{"id":27094,"date":"2024-01-02T10:50:45","date_gmt":"2024-01-02T05:20:45","guid":{"rendered":"https:\/\/www.instamojo.com\/blog\/?p=27094"},"modified":"2024-01-03T17:23:24","modified_gmt":"2024-01-03T11:53:24","slug":"what-is-sku-in-ecommerce","status":"publish","type":"post","link":"https:\/\/www.instamojo.com\/blog\/what-is-sku-in-ecommerce\/","title":{"rendered":"What is SKU in eCommerce: Everything you need to know"},"content":{"rendered":"<p><b>Quick summary:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Have you ever stopped to wonder how your favourite online stores manage to keep everything so organized? Well, let me let you in on a little secret \u2013 it&#8217;s all because of SKUs! So, grab a seat as we dive into what is SKU in eCommerce, why are they important and how they help keep things running smoothly.\u00a0<\/span><\/p>\n<h2><b>What is SKU?<\/b><\/h2>\n<p>In the world of eCommerce, SKU stands for Stock Keeping Unit.<\/p>\n<p><span style=\"font-weight: 400;\">Let&#8217;s break it down.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">SKU is a special code that each product gets to help keep everything organized in a store&#8217;s back room (or virtual back room in the online world).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Breaking it down, \u201cStock\u201d is all the products that a store has, \u201cKeeping\u201d is like taking care of them, and \u201cUnit\u201d is each piece. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, SKU is like a secret code to keep track of each thing a store has in stock.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\"><strong>Is SKU and barcode the same?<\/strong> <\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Unlike the barcodes you see on products, SKUs are like secret IDs created by an online store to differentiate one product from another. It&#8217;s like giving each product its own name tag.<\/span><\/p>\n<p><strong>You&#8217;ll often come across SKUs being used in:<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.instamojo.com\/online-store\/?utm_source=imblog&amp;utm_medium=interlink&amp;utm_campaign=online_store\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Online stores<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Warehouses<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Catalogues<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Product fulfilment centres<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Retail shops<\/span><\/li>\n<\/ul>\n<p><b>What is a SKU example? Here is a visual explanation:\u00a0<\/b><\/p>\n<figure id=\"attachment_27096\" aria-describedby=\"caption-attachment-27096\" style=\"width: 1000px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/erpnext.com\/files\/sku-diagram.png\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" class=\"size-full wp-image-27096\" src=\"https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2023\/12\/Stock-keeping-unit-example-.png\" alt=\"Stock keeping unit example\" width=\"1000\" height=\"400\" srcset=\"https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2023\/12\/Stock-keeping-unit-example-.png 1000w, https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2023\/12\/Stock-keeping-unit-example--300x120.png 300w, https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2023\/12\/Stock-keeping-unit-example--768x307.png 768w, https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2023\/12\/Stock-keeping-unit-example--380x152.png 380w, https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2023\/12\/Stock-keeping-unit-example--800x320.png 800w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/a><figcaption id=\"caption-attachment-27096\" class=\"wp-caption-text\">Source: Erpnext<\/figcaption><\/figure>\n<h2><b>Importance of SKU in eCommerce<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Every eCommerce business benefits from SKUs. Here&#8217;s how:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Accurate order fulfilment: <\/b><span style=\"font-weight: 400;\">SKUs guide <\/span><a href=\"https:\/\/www.instamojo.com\/ecommerce-shipping\/?utm_source=imblog&amp;utm_medium=interlink&amp;utm_campaign=shipping\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">shipping<\/span><\/a><span style=\"font-weight: 400;\">, ensuring the right product reaches the <\/span><a href=\"https:\/\/www.instamojo.com\/blog\/define-target-audience-ecommerce\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">right customer<\/span><\/a><span style=\"font-weight: 400;\">, boosting satisfaction and reducing returns.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Inventory management:<\/b><span style=\"font-weight: 400;\"> With SKUs you can track stock levels accurately, reorder efficiently, and avoid overstock or stock-out headaches.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Order fulfilment:<\/b><span style=\"font-weight: 400;\"> In online shopping, SKUs speed up order processing by quickly identifying if the products that have been ordered\u00a0\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Tracking and reporting:<\/b><span style=\"font-weight: 400;\"> SKUs empower businesses with detailed reports on sales, stock turnover, and product performance as they give you insights on your top-selling products and other consumer preferences.\u00a0<\/span><\/li>\n<\/ul>\n<h2><b>What are the 4 types of SKU?