What are SKU Codes & How to Create Them?

When it comes to eCommerce or retail business, it is important to know about the importance of SKU codes. You often come across SKU retail, SKU in marketing, and SKU eCommerce. It is also likely that you may have pondered what SKU is in amazon at one point or the other.

At Blackbelt Commerce, we would like to shed light on this topic. If you have an eCommerce account business or plan to set up one, we think you should know more than sku full form in retail. You should also know about SKU code meaning and how to create these codes.

Introduction to Sku Numbers System?

Video Source: Youtube TradeGecko

Assigning a Stock Keeping Unit (SKU) to each product/service is one of the most commonly used methods for keeping track of inventory. Thus, SKU stands for identifying an item and covers all the features or details assigned to it, distinguishing that item from others. These details can include the brand name, color, size, warranty, and more information.

So, SKUs meaning is that it is a code for a specific product on your catalog and holds all the key information about that item. A big advantage of using SKU eCommerce is that it simplifies the process of tracking each specific item using inventory tracking software or sku number identifiers. You or your team can use the code to learn everything about the item.

Digging Deeper into SKUs meaning

The exact sku code is an alphanumeric code assigned to an item. The SKU meaning in retail is to allow retailers to keep track of their stock, measure their product or category sales, customize store layouts and flow, and improve shopping experiences. Retailers create SKU codes in accordance with conditions that are considered important.

There are various other applications of SKU retail code than to identify products. Knowing what SKU codes stand for and how to create them is essential. Becoming familiar with some other ways they can be used to help create your inventory management system and even shopping experiences is also recommended.

Importance of SKU in Ecommerce – SKU Strategy

Video source: Y0utube channel by ElevatIQ

When your products have proper SKU codes, it becomes easier for you and others to search, find, and reference your products from lists, order forms, and invoices. When it comes to sku eCommerce, every variation of a product must have a unique SKU.

Find out the different ways in which SKU products can be beneficial for your eCommerce business.


1. Accurate Inventory Information

Why is inventory so important to track









Your business depends on your product inventory. You don’t want to create scenarios of overstocking or understocking where you may fail to fulfill your customer orders. It is important to maintain accurate details of your inventory. SKU eCommerce numbers help you track your inventory and keep up-to-date with the:

  • Goods available for sales
  • The right time to restock
  • Items that need to be reordered

2. Create Better Sales Opportunities

Having unique SKU codes makes it easier to share your stock across all your online stores and even physical stores. This will help keep your inventory consistently updated. Your stocks can be shared across all your business channels with a unique code. These channels can include:

  • Retail stores
  • Ecommerce stores
  • Shopping carts
  • Commercial centers
  • Outlets using POS system

And more. There will be no more need to hold your stock for a specific customer, as it will be available for sale on all your business channels.

3. Faster Order Pick-ups & Deliveries

Faster Orders Pickup and Deliveries

Shoppers don’t tolerate delayed or wrong deliveries. So, SKU stands for much more than just a unique number. SKU codes have an important role to play in customer service as well.

SKU allows your eCommerce store to deliver precisely the product your shoppers ordered. It also speeds up deliveries by allowing your warehouse managers and staff to find and ship the exact product from a warehouse stocked to the brim with products and variants.

Thus, the benefits of an online seller SKU id can be far-reaching. It helps you:

  • Save valuable time (and fulfill more orders)
  • Find the exact location of a specific product in your warehouse using your warehouse management systems.
  • Allows quick pick-up and delivery

Thus, SKUs not only help speed up delivery but they also ensure the right product gets delivered.

4. More Efficient & Effective Packing & Shipping

With SKU product codes in eCommerce, there is no longer any room for manual packaging mistakes. You or your team can scan the SKU barcode, access product information in the system, and print them to prepare the packaging slip.

The SKU product codes will automatically update if you use a digital inventory system. You will stay updated and be able to monitor your inventory, from shipping to delivery.

5. More Efficient Cycle Counting

Every business, including eCommerce businesses, require regular check-up of the inventory management software. This will require access to accurate and up-to-date inventory details. Scanning the seller’s SKU id will help you with your sales floor process. Every time there is cycle counting, you will be able to:

  • Keep track of your inventory
  • Ensure a smooth counting process
  • In-depth understanding of customer demands

6. Responding Quickly to Customer Queries & Demands

Different shoppers will need different variations of a product. Skus meaning is to help you quickly check your system and present your shoppers with the size or other variation of the product they are looking for. Thus, SKU retail codes allow you to respond quickly to customer queries and demands.

