A simple SKU numbering system for small stores

A SKU, or stock keeping unit, is an internal code a store assigns to each product it sells. SKU numbering is how you build those codes so they're consistent and easy to read. A simple system uses a short category code, a product number, and sometimes a size or variety code. It helps you track inventory, especially for items without manufacturer barcodes, and keeps your POS item file tidy as it grows.

You don't need a complicated scheme. You need one that everyone on staff can understand at a glance.

How is a SKU different from a UPC?

A UPC is the manufacturer's barcode number. It's the same in every store that sells the product. A UPC comes from the brand owner, and you don't choose it.

A SKU is your own code. You decide how it's built, and it only has meaning in your store. Two stores can give the same product completely different SKUs.

Many stores use the UPC as the main lookup at the register and keep SKUs for internal use: inventory counts, ordering, reports, and items that don't have a UPC. Stores with lots of house-made or loose items lean on SKUs more.

Your POS may create an internal item number automatically. A readable SKU system on top of that makes life easier for people, not just the software.

What should a SKU include?

Keep it short, with a few meaningful parts. A common pattern has three parts.

A category code. Two or three letters for the department, like BEV for beverages, SNK for snacks, HBA for health and beauty, and DEL for deli.

A product number. A few digits that identify the item within the category, like 001, 002, and so on.

A variant code, if needed. Size, flavor, or pack count, like 12OZ or 6PK.

So a house-made turkey sandwich might be DEL-014. A 20-ounce cold brew in the cooler might be BEV-102-20OZ.

Here's a hypothetical. A store sells 40 house-made or loose items. Before SKUs, cashiers searched by name and often picked the wrong one. After assigning simple codes like DEL-001 through DEL-018 and BAK-001 through BAK-022, cashiers learn the common ones within a week, and sales reports finally show which items sell.

What rules keep SKUs consistent?

A few rules prevent a mess later.

Never reuse a SKU for a different product, even after the old one is discontinued. Old reports will get confusing.

Avoid letters that look like numbers, such as O and I. They cause typing mistakes.

Keep every SKU the same length and format, so they sort cleanly in reports.

Don't pack too much meaning into the code. Price, supplier, or date in the SKU usually becomes wrong over time.

Write the rules down in one short document, with the category codes listed. Anyone adding a new item follows the same pattern.

How do SKUs connect to labels and the POS?

Enter each SKU as an item in your POS, with the name, price, category, and tax settings. If the item has no UPC, the SKU can be the code you print as a barcode.

Print barcode labels with the SKU, item name, and price. Test-scan a label before printing a batch.

Put SKUs on shelf tags too. It speeds up counting and reordering, since staff can match the tag to the report.

For label rolls and price labels, browse the label guns category on NRS Marketplace. For binders and forms to keep your SKU list, check the office and school supplies category.

If you use NRS POS, ask how it handles internal item numbers and custom barcodes. You can learn more at NRS POS.

How do you roll it out without disrupting the store?

Start with one category, usually the one with the most items that lack UPCs, like the deli or bakery.

Assign SKUs, enter them, print labels, and test for a week. Fix anything confusing.

Then move to the next category. Rolling out a few categories at a time avoids a weekend of relabeling everything.

Train staff on the pattern, not every code. Once they know DEL means deli and the numbers run in order, they can find what they need.