Each product in your inventory needs a unique code called a SKU. What is SKU that is popular all over the world and is a useful tool to help you quickly search, manage products easily and scientifically when the business product portfolio is expanding and diversified. Let’s find out with MarketingAI an overview of what product SKUs are and 5 great uses of SKUs in the article below.
Viewing: What is the product Sku
What is the product SKU? What are SKUs in marketing? (Photo: infobitcoin)
When accessed at your point of sale (POS) or accounting system, a SKU is a sequence of numbers that track unique information associated with that product. Unlike global product codes (UPCs), SKUs are not universal, meaning that each retailer has its own set of SKUs for its merchandise.
Typically, SKUs are divided into classifications and categories. Many retailers use the next sequence of numbers in the SKU to group products together for analysis. For example, 25-10xxx is a gas oven and 25-20xxx is an electric oven. The next number could be the color indicator. So 25-1001x is a white oven and 25-1002x is a black oven.
What is a Barcode
Barcode is a word for barcode, it helps to store and transmit information in symbols. Usually, Barcode is a symbol represented by a combination of spaces and lines. The change between the line width and the spaces will represent the alphanumeric information in a machine readable form.
What makes SKUs useful
In fact, SKU is a very necessary thing, it is more important than barcode in inventory control. Each SKU has unique symbols, often with both letters and numbers, for each different product category. You can only look at the SKU to be able to identify the product through the pre-conventional characters without having to scan the barcode to search on the system. In addition, you will not be limited in the number of SKUs, so you do not need to worry about how much your inventory or catalog expands.
How to name product SKU
A lot of people don’t even know how to name a sku and how to easily remember what a sku is, here are some tips for naming a sku you can refer to.
Normally, a product SKU should include the following elements, if complete and combined together, you can completely get a full, easy-to-remember sku of your choice.
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Brand name (or manufacturer).Short description of productDateDate Warehouse (If you have many warehouses in provinces, please note by region)Product SizeColor Condition (New, Old)
What are 5 great uses of product SKUs? Product SKUs contribute to enhancing the shopping experience. (Photo: loyverse)
This contributes to improving the customer’s shopping experience. Being able to quickly identify your items will save your customers time and feel the professionalism of your business.
Inventory should be taken on a regular basis (such as an annual reserve for tax purposes) to ensure that the actual stock level at a trading warehouse matches the stock level recorded in the management system. inventory. Each product variant must have a unique SKU, meaning that every item you sell has its own unique code. Organizing and defining products using SKUs makes adjusting stock levels very simple.
Determine difference in goods
An important aspect for any business is tracking and identifying inventory variances between actual and on file, which is the amount of a business’s product categories that are unsold or missing. Damaged or missing items can happen anywhere along the supply chain and in many cases are lost to theft. Diligent inventory sorting with SKUs allows to determine where and how inventory is lost, minimizing the chance of it being stolen.
Replenish inventory in time
Manually managing large amounts of inventory can be difficult for a small business owner. Adding SKUs to products makes it easy to check product quantities. That way you can easily see when products are running low and replenish your inventory.
What is the product SKU? SKUs help you replenish inventory in a timely manner. (Photo: amazonaws)
Managing inventory with SKUs means you can better track inventory levels, reorder as you need them, and cut inventory holding costs.
By tracking products with SKUs, you can report not only on the main product line, but also on individual product SKUs i.e. color, size, etc. These reports can help Determine which product variations are your best sellers and which ones are underperforming. Not only will this give you a clearer picture of your key profit streams, but it will also help you make strategic product decisions to grow your business.
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It can be said that SKU is extremely popular nowadays in Vietnam and around the world. Understanding what a SKU is will help your business manage inventory more effectively. Along with the development of a lot of sales management software, SKU makes management easier and more convenient. Building a good SKU system will help you better optimize your goods and minimize unnecessary losses and risks.