However, if you’re overseeing products across multiple eCommerce channels, it can quickly become confusing without an identification system in place. That’s where SKU codes come into play. SKU (Stock Keeping Unit) codes are alphanumeric identifiers created by sellers, often to differentiate inventory stock levels, and organize product variations. It does not matter if you’re selling products on Amazon, Flipkart, Shopify or your own eCommerce website, understanding how SKU codes work is important for having efficient and effective operations and to avoid mistakes and lost sales with listings and inventory. This post explains what SKUs are, their importance, and how you can develop a SKU structure to manage inventory for your business and for scalability. If you are looking for less operational pain and to be more efficient with catalog management, SKU codes should be your first strategy.

SKU Codes Meaning & Creation

Learn the meaning of SKU codes and how to create them effectively. Improve your inventory management with unique SKU codes for your products.

What Is an SKU Code?

An SKU (Stock Keeping Unit) is a unique alphanumeric code assigned to each product and its variations. Unlike barcodes or ASINs (on Amazon), SKU codes are created by the seller, not the marketplace. They help you identify products internally based on attributes such as size, color, brand, or category.

Example:
TSH-M-BLK-001
Here,

• TSH = T-shirt

• M = Size Medium

• BLK = Black color

• 001 = Unique item number

This one code tells your team exactly what product it is without confusion.

Why SKU Codes Matter in eCommerce

1. Improved Inventory Management : SKU codes help sellers track the quantity of each product variation. Instead of checking items manually, your system instantly reveals what’s in stock and what needs replenishment.

2. Faster Order Fulfillment : With clear SKU labeling, warehouse staff can pick, pack, and dispatch orders quickly. This reduces shipping delays and improves customer satisfaction.

3. Reduced Listing Errors : On marketplaces like Amazon or Flipkart , incorrect SKUs often lead to mismatched inventory or price discrepancies. Consistent SKU mapping prevents these issues.

4. Accurate Sales Forecasting : You can easily analyze which SKUs perform best and plan your purchasing strategy accordingly.

5. Easier Marketplace Expansion : A standardized SKU system allows you to list your products on multiple platforms without confusion or duplication.

SKU vs Barcode vs ASIN – What’s the Difference?

Many new sellers confuse SKU with other product identifiers. Here’s a quick comparison:

Tip: You can create your SKU, but you must purchase genuine barcodes for retail products.

How to Create SKU Codes: A Simple Step-by-Step Guide

Creating SKU codes becomes easy when following a structured format. Here’s how to design effective and scalable SKUs:

1. Start with the Product Category

Use short abbreviations:

• T-shirt = TSH

• Shoes = SH

• Mobile Cover = MC

2. Add Product Attributes

Include attributes like color, size, style, or material:

• Black = BLK

• Medium = M

• Cotton = COT

3. Add a Unique Identifier

This may be a number sequence such as:

• 001

• 002

• 003

4. Keep It Short but Descriptive

Aim for 8–16 characters. Longer SKUs may cause system errors on some marketplaces.

5. Avoid Special Characters

Use hyphens only if needed. Avoid symbols like #, %, &.

Complete SKU Example:

SH-RUN-M-GRY-022
This SKU describes Running Shoes, Medium, Grey, and is item 22.

Best Practices for SKU Code Creation

• Maintain the same format across all products.

• Use uppercase letters for clarity.

• Never reuse SKU codes for different products.

• Document your SKU structure so your team can follow it easily.

• Integrate SKUs into your warehouse labels, inventory software, and marketplace listings.

How SKUs Help in Multichannel eCommerce Selling

If you sell on multiple marketplaces (Amazon, Flipkart, Ajio, Meesho, Myntra, etc.), SKU consistency becomes even more important. A single master SKU connected to all platforms helps you:

• Sync inventory automatically

• Prevent overselling

• Avoid incorrect product linking

• Manage returns and replacements accurately

This is where professional eCommerce management services play a crucial role.

How eCommerce Services Support SKU Optimization

Its Many sellers face SKU-related issues such as duplicate listings, stock mismatches, and order errors. Professional eCommerce account management services help you in:

SKU Structure Development : We create a logical, scalable SKU architecture tailored to your product categories.

Marketplace SKU Mapping : Ensure your SKUs match correctly across Amazon, Flipkart, Meesho, Shopify, and other platforms.

Catalog Cleanup : Remove duplicate, incorrect, or outdated SKUs for a clean product catalog.

Inventory Sync & Automation : Link SKUs to your inventory management systems for real-time stock updates.

Reporting & analytics : Track SKU-level performance to plan stock replenishment and identify bestsellers.

Final Thoughts

SKU codes are more than product identifiers—they are the backbone of efficient eCommerce operations. From inventory accuracy to seamless multichannel selling, a well-structured SKU system saves time, reduces errors, and improves profitability. Whether you are a new seller or scaling your brand across marketplaces, investing in proper SKU creation and professional eCommerce services can dramatically streamline your operations.

If you need help creating optimized SKU structures or managing your online marketplace accounts, expert team of novel web can ensure your business remains organized, scalable, and growth-ready.