Product Types - Definitions and Differences

Modified on Tue, 4 Jun at 11:59 AM

Purpose

This SOP defines and clarifies the differences between four key product types within Cloud Retail: Standard, Voucher/Gift Card, Non-Inventory, and Not Contributing to Sales.

Definitions:

Standard Products: Tangible goods that are regularly stocked, managed inventory for, and sold at a pre-determined price. These are the core products contributing to revenue.

Voucher/Gift Card: Pre-paid certificates representing specific monetary values redeemable for any Standard Product(s) or services offered. They do not contribute directly to sales as revenue is recognized upon redemption. Tracking inventory for these products is optional.

Non-Inventory Products: Tangible or intangible goods delivered without requiring inventory management. These can include services performed, memberships, subscriptions, or digital downloads. Revenue for these products is recognized at the time of purchase or delivery.

Not Contributing to Sales: Items that may appear in sales but do not generate revenue. These can include internal items like samples, promotional items, and donations.

Key Differences:

Feature	Standard Product	Voucher/Gift Card	Non-Inventory Product	Not Contributing to Sales
Inventory Management	Yes	No	No (may track usage)	No
Sales Recognition	At purchase	At redemption	At purchase or delivery	N/A
Contribution to Revenue	Yes	No	Yes	No
Examples	Beer, Wine, and Liquor	Gift cards, vouchers	Some stores do not track their keg rentals	Samples, promotional items, Donations