Using SKUs to manage your inventory

SKUs (stock keeping units) are codes that you can use internally to track your inventory and report on your sales.

SKUs are different from barcodes and are used for different purposes. Many businesses use SKUs for inventory tracking and storage. Businesses also label their products with stickers that display the SKU for easier exchanges and returns, or to handle questions from customers about specific products.

You can use both SKUs and barcodes on the same product by adding them to their respective fields. If you're using a barcode scanner, then it typically reads the barcode field, not the SKU.

Benefits of creating SKUs for your products

SKUs aren't required, but consider using them for the following reasons:

• Better inventory tracking: SKUs help you track exactly which products you have in stock and where they're located.
• Accurate reporting: Sales reports and analytics work best when products have unique SKUs.
• Easier fulfillment: Staff can quickly find and pack the right products when each product has a unique identifier.
• Third-party integrations: Many apps and services require SKUs to sync inventory.

If you're using Shopify Fulfillment Network (SFN), then unique SKUs are required for each product variant.

Best practices when creating SKUs for your products

You can use any SKU format, but the following guidelines can help make your SKUs work best for you and your business:

• Characters: You can use all numbers or a mix of numbers and letters. Avoid a format where the numbers 0 and 1 can be confused with the letters O and I. Don't use special characters, symbols, or spaces as they can cause search problems. Dashes and underscores are useful for separating product attributes.
• Length: Keep your SKUs as short as possible, such as no more than 16 characters. Depending on the number and variety of products you sell, you can use a SKU format as short as 4 to 8 characters.
• Simple and consistent: Create a SKU system that makes sense to your entire team and helps with picking and packing orders. Each letter and number needs to have a purpose, and use the same abbreviations consistently across all products. For example, if 'BLK' means black for one product, then it must mean black for all products.
• Unique: For effective tracking and sales reporting, SKUs within your Shopify admin must be unique and no two product variants should include the same SKU in their details. For example, if you sell a shirt in 3 sizes and 4 colors, then you need 12 different SKUs to represent each variant.
• Plan for growth: Design your SKU system to accommodate new products. If you currently have 100 products but might grow to 1,000, then make sure your format can handle the expansion without running out of combinations.

Example SKU formats

• An apparel store owner whose products have brand, style, and size attributes uses a ten-digit numeric SKU format of ####-###-###. The digits, separated by hyphens, refer to brand, style, and size. For example, the SKU 4225-776-3234 represents pants that are brand 4225, leg style 776 (boot cut), and size 32x34 (waist and length).
• A wooden pen business owner who sorts and stores products by wood type, ink color, and point size uses an alphanumeric SKU format of ###_###_##. For example, WAL_BLK_25 refers to a pen made from walnut with black ink and a 2.5 mm point.

Creating SKUs for products and variants

You can add SKUs when you create a product or edit existing products. Each product and variant must have its own unique SKU.

To edit SKUs in bulk, you can use the bulk editor or import them using a CSV file.

Steps:

Setting up SKUs for a large number of variants

If you reach the 100-variant limit, then consider using third-party apps to create additional product configurations. Use the bulk editor or CSV imports to efficiently update multiple SKUs.

Setting up SKUs for multiple locations

If you need to set up SKUs for inventory tracking across multiple locations, then use the same SKU for each product variant across all locations. Track inventory levels separately for each location. This lets you transfer inventory between locations and run reports across your entire business.

Learn more about adjusting your inventory.

Searching for products by SKU

You can search for products using their SKUs in the following locations:

• The admin search bar.
• The Shopify POS App. Learn more about searching for a product's by SKU in Shopify POS.
• Storefront. If you want customers to search for products using SKUs, then you can install the Search & Discovery app or edit your theme code.

When searching for a SKU, use the identical case and spacing and ensure that SKUs are added to each product variant rather than just the main product. Additionally, verify that your export includes the SKU column, as SKUs added after an order was placed won't appear in historical reports whereas some reports might filter out products without SKUs.

Syncing SKUs with third-party apps

If you encounter sync issues across third-party apps, then it's mostly likely due to SKUs missing or don't match. If SKUs aren't syncing properly, try these troubleshooting steps:

• Check that SKUs are added to all product variants
• Verify the third-party app has the correct permissions to access product data.
• Review SKUs for special characters, spaces, and varying case that might cause issues.
• Check that the app is configured to sync with Shopify's SKU field rather than other product identifiers.
• Ensure SKUs match exactly between Shopify and the third-party app, as SKUs are case-sensitive. For example "ABC123" and "abc123" are recognized as different SKUs.

Displaying SKUs on product pages and checkout

Although SKUs are primarily for internal use, you can display them to customers using the following methods:

• Add custom Liquid code to your product pages
• Use third-party apps for checkout page customization
• Hire a Shopify Expert for custom theme development
• Search the Shopify Community for theme-specific code examples