If you’ve got an eCommerce business, whether you’ve got a few products or a few hundred products, SKU numbers are an essential tool for your business. Not only do they come with a plethora of benefits - whether that be simplifying inventory management or improving customer experience, but they’re also not difficult to implement.
Here, we’ll provide you with everything you need to know on how to find SKU numbers and the benefits of implementing them.
What are SKU numbers?
So, what exactly are SKU numbers and what does SKU stand for? SKU stands for Stock Keeping Unit and SKU numbers are essentially custom alphanumeric codes that are assigned to every product or product variety. They’re typically eight to 10 characters in length with each character representing a feature that the SKU is assigned to.
There’s no rule when it comes to creating SKU numbers and businesses are allowed to reference whatever makes the most sense for their business.
Where can I find an SKU number?
SKU numbers can be both internal as well as customer-facing. Most of the time, SKU numbers are listed on a product’s packaging - typically above the product’s barcode.
If you’re looking for an SKU number for products online, you can head to the products page of the company’s website. There, the SKU will be typically listed in the product description.
An important point to note is that a customer-facing SKU number may not always be the same as an internal SKU number that might be used for inventory purposes.
How are SKU numbers used?
There are a few ways that SKU numbers are used within an eCommerce business:
- Tracking inventory efficiently
Since each SKU is unique, you’ll be able to distinguish between products and track it with ease - helping you make more informed supply chain decisions.
- Analyse product data
With the addition of an SKU, you can collect data and understand which products are selling well, and which ones require more of a push.
- Forecast sales
Similar to the above, you’ll have an idea of which SKUs typically have more demand than others. You’ll also be able to track a product’s performance and analyse customer trends - allowing you to make better decisions for the future.
- Set reorder points
By having an SKU system for tracking and differentiating between products, you’ll have a better idea of when to reorder products as you’ll know when stock levels are running low.
- Better customer experience
Since you’ll have more detailed sales data and a better understanding of what customer needs are, this will result in a better overall customer experience. Not only will you be able to identify trends, but you’ll also be able to prevent backorders and stockouts from taking place.
The importance of SKU numbers
SKU numbers are vital to any business. They not only help with inventory management, but they can also help you forecast sales and analyse product data. No matter how many products you have in your eCommerce business, it’s imperative that you’re assigning SKU numbers and keeping track accordingly.