What is an Item Master in E-commerce?
Item master in e-commerce is a set of structured data describing all product details. It includes information such as the item’s description, cost, quantity, availability, images, and others. Item master data provides a consistent, unified view of products across multiple channels, such as online stores, marketplaces, and physical stores.
Significance of Item Master in E-commerce Logistics
By understanding the item master data of each item, e-commerce logistics can ensure a smooth process for customers as they shop online. It is also used for inventory tracking, pricing, and product catalogs.
The significance of master is –
- This data is necessary for accurate inventory tracking and providing customers with accurate information on the product.
- Item master data is also essential for determining the cost of shipping and handling and the time it takes for a package to arrive at its destination.
Prerequisites to Calculate Item Master and How It Works
The prerequisites to calculate item master include –
1. Identifying the items – This includes raw materials, finished goods, and services. You may also need to track special items, such as those that require special handling or packaging.
2. Assigning item codes – This will make it easier to locate and identify them in your system. It’s important to ensure that your item codes are unique, as duplicate codes could lead to confusion and inaccuracies.
3. Collecting item information – This includes details about the item’s unit of measure, cost, lead time, and other necessary details. This information will be used to create the item master data records.
4. Creating and storing item records – This includes entering the item details into the system and assigning a unique item number. It’s important to ensure that the storage facility is secure and regularly backed up, as this will help to preserve the integrity of item master data records.
6. Updating item records- Item master data records must be regularly updated. Regular updates will help to ensure accuracy and keep the information up-to-date.
Use Case With Item Master
For example, a retail store may use item master to track the number of items in their inventory, the cost of each item, and the price at which each item is sold. Using this, the store has the right amount of stock for each item and determines the store’s profit margins.