What Most eCommerce Brands Miss in Their Product Performance Data

September 1, 2025

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What Most eCommerce Brands Miss in Their Product Performance Data

September 1, 2025

Graas

Every click, scroll, and purchase (say, touchpoint) data has a story to tell. And at the heart of every successful eCommerce brand lies one simple truth: your products drive your performance. The best ads, website, or influencer campaigns can only do so much if the products themselves aren’t pulling their weight.

But there’s a catch: while brands obsess over bestsellers, there’s often a silent thread in the data: underperforming or overlooked SKUs quietly dragging down margins, inventory health, and growth potential.

Most brands miss out on:

  • Which SKUs truly drive profitability (not just sales volume)
  • How discounting or bundling impacts product margins
  • The cost of dead stock and low-velocity items
  • Early signals of demand shifts across SKUs

In this blog, we break down how SKU-level analytics helps uncover hidden insights, fix product blind spots, and turn every SKU, even the quiet ones, into a growth engine. 

Let’s dive right in!

The Hidden Cost of Overlooked SKUs for eCommerce Businesses 

Every eCommerce store has them, the “not-broken-but-not-performing” products. They don’t cause immediate red flags, yet they quietly underdeliver month after month. These are your silent killer SKUs, products that look fine on the surface but drain working capital, skew performance metrics, and eat into profit margins over time. 

Maybe they sell occasionally, just enough to stay unnoticed in reports. But behind the scenes, they tie up inventory, inflate logistics costs, and slow down overall efficiency. The problem isn’t that they fail, it’s that they linger.

Lost in Aggregated Metrics

Most brands rely on aggregated performance dashboards, i.e., total revenue, conversion rate, and ROAS. But these metrics mask SKU-level inefficiencies. When you view performance at the campaign or category level, underperforming SKUs hide behind high-performing ones. 

For example, your “Skincare Essentials” collection may look profitable overall, but half the SKUs might be dragging down margins with poor sell-through or high return rates.

The $50,000 Slow Leak

Consider a beauty brand with 500 SKUs. One serum variant sells moderately well but has a 35% return rate due to packaging issues. Because it’s bundled in ad campaigns with top sellers, it appears profitable in aggregated reports. Over a year, those unnoticed returns and storage costs add up to nearly $50,000 in lost margin, all from one SKU that “looked fine.” 

The Ripple Effect on Growth

Overlooked SKUs don’t just hurt profitability; they distort forecasting, inventory planning, and ad optimization. You end up spending more on ads for products that won’t convert, restocking items that won’t move, and missing out on insights that could help top performers scale faster. 

The solution? Go granular. Look at every SKU as its own mini-business. That’s where real optimization begins. 

Why Most Brands Miss the Warning Signs 

But before we go granular, we need to understand why these warning signs are often missed. 

1. Reliance on Top-Line GMV or Product Category Data

Most eCommerce dashboards are designed to celebrate growth, not diagnose inefficiency. Metrics like Gross Merchandise Value (GMV) or category-level performance can paint a misleadingly healthy picture. 

For example, if your “Home Décor” category shows a 20% YoY growth, it’s easy to assume every product is performing well. But a deeper SKU-level breakdown might reveal that 70% of that revenue comes from just 10% of SKUs, while the rest contribute minimal sales and occupy warehouse space. 

Technically, this happens because aggregated GMV data flattens SKU-level variance. It hides metrics like sell-through rate, contribution margin, or SKU velocity. Without isolating these variables, underperforming products remain buried under the success of top sellers. 

2. Limited Visibility Across Marketplaces and D2C Stores

For omnichannel brands, the data gap widens further. SKUs performing well on Shopify might be underperforming on Amazon or Nykaa due to pricing inconsistencies, ad placement, or stockouts.

For example, a fashion brand might notice that its “Denim Jacket X” sells out on its D2C site but sits idle on Myntra because the SKU wasn’t mapped correctly in the marketplace listing.

These silos create partial visibility, insights that stop at the channel level but never unify across the brand’s full ecosystem. 

3. Manual Analysis = Slow Reaction Time

Even when brands do attempt to dig into SKU-level data, they’re often constrained by manual processes, i.e., downloading CSVs, running VLOOKUPs, reconciling ad data with Shopify exports. 

