Advantages of SKU Tracking for eCommerce Businesses


As your business grows, increasing warehousing and inventory management demands will start to pose a challenge. With the right internal system, however, you can streamline your eCommerce store operations. 


“Stock Keeping Units” or SKUs can help eCommerce businesses manage shipping orders, reload dwindling stocks and prevent errors that can result in bad customer experiences. 


What is a Stock Keeping Unit (SKU)?

For the uninitiated, SKU is an alphanumeric code which is used to separate products from each other in an eCommerce system. 


Eight or so characters make up an SKU code which tracks the price, product details, manufacturer etc. A scannable code, it can help vendors seamlessly track the movement of inventory. 


Businesses tend to create unique SKUs for their products and services. For instance, a store which sells shirts creates internal SKUs that show a product’s details such as color, size, style, price, brand etc. 


Importance of SKU Tracking for eCommerce Businesses

SKUs can come to the aid of eCommerce businesses when the latter have to keep track of inventory levels, replenish diminishing items, ensure faster and better customer experiences and so forth. 


An optimized SKU inventory management system can help your business perform exponentially better. Here is how: 

1. Enhances Inventory Tracking 

When a unique code is assigned to each product, it becomes extremely easy to track inventory. With SKUs, warehouse professionals can easily determine important aspects of eCommerce businesses such as how many products have been sold, how many products are available, how many products have gone out of stock, and so on. 


SKUs can, therefore, help your business save much-needed time and costs along with ensuring effective management of inventory. 

SKUs Help Minimize Errors 

When you have SKU codes at your disposal, it becomes an easy task to keep track of overstock, carry out spot checks to ensure that inventory counts are correct, and view reports by departments. 


As a result, loss of inventory due to miscommunication or human error goes down significantly and it also becomes easier to make sure that the right products are going out each time. 

Improves Customer Experiences 

SKUs can help eCommerce businesses reduce stock outs, make sure of accurate pricing and inventory, and locate items easily. Thus, an optimized SKU system warrants a smooth-sailing shopping and checkout process to customers. 

Ensures Successful Management of Space

When a business is equipped with accurate SKU tracking data, it becomes easier to predict stock demand at any given time. Businesses can, therefore, easily tell when a particular product is in demand and when another isn’t. This information allows businesses to carry out optimal restocking at any given time. 


With accurate information on your hands, you will be able to organize stock within your warehouse or manage storage space easily. Moreover, certain products demand special handling and storage which can be taken care of with SKU tracking! 

When your business adopts an SKU-based infrastructure, it becomes easier to predict demands, increase sales even when certain products are out of stock, and ultimately make sure of customer loyalty via quality customer experience. 


So, what are you waiting for? Get in touch with us today to learn more!