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Curious about how online shops keep things in order? Here are the four types of SKUs that keep the online shopping game strong!<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Basic SKUs:<\/b><span style=\"font-weight: 400;\"> Basic SKUs are like special name tags for each product, keeping <\/span><a href=\"https:\/\/www.instamojo.com\/blog\/top-inventory-management-tools-for-small-businesses\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">inventory<\/span><\/a><span style=\"font-weight: 400;\"> neat. When you click &#8216;buy,&#8217; they ensure you get exactly what you want!<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Colour and size SKUs: <\/b><span style=\"font-weight: 400;\">If you enjoy online shopping for <\/span><a href=\"https:\/\/www.instamojo.com\/blog\/how-to-sell-clothes-online-like-a-pro\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">clothes<\/span><\/a><span style=\"font-weight: 400;\"> or <\/span><a href=\"https:\/\/www.instamojo.com\/blog\/how-to-sell-shoes-online\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">shoes<\/span><\/a><span style=\"font-weight: 400;\">, Colour and Size SKUs are your trusty companions. They go beyond the basics, helping the system understand different colours and sizes for the same product range.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Packaging SKUs: <\/b><span style=\"font-weight: 400;\">Packaging SKUs track various ways you can buy items\u2014single, bundled, or in a <a href=\"https:\/\/www.instamojo.com\/blog\/introducing-product-bundles-on-instamojo-online-store\/\" target=\"_blank\" rel=\"noopener\">bundles<\/a><\/span><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Seasonal SKUs:<\/b><span style=\"font-weight: 400;\"> Seasons change, and so do our shopping preferences. Seasonal SKUs are like special tags for products popular at specific times. Whether it&#8217;s winter coats or summer shades, the system knows what&#8217;s hot when!<\/span><\/li>\n<\/ul>\n<h2 id=\"section3\"><b>How to define and create a SKU nomenclature?<\/b><\/h2>\n<p>Your SKU naming convention involves using alphanumeric codes to define and categorize product information in each SKU. Ensure each SKU reflects key product characteristics like colour, gender, and size, arranged by importance.<\/p>\n<h3><strong>Guidelines for creating your SKU convention:<\/strong><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Consider inventory size<\/strong><\/li>\n<\/ul>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Track additional details for diverse inventory, e.g., Product type &gt; Gender &gt; Size.<\/span><\/li>\n<\/ol>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Ensure SKU uniqueness<\/strong><\/li>\n<\/ul>\n<ol>\n<li><span style=\"font-weight: 400;\"> Avoid using zero.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Assign meaning to each character.<\/span><\/li>\n<\/ol>\n<p><strong>Pro tip: Use unique two-digit alphanumeric codes for suppliers, store location, etc.<\/strong><\/p>\n<h4 style=\"text-align: center;\"><strong>Example:<\/strong><\/h4>\n<table style=\"height: 192px;\" width=\"705\">\n<thead>\n<tr>\n<th style=\"text-align: center;\">Department<\/th>\n<th style=\"text-align: center;\">Code<\/th>\n<th style=\"text-align: center;\">Item<\/th>\n<th style=\"text-align: center;\">Code<\/th>\n<th style=\"text-align: center;\">Color<\/th>\n<th style=\"text-align: center;\">Code<\/th>\n<th style=\"text-align: center;\">Supplier<\/th>\n<th style=\"text-align: center;\">Code<\/th>\n<th style=\"text-align: center;\">SKU Number<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"text-align: center;\">Men\u2019s<\/td>\n<td style=\"text-align: center;\">M<\/td>\n<td>Sweatshirt<\/td>\n<td style=\"text-align: center;\">12<\/td>\n<td>Black<\/td>\n<td style=\"text-align: center;\">BK<\/td>\n<td style=\"text-align: center;\">Bewakoof<\/td>\n<td style=\"text-align: center;\">567<\/td>\n<td>M12BK567<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\">Women\u2019s<\/td>\n<td style=\"text-align: center;\">W<\/td>\n<td>Sweatshirt<\/td>\n<td style=\"text-align: center;\">12<\/td>\n<td>Pink<\/td>\n<td style=\"text-align: center;\">PK<\/td>\n<td>Bewakoof<\/td>\n<td style=\"text-align: center;\">567<\/td>\n<td>W12PK567<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\">Children\u2019s<\/td>\n<td style=\"text-align: center;\">C<\/td>\n<td style=\"text-align: center;\">Sweatshirt<\/td>\n<td style=\"text-align: center;\">12<\/td>\n<td style=\"text-align: center;\">Blue<\/td>\n<td style=\"text-align: center;\">BL<\/td>\n<td style=\"text-align: center;\">Bewakoof<\/td>\n<td style=\"text-align: center;\">567<\/td>\n<td style=\"text-align: center;\">C12BL567<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>If your products are more complicated, and you want each product code to have more details, you could think about adding the following to your product code:<\/p>\n<ol>\n<li>Supplier<\/li>\n<li>Store location<\/li>\n<li>Department<\/li>\n<li>Size<\/li>\n<li>Colour<\/li>\n<li>Item type<\/li>\n<li>Category<\/li>\n<\/ol>\n<ul>\n<li><strong>Build in inventory system<\/strong><\/li>\n<\/ul>\n<ol>\n<li>Use POS system integrations (e.g., SkuVault in Lightspeed).<\/li>\n<li>Caution: Manual SKU assignment via Excel may lead to errors in inventory tracking.