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Article: What is a product SKU, how it works and its importance in e-commerce.

O que é SKU de produto, como funciona e sua Importância no e-commerce.

What is a product SKU, how it works and its importance in e-commerce.

Narration: Ana Beatriz Villela

In the world of e-commerce, effective inventory management is critical to a store's success. One of the most crucial elements in this management is the SKU (stock keeping unit).

This article explores what a SKU is, how it works, its importance in e-commerce, the main advantages of using it, and the difference between SKU and barcode. Additionally, we'll cover how to create a SKU on the Shopify platform, with tips and examples to make it easier to understand.

What is a SKU?

The SKU is a unique identifier assigned to each product in an inventory. It is made up of a combination of letters and numbers that describe specific characteristics of the item, such as size, color, model, brand, or any other relevant information. Unlike barcodes, which are universal, SKUs are personalized and generated internally by the company, allowing detailed and efficient stock control.

How does a SKU work?

A SKU serves as an identification tool that helps retailers accurately track products. Each SKU is unique to a product and its variations, facilitating location, inventory management and sales analysis. When an item is sold, returned or moved, the corresponding SKU is updated in the management system, ensuring inventory is always correct.

The importance of the SKU in e-commerce

The use of SKUs in e-commerce is essential for several reasons:

1. Inventory management: SKUs allow for strict inventory control, helping to avoid excess or shortage of products. This is crucial to maintaining operational efficiency and satisfying customer demand.

2. Order accuracy: With SKUs, it is possible to ensure that the correct product is sent to the customer, reducing shipping errors and increasing consumer satisfaction.

3. Sales analysis: Through SKUs, it is possible to track which products are selling well and which are not, allowing better decision-making about future purchases and promotions.

4. Ease of replenishment: SKUs facilitate stock replenishment, as they provide detailed information about each product, making the replenishment process faster and more efficient.

Main advantages of the SKU

1. Operational efficiency: SKUs simplify the inventory management process, making operations more agile and efficient.

2. Reduction of errors: Using SKUs reduces the likelihood of errors in order processing, as each item is clearly identified.

3. Better customer experience: With a well-managed SKU system, customers receive exactly what they purchased, which improves the shopping experience and increases loyalty.

4. Detailed analysis: SKUs enable detailed analysis of product performance, helping to identify market trends and plan effective marketing strategies.

Difference between SKU and Barcode

Although SKUs and barcodes are used for product tracking, they have significant differences:

• Personalization: SKUs are personalized by the company and can include specific information about the product. Barcodes are universal and follow global standards, such as the UPC (Universal product code).

• Format: SKUs can be made up of letters and numbers, while barcodes are graphical representations (bars) that require an optical reader to be interpreted.

• Usage: SKUs are primarily used for internal inventory management, while barcodes are used for selling and tracking products in a broader environment, including physical stores and point-of-sale systems.

How to create a SKU in the Shopify store

Creating SKUs on Shopify is a simple process, but it requires attention to detail to ensure the SKUs are useful and functional. Here are the steps and some tips for creating effective SKUs:

1. Go to the product page: In the Shopify admin panel, go to the “Products” section and select the product you want to create a SKU for.

2. Edit product details: On the product edit page, scroll down until you find the “SKU” field. If you don't already have one, you can create a new SKU.

3. Create the SKU: Decide on a standard format for your SKUs. For example, a SKU for a medium-sized black t-shirt from brand X could be “CAM-PRE-MD-X”. Make sure the format you choose is consistent and easy to understand.

4. Assign the SKU: Enter the SKU in the corresponding field and save the changes.

Tips for creating effective SKUs

1. Consistency: Use a consistent format for all SKUs. This makes codes easier to read and interpret.

2. Meaning: Include relevant information in the SKU, such as category, color, size, and any other distinguishing characteristics.

3. Simplicity: Keep SKUs simple and easy to remember. Avoid using special characters or excessively long codes.

4. Scalability: Create a SKU system that can grow with your inventory. Make sure you have the flexibility to add new product categories and variations in the future.

Examples of SKUs

To illustrate, let's consider a store that sells clothes and accessories:

1. Black T-shirt size M from brand x: CAM-PRE-MD-X

2. Blue jeans size 32 from brand y: CAL-AZU-32-Y

3. Brown dress shoes size 42 from brand z: SAP-MAR-42-Z

Each part of the SKU represents a characteristic of the product, facilitating identification and inventory management.

Conclusion

SKUs are fundamental to successful inventory management in e-commerce. They deliver accuracy, efficiency and control, enabling retailers to effectively track products, reduce errors and make informed decisions based on sales data.

To explore more about the world of e-commerce, visit the PlayEcom website and discover a variety of courses and tips that will take your store to a new level.

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