What is a SKU?
A Stock Keeping Unit or SKU, is a unique number used to identify and internally track your inventory. Each variation or differences in a product such as style, color, size, etc., changes its identifier. SKUs are meant to be unique to your business for easier and more efficient record keeping.
Why is a SKU important for my business?
SKUs are not only used to identify your product variations, but they are essential in accurately tracking your inventory and product availability to ensure your products never run out of stock. SKU forecast data reports also help to enhance your customers shopping experience by having minimal out-of-stock statuses.
How should I create a SKU for my products?
It is important to keep your SKU format easy to understand. We recommend creating SKUs that best represent your product’s top three most important traits using the dash format below:
Class – Style – Size
Class – Style – Color
Tip: Using a dash between each trait helps make your unique SKU clear to read. When possible, shorten and abbreviate words over 5 letters to prevent a long SKU.
Example 1: If your product is a Children’s Pencil Case, the style is an animal (Giraffe), the color is Spotted Brown and it is only available in one size:
SKU: KIDPC-GFE-SPBRN
(Class: Kids Pencil Case, Style: Giraffe, Color: Spotted Brown).
Here, Size was omitted from the SKU because all of the pencil cases come in one size.
Example 2: If your product is an SPF Lip Balm, the flavor/color is Peach, and it comes in 2 sizes (travel and 4oz)
SKU 1: LBSPF-PCH-4OZ (Class: SPF Lip Balm, Flavor/Color: Peach, Size: 4OZ)
SKU 2: LBSPF-PCH-TVL (Class: SPF Lip Balm, Flavor/Color: Peach, Size: Travel)
How do Units and SKU differ?
A SKU represents a product variation. Units are the stock quantity available for that particular SKU.
How can I calculate my SKU count?
Each variation of your product (style, color, size) will have their own SKU.
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