Without SKUs, running a warehouse feels like herding cats --on an alien spaceship, with zero gravity, and the cats are also aliens.
So, you’ve stumbled upon the term "SKU" and are wondering if it’s something in an alien language or a secret business hack. Good news: it’s not alien. Bad news: your business might be a mess without them. In this post we're going to unpack what SKUs are, why they matter, and how they’ll save you from the horrors of inventory management mayhem.
What’s an SKU, and Why Do You Need One?
With SKUs, your inventory is like a relaxing tropical island --where even the coconuts are perfectly labeled.
SKU stands for "Stock Keeping Unit", which sounds like corporate jargon but is actually your inventory’s BFF ("Best Friend Forever" or "Big Fat Friend", depending on the relative size).
An SKU is a unique code you assign to each product so you can find it fast, which saves time when it comes to packing and shipping orders and tracking inventory. It’s like giving every item its own name tag --except no awkward introductions are required.
How SKUs Keep You From "Losing It"
SKUs are the difference between “Here’s your perfect pet rock” and “Uh… why is this one plotting an uprising?”
Let’s say you sell cute pet rocks, and someone orders a mildly-aggressive, pebble-sized moss rock. Without SKUs, you’re waist-deep in a pile of rocks, shouting, “Is this a pebble? What even is mossy aggression?!”
With SKUs, you simply check the code --like R-M-P-- pluck the little bastard off the shelf, and ship 'em off with zero stress.
Bonus: SKUs save you from mislabeling disasters, make reordering smoother, and boost your rock-dealer credibility. (Because “I received the wrong pet rock and it ate my children” isn’t the kind of review you want on your store.)
How to Create SKUs
Buddhist monks have been using SKUs for centuries. Why? Because in a world of chaos, SKUs bring inner peace.
SKUs might look like rocket science to the uninitiated, but they're actually really easy to understand. The simplest way is to just break your product down into categories like:
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Type: ROCK
-
Color: MOSSY
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Size: S
Since the word ROCK is kind of long, we can shorten it down to just the letter "R". Same for MOSSY, we can shorten that down to "M".
Combine them into a simple code: R-M-S. Repeat for all your products, and voilà --you’re able to make SKUs now!
More Examples
"That's right bois. Let's make an example outta 'em."
There's no "one perfect way" to make an SKU (but if there hypothetically "were" a perfect way to make an SKU we definitely wouldn't be able to tell you that the "American government" is currently keeping that information locked away in a "certain vault" in a certain "Area 51". We're just sayin'). Here are a few other ways you could have your SKUs look. Let's say your making an SKU for a medium sized red sweater.
SW-RED-M:
This works for a store with a relatively small product catalog. It keeps things simple:
- SW: Product type (Sweater)
- RED: Color
- M: Size
123-RED-M:
Many e-commerce stores use numeric prefixes or item codes to save space and make scanning easier. For instance:
- 123: The specific product (e.g., "Classic Sweater")
- RED: Color
- M: Size
SW123-R-M:
This SKU could be used by a larger store that categorizes by product type, style, and size:
- SW: Sweater
- 123: Style or model ID
- R: Red
- M: Medium
Why Keep SKUs Short?
Short SKUs are easier to remember, type, and scan --because no one wants a SKU so long it doubles as a Wi-Fi password.
Are SKUs and Barcodes the Same?
Nope! SKUs are custom codes you create, while barcodes are those machine-readable stripes. Think of SKUs as your product’s nickname and barcodes as its official government ID.
The Final Word: Embrace the SKU Life
Shhhh, it's ok. Your products have SKUs. Nothing will ever hurt you now.
We'll keep this conclusion short, because you're probably super excited to start making your own SKUs (you ARE excited aren't you? AREN'T YOU?!). SKUs streamline your operations, save time, and help you keep your customers happy so you might as well get used to using them as soon as you can.
Also, just for making it to the end of this blogpost we've got a secret to share with you. Ready? The word SKU is generally pronounced "sk-yoo", and not "S-K-U". If you ever hear someone say "S-K-U", we give you permission to ignore them or report them to the police. The choice is yours.
P.S. At Mix-Mix Mail, we love SKUs almost as much as we love helping small e-commerce businesses grow (alright, if we're being honest, we enjoy the latter just a tiny bit more). Store your inventory in our Tokyo or LA warehouses, and we’ll handle the logistics -including managing your SKUs- so you can focus on getting more sales! Check out the rest of our site, or contact us for more info!