Do you want to make a definitive cut in the hidden losses of your operation on marketplaces? So, start by understanding how simple SKU misuse can affect your profit.
Second study from Icecat in partnership with Shopware, products with correctly structured data can present conversion growth of up to 30%, and incomplete or incorrect information account for about 23% of return cases.
Check out the complete guide below with strategies to optimize and standardize your catalog and regain control over sales!
What are SKUs and why do they matter so much?
SKU is an identifier code assigned to each product within a management system. It helps differentiate items that, at first glance, may seem the same but have specific characteristics, such as color, size, model, or version.
In practice, the SKU is used whenever a product needs to be recognized, moved, or synchronized: in the catalog registration, at the entry of inventory, in the separation of orders, in the issuance of notes, in the price update, in the replacement, in the logistics, and in integration with marketplaces.
An example: “Runner” model sneakers, size 40, white color → SKU: RUN-40-WHT-002. This SKU will appear in the ERP registration, in the CD turnover report, in the marketplace product listing, on the picking label, and even in the description used by the media team for campaigns.
Whenever the product “appears” within the transaction, it is the SKU that ensures that this identification is accurate.
How does the disorganization of SKUs affect the algorithms of marketplaces?
The distribution and ranking logic of marketplaces depends on correct data when registering products. If the SKUs are not standardized, the consequences are:
Duplicity that fragments algorithmic signals
Different SKUs that represent the same product lead the algorithm to not correctly record sales history, reviews, and CTR. Instead of a single strong product, they emerge multiple competing ads.
Inaccurate categorization that impairs intent matching
If the SKUs carry inconsistent attributes, the item starts to appear in inappropriate categories and filters, affecting the matching between search intent and delivery. The consequence: lower click through rate, lower semantic accuracy, and Decrease in organic visibility.
Inconsistent variations that prevent clustering
When variations (color, size, and model) use non-standard SKUs, the algorithm interprets each one as an independent product. This lack of standardization prevents automatic clustering, fragments traffic volume, disperses conversion data, and reduces the statistical strength of the main advertisement.
Decrease in relevance and inefficiency in paid media
With inconsistent data, the algorithm classifies the catalog as less reliable, reducing delivery priority. In paid media, disorganization generates cannibalization between duplicate ads, increased CPC, and wasted money.
How does disorganization open loopholes for scams and undue sellers?
Incorrect use of SKUs creates opportunities for scammers to sell illegally using the brand name. See what these loopholes are:
Counterfeits that take advantage of fragile records
The disorganization generates a scenario in which the algorithm is unable to distinguish the official product from parallel versions. Such confusion allows scammers to post Counterfeits of products using similar names, generic images, and incomplete descriptions.
Without a tie between SKU, product ID, and mandatory attributes, the system loses the ability to recognize authenticity and bar irregular products.
Improper sellers who hide in the lack of traceability
The inconsistency in the catalog decreases the visibility of who is listed in each ad. Without standardization of variations, The marketplace is unable to correctly match the seller, product condition, and price.
The sellers that make Misuse of the trademark They take advantage of the absence of clear parameters for Occupy the Buy Box with products of dubious origin.
Irregular offers that escape internal controls
Structural confusion prevents brand audits. When the catalog lacks attribute logic, aligned descriptions, and consistent SKUs, monitoring tools are unable to identify divergences between the official offer and the published versions.
Thus, advertisements with false information, non-compliant products, or incompatible versions go unnoticed.
How to optimize and standardize the product catalog?
Our team has put together the essential strategies to make your catalog more competitive within marketplaces:
Standardized naming
Titles should always follow the same logic: brand + model + variation + relevant attribute.
This standardization ensures that the algorithm correctly identifies the product, groups variations and improves the match with the search. It also avoids duplication caused by names spelled differently.
Clear descriptions
Technical texts may maintain structure, terminology, and equal attributes across all variations. If each advertisement uses a different language, the marketplace loses the ability to list items and understand the product.
Official images
Use only original and authorized images. It's a smart way to preserve identity and facilitates automatic ad recognition by the algorithm.
Non-standard photos (different angles, altered colors, or edited images) increase the risk of confusion with fakes and impair grouping.
Data integration
Synchronize information between ERP, hubs, marketplaces, and internal tools It is a way to ensure that price, inventory, attributes, and variations are always aligned.
It is the integration that avoids divergences capable of generating non-standard advertisements, inventory disruption, and technical inconsistency in the base.
importantly: to keep the catalog strong over time, two practices are essential: auditing all registrations from time to time and centralizing the registration on a single basis. It's this combination that keeps the marketplace recognizing the product as legitimate, complete, and trustworthy.
The need to know how to use the SKU correctly is clear, because, in the end, it is the starting point for the algorithm to understand your catalog and deliver your product with maximum efficiency.
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