Understanding SKU Numbers: A Guide for Retailers on Their Purpose and Applications

As a retailer, you probably know about SKU numbers. But do you understand what they are for? Moreover, how can they be used to benefit your business?

For retailers, inventory management is essential to the success of their business. To manage inventory efficiently, retailers use SKU number.

SKU means Stock Keeping Unit. It is a unique identifier assigned to each product in a retailer’s inventory list.  In this article, we will discuss what they are, and why they are important. And also how they can be used to improve workflow. And improve the bottom line for your retail business. Moreover, here you can learn about the best theme for wholesale stores with which to use SKU numbers.

What is a SKU Number?

SKU numbers – it’s a unique code or number assigned to each product in your inventory. This number helps you keep track of your stock levels and easily identify each product.

Such SKU numbers usually consist of a combination of letters and numbers. Moreover, they can be modified to suit your specific needs. For example, you can use SKU number which include the product name or category. As well as its size or color. This can make it easier to quickly identify the right product. Especially if you have a large stock of goods.

Why are SKU Numbers Important?

Unique SKU numbers are very important, especially for a wholesale business. Firstly, they help you keep track of your stock levels. By assigning unique SKU number to each product, you can easily determine how many goods you have in stock and when it is time to restock. This will help prevent stock-outs. And ensure that you always have enough goods in stock to meet customer demand.

Secondly, SKU numbers are a useful tool when analysing sales data. By tracking which products are selling well (and which are not selling in the right quantity), you can make informed decisions about what actions to take. For example, how much product should be ordered. Which product should be discounted or increased in price. Or which goods are ordered the most.

Thirdly, SKU numbers can help you manage your stock more efficiently. By organising your inventory by SKU number, you can quickly find products when you need them. Furthermore, make sure that everything is stored in the right place.

Most importantly, such numbers simplify customer service and improve service. For example, when you receive an order from a customer, the special SKU number makes it easy to identify which product they are ordering. This in turn can simplify order processing and reduce the chance of errors. If a customer has a question or complaint about an item, you can quickly identify it by its SKU number. This will help you solve the problem more quickly and efficiently.

Common Types

While SKU numbers are unique to each business, there are some common types of number that are used across different industries. Here are a few examples:

1.  UPC codes

Universal Product Codes (UPC) are used by many retailers to identify products. These codes are assigned by the manufacturer and consist of a 12-digit number that is unique to each product.

2.  EAN codes

European Article Numbers (EAN) are similar to UPC codes but are used primarily in Europe. They consist of a 13-digit number that is unique to each product.

3.  ASIN codes

Amazon Standard Identification Numbers (ASIN) are used by Amazon to identify products sold on their platform. These codes are assigned by Amazon and consist of a 10-character alphanumeric code that is unique to each product.

How to Create SKU Numbers

If you’re new to the world of inventory management, creating SKU numbers can seem like a daunting task. But with a little bit of planning and organization, it’s actually quite simple. In this post, we’ll walk you through the steps to create SKU numbers for your products.

Step 1: Choose a numbering system.

The first step in creating SKU number is to decide on a numbering system. There are a few different approaches you can take here, but the most common are: Sequential numbering: This involves assigning a sequential number to each product as it’s added to your inventory. For example, your first product might be assigned the SKU number 001, the second product would be 002, and so on.

Step 2: Determine your SKU number components. 

Once you’ve chosen your numbering system, it’s time to decide on the specific components that will make up your SKU number. This will depend on the needs of your business, but some common components include category. For example, product category: this could be a letter or set of letters that correspond to the type of product (e.g. SH for shoes, CL for clothing, EL for electronics).

Step 3: Create your SKU numbers.

 This can be done manually or with the help of inventory management software.

If you’re creating SKU numbers manually, be sure to keep a consistent format. And make sure each number is unique. You can use a spreadsheet or document to keep track of your SKU number. And the corresponding products.

Step 4: Test your SKU number.

Once you’ve created your SKU numbers, it’s important to test them to make sure they’re working properly. Try searching for products by their SKU numbers and make sure the correct products are coming up.

How to Use SKU Numbers Effectively

Now that you’ve created SKU numbers for online shop goods, let’s talk about how to use them to benefit your wholesale business. Here are some tips:

1. Use SKU numbers to track the movement of goods through the supply chain. This will help to determine the amount of stock. And also when adjustments need to be made to improve effectiveness.

2. With SKU numbers, you can track the sales of each product. You can also determine which products are selling well and which are not.

3. A unique goods number helps to optimise the processing of orders from customers. When a customer places an order, use SKU numbers to quickly identify the goods they are ordering.

4. If a customer has a question or complaint about goods, use SKU number to quickly identify them. This will help you solve the problem more quickly and efficiently, increasing customer satisfaction.

5. When selling goods online, use SKU numbers to provide a unique identifier for each product. This will help customers to easily identify and order the products they want.

6. Choose the perfect Shopify theme in which SKU numbers will work even more efficiently. After all, when you combine the best features of a good theme with the capabilities of such numbers, it will be much easier to manage your business.

Using SKU Numbers in the Best Shopify Theme for Wholesale Store

In the previous section we clarified that for SKU numbers to be used effectively and for the work to be uncomplicated, you need to choose the best theme. And the Zemez team has a unique offer for you.

Vendy Shopping best Shopify theme for wholesale online stores is a premium theme that is equipped with the best features. This theme has an extensive selection of designs and advanced functionality in its arsenal. Which will suit all your preferences. In addition, this theme has an extensive collection of ready-made page layouts designed for wholesale shops. It’s also worth mentioning that Vendy Shopping is compatible with all the latest Shopify 2.0 updates and offers. And it has a lot of functionality.

 But most importantly, the SKU numbers tool combined with the best Vendy Shopping theme for wholesale will give incredible results. You will get stable sales. As well as high earnings. Moreover, your customers will always be satisfied.

So, to have a stable business you should choose Vendy Shopping. And also use a very important tool – SKU numbers!

Understanding SKU Numbers: Conclusion

I hope you have seen and understood that SKU numbers are an important tool for retailers. After all, they allow you to accurately manage inventory, facilitate order processing, improve customer service and provide valuable insights into your business. In this way, it simplifies the work of business people. Moreover, to make your retail business the most successful one, you should choose the best theme for your online shop. And that is Vendy Shopping by the professionals of the Zemez team. So, following the tips in this guide, you will succeed! Just give it a try!