A distinct and unique code called an SKU (Stock Keeping Unit) is utilized to track and manage your inventory.

When creating a product in Shopify, you have the option to assign an SKU, which has several benefits.

Assigning an SKU in Shopify not only streamlines and eases inventory administration, but it also aids in identifying various product attributes like brand, color, size, and style.

Retail establishments, warehouses, and e-tailers all frequently use SKUs.

This alphanumeric number can be used by Shopify owners of online stores to obtain analytical data and enhance their interactions with suppliers and customers.

Product tags and stock keeping units are not the same thing on Shopify; the latter is mostly used for organizing your inventory.

Although creating SKUs in Shopify is simple, there are a few things to keep in mind in order to make the most of them.

What is a Shopify SKU?

Businesses use SKUs, or stock keeping units, which are scannable codes, to manage their inventories.

Each product has its own SKU, which might be a string of alphanumeric letters.

Do you actually need it, though?

Well, to put it briefly, yeah. Without a doubt, the long answer is yes.

Let’s look at a few advantages of this feature:

• Give each product a unique SKU code to help you better organize them.
• Evaluate each product’s performance more quickly and make necessary adjustments.
• Helps you make stock forecasts.
• Make precise judgments about delivery and stocking for both producers and customers.
• For eCommerce companies, inventory synchronization across several sale channels.

In addition to the aforementioned advantages, SKU offers unique benefits according to each company’s standards.

The following section will walk you through the process of adding SKU to your Shopify storefront if you’re ready to get started.

How to Create a SKU in Shopify

The procedure of adding SKU to your Shopify store doesn’t have to be difficult for a feature with so many advantages.

You can proceed as long as you are in possession of a Shopify business.

Step 1: Navigate to Shopify Admin

Open your Shopify account and log in. Select the product of your choosing by clicking on ‘Products’.

Step 2: Give Your Product an SKU

Adjust your product according to its kind. SKUs are entered in various fields based on the quantity of variants.

Items lacking any variations:

Enter the SKU (Stock Keeping Unit) for your product in the input box after selecting Inventory by scrolling down.

Items available in various variations:

Go to the Variants section by swiping down. The product’s variations are displayed in this field according to its color, material, size, etc.

Step 3: Save the Changes

Verify again that the SKUs for the product are entered correctly, then click the ‘Save’ button located in the upper-right corner of the screen.

That’s it! After a few minutes of updating, your product now has a unique SKU number.

The process of manually adding your SKU to Shopify, which includes determining the SKUs for each of your products, is what we just demonstrated.

Like most things, it’s always a good idea to have a few tips and tricks handy. In the following section, let’s examine what constitutes an effective SKU code.

How to Format Your Shopify SKU

To make it easier for customers to understand the features of your product, your SKU should be a combination of letters and numbers.

Your product’s attributes, such as its size, color, or brand model, can be used to make an understandable stock-keeping unit.

Avoid using the same identifiers for different products, and confirm that the code is unique before sending it to Shopify Fulfillment Network (SFN).

Shopify SKU and barcode:

In Shopify, SKUs and barcodes often work in tandem to streamline inventory management. While SKUs are primarily used for tracking individual product attributes internally, barcodes serve as a scannable identifier for physical products, helping with point-of-sale (POS) operations, inventory checks, and shipping logistics. Shopify allows you to assign both an SKU and a barcode to each product or variant, ensuring smoother operations from warehouse management to fulfilling customer orders. Using both in combination enhances accuracy and efficiency, especially when dealing with large inventories or complex product catalogs.

Benefits of Shopify SKU

• SKUs assist in distinguishing between various products according to their characteristics. They help you keep track of your inventory and product availability in this way.
• SKUs assist you in meeting consumer demands and demand forecasting.
• They can assist you in using your best-selling products in novel ways.

Best Practices for Creating a Shopify SKU

Prior to assigning IDs, keep in mind these steps:

• There should be eight to twelve characters in the SKU.
• It ought to be simple to read.
• Avoid using @ or other special characters! or &
• SKU numbers need to be distinct for every product.
• For product variations, employ recurring patterns.
• Steer clear of complicated and unneeded identifiers.

Is There a Shopify SKU Threshold?

Shopify allows you to have a maximum of 100,000 SKUs on your store because it supports up to 100,000 goods!

