Understanding Product SKU: How to Introduce Your Products

How are SKUs beneficial for your business

Stock Keeping Unit (SKU) is a unique code for an item; a company intends to sell. An SKU provides specific details about the product, such as size and color variation. The Product SKU is exclusive for each product and varies within a product range. Furthermore, it is designed to be read by the human eye, unlike a barcode. By using SKU, businesses can measure highly accurate inventories, which help with improving their stock management.

What Is Product SKU?

SKU is an exclusive identification code assigned to merchandise for inventory tracking. For example, you sell a T-Shirt in various sizes such as small, medium, and large, and in different colors like White, Magenta, and Blue. In this case, each size and color combination would have an exclusive inventory and, therefore, its own SKU.

An SKU is formed and allocated by the merchant, because

  • It is simple to recognize and track individual inventories
  • It is created to offer an insight into the product (size, color, texture, etc.)
  • To recognize merchandise via SKU instead of digging deeper

Why Use SKU and Not Barcode? Reasons Explained?

Difference Between An SKU & Barcode

A barcode is a pattern of parallel lines of varying widths that are supposed to be read by a machine and printed on merchandise for controlling stocks. On the other hand, an SKU is a set of numbers to be read by the human eye to take control of an inventory. Since both do the same job, then why choose an SKU over the barcode?

An SKU is exclusive to your eCommerce business; however, barcodes are not. If you resell your products, then your network of sellers may change the barcode on a product each time they host it on your store, and that would throw SKU out of synchronization.

Why an SKU?

By using SKU, you can conveniently update your stocks and manage the inventories, regardless of barcode changes made by the following –
• Product Catalogues
• eCommerce platforms
• Trade-based customers
• Marketplaces like eBay, Flipkart, Amazon

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Why Product SKUs Are Important? Reasons Explained

  • SKUs are significant and helpful as a general reference for trailing inventory across every part of your eCommerce business.
  • While the name or explanation of your products may alter or be slightly modified depending on the utilization (purchase order or in a listing on a sales channel), the SKU will remain reliable and enable you and your employees to identify the product variations quickly.
  • SKUs are supportive when sorting auction reports or inventory.
  • SKUs are perfect for merchants with a multi-channel sales strategy. If you would like to sell your merchandise on eBay and Amazon, you are likely to have different product titles for the same item on each of these sales channels.

How To Master The Trick Of Creating Product SKU?

Making a unique SKU

Make a unique SKU for each inventory item you advertise or sell and never use an SKU again for a product you don’t sell anymore.

Keep SKU short

SKUs always will be a maximum of 30 characters long. If it is longer than 30 characters, then they become hard to interpret and may not work with some inventory management systems.

• In SKU, never use spaces or special characters – Always use simple characters make it simple and easy for people or SKU reading software to read the SKU.

• In SKU, don’t just use the product title – Use short as well as brief descriptions for the product title, not the SKU.

• Never start your SKU with a zero –Never use “0” at the beginning of SKU as the Excel spreadsheet will strip out the 0 and disrupt the entire data.

Now, it is high time you set SKU for your goods, as it will make your life more comfortable, and it will permit you to use registering and inventory management solutions efficiently.


The benefits of using SKUs is that they are human-readable, and the relationships between products can be more easily discerned, such as different sizes of jeans. If your online store sells several products, merely looking at a list of barcodes is not very helpful for identifying what the product is, without a scanner or looking up the barcode in the database.

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