When you start an online store or a business that sells products or services, you will inevitably come into contact with product codes. It’s important to think about product codes before you have products in stock, but what exactly are product codes and how should you structure them?
What is a Product Code?
A product code, or SKU (Stock Keeping Unit), is a unique code assigned to a product or service for sale. Product codes distinguish products and services based on factors such as manufacturer, material, color, components, packaging, size, category, etc. With product codes, you can easily identify and manage products and services.
Should I Use the Same Product Code as My Supplier?
In principle, you can determine your own product codes, but it’s easier to use the supplier’s product code. This way, the product code will already be on the packaging, and you don’t need to worry about ensuring the uniqueness of the code since the supplier takes care of it.
However, the supplier’s product codes are not structured to suit your business needs. Therefore, we recommend creating a product code based on a fixed format before placing an order with the supplier. This format should align with your activities. Then, ask the supplier to put the product code you created on the packaging.
How Do I Create a Product Code?
The simplest way to create product codes is to start with A0001, A0002, etc. Let’s say your product A0059 is a black sweater in size M. You then add other products, but over time you notice there is a high demand for a black sweater in size L. It would make sense for this product to get the code A0060, but since there are already other products with codes, the black sweater in size L will likely get code A0378, as it’s the next available code. This leads to inconsistency!
As you can see, many things need to be considered when creating product codes. First, you should think about the product range structure, focusing on the brand, main categories (e.g., bicycles), and subcategories (e.g., road bikes, city bikes, men’s bikes, etc.). Once you have this structure in place, you can define the product code further based on the type, size, color, etc. Here is an example of a product code for a clothing store: KL.BR.0001.04.BL.
- 2 letters for the main category = KL (clothing)
- 2 letters for the subcategory = BR (pants)
- 4 digits for the product = 0001
- 2 digits for the size = 04 (Large)
- 2 letters for the color = BL (blue)
By creating logical product codes, your employees will recognize them faster, allowing for more efficient work. Of course, you should explain to your employees that the size is represented by numbers, and that 04 stands for Large. Keep in mind possible future expansions of your range. If you use numbers like 01, 02, 03, etc., there is a high chance you’ll run out of product codes. In that case, it’s better to add leading zeros, like 0001, 0002, 0003, etc., so you can add up to 9999 products instead of just 99.
A Few Helpful Tips
- Avoid special characters
- Never start with a “0” (zero)
- Create logical sequences
- Use structure
- Choose a fixed length
Product Code or Barcode?
The barcode can be used alongside the product code to identify a product. When you sell products in physical stores or on certain online marketplaces, a barcode is often required. This will be a unique EAN code, which you need to request from the relevant authority to ensure that no two products share the same EAN code.
Note: You can convert your product code into a label that turns the SKU into a barcode (scanners only read barcodes, not numbers or letters). This barcode is not an official EAN code, but it can be used for internal picking with a barcode scanner. The official EAN code of your product can be used both as a product code and as a barcode, but the reverse is not true.
Need Help with Your Product Codes?
Contact Webship or refer to the Webship Online documentation guide for assistance.