SKU Rationalization
Systematically pruning the product assortment to the SKUs that actually earn their place.
Also known as: SKU rationalisation, assortment rationalization
What is SKU Rationalization?
SKU rationalization is the disciplined process of reviewing a product assortment and discontinuing the variants that don’t earn their operational and margin cost. Every SKU carries hidden overhead — inventory, forecasting complexity, catalog maintenance, warehouse slots — so a long tail of slow movers quietly erodes profit. Rationalization asks each SKU to justify itself against contribution margin and velocity.
How Endless handles it
Endless surfaces per-SKU velocity and contribution margin across all channels in one view, so operators can see which SKUs to cut instead of guessing.
Related terms
Browse the full commerce operations glossary.
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