SKU (Stock keeping unit)

Think about the last time you ordered something online. How are those items tracked from the warehouse to the doorstep? That's where the Stock Keeping Unit, or SKU, comes into play. This little code is a big deal in the eCommerce Glossary, helping businesses keep inventory organized and ensure their orders arrive on time. Understanding SKU Def isn't just for logistics nerds; it's crucial for anyone who sells online. In this article, you'll learn what a SKU is and why it matters, shedding light on a term that often gets lost in the shuffle of eCommerce lingo.

And if you're looking to dive deeper, Instant's Shopify product page builder can streamline this process for you, making it easy to manage those SKUs and keep your online store running smoothly.

Table of Contents

• What is a stock keeping unit (SKU)?

• Benefits of using SKUs

• Best practices for using SKUs

• Optimize your Shopify store for conversions without breaking the bank with Instant's Shopify product page builder

What is a stock keeping unit (SKU)?

A Stock Keeping Unit, or SKU, is an alphanumeric code businesses use to uniquely identify and manage individual products or services within their inventory. Unlike universal barcodes, SKUs are specific to each retailer. This means companies can create their own SKU system based on how they categorize and sell their products. 

SKUs are vital for streamlining everything from tracking inventory levels and sales trends to simplifying restocking and reporting processes. Each product variation, such as:

• Size

• Color

• Style

Gets its SKU. This allows businesses to gain detailed insights into what’s selling, what needs reordering, and how much stock is available at any given time.

Exploring SKU management

SKU management is a subset of inventory management that helps:

• Identify

• Track

• Categorize sellable inventory

Using a unique alphanumeric code. This process keeps inventory organized and lets businesses quickly gather information about a specific product, such as how many units are in stock. 

Imagine having a SKU called ‘248RSJGDFN.’ While it might seem like gibberish, it's more helpful than ‘Red Shirt,’ since you might confuse it with similar shirts. You need a separate SKU name for each size of the same red shirt. Managing SKUs is essential if you sell more than one product. While it may start as an easy process, it becomes more critical as you grow, expand your product line, and sell quickly.

Benefits of using SKUs

Using SKUs simplifies inventory management. Tracking stock levels becomes a breeze when each product has a unique identifier. 

You can easily spot which items are low, which are in surplus, and which need a little push to move. This visibility helps you dodge those frustrating stockouts and the financial drain of overstocking.

Understanding sales trends with precision

Which products are your real moneymakers? SKUs provide a clear window into sales trends by showing exactly which items are hot and which are not. 

With this intel, you can make smarter decisions about what to promote, restock, and phase out. It’s like having a crystal ball for your business strategy.

Boosting efficiency across operations

When everything in your warehouse is easily located, your team can fulfill orders faster. SKUs streamline the entire process, from picking and packing to shipping.

This efficiency leads to quicker deliveries and happier customers. Your purchasing team can use SKU data to predict demand more accurately, keeping the supply chain like a well-oiled machine.

Best practices for using SKUs

When creating SKUs, design them for clarity and function. Imagine sorting through a sea of products, and each SKU is a beacon guiding you to the right one. Start with the most general information, like product type, and narrow down to specifics. This logical flow helps everyone quickly make sense of your system, from staff to software.

Ditch the leading zeros

Numbers can be a real pain when they start with zeros. Some systems, like Excel, ignore them altogether. Avoid starting SKUs with zeros to keep everything smooth. This simple step keeps your data intact and easy to manage.

Say no to consecutive zeros

When scanning a SKU during a busy day, you don’t want to trip over a bunch of zeros. They can slow you down and make your code confusing. Opt for unique SKUs that stand out and are easily read.

Use variant numbers for quick recognition

Place unique identifiers in the last four spaces of your SKUs. This helps you quickly spot differences between similar items. It’s like having a secret code at the end that tells you exactly what’s what.

Optimize your Shopify store for conversions without breaking the bank with Instant's Shopify product page builder

Creating the perfect product page can feel like a daunting task. But what if you could build high-converting, fully customizable pages without writing a single line of code? 

Instant is a user-friendly Shopify product page builder taking the eCommerce world by storm. With its intuitive drag-and-drop interface, Instant lets eCommerce teams and agencies quickly design and publish:

• Landing pages

• Blog posts

• Product pages

• Sections while maintaining complete control over their store's design.

And with seamless integration with Figma and other eCommerce tools, Instant is a versatile choice for enhancing online store performance and increasing conversions. 

So why wait? Try Instant's Shopify product page builder today!