What Is SKU - DSers eCommerce Basics


A stock-keeping unit (SKU) is a scannable bar code, most often seen printed on product labels in a retail store.

What Is SKU

You may search and locate in-stock items from lists, invoices, or order forms using the product code known as SKU (Stock Keeping Unit). SKUs are used to streamline inventory management and boost company monitoring effectiveness.

Why Is SKU Important

SKUs allow customers to compare the qualities of comparable products. For instance, online merchants may show similar films bought by other customers when a buyer purchases a specific DVD based on SKU data. The client may make further purchases due to this strategy, boosting sales for the business.

SKUs also make it possible to gather sales-related data. Based on the scanned SKUs and the POS data, a retailer, for instance, may determine which products are selling well and which are not.

How to Establish an SKU

Here we tell you all the basic steps of SKU 

  • Select an SKU identifier 

Before choosing your SKU numbers, consider what you want to monitor. Every company is different; as previously said, each SKU number will reflect other product traits or characteristics. When choosing SKU number identifiers for your company, you should consider the size of your inventory. If you have a small list, you may not need to add product subcategories or features to your stock-keeping unit. To keep track of everything, you'll likely need more complex SKU numbers if you have a large amount of inventory.

  • Create a top-level identifier 

Let's get to work and assign the SKU number. Remember that the SKU number should include no more than twelve characters and at least eight characters. Two to three characters should make up your top-level identifier. 

This is the top category that your product may be categorized under. If your business sells sporting items and your product is a golf club, the first two to three characters should represent the golf department. On the other hand, it can make sense to use your top-level identifier to define each of your retail locations if you have several of them.

  • Select unique product features

More specific product attributes like size, color, brand, or style should be indicated using the following two to eight letters in your SKU number. Some businesses use letters rather than numbers to identify suppliers to reduce misunderstanding.

  • Finish with SKU numbers

Your SKU number's last two to three characters must be a sequential number. To guarantee that each stop-keeping unit is unique and to identify between newer and older stocks in your product line includes giving each one a number.

For instance, the sequential number will let you know which of the two gowns in your shop if they are both from the same supplier, the same size, color, and style.

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