Are you looking to establish a new SKU system or update your current one?Leverage Desku’s complimentary SKU generator to organise and expand your product identifiers with ease.
As a retailer, whether you’re a beginner or have some experience, you’ve likely come across the term “SKU” (pronounced “skew”). You may have even used it in your business operations. However, you might be unsure about what a SKU is, how it relates to other product codes, and how to create one for your products.
In this comprehensive guide, we’ll demystify the concept of SKUs and introduce you to our free SKU generator tool. By the end of this article, you’ll be equipped to enhance your product management system with well-optimized and unique SKU codes.
SKU stands for “Stock Keeping Unit.” It’s a distinctive alphanumeric code assigned to a product to help retailers manage their inventory. SKUs can be generated manually or through a SKU generator tool.
Inventory management software and point of sale (POS) systems often include built-in features for generating SKUs. Additionally, some customer support channels may offer SKU creation assistance.
Imagine the frustration of ordering a product online, only to find out later that it’s out of stock or backordered. To prevent such disappointing experiences for customers, retailers use SKUs for efficient inventory management.
SKUs are unique to each retailer and are essential for organizing, locating, and referencing products for order processing, invoicing, and other sales-related activities.
By assigning a SKU to each item in their catalog, retailers can monitor product details, types, and inventory levels. This helps them identify when products are running low or occupying excess warehouse space.
Product codes like SKUs, MPNs, ASINs, and UPCs are all used to identify products within a supply chain, but they serve different purposes:
SKUs are used in various locations, including:
SKUs are typically seen by retailers and their teams, not by customers, shoppers, or manufacturers.
SKUs are vital in eCommerce, especially as your product catalog grows. They help track products at different stages of inventory management, including inventory receiving, cross-channel sales, order fulfillment, and returns.
To create effective SKUs, consider the following best practices:
Now that you’re well-versed in SKUs, why not try our free SKU generator tool? Simply enter your product type, name, and up to three unique attributes to generate a custom SKU in seconds. Repeat the process for your entire catalog and export the list as a CSV file for your convenience.
Use the generated codes to update your Shopify dashboard and other marketplaces for seamless inventory management.
In this guide, we’ve explored what an SKU is, how it works, and how it differs from other product codes. We’ve also discussed where SKUs are used and their importance in eCommerce. With our 13 best practices for SKU creation and our free SKU generator tool, you’re ready to create your own internal product identification codes.
Whether you prefer manual or automated SKU creation, the key is to have a system that enhances your inventory management processes. With optimized SKUs, you’ll be better equipped to provide your customers with a smooth and satisfying shopping experience.