By the time insights are ready, market dynamics have already shifted.

This lag can mean missing crucial windows to adjust pricing, pause ad spend, or optimize inventory before losses accumulate. In fast-moving categories like beauty or apparel, even a two-week delay in identifying a slow mover can mean thousands in dead stock.

4. Disconnected Insights Between Teams

Finally, marketing, product, and inventory teams often operate on different data languages. Marketing tracks ROAS, product teams monitor reviews, and inventory teams focus on stock turnover. Without a shared SKU-level analytics layer, no one sees the whole picture.

The result? Decisions are made in isolation, ads continue promoting low-margin SKUs, while procurement reorders items that marketing has already deprioritized.

The warning signs are always there; they are just scattered. SKU-level visibility brings them all together before they become expensive lessons.

What SKU-Level Analytics Can Uncover

When you move beyond surface metrics and start analyzing performance at the SKU level, you unlock a layer of intelligence that most dashboards miss. It’s like putting your product catalog under a microscope. Suddenly, you see which SKUs are the real heroes, which ones need a push, and which are quietly draining profit. 

SKU-level analytics connects dots across marketing, inventory, and sales to show why a product is performing the way it is, not just how much it’s selling. 

1. Identify Hidden Trends

SKU-level data reveals subtle but critical patterns - high traffic but low conversion, frequent stockouts that hurt ranking, or inconsistent pricing across marketplaces. These insights can explain why certain SKUs fail to convert even with good visibility, helping teams make data-backed fixes quickly. 

2. Spot Misalignment

Ever run ads for products that barely move the needle? SKU analytics shows when ad spend is going to weak performers or when high-potential SKUs are underexposed. This helps align marketing investments with real revenue drivers. 

3. Analyze Performance by Parent-Child SKU Breakdown

Instead of treating one product as a single unit, SKU analytics lets you compare variants (colors, sizes, bundles). Maybe the “Medium” size or “Rose Gold” variant converts 30% higher. Identifying this helps you optimize listings, stock planning, and pricing strategy. 

4. Find Seasonal or Channel-Specific Patterns

SKU-level insights highlight which SKUs spike during festivals or perform better on specific channels. This lets brands forecast demand more accurately, tailor promotions, and avoid stock imbalances.

How Graas' Product/SKU Analytics helps brands detect and act

Graas brings granular, actionable visibility into every product in your catalog. This data is not just to observe performance, but to understand why certain SKUs outperform and how to replicate that success. 

It combines marketing, sales, and operational data into one unified SKU intelligence layer, enabling brands to make faster, more confident decisions. 

1. Identify Hero, High-Potential, and Non-Performing SKUs

Graas’ analytics engine classifies SKUs into hero, high-potential, and non-performing categories based on a mix of metrics like revenue contribution, conversion efficiency, ad ROAS, and sell-through rate. This segmentation helps brands pinpoint what deserves investment versus what needs optimization. 

For example, a “high-potential” SKU might have strong engagement but low conversions, signaling a pricing or messaging mismatch. By addressing that, brands can turn near-misses into consistent winners. 

2. Improve Ad Targeting with Real Product Data

Traditional campaign reports show which ads performed well; Graas also shows which SKUs actually drove those results. It links ad spend directly to product-level ROI, helping marketers shift budgets toward SKUs with higher conversion efficiency and better lifetime value. 

This precision prevents wasted spend on slow movers and ensures that campaigns amplify SKUs with real profitability, not just surface-level engagement. The result is higher ad ROAS, cleaner attribution, and smarter scaling.

3. Adjust Pricing, Bundling, or Stock Strategy Proactively

Graas doesn’t stop at detection; it allows you to take proactive action. Through real-time SKU insights, brands can identify when to reprice products, create bundles to clear slow movers, or restock high-velocity SKUs before sellouts hurt visibility.
By correlating marketing and inventory data, Graas eliminates guesswork in pricing or replenishment decisions. The outcome? Improved margins, optimized cash flow, and faster response to market shifts, all powered by SKU-level clarity. 

Graas helps brands shift from reacting to data to leading with it. Find your silent killer SKUs with Graas' Product/SKU Analytics. 

Book a demo today!