-version":[{"id":21964,"href":"https:\/\/www.shipbob.com\/au\/wp-json\/wp\/v2\/blog\/2148\/revisions\/21964"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.shipbob.com\/au\/wp-json\/wp\/v2\/media\/2149"}],"wp:attachment":[{"href":"https:\/\/www.shipbob.com\/au\/wp-json\/wp\/v2\/media?parent=2148"}],"wp:term":[{"taxonomy":"blogcategories","embeddable":true,"href":"https:\/\/www.shipbob.com\/au\/wp-json\/wp\/v2\/blogcategories?post=2148"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}