What is SKU in Shopify? How to use SKUs for Better Stock Control?

Ever wondered how to stay on top of your inventory in a busy Shopify store? 

With hundreds (or even thousands) of products to manage, it can feel overwhelming.

But here’s the thing I have learned as a Shopify expert: without a solid system in place, you risk running into stockouts, overstocking, or even losing track of what’s selling and what’s not. 

This is where SKUs (Stock Keeping Units) come in, but what is SKU in Shopify? 

In this article, we’ll dive into what SKUs are, how they work within Shopify, and how you can leverage them to gain better control over your stock. 

What is SKU in Shopify?

A SKU (Stock Keeping Unit) is a unique alphanumeric code used to identify products in your Shopify store. 

Each product you sell should have its own SKU, which makes it easier to track inventory, fulfill orders, and analyze sales performance. 

SKUs are typically structured to include key product attributes such as brand, category, size, color, and style. 

For instance, a SKU like TSH-BLU-M could represent a blue T-shirt in medium size. This structure allows for easy identification and sorting of products within your inventory system. 

SKUs are created by businesses that fit their needs. This means you can create your own SKUs for your Shopify products.

SKUs are an overlooked strategy to improve your Shopify store. 

Why Are SKUs Important for Shopify Stores?

Inventory Management

Setting up a proper SKU Shopify system can help you track inventory more efficiently. 

SKUs simplify inventory tracking by helping you avoid stockouts and overstocking. With unique identifiers for each product, you can easily track what’s in stock and when to reorder, ensuring you never run out of popular items or overstock. 

Efficient Order Fulfillment

SKUs improve the speed and accuracy of order picking. Shopify store owners who master the SKU (Stock Keeping Unit) in Shopify can speed up order processing and reduce errors.

When a customer places an order, SKUs help you quickly locate and fulfill the correct items, reducing errors and speeding up the process.

Want to give your customers control over their order delivery? Delivery date and pickup Shopify apps like Stellar, simplifies your order management process.

SEO Benefits

Well-organized SKUs help create a more structured store, which can improve product categorization. 

This makes it easier for search engines to index your products, potentially boosting visibility and driving more organic traffic to your store.

Creating SKUs (Stock Keeping Units) for your Shopify store can be done through a few different methods. It depends on the complexity of your inventory and how much automation you want. 

Here are some of the best ways you can use to generate and assign SKUs to your products in Shopify.

How to Create SKUs for Shopify?

Manual SKU Creation

For smaller stores or those with fewer products, manually creating SKUs can be a straightforward and effective method. Here’s how:

Step 1: Define Your SKU Format

First, decide on a consistent format that makes sense for your products. 

This could include product categories, size, color, and other relevant attributes. For example:

• Product Type: TS (T-shirt)
• Color: RED (red)
• Size: M (medium)
• Batch Number: 001 (first batch)

So, a SKU for a red, medium-sized T-shirt would look like: TS-RED-M-001.

Step 2: Create a List of SKUs

Write down each SKU manually in a spreadsheet or directly in your Shopify product details section.

Step 3: Assign the SKU to Products

Go to each product’s page on Shopify and assign the manually-created SKU in the inventory section of the Products page.

Using a SKU Generator Shopify App

For larger stores, SKU generator Shopify apps like SKUGen can automate the creation process and ensure consistency. 

These plugins take product attributes like type, color, size, and variant, and automatically generate SKUs based on your predefined format.

Bulk Import Using a Spreadsheet

If you have a large number of products and want to upload SKUs in bulk, Shopify allows you to import product data via a CSV file. 

This method is especially useful when migrating products or adding new items in bulk.

Step 1: Create a CSV File

In your spreadsheet, create columns for product details such as title, description, price, and SKU. For SKUs, follow the predefined format you’ve set.

Step 2: Upload the CSV to Shopify

In your Shopify admin panel, navigate to Products > Import and upload the CSV file with SKUs.

Step 3: Assign SKUs to Products

Once uploaded, the SKUs will be automatically assigned to their respective products.

Now, while creating SKUs, you need to make sure certain practices are in place. 

Common Mistakes to Avoid When Creating SKUs

Using SKUs correctly can save time and prevent headaches, but many Shopify store owners make avoidable mistakes. 

Avoid these common SKU mistakes in Shopify to maintain efficient stock management with these quick tips

Keep SKUs Simple

Don’t overcomplicate your SKUs. Use short, clear codes that are easy to read and remember. For example, TS-RED-M is better than a long, detailed string.

Ensure Uniqueness

Avoid duplicate SKUs. Each product or variant should have a unique identifier to prevent inventory errors and confusion during order fulfillment.

Update SKUs When Needed

Colors, sizes, or variants, all these details keep on changing. 

Always update SKUs to reflect these changes so your inventory stays accurate and organized.

Following these tips will help you maintain a clean, efficient SKU system, improve stock control, and streamline your Shopify store operations.

Final Verdict: SKUs Help to Better Track Your Stock

Understanding what an SKU is in Shopify is essential for keeping your store organized and avoiding stock confusion. Simple and consistent SKUs help you keep track of stock, making it easier to know what’s in stock and when to reorder. 

Unique SKUs reduce errors, allowing you to pick and ship orders quickly and accurately. Keeping SKUs updated ensures your inventory reflects product changes. 

No matter the size of your store, having a well-structured SKU system in Shopify makes stock control more efficient. 

What is SKU in Shopify? FAQs

1. What is SKU in Shopify?

A SKU (Stock Keeping Unit) in Shopify is a unique code that identifies each product or variant in your store. It helps you track inventory, manage stock, and streamline order fulfillment.

2. Does Shopify generate SKU numbers?

Shopify doesn’t automatically generate SKUs for your products. You can create them manually or use a SKU generator Shopify app to automate the process.

3. How do I create my own SKU?

To create your own SKU, combine key product details like type, color, size, or batch number in a simple format. For example, TS-RED-M-001 could represent a red medium T-shirt from the first batch.

4. Do you need SKUs to sell on Shopify?

You don’t technically need SKUs to sell products on Shopify, but they are highly recommended for efficient inventory management. Without SKUs, tracking stock and fulfilling orders will become complicated. 

5. How to add a SKU to a Shopify product?

Open the Products page in Shopify, scroll to the Inventory section, and enter your SKU in the provided field. Save the changes, and the SKU will now be linked to that product for easy tracking.