How to Create SKU Codes?

How to create Sock Keeping Units
Image Source: https://www.investopedia.com/terms/s/stock-keeping-unit-sku.asp

Now that you understand the importance of SKU eCommerce codes, you should know how to create proper codes that will support your business. Here are some tips to help you with the process:

1. Create Your Custom SKU Code

It is recommended to avoid incorporating the manufacturer or wholesaler code into your seller SKU id. Create your custom SKU code that is free from any such external information. This will simplify the process if you need to overhaul the coding system in the future if you need to change your supplier.

2. Define Your Code’s Meaning

Every seller SKU meaning has a purpose for your eCommerce account process. You should determine what information you want to access from an SKU code. Keep the following points in mind in this regard:

  • Avoid loading any information that you will never use
  • An SKU code should work as an identifier that helps you visualize a unique product
  • Use just enough information for the effective identification of a product

For example, if the make year is irrelevant to an item, there is no need to indicate it in the SKU number meaning.

3. Use the Right Characters & Fonts

It is recommended to avoid using special characters that may create confusion. For example, avoid the use of homoglyphs such as I and I and O and 0. Even the font used for printing the codes can confuse the reader. Using bold, serif fonts that clearly display the characters is recommended. Further, you should avoid symbols in your SKU codes. It is further suggested to avoid special characters like /, @, and $ that can create formatting errors.

4. Consider Using the Cascade Method

Whether you require Sku in marketing or e-commerce, it is recommended to create logically readable codes. You should start by creating a cascade chart for the information. Follow these steps:

  • Take the largest set of information about your product, such as E for Electronics
  • Define the next subset, such as T for television
  • Next, define the brand, model, and so on.

Continue adding attributes until it becomes possible to quickly identify a specific TV in your store using the relevant SKU code with the help of SKU number identifiers. You should stop adding more information once unique identification has been achieved with a SKU retail code.

5. Store Your SKU Codes in Inventory Management System

Next, you should use eCommerce inventory management software for storing and tracking your SKU codes. This will help you get the most out of SKUs meaning:

  • Your task becomes automated
  • Your work gets simplified
  • Your formats get saved and can be used for future reference

Inventory management systems are not prone to data corruption, confusion, or loss like storing codes on Excel files. You may also find sku generators to help you with the process.

Align Sku Code Meaning Across Your Business Channels

When creating an SKU eCommerce store, it is essential to have a single SKU code for each product variation across all your business channels.

It is important to standardize the Sku retail to the industry standard before you add additional business channels. If you sell across different channels, standardize your SKU codes. It is important to do this from the very beginning so that in the future, a new product added to the channel will not create any issues. It is usually a simple process to update SKUs on a sales channel.

Now that you know what the SKU is in full form in retail, what SKU is in amazon, or what SKU stands for, it is important to take the right steps when creating or updating your eCommerce store and business. At Blackbelt Commerce, we can help you with all aspects of your online store. For more information about our products, contact us at +1-516-704-9890 or contact us at [email protected].


1. What are SKU codes?

SKU codes, also known as Stock Keeping Unit codes are unique identifiers used in the retail industry to track merchandise. These codes are typically composed.

2. How are SKU codes used?

SKU codes are used to track products from the manufacturing process through to retail sale. They allow retailers and manufacturers to identify and manage inventory readily.

3. What is the purpose of SKU codes?

The primary purpose of SKU codes is to provide a standardized way of tracking products through the supply chain. They are used to organize and manage.

4. How to create SKU codes?

SKU codes are usually created using a combination of numbers and/or letters that identify the product type, manufacturer, size, color and other

5. How to format SKU codes?

SKU codes can be formatted in a variety of ways depending on the retailer or manufacturer, but generally, they are composed of product-specific information

6. What do SKU codes look like?

SKU codes often appear as a combination of letters and numbers, such as ABC123. They can vary in length depending on the product type

7. How to find SKU codes?

SKU codes are typically printed on the product packaging or tags and can be found in the manufacturer’s product catalogs.

8. How to use SKU codes?

SKU codes are used to track stock levels, determine the cost of goods sold, and order new inventory.

9. How to store SKU codes?

SKU codes can be stored in various ways, including hard copy and digital formats.

10. How to manage SKU codes?

SKU codes can be managed using various software programs, such as inventory management systems.

For more information about our services and to explore your options with SKU CODES, feel free to contact us at +1-516-704-9890 or write to us at [email protected].

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