As a handmade business owner, navigating the world of online selling can be both exciting and challenging. You pour your creativity into every item, but behind the scenes, there’s a less glamorous side that is just as important: inventory management.
One crucial tool to master is the Product SKU (Stock Keeping Unit). It might sound technical, but in simple terms, a SKU is simply a unique identifier that you assign to each of your products.
On Crafts City MarketPlace, having an effective SKU system serves two pivotal purposes:
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Stock management – keeping your sanity as you grow.
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Google Shopping eligibility – getting your products in front of more customers.
This guide will explain what SKUs are, why they matter, and exactly how to create your own system.
What is a Product SKU?
A Product SKU is a code (letters, numbers, or a combination of both) that acts as a distinct label for each item in your inventory. Think of it as a name tag for every product you make.
For example, if you sell three different candles, each would have its own SKU:
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Vanilla candle →
CNL-001-VR -
Lavender candle →
CNL-003-LM -
Spiced citrus candle →
CNL-004-SPC
This simple code allows you to quickly identify, organise, and track your products throughout the entire selling process.
Why Are Product SKUs Important for Online Selling?
Here are six compelling reasons to start using SKUs in your handmade business today.
1. Organised Inventory Management
SKUs help you organise your products systematically. With a unique code for each item, you can easily locate, count, and manage your inventory, preventing confusion and errors. No more guessing how many blue scarves you have left.
2. Efficient Order Processing
When orders come in, having a unique SKU for each product ensures accuracy during picking and packing. This drastically reduces the likelihood of shipping the wrong item to a customer.
3. Effective Tracking
SKUs allow you to track your product’s performance precisely. You can analyse sales data, identify your bestsellers, and make informed decisions about what to restock or discontinue.
4. Streamlined Communication
Whether you’re interacting with suppliers, wholesalers, or customer service platforms, SKUs provide a standardised way to talk about products. Everyone knows exactly which item is being discussed.
5. Ease of Expansion
As your handmade business grows, introducing new products becomes much easier with a well-organised SKU system. It ensures every new addition has a unique identifier, maintaining order and clarity as your inventory expands.
6. Integration with Technology
Many e-commerce platforms (including Crafter’s Market UK) and advertising platforms (like Google Shopping) rely on SKUs. Integrating these codes makes it easier to sync your online store with inventory software, automating processes and saving you time.
Why SKUs Matter for Google Shopping Eligibility
Crafts City is integrated with Google Shopping – a powerful way to get your products in front of millions of shoppers. However, having accurate and well-structured SKUs is a key requirement for making your product listings eligible.
Google Shopping relies on product data, including unique identifiers like SKUs, to effectively display and categorise items. Here’s exactly why SKUs matter on Google Shopping:
1. Product Identification
SKUs provide a unique identifier for each product, helping Google accurately match your listings with user searches. Without a SKU, Google may struggle to understand exactly what you’re selling.
2. Data Feed Optimisation
Crafts City submits a data feed to Google Merchant Center (which is required for Google Shopping). Including SKUs in that feed ensures your product information is organised and easily understandable by Google’s systems.
3. Inventory Management
Google Shopping may use your SKU data to track and manage your inventory. Accurate SKUs help prevent errors and ensure that the right products are displayed to potential customers (e.g., not showing an “out of stock” item as available).
4. Enhanced Product Listings
Well-structured SKUs contribute to the overall quality of your product listings. Higher quality data can positively impact your visibility on Google Shopping and improve the customer experience.
5. Consistent Product Information
SKUs help maintain consistency in your product data across different platforms. This consistency is crucial for effective cross-channel marketing, especially if you also sell on other marketplaces.
Important note: While SKUs are important for Google Shopping eligibility, you still need to provide other key product information such as clear titles, detailed descriptions, high-quality images, accurate prices, and up-to-date availability. A comprehensive data feed is your best chance of being displayed on Google Shopping.
Example SKU Codes for Handmade Businesses
Here are short, practical examples of SKU codes for three different types of handmade businesses.
Candle Business
| SKU Code | Product Meaning |
|---|---|
| CNL-001-VR | Vanilla Relaxation |
| CNL-002-ES | Eucalyptus Serenity |
| CNL-003-LM | Lavender Mist |
| CNL-004-SPC | Spiced Citrus |
| CNL-005-AMBR | Amber Glow |
Embroidery Business
| SKU Code | Product Meaning |
|---|---|
| EMB-001-FLW | Floral Embroidered Pillow |
| EMB-002-MN | Monogrammed Napkin Set |
| EMB-003-BAG | Embroidered Tote Bag |
| EMB-004-CRS | Cross-Stitch Sampler |
| EMB-005-HOOP | Hoop Art – Winter Scene |
Original Artwork Supplier
| SKU Code | Product Meaning |
|---|---|
| ART-001-ABS | Abstract Sunset Painting |
| ART-002-RCY | Recycled Metal Sculpture |
| ART-003-LAN | Landscape Oil on Canvas |
| ART-004-ABS-GLD | Abstract Gold Leaf Art |
| ART-005-PRT | Portrait in Charcoal |
SKU Structure Tips
Creating good SKUs doesn’t have to be complicated. Follow these simple guidelines to build a system that works for you.
Use a Consistent Format
Maintain the same format across all your SKUs to ensure clarity and organisation. For example, always use: [Category Code]-[Product Number]-[Descriptor]
Make Codes Meaningful
Create SKUs that convey useful information at a glance, such as:
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Product category (e.g., “CNL” for candle)
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Variant or size (e.g., “LRG” for large)
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Material or colour (e.g., “WOL” for wool)
This helps with quick identification and streamlines inventory management.
Avoid Special Characters
Stick to alphanumeric characters (A–Z, 0–9) and avoid special symbols (like @, #, $, &) or spaces in your SKUs. Use hyphens or underscores if you need separators. This minimises the risk of errors and ensures compatibility with various systems and platforms.
Keep It Simple
Your SKU doesn’t need to tell the whole story of the product. It just needs to be unique and recognisable to you. A SKU of BLK-LRG-01 might mean nothing to a customer, but it can tell you everything you need to know about a large black item.
Getting Started Today
If you don’t use SKUs yet, here is a simple action plan:
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Set aside one hour to review your current product range.
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Decide on a format (e.g., 3-letter category + 3-digit number + optional variant code).
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Assign a SKU to each product in your inventory.
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Enter the SKUs into your product listings on Crafter’s Market UK (look for the SKU field).
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Stay consistent with all new products you add.
SKUs may seem like a small administrative detail, but they are a powerful tool that will save you time, reduce errors, and help your products reach more customers through Google Shopping. Invest a little time in setting up a good system now, and your future self will thank you.
Happy (and organised) selling from all of us at Crafts City
