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SKU

What Is SKU?

Stock Keeping Unit is a code that comprises alphabets and digits and is imprinted on the tags or labels of products that you find in brick and mortar retail outlets. It is scannable and carries vital information on the item including the manufacturer, its specifications, price, and many more.

How SKU Works

  • They classify and differentiate items.
  • Retailers need to generate this number for each of their products through a POS system. An inventory management program would still work fine.
  • The information they include is based on the item’s manufacturer and its characteristics.
  • Sellers will assign each merchandise its unique code, integrating this information into the inventory management and POS software.
  • They can then scan this code when selling to manage and track the store’s inventory.

What Are SKUs Used For?

These codes will benefit your business in the following ways:

  • For analytic purposes, allowing vendors to identify goods that sell fast and those that are consumers’ least favourite.
  • Helps companies keep tabs on their business inventory. That way, they know when to order additional products or terminate a supply order.
  • Elevates consumer support as shop attendants can scan the code to see products in stock that the consumer might fancy.
  • Online marketplaces can leverage them to present product recommendations to potential buyers.

What Do SKU Numbers Mean To Retailers?

Retailers can enjoy improved visibility into their inventory, providing insights that may influence key business decisions. Business people can find products by SKU, know how many of them are in stock, where they are located, and how many need to be ordered.

Besides, when consumers need various products, your staff can look them up to see the availability of what they want. This also equips them with information on other alternatives that they can recommend to them, amplifying sales.

Tips for your SKU naming convention

  • Use alphabets and numbers and ensure they are between 8 to 12 characters long.
  • The first character should preferable be the manufacturer’s initials.
  • After inputting these initials, you can put numbers or letters that represent product characteristics that are popular with consumers – those they are keen to consider first when shopping.
  • Avoid complex formats to ensure your staff can eventually learn how to read stock numbers even without a scanner.
  • Stay away from using special characters. The same applies to the number zero.

Frequently Asked Questions About SKU

SKU vs.UPC : What’s the difference?

The various difference between these two terminologies are:

  • SKUs are unique to a business and are determined by the retailer while UPCs are global and issued through GS1.
  • SKUs are a combination of digits and alphabets and are 8 to 12 characters long while UPCs are strictly 12 digits long (no alphabets).

Can two products have the same SKU number?

No. Each product has its special code, depending on its characteristics.

How to create SKU numbers?

There is no pre-defined process of how to create them. Every business needs to identify its distinctive but simplified architecture as to how to go about it. However, make sure you tailor it to the individual needs of the business and its consumers.

How PIM software can help to manage SKUs?

PIM software can handle lots of SKUs at a go, automating the entire process to avoid data discrepancies that might hurt business operations. By eliminating manual processes, consumers can enjoy efficient services.

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