What is Seller SKU on Amazon
As a new seller on Amazon, you might wonder, “what is seller SKU on Amazon?” While it might take time to understand all the Amazon requirements and processes, you need to know basic terminologies, such as the Stock Keeping Unit (SKU), and how they work.
SKUs are crucial requirements for every seller running several sales on Amazon. With many people selling unique products to millions of active buyers worldwide, it can be challenging to manage stocks. That’s where the SKUs come in to help Amazon sellers.
If you don’t know what SKUs are or how they work, don’t worry. This guide explores everything you need to know about SKUs, from their features to their uses on the world’s largest online marketplace. You’ll also learn how to create SKUs for each item.
That said, let’s get started by defining an SKU on Amazon.
What is a Seller SKU on Amazon, and How Does it Work?
A seller SKU is a string of numbers and letters assigned to products listed on Amazon to keep their track. Its primary objective is to track the goods sellers list on Amazon. In other words, the SKU gives essential information about an item and inventory.
So far, you know that an SKU is a mix of numbers and letters, and you may wonder how many of them are in one SKU. That’s where the SKU anatomy comes in to help you.
The Anatomy of SKUs on Amazon
Generally, an SKU comprises alphanumeric characters, sometimes separated by dashes (hyphens). The SKU’s length must not exceed 40 characters, even with the hyphens included. However, there’s no standard format or template for Amazon SKU.
You have the freedom to create an SKU using the format you think suits your goods. That means an SKU can be as long as an XYZ-002-K-S-0245-N and as short as AB-002. The SKU’s length depends on the product details you plan to include in the code.
Since an SKU comprises letters and numbers, it’s also known as an alphanumeric product identifier. It looks like a scannable barcode, making it easier to track inventory. That’s why Amazon requires sellers on the platform to assign SKUs to all their products.
Note that the SKUs will only appear on the Seller Central, and only Amazon sellers can see them. The SKU doesn’t appear on the product page, so other sellers or customers can’t see it. You can create the Amazon SKUs yourself or let Amazon do it for you.
How to Create an Amazon SKU for Your Products
As mentioned, Amazon allows sellers to create SKUs at their discretion. But if you are unable to create the SKUs for your products, you can let Amazon generate the codes for the items. However, it’s advisable to create SKUs yourself to avoid inconveniences.
Amazon-generated SKUs may have a few disadvantages. That’s because the SKUs get generated randomly, and you may end up with senseless SKUs that are hard to recall. However, creating the SKUs yourself makes it easy to track product inventories.
The good news is that creating the seller SKUs is a straightforward procedure. It doesn’t need any software or specific application. Besides, creating the SKUs doesn’t require expert knowledge. You have to use a format that you can remember quickly.
Some of the information you may want to capture in your products’ SKUs include:
- Product Supplier: Refers to where you have sourced the product. You can use initials to represent the supplier—for example, TC for Toyland Company.
- Product Name: Use the product’s title. It can be a shirt, toy, lawnmower, vacuum cleaner, or cell phone cover.
- Product Category: Refers to the product’s general category. For instance, if you sell clothes, you can categorize the items into socks, bibs, shirts, and dresses.
- Product Condition: Refers to the current state of the item listed on Amazon. Is it new, used, or refurbished?
- Features and Attributes: Highlight the physical features of the product. Such attributes include size, weight, color, material, and other outstanding features.
- Product Seasonality: What’s the seasonal appeal for the product? Is it helpful in summer, winter, spring, or during holidays?
- Cataloging Date: This is the day you listed the product on your inventory on Amazon. Use numbers to represent the day, month, and year of listing.
- Batch Number: The batch number can represent the sequential order you added to the inventory.
Note that you are not bound to include only the information listed above. You can also add other attributes you think are essential in your seller SKUs. Use various letter-number combinations to denote the information provided in the list.
A Step-by-Step Guide to Create Seller SKUs
When creating the seller SKUs yourself, you can customize the codes to fulfill your requirements. Here are the basic steps to follow when creating an SKU for a product.
Step 1: Start With the Supplier or Manufacturer
Mention the supplier or manufacturer by assigning two-character codes to represent them. For example, if you get your products from Bamboo Textiles, you can use BT to denote the company. It helps you know a product’s source when you check the invoice.
Step 2: Specify the Product and its Category
You can add a category identifier to the SKU if you sell products in various categories. As a result, it makes tracking your inventory easy. For example, if you sell formal and casual shirts, you can categorize them into FS for formal shirts and CS for casual shirts.
Step 3: State the Condition and Features
State the size, color, material, and current condition of the item. You can use one letter to represent the size, two letters for color, two letters for material, and one letter for a current condition. For instance, S-BL-LT-U for a small-sized blue used leather shoe.
Step 4: Mention the Purchase Price
While many sellers don’t state their products’ costs in the SKUs, including them is vital. It helps you calculate your profit margins and decide whether to offer a discount to items that have stayed on the shelf for a long time. Use three to four characters, such as 40D, for $40.
Step 5: Provide the Batch Number
After providing the other information listed above, you can also add a batch number to the SKU if you think it’s essential. For example, if the product is in the tenth batch, you can use the number 10 to represent it. The number will help you trace the item’s source.
Why You Should Use SKUs for Amazon Listings
As mentioned, seller SKUs can help you track your inventory before or after making sales. However, there are other advantages, including:
- SKUs keep your product data organized and easy to read, encouraging effective data management. They are also helpful in inventory management systems.
- SKUs boost communication between sellers and suppliers or manufacturers. That’s because you don’t have to mention the entire product plus its features.
- SKUs foster a quick identification and representation of products listed on your Amazon store. That’s because the codes are shorter than full descriptions.
A seller SKU plays a significant role in inventory management on Amazon. If you are an Amazon seller, you don’t need to ask the question “What is my seller SKU on Amazon” anymore.
That’s because this guide covers everything you need to know about SKUs, from their features to how to create the codes.