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I added magenta line numbers to the code above to make it easier to refer to lines for this discussion.

Since there is no condition on line 1, lines 1 through 9 will be executed for each line...

I'm not sure I understand all of your requirements, but here is an awk script that I think does what you want. It looks long, but most of this proposed solution is comments rather than running code:...

Not sure if this is what you want! Try this:
sort -t"|" products.txt | uniq -c | awk 'BEGIN{print "product","skew","count"}{split($2,A,"|"); print A[1],A[2],$1}' OFS='\t'