First published in 2019, this piece has been refreshed in 2025 to reflect accuracy and evolving industry standards.
A clear strategy for naming your SKUs is an essential part of organizing your warehouses and facilities so that you can keep up with your inventory. Your naming strategy not only helps you keep up with inventory, it can help you communicate product information more quickly and accurately between departments and speed up warehousing and order fulfillment operations. Furthermore, SKU naming makes it easy for team members to read those SKUs and understand their meaning. A clear eCommerce SKU strategy helps ensure product listings are easy to navigate and search online. Take a look at some best practices and how to utilize strategies that can help with inventory optimization and management.
What are SKUs?
SKUs, also known as Stock Keeping Units, are the combination of letters and numbers assigned to products and their variants. Typically, each variant or different set of attributes is assigned its own SKU to make it easier to locate and track that inventory. An effective SKU naming system directly supports inventory optimization, reducing errors and speeding up fulfillment.
There is no standard method of creating SKUs. Each business’s SKUs are unique, so you can choose a system that works for your needs. For many eCommerce brands, especially those with significant inventory, that may mean including a variety of attributes in those product codes.
Other codes that describe products may be more universal.
- UPC: Universal product code; the 12-digit number below barcodes. It is universal and not unique to any particular store, so anyone with a barcode scanner can access information about the product.
- Serial numbers: Unique numbers for each product, often used for electronics; used for tracking individual ownership and warranty information
Differentiating between these numbers is critical for referencing the right codes when engaging in inventory optimization, referring to a product, or looking for it.
Why SKUs are Important
Having separate SKUs for your products—including SKUs that are different from UPCs—is essential for a number of reasons. SKUs aren’t just an industry standard that makes it possible for you to easily and effectively sell things online. They also:
- Convey information quickly: Everyone can understand the product’s attributes at a glance and convey that information swiftly
- Speed up processing in warehouses: Warehouses can more quickly locate, track, and reference items throughout the warehouse
- Increase accuracy: SKUs are essential for making sure that the correct items are delivered to customers, improving your order accuracy KPI
- Streamlining AI inventory management: SKUs give you an internal coding system that helps your automation tools better manage and track inventory
Using an effective naming convention for your SKUs is vital to eCommerce SKU management strategy.
The Essentials of Creating and Naming SKUs
There are no specific rules for how you must name your SKUs. Instead, consider these common conventions and strategies to help you decide on the best eCommerce SKU strategy for your brand.
Create a Standard Format
Arrange your SKUs into a standard format that lays out the order of product features. Consider things like the brand name, size, color, or item type. In general, you should include key differences in product features in the SKU. For example, your SKU might consist of:
- Manufacturer name
- Product color variant
- Size
For a blue Under Armour shoe in size 10, for example, the SKU might be UDA-BL-10. For a green Under Armour shoe in size 9, on the other hand, the SKU might be UDA-GR-09. Your SKU, of course, will look different depending on what products you’re selling and what features you need to call to mind.
Establish a Coding System
Once you have decided how you want to identify your SKUs, identify attribute codes. Some codes, like shoe sizes, might be easy. Other codes, like brand names, may be slightly more complex. Put together a spreadsheet or document that clearly maps the attribute name to the attribute code. For example, common color codes include:
- Purple: PP
- Orange: OG
- White: WH
- Black: BK
When you have standardized attribute codes in place, everyone in your team will be able to use the same naming conventions for assigning SKUs, reducing variance and making it easier to track items. Many companies rely on SKU management software or spreadsheets to keep coding systems consistent across teams.
Best Practices for Creating SKUs
While your brand’s SKU naming practices may be unique, several common best practices are used by many brands to simplify and facilitate SKU naming and understanding.
1. Make It Simple
SKU names should be as straightforward and easy to understand as possible. If you have a complex naming system, it can be difficult for other departments to communicate effectively. With straightforward naming practices, on the other hand, everyone—including sales, logistics, operations, and customer support—can make sure they’re on the same page when discussing SKUs. Make sure, however, that you leave room for eCommerce growth where needed. If you’re planning to add more products in the future, you want to make sure there is room for them.
Try to avoid stuffing SKUs with too much information. Focus on the unique attributes, whether that’s the manufacturer name, the color of the item, or the type. For example:
- Headphones, Golden, Bluetooth wireless =Â HDPH-GD-BTWS
- Headphones, Purple, Bluetooth wireless =Â HDPH-PP-BTWS
- Headphones, White, Bluetooth wireless =Â HDPH-WT-BTWSÂ
- Headphones, Black, Wired =Â HDPH-BK-W
- Headphones, Red, Wired =Â HDPH-RD-W
If you do have to incorporate more information, consider how you can simplify those codes. For example, if you need to differentiate between different manufacturers, you might want to assign them a numeric code, such as:
- Kettle, White, Electric, Kobys =Â KTL-WH-ET-1
- Kettle, Blue, Electric, Tango =Â KTL-BL-ET-6
- Kettle, Blue, Electric, Ningbo =Â KTL-BL-ET-4
- Teapot, Red, Standard, Kobys =Â TPT-RD-ST-1
Pro Tip: Try not to use numbers to indicate color naming conventions or other unusual attributes, since these can be more difficult to memorize.
