Using Reports to Identify Bestsellers and Low-Margin SKUs
For ecommerce retailers, data is a goldmine—especially when it comes to understanding which products are driving profits and which ones are quietly draining your margins. In this guide, we’ll walk through how to use reporting tools to identify bestsellers, low-performing products, and low-margin SKUs so you can make smarter inventory and pricing decisions.
Why Product Reporting Matters
Running an ecommerce business without visibility into product performance is like flying blind. Clear, actionable reports help you:
- Maximize marketing and inventory investment in your bestsellers
- Phase out or reprice low-margin SKUs
- Avoid stockouts on high-demand items
- Optimize bundles and upsell strategies
1. Track Unit Sales and Revenue
What to Look For:
- Which SKUs are selling the most units?
- Which SKUs are generating the most revenue?
Action Tip: Don’t confuse revenue with profitability. A product might sell well but still cost too much to fulfill.
In EcomBiz.AI, use the “Top Selling Products” report to filter by sales volume or revenue within any timeframe.
2. Identify Your True Bestsellers (By Profit)
Combine:
- Units sold
- Total profit earned
- Profit margin percentage
This reveals which products truly drive your bottom line—not just revenue.
Watch For:
- High-volume, low-profit items
- Lower-selling, high-margin gems (ideal for promotion or bundling)
EcomBiz.AI’s “Profit by SKU” report shows your most profitable products in seconds.
3. Flag Low-Margin or Break-Even SKUs
Some products might look like steady performers but generate little to no profit after:
- Shipping costs
- Marketplace fees (Amazon, Walmart, eBay)
- Refunds or returns
- Promotions or discounts
Solution: Use automated rules to flag products below your target margin (e.g., <15%).
Use EcomBiz.AI’s Low Margin SKU alert feature to receive notifications when any item dips below threshold.
4. Analyze Product Return Rates
Returns impact profit margins. A high return rate may indicate:
- Inaccurate descriptions or images
- Poor sizing or fit (for apparel)
- Quality or packaging issues
Cross-reference your Returns Report with sales and margin data to identify problematic SKUs.
5. Monitor Sales Velocity
Track how fast products are selling (daily/weekly). Use this to:
- Reorder high-demand products early
- Reduce purchase orders for slower-moving SKUs
- Plan marketing efforts around top performers
EcomBiz.AI’s Sales Velocity Report helps predict reorder timing and marketing ROI.
6. Combine SKU Insights with Channel Performance
Some SKUs perform better on one marketplace than another.
Example:
- A product may have great margins on Shopify but be fee-heavy on Amazon.
Use EcomBiz.AI to break down SKU performance by channel to optimize listings, pricing, and fulfillment strategy.
Summary
Identifying your bestsellers and low-margin SKUs is critical for maintaining healthy profit margins and scaling effectively. With real-time reporting from tools like EcomBiz.AI, ecommerce merchants can make faster, data-driven decisions—reducing waste and doubling down on what works.