SKU: What It Is and Its Use in the Warehouse

Have you ever wondered how online stores know exactly how many size M items are left in stock? The answer lies in a simple combination of letters and numbers: the SKU.

You may never have seen it, but the SKU is what ensures your order arrives quickly and accurately. And if you run an ecommerce store, it’s a key tool you need to master.

What Does SKU Mean?

SKU stands for Stock Keeping Unit.

It’s a unique code assigned to each product or variant (size, color, model). It’s not random—each letter or number has a purpose and helps identify, locate, and control inventory.

Example:
SKU: CAM-U-RJA-M
Could mean: Urban T-shirt, red, size M.

What Is an SKU Used for in the Warehouse?

A good SKU system improves everything in warehouse management:

  • Prevents errors when preparing orders.

  • Speeds up product retrieval.

  • Simplifies inventory counts.

  • Tracks stock in real time.

  • Improves sales analysis by product.

The clearer and more structured your SKU system, the more efficient your logistics will be.

How to Create Effective SKUs

There’s no single formula, but these best practices help:

  • Use easy-to-read combinations of letters and numbers.

  • Keep the same order consistently (type-product-color-size).

  • Avoid unusual or confusing symbols.

  • Don’t use overly long codes.

Remember: your warehouse staff will see these codes every day. They should be easy to identify and memorize.

The Importance of SKU in Warehouse Software

When using a warehouse management system (WMS) like the one from Amphora Logistics, SKUs become even more powerful. They allow you to automate:

  • Product intake into the warehouse.

  • Shelf placement.

  • Order preparation.

  • Stock control per sales channel.

This reduces human errors and increases operational efficiency.

Your Logistics Starts with a Good SKU

It’s not just about having products—it’s about having them well organized and controlled. A well-thought-out SKU can make the difference between smooth operations and warehouse chaos.

If your ecommerce is scaling, you need a solution that grows with you. At Amphora, we design frictionless ecommerce logistics where every SKU has its place and story.

 

Everything starts with a code. Behind that code are customers waiting, orders to ship, and a brand ready to grow. Are your SKUs ready?