2. Arrange Attributes By Importance
Take a look at the product’s description and consider the most important elements and attributes, then put those at the beginning of the SKU. Variable product attributes, like size or color, go at the end of the SKU. For example:
- Holiday Treats, Chocolate bar, Small, Sugar-free: HT-CC-SMA-SF
- Holiday Treats, Chocolate bar, Medium, Sugar-free: HT-CC-MDM-SF
- Holiday Treats, Chocolate bar, Large, Sugar-free: HT-CC-LRG-SF
- Holiday Treats, Chocolate ball, small: HT-CB-SMA
- Holiday Treats, Gummy bears, Medium: HT-GB-MDM
By assigning SKUs in this order, you can more easily identify clear categories on the shelves and keep everyone on the same page whenever you need to talk about items.
3. Avoid Character Confusion
Some letters and numbers (uppercase I and lowercase l; 0 and O) look very similar in print, so using them as a regular part of your SKU naming conventions can make things difficult. In addition, special characters (!, @, < or >) may have unclear meanings—and some of them can introduce unexpected coding elements in spreadsheets or SKY management software.
Use standardized letters and numbers in your SKUs where possible, and try to make sure that there is a clear difference between letters and numbers.
4. Avoiding Starting with Zero
Using the number 0 in your SKUs can cause confusion for some data storage tools. For example, in Excel, if you enter 01234, it will record the number as 1234. Using letters at the beginning of your SKU instead of numbers can help make sure that you do not accidentally introduce an error that could interfere with data storage. Try:
- Home Decor, Scented Candles, Small, Pack of 4 =Â HD-SC-SML-PO4
- Home Decor, Scented Candles, Small, Pack of 8 =Â HD-SC-SML-PO8
- Home Decor, Scented Candles, Small, Pack of 12 =Â HD-SC-SML-PO12
- Home Decor, Picture Frames, Large, Pack of 3 =Â HD-PF-LRG-PO3
- Office Supplies, Pens, Bic, Pack of 24 =Â OS-PN-BIC-PO24
This strategy helps keep your spreadsheets and SKU management software running smoothly.
5. Assign Unique Numbers (Not Manufacturer Numbers)
Different manufacturers use different SKU naming conventions. If you incorporate them into your eCommerce SKU strategy, confusion can arise due to the differences between brands. That doesn’t mean that you will always have very different SKUs for your products, but it does mean that you should stick to your own conventions where possible. For example:
The manufacturer SKU is Sports Bra, Red, Band Size 36 = SBR-RD-BS36.
You can make your SKU name Sports Bra, Red, Band Size 36, Rib Cage 15 to 27 = SBR-RD-BS36-RC1527—or start with the manufacturer code to differentiate. For example, if Shapermint manufactures it, the code might be SM-SBR-RD-BS36-RC1527.
Focus on Consistency
When it comes to creating SKU naming conventions for your business, consistency is key. A simple, consistent SKU format makes it easier to track your products throughout the warehouse, more easily keep up with inventory, and more. At Symbia, you’ll find a 3PL partner that can help optimize SKU management and make it easier to track and protect your inventory. Contact us to schedule a consultation.
FAQ
What is the difference between SKUs and barcodes?
Barcodes are universal codes used across brands and can be read with a barcode scanner. SKUs, on the other hand, are internal inventory codes and unique to each business.
How do I create an SKU naming strategy for eCommerce?
Keep your SKU naming strategy simple. Focus on key details about the products and use codes that differentiate between product attributes.
What tools or software help manage SKUs?
Inventory management software, product information management software, and enterprise resource planning solutions all help with the creation and management of SKUs.
How do you handle SKU naming for products with multiple variants?
For products with multiple variants beyond color and size, such as material or function, SKU naming should incorporate concise codes for each variant. Establish a systematic approach to encode these additional attributes while ensuring the SKU remains readable and manageable. Consistency across product lines helps maintain clarity.
What strategies are recommended for updating SKUs when a product is upgraded or has a new version?
When a product undergoes significant changes or upgrades, it’s important to integrate this into the SKU without causing confusion. One strategy is to add a version number or year to the SKU to denote the upgrade while maintaining the original base code for product identification.
How do SKU naming conventions impact SEO and online visibility for ecommerce products?
Effective SKU naming can positively impact SEO by including key product attributes that potential customers might search for. Clear and descriptive SKUs can enhance product page discoverability online, making it easier for search engines to index and for customers to find relevant products.
