Everything You Want To Know About SKU

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 Do you know every store has unique SKU numbers mentioned on their products? To be very honest, not everyone can understand the phenomena behind the usage of SKU. Many of us don’t even bother to view so many numbers and letters written on the price tags?. However, some curious people exist as well who want to know everything, which is why they want to know about SKU. Therefore, out of 100% of people, this blog is intended to clarify the curiosity of that 50% of people who wondered what SKU is? why are they present on every store item they buy? Why does the SKU contain numbers and letters?. Continue reading this blog to gain much knowledge about the SKU.

What Is A SKU?

The SKU is an abbreviation of “Stock Keeping Unit.” It is the term used to describe a unique set of numbers and letters mentioned on a product in order to identify, locate, and track a particular product in a store. In a retail store, the vendors come across multiple products in bulk, and managing the stock is really complicated. Therefore SKU numbers are assigned by the company or retailer to make a specific identity of the product so that they can easily track whenever required. The information mentioned on SKU is usually written alphanumerically, and they are sorted from the most to least. 


SKU at a glanceSKU contains an alphanumeric code that is 8 to 12 characters long.It is generated by the retailers.The Zero in SKU is always avoided. Every business has its unique SKU.SKU quickly represents product information. 

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What Information Is Mentioned In The SKU?

Well, Different pieces of information are written on the stock keeping unit, and it depends on the retailers in what manner they want to write specific code over their product. However, primarily, the SKUs are 8 to 12 digits long. The first two digits indicate the item category, and the second two digits highlight the subcategory. The third two digits mainly indicate the color well the last two digits are primarily unique. 


What Is The Use Of SKU?

The SKU is an essential product, and they are usually used in the production chain, inventory tracking, and during sales and purchase. SKU is significant because it organizes the products and categorizes them by color, size, cost, brand, quality, and many other things. Thus SKU provides convenience in managing stock, and it leads to the success of your business because if your inventory or warehouse are appropriately managed, your products are adequately aligned. This will not only save your time but also save your cost. 


SKU makes it easier for retailers to monitor their inventory levels. It also streamlines your orders with suppliers and customers and helps you to purchase or ship the exact product to the customers and suppliers that are required. The most significant usage of SKU is that it keeps the system up-to-date in your product database and automates your product management. Furthermore, Stock keeping units differentiate every single product, so there is no error regarding product duplication.  


Lastly, the actual usage of SKU is that it makes your sales maximized within a limited period compared to managing your inventory manually. It streamlines your checkout processes, boosts your business profits, and eliminates unnecessary human errors. It makes your store and product appearance more organized and attractive.


5 Essential Tips To Create SKU 

While designing SKU, the retailer needs to remember some of the most significant points that often retailers pay no attention are highlighted below:

Always keep the stock keeping unit simple to be easily understood and remembered by the staff.

Always avoid the use of zero at the start of SKU.

Don’t use letters that may be confused by numbers.

Make everything clear and understandable.

Never reuse manufacturer numbers.  


Read related articles 

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7 Quick Benefits You’ll Find In Retail POS Software



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