Reasons Why SKUs are Essential for your Amazon Store

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Reasons Why SKUs are Essential for your Amazon Store
7 Nov 2017

It might seem unnecessary to use item numbers or stock keeping units (SKUs) for your Amazon store. You might wonder if you need it if your product portfolio is limited, or your warehouse is small. Is it worth it?

SKUs are actually essential to helping you reach your full sales potential, regardless of the size of your inventory.

What Is An SKU?

An SKU is an identification code which is used to track a product for inventory and sales purposes. It may also include some details about the product such as color, size and other variations. You should always assign a unique SKU to a product, even if you sell the same product with another seller. Don’t fret; even if they’ve got different SKUs, they would have the same UPC (Universal Product Code). An SKU helps in many different ways, such as categorizing products easily, measuring inventory levels, purchasing accurate items, and helping make communication between you, the vendors and your customers smooth and efficient.

If you want to create a system that’s easier to work with and uses your own item numbers, here are some of our recommendations:

Make unique SKUs — SKUs should be unique, so that you don’t accidentally use an SKU again for a product you don’t sell anymore

Keep the SKUs short — SKUs mostly will be maximum 30 characters long. If it is longer than 30 characters then it becomes hard to interpret. Even don’t make it longer than 7 characters

Avoid spaces or special characters — Use simple characters to make it simple and easy for you to understand

Avoid using product title in your SKU — Instead, use short and brief descriptions for the product title

Never start your SKU with a zero – Never use “0” in the beginning of an SKU as the Excel spreadsheet will strip out the 0 and mess everything up

No matter the size of your product portfolio, what you sell, who your customer is, or what channel you sell through, each and every product should be identified with an SKU. Logiwa Inventory Management Software makes it very easy and fast to set SKUs.

So I bet you’re wondering why SKUs are right for you. Here are some reasons SKUs are important for your Amazon store:

Easy and Effective Inventory Management

It is much easier to measure your inventory when you identify every item that you sell with an SKU. You may think it could be easy enough to use the item’s name, title or description to measure your inventory level, but think about how many errors that could produce! You might not write down the same description every time, and another employee might have a different idea about what the product could be called. By avoiding streamlining this process, you are setting your business up for failure.

Multiple Sales Channels Connect through SKU

Imagine that you are selling your products on multiple sales channels such as Amazon, Ebay, Walmart, or Shopify. All these channels require an SKU or UPC to list your product. If you already have SKUs assigned to your products, it will be easier for you to match different listings of the same item amongst all your sales channels.

Customers Search for Items by SKU

You also have the chance to use UPC codes as your SKU. Logiwa’s Inventory Management Software is built for Amazon Sellers to do just that. If you are sourcing from other manufacturers, using these UPC codes as your SKU code is a fast, convenient option to help you reach your sales potential.

Check out whether Logiwa is right for you with our free demo!

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