<\/li>\n<\/ol>\n<h2><b>Best practices for using SKUs<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Ever feel like dealing with these code things is like solving a puzzle with lots of tricky twists and turns? It happens! But, don&#8217;t stress. Once you&#8217;ve got that figured out, everything starts falling into place, and it&#8217;s smooth sailing from there.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Overcomplexity:<\/b><span style=\"font-weight: 400;\"> Keeping it simple is crucial to ensure everyone understands and avoids mix-ups.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Inconsistent naming conventions:<\/b><span style=\"font-weight: 400;\"> Choose one naming convention for your brand and then stick to it! If the nomenclature rules aren&#8217;t systematic and consistent, you are inviting confusion and chaos.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>SKU proliferation:<\/b><span style=\"font-weight: 400;\"> Creating a new code for every small change may sound good, but it can turn into a big mess of codes\u2014like having too many tasks on your to-do list, hard to keep track!\u00a0<\/span><\/li>\n<\/ul>\n<p>Here are more examples of what you should and shouldn&#8217;t do when using SKUs for your online store.<\/p>\n<p><img loading=\"lazy\" class=\"aligncenter wp-image-27156 size-full\" src=\"https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2024\/01\/Best-practices-for-using-SKUs.jpg\" alt=\"Best practices for using SKUs\" width=\"1080\" height=\"1079\" srcset=\"https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2024\/01\/Best-practices-for-using-SKUs.jpg 1080w, https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2024\/01\/Best-practices-for-using-SKUs-300x300.jpg 300w, https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2024\/01\/Best-practices-for-using-SKUs-1024x1024.jpg 1024w, https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2024\/01\/Best-practices-for-using-SKUs-150x150.jpg 150w, https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2024\/01\/Best-practices-for-using-SKUs-768x767.jpg 768w, https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2024\/01\/Best-practices-for-using-SKUs-80x80.jpg 80w, https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2024\/01\/Best-practices-for-using-SKUs-380x380.jpg 380w, https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2024\/01\/Best-practices-for-using-SKUs-800x799.jpg 800w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/p>\n<h2 id=\"section4\"><b>SKU vs. UPC: What is the difference?<\/b><\/h2>\n<p>SKU (Stock Keeping Unit) is an internal identifier for inventory, while UPC (Universal Product Code) is a universal barcode used in retail for standardized product identification.<\/p>\n<p><b>After looking at the definition of both the terms, here are the basic differences between SKUs and UPCs.\u00a0<\/b><\/p>\n<p><img loading=\"lazy\" class=\"size-full wp-image-27097 aligncenter\" src=\"https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2023\/12\/What-is-SKU-and-UPC-in-eCommerce.png\" alt=\"What is SKU and UPC in eCommerce\" width=\"1000\" height=\"800\" srcset=\"https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2023\/12\/What-is-SKU-and-UPC-in-eCommerce.png 1000w, https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2023\/12\/What-is-SKU-and-UPC-in-eCommerce-300x240.png 300w, https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2023\/12\/What-is-SKU-and-UPC-in-eCommerce-768x614.png 768w, https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2023\/12\/What-is-SKU-and-UPC-in-eCommerce-380x304.png 380w, https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2023\/12\/What-is-SKU-and-UPC-in-eCommerce-800x640.png 800w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/p>\n<h2><b>Begin selling now with Instamojo online store<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Imagine setting up your <\/span><a href=\"https:\/\/www.instamojo.com\/features\/ecommerce-website\/?utm_source=imblog&amp;utm_medium=interlink&amp;utm_campaign=ecommerce_website\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">eCommerce website<\/span><\/a><span style=\"font-weight: 400;\">, showing off your cool products, and making sales \u2013 all in one place. And guess what? Instamojo makes managing your stuff super simple, especially with handy tools like SKUs.\u00a0<\/span><\/p>\n<p>Experience ease when running your business.<\/p>\n<p style=\"text-align: center;\"><a class=\"mb-button mb-style- mb-size-default mb-corners-default mb-text-style-default \" style=\"background-color: #2bc470;\" href=\"https:\/\/www.instamojo.com\/online-store\/?utm_source=imblog&amp;utm_medium=interlink&amp;utm_campaign=online_store\" target=\"_blank\" rel=\"noopener\">Start your online store for free<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Quick summary: Have you ever stopped to wonder how your favourite online stores manage to keep everything so&hellip;\n","protected":false},"author":77,"featured_media":27099,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[398],"tags":[6939,6942,6944,6951,6943,6954,6945,6934,6938,6948,6952,6953,6935,6946,6949,6974,6947,6941,6950,6956,6940,6937,6955,6936,6933],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is SKU in eCommerce: Your complete guide - Blog Instamojo<\/title>\n<meta name=\"description\" content=\"Explore what is SKU in eCommerce with this guide to efficient inventory management for seamless online success. 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