Looking to run a successful online store? Besides nailing your marketing and customer service game, you’ll need to master inventory management. Without a solid system in place, you risk making mistakes when it comes to ordering and shipping, which can quickly turn into a nightmare when dealing with a high volume of orders. But fear not! This article will introduce you to the holy grail of inventory management: the SKU system. This system is widely used in the logistics industry and can help you process orders faster while drastically reducing the risk of shipping the wrong products.
What is SKU?
SKU (Stock Keeping Unit) is the smallest unit of inventory, simply put, it is a product code. In everyday life, it is not difficult to find SKUs. For example, when you buy a product at a supermarket, you will usually find a unique code and corresponding barcode on the product’s packaging, and this unique code is the product’s SKU, just like its ID card. However, it should be noted that when a product has multiple attributes such as different colors, sizes, etc., there will be multiple SKUs. For example, if a certain piece of clothing comes in black and white, and each color has sizes S, M, L, and XL, then there will be eight SKUs for this piece of clothing.
A must-have for online store owners – SKU inventory management
1. Speed up order processing
An online store may have several to dozens of products, each with different colors, sizes, dimensions, and specifications. If you rely solely on product names to manage inventory, it will significantly slow down the process of fulfilling orders and take up a lot of time. Therefore, using clear and easy-to-understand SKUs can help you quickly identify different products and speed up the process of fulfilling orders.
2. Minimize shipping mistakes
Imagine your online store as a well-organized supermarket with every product having its own unique spot on the shelf. That’s what SKU inventory management can do for you! With SKUs assigned to each product, you can easily match customer orders to the right item on the shelf, significantly reducing the risk of shipping the wrong product. No more frustrated customers or costly returns!
3. Unleash your products’ sales potential
With SKU inventory management, you can analyze your sales data down to the tiniest detail, from color to style to model, to uncover which products have the most potential. By understanding your customers’ preferences and shopping habits, you can develop killer sales strategies that maximize your profits and grow your business in no time.
4. Assist your restocking strategies
With SKU inventory management, you can easily track your inventory levels and sales performance, helping you estimate the expected sales volume of each product and adjust your restocking strategy accordingly. This means you can keep your shelves stocked with the products your customers love, without breaking the bank. Plus, SKU inventory management helps you streamline your restocking cycle, so you can reduce the cost of each purchase and maximize your profits.
Setting up SKUs is all about simplifying inventory management. Online store owners can create SKUs based on their management habits or product characteristics (such as using a combination of product names, color, and size abbreviations in English), thus avoiding duplicate or overly complex SKUs and minimizing the risk of shipping errors. To save time, e+Solutions can help create SKUs and print corresponding barcode labels for easy management and shipping matching.
With SKUs, you can easily identify different products and pack them accordingly, saving you time and minimizing the risk of shipping errors. And that’s not all – e+Solutions also manages inventory based on SKUs, ensuring the logistics process is accurate and reliable. This means customers can use our logistics services with peace of mind, knowing your orders will be fulfilled accurately and efficiently. Plus, with the ability to keep track of your inventory levels, you can achieve your sales goals and grow your business like never before.
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