Lara GuevaraSupply Chain expert (Product and Service)

Too Many SKUs? The Hidden Cost for DTC Brands

14 May 2026 · 1 min

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Lara Guevara argues that DTC brands add too many SKUs under the false belief that more products mean more sales. Each extra SKU complicates supply chains and ties up capital in slow-moving inventory. Track revenue-per-SKU to spot bloat.

Chapters

because they just love making products and they overdesign, they overmake, and they perpetually think that the answer to solving their revenue problems is, oh, I need more stuff, right? The reason I don't have sales is because I don't have enough SKUs. Yes. And I mean, you, you would empathize with this, like the more SKUs you make, like the more complicated your supply chain becomes and, you know, the more money you have tied up in, in inventory. So with founders like that, I'm often on the lookout for a revenue per SKU metric. So I want to understand like how much, revenue or profit are they actually generating relative to the size of the catalog? And usually it's a disappointingly low number. So that's profile one.