In this guide, we’ll explore SKU codes, how to find them, how to create SKUs for products, and how fulfillment partners like Daguer Logistics can help businesses efficiently manage SKU tracking.
In the fast-paced world of e-commerce, managing inventory effectively is crucial to business success. One of the best ways to keep track of products and streamline operations is through Stock Keeping Unit (SKU) codes. Whether a business has a few products or thousands, SKU numbers help manage inventory, track sales data, and enhance customer service.
In this guide, we’ll explore SKU codes, how to find them, how to create SKUs for products, and how fulfillment partners like Daguer Logistics can help businesses efficiently manage SKU tracking.
SKU (Stock Keeping Unit) codes are alphanumeric codes that businesses assign to unique products to track inventory. These codes usually contain details about the product, such as its type, size, color, and other defining characteristics.
· Unique Identification: Each SKU is unique to a business and helps differentiate one product from another.
· Alphanumeric Structure: Typically 8-10 characters long, with a combination of letters and numbers that reference product attributes.
· Business-Specific: Unlike Universal Product Codes (UPCs), SKUs are created by individual businesses for internal use.
By implementing an organized SKU system, businesses can efficiently monitor stock levels, analyze sales performance, and improve supply chain efficiency.
While SKU codes and UPC codes are both used to identify products, they serve different purposes:
· SKU Codes: Unique to each business, used for internal inventory management.
· UPC Codes: Universal across all retailers, assigned by manufacturers and recognized globally.
Businesses typically generate SKU numbers themselves, whereas UPCs are standardized and issued by GS1, a global standards organization.
SKU codes can be found in various places, both internally and in customer-facing locations.
1. Product Packaging: Printed above or below the barcode on the product label.
2. Retail Price Tags: Displayed on clothing, toys, or electronic products.
3. Shelf Labels: Found on store shelves for quick product identification.
4. E-Commerce Product Listings: Often included in product descriptions on online marketplaces.
5. Warehouse Management Systems (WMS): Stored digitally for internal tracking.
If a product does not have an assigned SKU, it may need to be created manually by the business.
Creating SKU codes involves developing a structured system that represents key product attributes.
1. Define Product Attributes: Identify key characteristics such as category, size, color, and style.
2. Create a Standard Naming Convention: Arrange characters in a logical order (e.g., type-category-color-size).
3. Ensure Uniqueness: Each SKU should be distinct and not reused.
4. Avoid Confusing Characters: Omit ambiguous symbols such as "O" (letter) and "0" (zero).
5. Use a Logical Length: Typically, 8-10 characters are enough for easy identification.
For a T-shirt in blue, size large, released in the summer collection:
· TBL-L-SU23 (T-shirt, Blue, Large, Summer 2023)
By following a structured approach, businesses can simplify inventory tracking and order fulfillment.
Implementing an SKU system benefits e-commerce businesses in multiple ways:
SKUs help businesses monitor stock levels, track product movements, and forecast future inventory needs.
By analyzing SKU performance, businesses can identify best-selling products and adjust stock levels accordingly.
Fulfillment centers use SKU numbers to locate and pack products quickly, reducing errors and improving efficiency.
Businesses can set up automatic reorder points based on SKU tracking, preventing stockouts and ensuring smooth operations.
Managing SKUs across multiple sales channels can be challenging, but partnering with an experienced fulfillment provider like Daguer Logistics can streamline the process.
· Real-Time Inventory Tracking: Businesses can monitor stock levels in real-time across multiple fulfillment centers.
· Automated Reorder Points: Set up alerts when inventory reaches low levels.
· Custom Packaging Preferences: Configure SKU-specific handling instructions for packaging and shipping.
· Seamless Integration with E-Commerce Platforms: Connect SKU tracking with online marketplaces for synchronized inventory management.
With Daguer Logistics, businesses can focus on growth while leaving inventory management and fulfillment to the experts.
SKU codes are essential for efficient inventory management and seamless order fulfillment in e-commerce. By implementing a well-structured SKU system, businesses can improve tracking, forecasting, and customer satisfaction. Partnering with Daguer Logistics ensures businesses can leverage cutting-edge technology and logistics expertise to optimize SKU management and streamline fulfillment processes.
Ready to enhance your inventory management? Contact Daguer Logistics today to learn how we can help your e-commerce business grow with our advanced SKU tracking and fulfillment services.
1. How do I assign an SKU to a new product?
Create a structured naming convention that includes product attributes like category, size, and color, ensuring each SKU is unique.
2. Can I use UPC codes instead of SKUs?
UPCs are used for universal product identification, while SKUs are specific to each business for internal tracking.
3. Where can I find a product’s SKU online?
Check the product description on the retailer’s website or view it on an order confirmation receipt.
4. How does SKU tracking improve inventory management?
SKUs allow businesses to monitor stock levels, optimize order fulfillment, and forecast sales trends.
5. How does Daguer Logistics help with SKU management?
Daguer Logistics provides real-time inventory tracking, automated reorder points, and integration with e-commerce platforms to streamline SKU management.