So you shouldn’t have any issues unless you’re Jeff Bezos and you intend to switch platforms.

Limitations of product skus on shopify:

While Shopify allows you to manage up to 100,000 SKUs, there are some limitations to be aware of, particularly if you manage a large or complex inventory. For instance, Shopify’s inventory management system does not support assigning the same SKU to multiple products or variants, which can be a challenge for businesses that sell bundles or kits. Additionally, the lack of automatic SKU tracking for deleted or archived products can cause inconsistencies in reporting. Businesses also need to manage SKU duplication manually across different sales channels, which can become cumbersome as operations scale. For high-volume sellers, these limitations may require more robust solutions, such as integrating with third-party tools or inventory management software.

Integrating Shopify SKUs with Other Features

Shopify offers an array of tools that can be easily combined with SKUs to improve your online shopping experience.

Integrating Shopify Analytics with SKUs: Acquire valuable information about each SKU’s consumer preferences and product performance.

• Access Analytics: Enter your Shopify admin credentials and select ‘Analytics’.
• Generate or Utilize a Report: Select an already-existing report or start a new one under ‘Reports’.
• SKU filter: Include a ‘SKU’ filter to examine data for every distinct product variation.

Configuring Inventory Alerts and Auto Restocking: Make sure you always have the right amount of inventory on hand to prevent running out of popular items.

Select ‘Low stock threshold’ for every SKU under ‘Products’ > ‘Inventory’. Apps that notify you when Shopify stocks are low are another option.

By following these steps, you may better manage inventory, maintain stock levels, and use SKUs for analytics.

Our Favorite Shopify SKU Generators

By utilizing free SKU generators for Shopify, you may quickly find the solution to this query if you are already utilizing this eCommerce platform.

You may choose between an independent platform or one that is built-in.

Our top two free tools for creating SKUs for your Shopify store are listed below.

Because of their ease of use and convenience – there is no lengthy sign-up process – they are among the most reliable tools that eCommerce businesses trust.

All you need to do is input your email address to begin utilizing their services right away.

Katana

Katana is integrated with the most popular eCommerce platforms, including Shopify. Just enter the product name and any other variants to have it create an effective SKU that can be used immediately.

The Excel format makes it quite easy to work with.

Pros

• Improved inventory management: Katana Cloud Inventory can help you streamline your inventory management process by providing a central location to track your stock levels, orders, and manufacturing. This can help you avoid stockouts and overstocking, and improve your overall efficiency.
• Increased visibility: Katana Cloud Inventory can give you a better view of your entire inventory, including raw materials, work in progress, and finished goods. This can help you identify areas where you can improve your inventory management processes.

Cons

• Recent price increases: Some users have expressed dissatisfaction with recent price increases for Katana Cloud Inventory.

SKUGen

A solution for Shopify called SKUGen creates Shopify SKUs for your products automatically.

You can generate Shopify SKUs for up to a hundred products with the free version; however, the paid alternatives may be more advantageous for larger inventories.

Pros

• Saves time: SKU Generator by Shopify can create SKUs automatically, which can save you a lot of time, especially if you have a large number of products.
• Ensures consistency: By using a SKU generator, you can ensure that all of your SKUs are created according to the same rules. This can make it easier to track your inventory and avoid errors.

Cons

• Limited customization: The free plan of Shopify SKU Generator only allows you to create simple SKUs. If you need more customization, you will need to upgrade to a paid plan.

Final Thoughts

While the process may seem daunting at first, implementing an effective SKU strategy can significantly streamline your inventory management, boost your analytical capabilities, and enhance your overall business operations.

Remember that SKUs are more than just random codes – they’re powerful tools that can provide valuable insights into your product performance, help forecast demand, and improve your customer service.

Whether you choose to create SKUs manually or use a generator, the key is to maintain consistency and follow best practices.

As your Shopify store grows, you’ll likely find that a well-implemented SKU system becomes increasingly valuable.

It can help you scale your operations more efficiently, integrate with third-party systems, and make data-driven decisions about your inventory and marketing strategies.

Ultimately, the time and effort invested in optimizing your Shopify SKUs will pay dividends in the form of improved efficiency, reduced errors, and a more streamlined e-commerce operation.

So take the plunge, implement a solid SKU strategy, and watch as it helps propel your Shopify store to new heights of success.