What SKU Stands for and How to Make It Work for Your Business

If you have ever bought something you probably have seen a code on the product label. It’s called Stock Keeping Unit (SKU). These numbers stand by different characteristics. For example color, size, style or brand which are generated by a vendor or company. SKU is mostly used for keeping track of inventory.
Remember that SKU isn’t universal as is UPC (Universal Product Code). SKU consists of 8-12 characters and is alphanumeric. It is created for classifying product traits as UPC is for identifying the manufacturer.
Let’s have a glance at how the SKU number really works and the reasons why it is valuable for you.

1. Keeping Track on Inventory

The most valuable benefit SKU gives back is making inventory management smoother. When you keep an eye on your SKU numbers, they will tell you when you are running out of some products or something will expire. Then you know when to reorder something.

2. Lots of Different Products

You want to have a wide selection of products but you’re afraid that you can’t keep up with their inventory. SKU will save you on this.

3. Foresee Sales

SKU numbers are based on product characteristics which could give you a hint when choosing new products to order. All the numbers are stored in the system which helps you to analyze the sales and make decisions when ordering or reordering more products.

4. No Hide and Seek with Inventory

Have you ever wondered why it takes so long to wait for a cashier to come back with the right product from the stockroom? It’s because they aren’t using scanners to find the needed items more easily.

How to create an SKU number?

There’s nothing complicated about that. The best way to do it is by creating charts where you write down all the attributes and their codes. 

For example:

ecommerce platform, ecommerce
Gorgias is a free SKU generator. Still, the simple principles are that the first letters or combination of a word generates the code. For example, White stands for WH, shirt for SHI and size stays the same M, 8, 10. 

On Shoperb eCommerce platform under "Product Information" you can add SKU number here: 

ecommerce platform, ecommerce

There are lots of ways how to make SKU work for your business. Don’t let it slip away and start entering these numbers now into Shoperb to keep track on your inventory.