What is a Product and Why is it important?
FIFO COGS works by matching your inventory purchases to inventory adjustments from Amazon whenever an item is shipped, added to, or subtracted from inventory in via lost, found, removed, returned, or a similar adjustment events. Ecominate will automatically adjust your inventory value but in order to do so we require a mapping between the inventory held in Amazon and the items purchased from your suppliers. To help with this, Ecominate has created an inventory item called a "product". You can think of a product as a supplier SKU that represents the item that is purchased from your supplier that matches the appropriate line items on your purchase orders. Each product can have multiple FNSKUs or SKUs associated under it. User products are meant to link your Amazon inventory to your purchase orders. The user product represents the product as it was purchased from your supplier. When you upload a purchase order inside Ecominate, you will enter a line item for each product from the invoice on the user product level. This means your purchase orders actually consist of user product purchases, not Amazon ASINs, SKUs or FNSKUs. Since user products can be kitted, sold across different marketplaces, or fulfilled using FBA or MFN, creating a user product also involves mapping each of the user product instances as they are eventually represented on Amazon. To illustrate how this works, let’s setup two scenarios for an identical product, a travel pillow.
The Easy Scenario
Pretend you sell a travel pillow product with the SKU: TRAVELPILLOW001. This product would have a unique ASIN on Amazon and a unique FNSKU since this product is fulfilled by Amazon. When you order from your supplier, you would have an invoice for an order of 1,000 new garlic presses and internally you would have some reference for that product that is included as a line item in the purchase order. To setup a user product for this product, find the FNSKU in the unassigned Product column and create a user product for this item. Then assign a recognizable name that would be used. Now when you add a user product to a purchase order, Ecominate knows to match any inventory adjustments to the user product because of the link created with the FNSKU.
A More Complicated Scenario
The complicated scenario
Now pretend you sell the same garlic press but with a few caveats. Since you sometimes run out of inventory, you have an FBA and MFN version of the garlic press. Also, sales have been picking up in Amazon US so you decided to sell in Canada as well. On top of this, you also started selling a two-pack of garlic presses after multiple requests from customers. In this instance there would be several distinct identifiers for the same products:
- Amazon US FNSKU: The garlic press sold in the Amazon US FBA network with an FNSKU of X001ABC123
- Amazon US MFN SKU: The garlic press that is manually fulfilled under the SKU TRAVELPILLOW001MFN
- Amazon US two-pack FNSKU: The two-pack of garlic presses with an FNSKU of X001ABC124
- Amazon US two-pack MFN SKU: The two-pack of garlic presses that are manually fulfilled under the SKU: TWOPACKPILLOW001
In this scenario you are still ordering the same exact garlic press from your supplier but it is represented by 5 unique Amazon inventory identifiers. Since all of these instances of the same garlic press are actually ordered as a single product, the user product should have all of the instances added to it. On the user product mapping page simply add all of the distinct instances to the user product that you create. Now, once you upload a purchase order containing a garlic press order, simply add the user product that now encompasses all of the instances and Ecominate will know to record any inventory adjustments to the corresponding user product.
Creating Products on the Products Page
In order to finish Step 2, you must match all of the remaining SKUs and FNSKUs to their corresponding Products. Once on this step, navigate to the Products Page under Inventory Management. On the left column you will see unassigned SKUs. Go through each unassigned component and either create a new Product, add it to an existing Product, or archive the Product if it is not relevant and you do not wish to have this inventory valued.