More Products (SKUs) = Greater Sales

sales growth

No matter which site you sell on (eBay, Amazon, Etsy, etc), there is a basic truth –  “The more products (SKUs) you have for sale, the more you will sell and the greater your income will be.” Does this mean you should add products willy-nilly just to increase your SKU count –Of course not!  No matter which products you add, you should make sure they will sell relatively quickly and make a decent margin.

Having said that, if you have a large number of SKUs, then you can tolerate a slightly lesser margin and still make good money.  Why is that?  When you have a large number of SKUs, your total daily sales will be greater, so your overall sales dollars will also be greater.  If your goal is to sell $1000 a week, that is much easier to do with 800 SKUs than only 250.

Let me give you an example:  As we got older and wanted to intentionally slow our business (and workload) down, we reduced our daily SKU count from 900 to  only 300.  However, when I did this , I was very careful to cut my slower selling and lower margin SKUs.  Nevertheless, our weekly sales dropped from about $4,000 per week to now only $1000 per week.  But my strategy of getting rid of the slower-selling and less profitable SKUs worked well because we now make $0.45 more per SKU than we did at the higher SKU count.

Now you may think it is a daunting task to build your SKU count to over 1000 –but it isn’t really that difficult.  I had a plan to add 50 new SKUs per month (I had about 200 when I started).  So, by adding 50 per month, it only took me 16 months to hit my goal of 1000.  At my peak, I had just over 1600 SKUs for sale on Amazon (and eBay), but that was because I was selling fashion jewelry wrere I could place wholesale orders of up to 200 different pieces at one time.

So what is your plan?

  1. First set a goal and a time to meet it by.
  2. Be careful to select products with fast sales and higher margins.
  3. Look for small products to save money on storage and handling fees.
  4. Observe ALL your products constantly and eliminate slow sellers and low margin products.  When you identify these, put them on a drastic sale price to get rid of them (even if you have to sell at a loss).  We all make mistakes selecting products, and you will to –no matter how much research you do.  (Speaking of research –be careful spending money on monthly systems.  As you gain experience, you can do just as well (and much cheaper) with trial and error.
  5. Do not go into debt to use this program, but keep reinvesting your cash flow in new products

4 Comments

  1. Thanks for the great advice. I will apply this in my Hungarian dropship store.
    I haven’t been paying attention to the fast turnaround when selecting products.

  2. This article really encouraged me. Thank you!!!

  3. With that number of SKUs, how many are listed with existing products? Are all these new listings?

    1. Author

      That is a nixture of all my skus. Most of my products are new produces sourced from wholesalers. I also have a few PL products.

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