SKUs: Could Cutting Half Your Products Double Your Profits?

Episode Description

In this episode, Ali & Zamir debunk the myth that having more products (SKUs) leads to more sales or happier customers, highlighting that too many choices can overwhelm buyers and ultimately hurt your business.

They explore how focusing on a smaller range of top-performing products can simplify operations, improve profitability, and even enhance customer experience. Sharing a minimalist product management approach, breaking down the importance of key metrics and how cutting the clutter can lead to big wins.

But it’s not all one-sided! They also weigh up exceptions like seasonal or strategic products and when having more options might actually make more sense. This episode encourages you to rethink your product strategy and see if less really can be more for your business.

Key Takeaways:

• Offering fewer products with a focused approach can lead to better sales and improved profitability, as an overwhelming number of choices can reduce customer conversions.

• Concentrate on the top 20% of products that generate the majority of results, optimising resources for maximum impact.

• A minimalist, efficient approach in operations reduces inefficiencies and supports smoother scalability.

• Key financial and operational metrics, like contribution margin and seasonal product evaluations, are critical for making informed decisions.

• Simplifying choices for customers ensures a better shopping experience, avoiding the pitfalls of choice overload.

For more strategies for managing Amazon FBA stock, balancing storage fees, and optimising visibility to boost sales and profitability, get in touch.