How To Make SKUs For Products?

Virginia Miller

October 23, 2024

In this article

In order to make a SKU for a product, you first need to figure out what that product is. Once you have determined the product, you will then need to decide on what features or characteristics make it unique. After that, it will be time to choose a name for your SKU and finally create the barcode. In this blog post, we will show you how to do all of those things! Stay tuned!

What is an SKU and How Do You Create Them?

SKU stands for "stock keeping unit" and is used to track inventory quantities of products in a warehouse or retail store. Each SKU represents a unique product and contains information like the price, name, description, etc. When an item is purchased, the corresponding SKU quantity is reduced in the inventory system.

The Benefits of a Good SKU System

Having a well-organized SKU system provides many benefits:

Accurate inventory tracking
Efficient order fulfillment
Improved supply chain management
Better purchasing decisions
Simplified product identification

How to Create SKUs in 3 Steps

1. Design a Standard Format

First, decide on a consistent format all your SKUs will follow. Determine what information to include like product name, color, size, etc. Keep it simple but descriptive.

2. Build a Coding System

Next, create a set of codes to indicate product attributes like size, department, color. Match codes to attributes for easy identification. Short codes keep SKUs clean.

3. Follow Best Practices

When naming SKUs:

Keep it short and simple
Use consistent formatting and separators
Leverage codes for attributes like color, size
Avoid special characters
Set aside time to plan your system

With some preparation, you can build an organized, scalable SKU system perfect for your inventory needs. Contact Simpl Fulfillment if you need more inventory management advice or solutions.

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FAQs

What is a SKU?

A SKU (stock keeping unit) is a unique ID code assigned to each distinct product variant to track inventory.

Why are SKUs important?

SKUs enable accurate inventory tracking, efficient order processing, and better supply chain management.

What should be included in a SKU?

SKUs should contain product information like name, color, size, and other attributes to distinguish product variants.

How can I format my SKUs?

Use consistent formatting, separators, and attribute codes to keep SKUs organized yet concise.

What are some SKU best practices?

Best practices include keeping them short, avoiding special characters, and leveraging attribute codes for easy identification.

How often should SKUs be updated?

As you add new product variants, be sure to assign them SKUs using your existing naming conventions.

Can SKUs improve my business operations?

Yes, an organized SKU system leads to better inventory tracking, purchasing decisions, order fulfillment and more!

Where can I learn more about inventory management?

Check out the inventory management solutions and expertise Simpl Fulfillment provides to take your retail business to the next level.